Host Hotels & Resorts, Inc.
), the largest lodging real estate investment trust (REIT), has
recently completed a joint venture agreement with an affiliate of
Hyatt Hotels Corporation
) to develop and operate a 131-unit vacation ownership project in
Maui, Hawaii on Ka'anapali Beach. The project titled 'Hyatt
Ka'anapali Beach, a Hyatt Residence Club' is the first of its
kind in the region and will be the 16th Hyatt Residence Club
operating across the U.S. and Puerto Rico.
Hyatt Residence Club offers vacation ownership opportunities in
serene regionally inspired residential-style properties. Slated
to open in 2014, the project is located adjacent to the Hyatt
Regency Maui Resort & Spa. The property would showcase 19
one-bedroom units, 100 two-bedroom units, and 12 three-bedroom
units. At the same time, the project would offer an 8,000 square
feet open-air lobby, a retail store, a 75-seat casual dining
restaurant, a pool with a multi-level pool deck, and a 3,300
square feet fitness center.
In a separate development, Host Hotels sold its 94.8% ownership
interest in the Toronto Airport Marriott Hotel for CAD$30.6
million. The asset sale was part of the long-term strategy of the
company to reduce its exposure to non-core suburban
Over the years, Host Hotels has maximized the value of its
existing portfolio through aggressive asset management.
Simultaneously, the company has worked diligently with the
managers of its hotels to reduce operating costs and increase
revenues, and has conducted selective capital improvement and
expansion to improve its profitability.
HYATT HOTELS CP (H): Free Stock Analysis
HOST HOTEL&RSRT (HST): Free Stock Analysis
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Based in Bethesda, Maryland, Host Hotels is one of the largest
owners of luxury and upper-upscale hotels, primarily operated
under premium brands such as Marriott, Westin, Sheraton,
Ritz-Carlton, Hyatt, W, Four Seasons, and St. Regi.
Host Hotels anticipates the gradual revival of the overall
economy to boost its operating results in 2012, with comparable
hotel revenue per available room (RevPAR) expected to increase in
the range of 6.25% to 7.0% for the full year. For fiscal 2012,
Host Hotels expects to incur approximately $330 million to $340
million in renewal and replacement expenditures and $165 million
- $175 million in ROI (return on investment) expenditure.
We maintain our Neutral recommendation on Host Hotels, which
presently has a Zacks #3 Rank that translates into a short-term