Host Marriott to pay $96.2 million for 4 retirement communities Facilities in Mass., New Jersey, Colorado

Lodging

January 21, 1998|By BLOOMBERG NEWS

Host Marriott Corp. said yesterday that it will buy four retirement communities for $96.2 million, as the company expands its roster of senior-living facilities.

The Bethesda-based company said it agreed to buy the 124-unit Gables at Winchester in suburban Boston and the 418-unit Leisure Park in Lakewood, N.J., in separate transactions for a combined $61 million. The facilities are expected to have earnings before interest expense, taxes, depreciation, amortization and other noncash items, or EBITDA, of about $7.1 million this year.

Host Marriott also agreed to buy two Marriott Brighton Gardens assisted-living communities from Summit Cos. for $35.2 million. The facilities, still under construction, are in Denver and Colorado Springs, Colo. Each facility will have 160 units upon completion by the end of the year, the company said.

The acquisitions come as more U.S. citizens grow older and seek less-expensive alternatives to nursing homes. The company said it plans to make $750 million in senior-living acquisitions this year.

Host Marriott is the second-largest owner of housing communities for the elderly, with 31 senior-living communities. Salem, Ore.-based Holiday Retirement Corp., with 177 complexes, is the largest. In addition, Host Marriott owns 95 luxury hotels, operated under the Marriott and Ritz-Carlton brand names.

Host Marriott shares rose 50 cents to $19.375 yesterday.

Pub Date: 1/21/98

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