Home Alts News BREIT to Sell Texas JW Marriot for $800 Million

BREIT to Sell Texas JW Marriot for $800 Million

Ryman Hospitality Properties Inc. (NYSE: RHP) and Blackstone Real Estate Income Trust Inc. announced that the company’s reached an agreement under which Ryman will purchase the JW Marriott San Antonio Hill Country Resort & Spa in San Antonio, Texas for $800 million from BREIT.

“We identified the JW Marriott Hill Country as an ideal acquisition target quite some time ago,” Mark Fioravanti, president and chief executive officer of Ryman Hospitality Properties, said. “Located in an attractive and growing market with no emerging competitive supply, this beautiful resort is a natural complement to our existing Gaylord Hotels portfolio and offers significant opportunities to serve the group and leisure sides of our business. The acquisition price represents a Trailing Twelve Months (through March 31, 2023) Adjusted EBITDAre multiple of approximately 12.6x.”

Located amid approximately 640 acres in the Texas Hill Country, the JW Marriott Hill Country, which opened in 2010, is a group-oriented resort with 1,002 rooms and 268,000 total square feet of indoor and outdoor meeting and event space. The resort’s amenities include the 26,000-square-foot Lantana Spa; eight food and beverage outlets; the nine acre River Bluff water experience; and TPC San Antonio featuring two 18-hole golf courses, the Greg Norman-designed Oaks Course and the Pete Dye-designed Canyons course.

Nadeem Meghji, head of Blackstone Real Estate Americas, said, “Where you invest matters and Ryman’s unsolicited outreach demonstrates the strong investor demand for BREIT’s portfolio, which is concentrated in the highest growth sectors and geographies. This sale, which generates approximately $275 million in profit over a five-year hold period, through Covid, represents a terrific outcome for BREIT shareholders.”

Ryman plans for the resort to continue to operate under the JW Marriott flag.

Ryman and BREIT expect to close the JW Marriott Hill Country acquisition during the second or third quarter of 2023, subject to customary closing conditions.

As The DI Wire previously reported, BREIT has limited redemptions multiple times in recent months; redemption requests totaled $4.4 billion in May. The company fulfilled  $1.3 billion of May repurchase requests.

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