Host Hotels Sells Two Resorts for $1.1 Billion, Achieving 11% IRR
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14 hours ago
0mins
Should l Buy HST?
Source: Newsfilter
- Asset Sale Profit: Host Hotels sold the Four Seasons Resort Orlando and Four Seasons Resort and Residences Jackson Hole for $1.1 billion, achieving a 14.9x EBITDA multiple compared to the $925 million total investment made in 2021 and 2022, showcasing the company's success in asset management.
- Capital Allocation Strategy: This transaction not only yields an 11% unlevered internal rate of return (IRR) but also strengthens the company's robust balance sheet, providing greater flexibility for future investments and shareholder returns.
- Superior Market Performance: Since 2018, Host Hotels has disposed of approximately $6.4 billion in hotel assets at an overall EBITDA multiple of 16.7x, demonstrating its competitive advantage and effective capital management capabilities in the market.
- Future Growth Potential: The company plans to utilize the proceeds from this sale to continue pursuing high-return investments while returning capital to shareholders through dividends and share repurchases, reflecting its foresight and flexibility in capital allocation.
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Analyst Views on HST
Wall Street analysts forecast HST stock price to fall
9 Analyst Rating
5 Buy
4 Hold
0 Sell
Moderate Buy
Current: 20.010
Low
18.00
Averages
19.75
High
22.00
Current: 20.010
Low
18.00
Averages
19.75
High
22.00
About HST
Host Hotels & Resorts, Inc. is a lodging real estate investment trust. The Company owns luxury and upper-upscale hotels. The Company's operations are conducted solely through Host Hotels & Resorts, L.P. and its subsidiaries. The Company owns 75 properties in the United States and five properties internationally totaling approximately 42,900 rooms. It also holds non-controlling interests in seven domestic and one international joint ventures. It partners with brands such as Marriott, Ritz-Carlton, Westin, Sheraton, W, St. Regis, The Luxury Collection, Hyatt, Fairmont, 1 Hotels, Hilton, Four Seasons, Swissotel, ibis and Novotel, as well as independent brands. The Company's properties include AC Hotel Scottsdale North, The Ritz-Carlton O'ahu, Turtle Bay, Grand Hyatt San Francisco, The Westin Denver Downtown, 1 Hotel Central Park, JW Marriott Atlanta Buckhead, JW Marriott Houston by The Galleria, Four Seasons Resort and Residences Jackson Hole, and Hyatt Regency Reston.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
HOST HOTELS & RESORTS STOCK RISES 1% TO $20.47 POST-RESULTS AND OUTLOOK
- Hotel and Resort Performance: Hotels and resorts have reported a 1% increase in shares, reaching $20.47 after recent results were announced.
- Market Outlook: The outlook for the sector appears positive following the release of these results.
See More
HOST HOTELS & RESORTS REPORTS Q4 NET INCOME OF $137 MILLION
- Financial Performance: Hotels and resorts reported a net income of USD 137 million in the fourth quarter.
- Industry Insights: The financial results indicate a strong recovery and growth in the hospitality sector.
See More
HOST HOTELS & RESORTS REPORTS Q4 EPS OF USD 0.2
Industry Overview: The hospitality sector is experiencing a significant shift, with hotels and resorts adapting to new consumer preferences and market trends.
Economic Impact: The financial performance of hotels and resorts is showing signs of recovery, although challenges remain due to fluctuating demand and operational costs.
Sustainability Focus: There is an increasing emphasis on sustainable practices within the industry, as businesses aim to reduce their environmental footprint and appeal to eco-conscious travelers.
Technological Advancements: The integration of technology in hospitality services is enhancing guest experiences, with innovations in booking systems, contactless check-ins, and personalized services.
See More
Host Hotels & Resorts Reports Q4 Revenue of $1.603 Billion, Exceeding IBES Estimate of $1.496 Billion
Revenue Comparison: Hotels and resorts reported a revenue of USD 1,603 million in Q4, surpassing the estimate of USD 1,496 million by Ibes.
Market Performance: The strong performance indicates a positive trend in the hospitality sector, reflecting increased demand and consumer spending.
See More
HOST HOTELS & RESORTS, INC. ANNOUNCES 2025 PERFORMANCE RESULTS
- Industry Overview: The report provides insights into the performance and trends of the hotels and resorts sector for the year 2025.
- Key Findings: It highlights significant metrics such as occupancy rates, revenue growth, and market challenges faced by the industry.
- Future Projections: The report outlines forecasts for the upcoming years, indicating potential growth areas and shifts in consumer preferences.
