The lodging real estate investment trusts (REITs) -
Host Hotels & Resorts Inc.
) - sold 'Ritz-Carlton, San Francisco' to an investment vehicle
sponsored by Thayer Lodging Group for about $161 million. The
company intends to use the proceeds to finance proposed buyouts
and for other corporate purposes.
The Ritz-Carlton, San Francisco is one of the premium branded
Marriott International, Inc
). The hotel, having 336 luxurious suites, is situated in the
downtown area and conveniently connected to landmarks such as
Union Square, Fisherman's Wharf, The Embarcadero and the city's
Financial District. The property caters to both leisure and
Host Hotels is well on track on improving its overall
portfolio, though successful execution of its strategic capital
recycling program. As part of this, the company is vending assets
from time-to-time. It is reaping decent gains by selling core
assets at favorable price in key markets and consequently
investing the proceeds in acquisitions as well as in the
development and redevelopment of quality assets.
In tune with this, Host Hotels completed dispositions over
$600 million since the beginning of 2012. This includes the major
divestiture of 1,663-room Atlanta Marriott Marquis for $293
million in first-quarter 2013. We expect such strategic moves to
position Host Hotels favorably, going forward.
Of late, Host Hotels has been riding on growth trajectory by
enhancing its presence in high-end markets. Last month, the
company bought a
Hyatt Hotels Corporation
) property in Honolulu, Hawaii for $138.5 million.
Host Hotels currently carries a Zacks Rank #2 (Buy). Another
better performing lodging REIT that is worth a look is
Sunstone Hotel Investors Inc.
) which has a Zacks Rank #1 (Strong Buy).
HYATT HOTELS CP (H): Free Stock Analysis
HOST HOTEL&RSRT (HST): Free Stock Analysis
MARRIOTT INTL-A (MAR): Free Stock Analysis
SUNSTONE HOTEL (SHO): Free Stock Analysis
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