The lodging real estate investment trust (REIT)
Host Hotels & Resorts Inc.
), bought a Hawaii-based premium property - Hyatt Place Waikiki
Beach - for $138.5 million. The move marks the company's efforts
to spread its presence in high-end markets and thereby strengthen
its overall portfolio.
Host Hotels acquired the property from an affiliate of
Chartres Lodging Group, LLC - Kokua Hospitality - and Morgan
Stanley Real Estate Fund VII Global of
). Post acquisition, Kokua Hospitality will oversee Hyatt
Place Waikiki Beach, as per a franchise deal with
Hyatt Hotels Corporation
Located in proximity to Waikiki Beach of Honolulu, Hyatt Place
Waikiki Beach comprises 426 rooms. The property is well-connected
to various tourist spots of Honolulu such as Waikiki Aquarium,
the Honolulu Zoo and the Kalakaua shopping district.
Waikiki has a high barrier-to-entry leisure market, with an
occupancy rate of around 90%. Moreover, Hawaii is one of the most
popularly sought destinations in the world, with a flourishing
tourism industry. In Apr 2013, total expenditures by visitors who
came to Hawaii increased 1.8% year-over-year to $1.1 billion,
according to the Hawaii Tourism Authority. This was particularly
driven by a 3.1% year-over-year rise in total visitor
Considering the aforementioned facts, we remain upbeat
regarding Host Hotels' decision to expand its footprint in the
Hawaiian market. Notably, apart from the newly acquired hotel,
the company has 2 other premium properties in Hawaii - Hyatt
Regency Maui Resort & Spa, and The Fairmont Kea Lani. With
the buy-out of Hyatt Place Waikiki Beach, Host Hotels now owns
104 premium properties located across the U.S. and 15 properties
abroad which position it well globally for future growth.
The company currently carries a Zacks Rank #2 (Buy). Other
well performing lodging REITs include
LaSalle Hotel Properties
) which has the same Zacks rank as Host Hotels.
HYATT HOTELS CP (H): Free Stock Analysis
HOST HOTEL&RSRT (HST): Free Stock Analysis
LASALLE HTL PRP (LHO): Free Stock Analysis
MORGAN STANLEY (MS): Free Stock Analysis
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