Host Hotels & Resorts Inc.
), a real estate investment trust (REIT), has recently hiked its
quarterly dividend for the third quarter of 2012 by 14.3% to 8
cents per share. The common stock dividend is payable in cash on
October 15, 2012 to shareholders of record at the close of business
on September 28.
HOST HOTEL&RSRT (HST): Free Stock Analysis
LASALLE HTL PRP (LHO): Free Stock Analysis
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The current dividend payout represents a two-fold increase from
that paid in the year-ago quarter. To add a feather to its cap, the
present dividend hike is the seventh such quarterly increase and
marks a steady improvement in the operations of the company.
Based on the closing price of $17.21, the current dividend yield is
fairly decent at approximately 1.9%. A steady dividend payout
facilitates the long-term strategy of Host Hotels to provide
attractive risk-adjusted returns to its stockholders. Investors
looking for high dividend yields are increasingly favoring REITs
like Host Hotels. Solid dividend payouts are arguably the biggest
enticement for REIT investors as U.S. law requires REITs to
distribute 90% of their annual taxable income in the form of
dividends to shareholders.
Based in Bethesda, Maryland, Host Hotels is the largest lodging
REIT in the U.S. The company is also 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.
Over the years, the company has executed a focused and disciplined
long-term strategic plan to acquire high quality lodging assets in
hard-to-replicate areas which have the potential for significant
Host Hotels maximizes the value of its existing portfolio through
aggressive asset management, and works diligently with the managers
of its hotels to reduce operating costs and increase revenues. The
company conducts selective capital improvements and expansions
designed to improve operations. In addition, the bulk of its
properties operate under some of the most recognized brand names in
the hospitality industry. This improves the profitability of the
company and strengthens its leading position in the market.
We maintain our Neutral recommendation on Host Hotels, which has a
Zacks #2 Rank that translates into a short-term Buy rating. We also
have a Neutral recommendation and a Zacks #3 Rank (short-term Hold
La Salle Hotel Properties
), one of the competitors of Host Hotels.