Eagle Four Partners, Lyon Living Acquire Newport Beach Marriott Hotel for $216M

by Taylor Williams

NEWPORT BEACH, CALIF. — A partnership between locally based private equity firm Eagle Four Partners LLC and development and management firm Lyon Living has acquired the 532-room Newport Beach Marriott Hotel & Spa for $216 million. The price equates to approximately $406,000 per room. The seller was Host Hotels & Resorts (NASDAQ: HST), a Maryland-based hospitality REIT.

The Newport Beach Marriott is situated on 10 acres adjacent to Newport Harbor and Newport Beach Country Club. The hotel is located within the 3 million-square-foot Newport Center mixed-use development and across from the 1.3 million-square-foot Fashion Island shopping and dining destination. Eagle Four owns and operates the Newport Beach Country Club and recently developed the new clubhouse at Newport Center.

The hotel features more than 32,000 square feet of indoor and outdoor meeting and event space, as well as a full-service, spa, pool and fitness center. A fine dining restaurant, grab-and-go food market and a Starbucks Coffee shop also operate within the property.

The Newport Beach Marriott was built in 1975 and renovated in 2005. The new ownership plans to build on past capital improvements with its own upgrades.

“The hotel will complete a comprehensive renovation of both public space and guestrooms including exterior enhancements,” says Peter Zak, president and partner of Lyon Living. “The result adds incredible value, not only to the hotel, but also to the Newport Center neighborhood and the many businesses in and around Fashion Island.”

According to The Orange County Register, the sales price is 14 times the property’s net income for 2019, a year in which it averaged 79 percent occupancy. The paper reported that for assets sold in 2019, Host Hotels on average received 21 times the asset’s net income.

Bob Webster and Michael DiPrima of CBRE Hotels represented both Host Hotels and the new ownership in the transaction. Pillsbury Winthrop served as legal counsel to the buyer, and Latham & Watkins provided those services to the seller.

The stock price of Host Hotels & Resorts opened at $13 per share on Monday, Nov. 9, down from $17 per share a year ago.

Taylor Williams

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