Host Hotels Pays $374 Million for Brooklyn and Plano Hotels

Host Hotels & Resorts spent $202 million in cash for the leasehold interest in the 195-room 1 Hotel Brooklyn Bridge, according to a Nov. 4 press release, and paid roughly $172 million more for the 308-room Renaissance Dallas at Plano Legacy West Hotel in Texas. Together, the two deals put roughly $374 million to work in a single announcement.

The economics explain the price tags. Host projects 1 Hotel Brooklyn Bridge will rank among its top 10 assets on full-year 2026 results, delivering total RevPAR of $1,130, RevPAR of $615 and EBITDA per key of about $100,000. The Renaissance Plano is projected to land in Host's top 25, with total RevPAR of $380, RevPAR of $200 and EBITDA per key of $50,000 — half the per-key earnings of its Brooklyn counterpart, but in a market Host doesn't yet occupy.

What does this change for Host's portfolio?

The acquisitions "add two high-quality assets at attractive pricing, expand our presence in key growth markets and enhance the quality, performance and geographic diversification of our portfolio," Host President and CEO James Risoleo said on a Nov. 5 call with analysts. "They reflect our disciplined approach to capital allocation and our commitment to generating long-term shareholder value."

The Brooklyn purchase marks Host's first property in the borough and its fourth in New York City. The REIT bought 1 Central Park from Starwood Capital Group in 2024 for $265 million, so this is a second, deeper push into the 1 Hotel brand. The property "benefits from convenient Manhattan access, strong Brooklyn demand drivers and significant barriers to new supply," Risoleo said, expanding Host's "luxury presence in New York into a new submarket."

The Plano deal is a market-entry play rather than a submarket extension. Renaissance Plano plants a flag in the "high-growth" Dallas-Fort Worth market "through a uniquely positioned asset in the Plano-Frisco submarket," Risoleo said. The property brings 16 suites, 35,000 square feet of meeting space and a full food-and-beverage and amenities package, including an outdoor pool — the kind of group and event infrastructure that drives total RevPAR beyond rooms alone.

The demand case rests on corporate relocations. "With more than 75 Forbes Global 2000 companies in the area, the submarket is well-positioned to benefit from continued corporate relocations and planned entertainment district development," Risoleo told analysts.

A strong quarter behind the checkbook

The announcement landed the same day as Host's third-quarter 2026 earnings. Comparable hotel RevPAR grew 8.8% year over year, "driven by very strong transient demand throughout the quarter, boosted by the World Cup and an increase in business transient demand." Comparable hotel total RevPAR grew 7.3%, "driven by increases in room rates and continued growth in food and beverage spend."

Host raised its full-year 2026 guidance on the strength of those numbers. It now projects comparable hotel RevPAR growth of about 6.75% year over year and comparable hotel total RevPAR growth of about 6%.

The acquisitions are funded, in part, by an active selling program. In February, Host sold the 444-key Four Seasons Resort Orlando at Walt Disney World Resort and the 125-key Four Seasons Resort and Residences Jackson Hole for a combined $1.1 billion. A month earlier, it sold the St. Regis Houston for $51 million.

The REIT's portfolio now stands at 72 U.S. properties and five international ones, totaling about 41,800 rooms. "Looking ahead to 2027, we remain optimistic about the travel outlook, supported by a favorable demand environment, the strength of the high-end consumer, continued growth in business travel, and historically low supply growth across our markets and chain scales," Risoleo said.