Host Hotels & Resorts has successfully divested the Four Seasons Resort Orlando at Walt Disney World and the Four Seasons Resort and Residences Jackson Hole for a combined $1.1 billion, generating an 11.0% unlevered IRR on investments originally made in 2021 and 2022 totaling $925 million. The transaction achieves a strong 14.9x trailing twelve-month EBITDA multiple, bolstered by minimal capital requirements during ownership, and underscores the REIT’s disciplined approach to capital recycling in a premium lodging market.
Strategic Asset Monetization in Luxury Lodging
Host Hotels & Resorts, the largest publicly traded lodging REIT in the United States, has executed a significant portfolio adjustment by completing the sale of two standout luxury properties: the 444-room Four Seasons Resort Orlando at Walt Disney World Resort in Florida and the 125-room Four Seasons Resort and Residences Jackson Hole in Teton Village, Wyoming. The combined sale price reached $1.1 billion, marking a profitable exit from assets acquired relatively recently.
The Orlando property, a family-oriented luxury resort adjacent to one of the world’s premier entertainment destinations, offers extensive amenities including multiple pools, a spa, golf facilities, and direct access to Disney theme parks. It has benefited from robust demand in the leisure travel segment, particularly from high-net-worth families seeking upscale accommodations near Orlando’s attractions. The Jackson Hole resort, set against the dramatic backdrop of the Grand Teton mountains, caters to an affluent clientele drawn to year-round outdoor pursuits such as skiing in winter and hiking or wildlife viewing in summer. Its smaller scale and residential component add to its exclusivity and appeal in the ultra-luxury mountain resort category.
Acquired in 2021 and 2022 for a combined $925 million, these hotels required no major capital investments during Host’s holding period. Routine maintenance and upgrades were covered through existing furniture, fixtures, and equipment (FF&E) reserves, preserving cash flow and enhancing the attractiveness of the assets at disposition.
The transaction delivers compelling financial metrics. On trailing twelve-month EBITDA, the sale reflects a 14.9x multiple, adjusted to account for approximately $88 million in estimated foregone capital expenditures over the next five years that a new owner would likely undertake. The unlevered internal rate of return stands at 11.0%, inclusive of $58 million in FF&E-funded expenditures and transaction-related costs, which reduced the IRR by roughly 170 basis points.
This outcome highlights the strength of the luxury resort segment amid evolving travel patterns. Post-pandemic recovery has favored high-end, experiential properties with strong brand affiliations, and Four Seasons’ reputation for service excellence has driven consistent performance in these locations. The Orlando asset capitalized on the surge in domestic leisure travel and family vacations, while Jackson Hole benefited from sustained interest in aspirational mountain destinations among wealthy travelers.
For Host Hotels & Resorts, the divestiture aligns with broader capital allocation priorities. As a REIT focused on high-quality, upper-upscale and luxury hotels, the company continually evaluates its portfolio to recycle capital into opportunities offering higher growth or better risk-adjusted returns. The $1.1 billion proceeds provide substantial liquidity for potential redeployment, whether through acquisitions, debt reduction, share repurchases, or other shareholder-friendly actions. The achieved multiple significantly exceeds the company’s recent trading multiples, demonstrating effective value creation through targeted investments.
The sale excludes any ongoing condominium development associated with the Orlando property, focusing solely on the hotel operations. This clean separation allows for straightforward transfer of ownership while preserving the resorts’ operational integrity under the Four Seasons brand.
In the context of the broader lodging REIT sector, such transactions reflect confidence in asset values at the upper end of the market. Luxury resorts have shown resilience, with RevPAR growth outpacing broader industry averages in key leisure-driven markets. Host’s ability to source, enhance, and exit these assets at attractive levels reinforces its position as a leading owner-operator in premium hospitality real estate.
This move comes as part of ongoing portfolio optimization. Host maintains a geographically diverse collection of approximately 76 properties (post-transaction), totaling around 41,700 rooms across the United States and select international markets. The disposition reduces exposure to specific resort concentrations while capitalizing on elevated buyer interest in irreplaceable luxury assets.
Overall, the deal exemplifies disciplined stewardship in a dynamic sector, where timing acquisitions during periods of market dislocation and exiting during strength can generate superior returns.
Disclaimer: This is a news report based on publicly available information and does not constitute investment advice, financial recommendation, or solicitation to buy or sell securities.