- Strategic Recommendations: It offers strategic advice for stakeholders to enhance competitiveness and adapt to changing market dynamics.
See More
Host Hotels Sells Four Seasons Assets for $1.1 Billion
- Asset Sale Overview: Host Hotels & Resorts announced the sale of select Four Seasons assets for $1.1 billion, including the 444-room Four Seasons Resort in Orlando, Florida, and the 125-room Four Seasons Resort and Residences in Jackson Hole, Wyoming, showcasing the company's strategic vision in high-value asset disposals.
- Investment Return Rate: The transaction boasts an 11.0% unlevered internal rate of return (IRR), indicating that the company achieved asset appreciation without significant capital expenditures during its ownership, thereby enhancing its financial flexibility and market competitiveness.
- Financial Strategy: CEO James Risoleo stated that the proceeds will solidify the company's strong balance sheet, providing more options for pursuing high-return opportunities and returning capital to shareholders, demonstrating strategic flexibility in the market.
- Stock Price Reaction: In after-hours trading on Nasdaq, Host Hotels' shares rose 1.6% following a 1.3% increase during regular trading, closing at $20.26, reflecting positive market sentiment regarding the company's financial health.
See More
HOST HOTELS & RESORTS STOCK RISES 1% TO $20.47 POST-RESULTS AND OUTLOOK
- Hotel and Resort Performance: Hotels and resorts have reported a 1% increase in shares, reaching $20.47 after recent results were announced.
- Market Outlook: The outlook for the sector appears positive following the release of these results.
See More
HOST HOTELS & RESORTS REPORTS Q4 NET INCOME OF $137 MILLION
- Financial Performance: Hotels and resorts reported a net income of USD 137 million in the fourth quarter.
- Industry Insights: The financial results indicate a strong recovery and growth in the hospitality sector.
See More
HOST HOTELS & RESORTS REPORTS Q4 EPS OF USD 0.2
Industry Overview: The hospitality sector is experiencing a significant shift, with hotels and resorts adapting to new consumer preferences and market trends.
Economic Impact: The financial performance of hotels and resorts is showing signs of recovery, although challenges remain due to fluctuating demand and operational costs.
Sustainability Focus: There is an increasing emphasis on sustainable practices within the industry, as businesses aim to reduce their environmental footprint and appeal to eco-conscious travelers.
Technological Advancements: The integration of technology in hospitality services is enhancing guest experiences, with innovations in booking systems, contactless check-ins, and personalized services.
See More
Host Hotels & Resorts Reports Q4 Revenue of $1.603 Billion, Exceeding IBES Estimate of $1.496 Billion
Revenue Comparison: Hotels and resorts reported a revenue of USD 1,603 million in Q4, surpassing the estimate of USD 1,496 million by Ibes.
Market Performance: The strong performance indicates a positive trend in the hospitality sector, reflecting increased demand and consumer spending.
See More
HOST HOTELS & RESORTS, INC. ANNOUNCES 2025 PERFORMANCE RESULTS
- Industry Overview: The report provides insights into the performance and trends of the hotels and resorts sector for the year 2025.
- Key Findings: It highlights significant metrics such as occupancy rates, revenue growth, and market challenges faced by the industry.
- Future Projections: The report outlines forecasts for the upcoming years, indicating potential growth areas and shifts in consumer preferences.
- Strategic Recommendations: It offers strategic advice for stakeholders to enhance competitiveness and adapt to changing market dynamics.
See More
Host Hotels Sells Four Seasons Assets for $1.1 Billion
- Asset Sale Overview: Host Hotels & Resorts announced the sale of select Four Seasons assets for $1.1 billion, including the 444-room Four Seasons Resort in Orlando, Florida, and the 125-room Four Seasons Resort and Residences in Jackson Hole, Wyoming, showcasing the company's strategic vision in high-value asset disposals.
- Investment Return Rate: The transaction boasts an 11.0% unlevered internal rate of return (IRR), indicating that the company achieved asset appreciation without significant capital expenditures during its ownership, thereby enhancing its financial flexibility and market competitiveness.
- Financial Strategy: CEO James Risoleo stated that the proceeds will solidify the company's strong balance sheet, providing more options for pursuing high-return opportunities and returning capital to shareholders, demonstrating strategic flexibility in the market.
- Stock Price Reaction: In after-hours trading on Nasdaq, Host Hotels' shares rose 1.6% following a 1.3% increase during regular trading, closing at $20.26, reflecting positive market sentiment regarding the company's financial health.
See More
