Host Hotels buys Wyoming Four Seasons for $315M

Lodging real estate investment trust Host Hotels & Resorts has acquired the fee simple interest in the 125-room Four Seasons Resort and Residences Jackson Hole (Wyo.) for approximately $315 million in cash. The acquisition price represents a 13.6 times earnings before interest, income tax, depreciation and amortization multiple or a cap rate of approximately 6.6 percent on the resort’s 2022 estimated results.

The resort is expected to be one of Host’s top three assets based on estimated full-year 2022 results, with revenue per available room of $855, total RevPAR of $1,430 and EBITDA per key of $185,000.

The resort is one of only a handful of luxury ski in/ski out resorts in the United States. It sits on 6.3 acres in Teton Village at the base of the Jackson Hole Mountain Resort. It also is close to Grand Teton and Yellowstone National Parks, making it a year-round destination where future supply is expected to be severely restricted. The resort, which opened in 2003, underwent a guestroom renovation in 2022 and no disruptive capital expenditures are expected in the near term. In addition, the Jackson Hole Airport is undergoing a $65 million renovation and expansion that is scheduled to wrap in 2022 to better accommodate year-round demand, shrinking shoulder seasons and increasing visitor growth.  

The resort has 125 rooms and suites that average approximately 650 square feet with gas fireplaces and balconies, including a five-bedroom, 4,700-square-foot penthouse. Public spaces include nearly 9,000 square feet of indoor meeting space, three food-and-beverage outlets as well as a pool café, two retail outlets and a 16-treatment room spa. The resort also has a private ski club, a kids club and a fitness center. 

“From 2014 through 2019, the resort had a RevPAR [compound annual growth rate] of 5.8 percent, significantly outperforming the broader ultra-luxury set, which had a RevPAR CAGR of 4.3 percent over the same time period,” James F. Risoleo, Host president and CEO, said in a statement. “With year-round demand generators, no new supply on the horizon and a recent comprehensive guestroom renovation, we believe the resort is well positioned to continue outperforming over the long term, driving value for our portfolio and our shareholders.”

Host suggested the resort’s 2022 performance has been muted as a result of the guestroom renovation during the first half of the year, as well as Jackson Hole Airport being closed for approximately three months during the year. By growing year-round occupancy to historical levels and repositioning the F&B outlets and public spaces, the company expects the resort to stabilize at approximately 11-13 times EBITDA in the 2026-2028 timeframe.