Host Hotels & Resorts Inc. has experienced a drop in its share price since reporting disappointing fourth-quarter results and warning that 2015 results would be weaker than expected,
a
Wall Street Journal
article said.
Host, the largest real estate investment trust in the lodging sector, was formed in 1992 when Marriott International Inc. split off its real estate holdings, the report noted. Originally, Host owned Marriott’s properties, operated concessions at airports and toll roads and assumed Marriott’s debt. Subsequently, Host broke up again into a real estate company and an operator of food concessions, and the hotel owner became a REIT.
In 2005, Host acquired 38 hotels, mostly branded as Sherator and Westin properties, from Starwood Hotels & Resorts Worldwide. “Today, Marriott brands comprise about 50% of the Host portfolio,” the article said.
The
Journal
report said analysts have pointed out that “Host owns many older, full-service hotels and is light on popular limited-service and boutique properties, which tend to be especially design-conscious and appeal to younger travelers.”
About four years ago, Host changed its strategy to focus on 11 major markets and began selling hotels outside those regions. Two of its major markets, New York and Houston, have been “slumping,” the
Journal
report noted. (Source:
Wall Street Journal
, May 6, 2015.)
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