The 806-room hotel sits on 37 acres of oceanfront land on Kaanapali Beach and has a 9,000-square-foot spa. The purchase price equals $398,000 per room, the Bethesda, Maryland-based company said in a statement. An affiliate of Blackstone Real Estate Advisors, a unit of buyout firm Blackstone Group LP, is selling the hotel.

Hawai'i is a difficult market in which to build hotels, keeping competition for the Hyatt low, Host Marriott said. Host Marriott is raising cash through asset sales and share sales to purchase hotels in areas that will benefit from a recovery in travel demand, said Steve Burton, a money manager at Clarion CRA Securities.

"They’ve got cash and if you buy into the thesis that the economy is recovering now is the time to buy properties," said Burton, who helps oversee $2.5 billion in real estate securities, including 3 million shares of Host Marriott.

Shares of Host Marriott fell 2 cents to $11.80 at 4:16 p.m. in New York Stock Exchange composite trading. They’ve risen 33 percent this year.

Host Marriott said it’s buying the hotel for 20 percent less than its replacement cost and that the purchase will add to earnings immediately. The company will help pay for the property with proceeds from a $254.4 million share sale completed in August. The purchase will be completed this year, the company said.

Hyatt will continue to manage the hotel, according to Host Marriott spokesman Gregory Larson.

Host Marriott owns 120 hotels under names including Marriott, Four Seasons and Hilton.