Host Hotels & Resorts, Inc. Announces Pricing Of $500 Million Of 5.700% Senior Notes Due 2032, By Host Hotels & Resorts, L.P.

Rhea-AI Summary

Host Hotels & Resorts announced the pricing of $500 million in senior notes due 2032 with a 5.700% interest rate. The offering, expected to close on May 20, 2025, will generate net proceeds of approximately $490 million after deducting underwriting costs and fees. The company plans to use these proceeds, along with cash on hand, to redeem all outstanding Series E senior notes due 2025. The notes represent senior unsecured obligations of Host Hotels & Resorts, L.P., for which Host Hotels & Resorts, Inc. acts as the sole general partner. Major financial institutions including Morgan Stanley, BofA Securities, J.P. Morgan Securities, Wells Fargo Securities, Goldman Sachs, and Truist Securities are serving as joint book-running managers for the offering.

Positive

• Successful refinancing of existing debt with new 7-year notes
• Strong banking syndicate supporting the offering indicates market confidence
• Maintains financial flexibility through debt restructuring

Negative

• Higher interest rate at 5.700% could increase interest expenses
• Net proceeds of $490M are less than the $500M redemption requirement, requiring additional cash on hand

Insights

REIT Financial Analyst

Host Hotels extends debt maturity by 7 years through even exchange of notes, representing prudent financial management without changing overall leverage.

Host Hotels & Resorts is conducting a straightforward debt refinancing operation that demonstrates proactive liability management. The company is issuing $500 million of 5.700% Senior Notes due 2032 to redeem an equivalent amount of Series E notes maturing in 2025, effectively extending their debt maturity profile by seven years.

The pricing spread suggests a reasonably attractive rate environment for investment-grade lodging REITs, with net proceeds of approximately $490 million after underwriting discounts and expenses. Host will use cash on hand to cover the $10 million difference between proceeds and the redemption amount, demonstrating adequate liquidity.

This transaction represents textbook liability management for a mature REIT—addressing upcoming maturities well in advance while extending the debt ladder. For a lodging REIT with cash flows tied to economic cycles, maintaining a balanced debt maturity schedule is crucial for financial flexibility. This refinancing improves their runway to navigate potential future challenges in the lodging industry.

The caliber of underwriters (Morgan Stanley, BofA Securities, J.P. Morgan, Wells Fargo, Goldman Sachs, and Truist) indicates strong market access and confidence in Host's credit profile. As the nation's largest lodging REIT, Host clearly maintains robust capital markets relationships.

While this transaction improves Host's debt maturity profile and demonstrates prudent financial management, it doesn't fundamentally alter the company's capital structure or leverage position. The principal amount remains unchanged at $500 million, making this a neutral financial event that maintains status quo while enhancing financial flexibility.

BETHESDA, Md., May 06, 2025 (GLOBE NEWSWIRE) -- Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the nation’s largest lodging real estate investment trust, today announced that Host Hotels & Resorts, L.P. ("Host L.P."), for whom the Company acts as sole general partner, has priced its offering (the "Offering") of $500 million aggregate principal amount of 5.700% Senior Notes due 2032 (the "Notes"). The Notes are Host L.P.’s senior unsecured obligations. The Offering is expected to close on May 20, 2025, subject to the satisfaction or waiver of customary closing conditions.

The estimated net proceeds of the Offering, after deducting the underwriting discount, de minimis original issue discount and fees and expenses, are expected to be approximately $490 million. Host L.P. intends to use the net proceeds from the sale of the Notes, together with cash on hand, to redeem all of Host L.P.’s outstanding $500 million aggregate principal amount of Series E senior notes due 2025.

Morgan Stanley & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC and Truist Securities, Inc. are the joint book-running managers for the Offering.

The Offering is being made pursuant to an effective shelf registration statement and accompanying prospectus filed with the Securities and Exchange Commission on April 9, 2024 and a preliminary prospectus supplement filed with the Securities and Exchange Commission on May 6, 2025. A copy of the final prospectus supplement and the accompanying prospectus relating to the Notes may be obtained, when available, by contacting Morgan Stanley & Co. LLC, at 1585 Broadway, New York, New York 10036, telephone: 1-800-548-7786, or by email: prospectus@morganstanley.com; BofA Securities, Inc., at 201 North Tryon Street, NC1-022-02-25, Charlotte, NC 28255, Attention: Prospectus Department, or Toll-free: 1-800-294-1322, or by email at dg.prospectus_requests@bofa.com; and J.P. Morgan Securities LLC, at 383 Madison Avenue, New York, New York 10179, Attention: Investment Grade Syndicate Desk – 3^rd Floor, or by calling (collect) (212) 834-4533. This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.

This press release contains information about pending transactions, and there can be no assurance that these transactions will be completed.

FORWARD LOOKING STATEMENTS

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “plan,” “predict,” “project,” “will,” “continue” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: general economic uncertainty in U.S. markets where we own hotels and a worsening of economic conditions or low levels of economic growth in these markets; our ability to close this Offering and apply the proceeds as currently intended; other changes in national and local economic and business conditions and other factors such as natural disasters and weather that will affect occupancy rates at our hotels and the demand for hotel products and services; the impact of geopolitical developments outside the U.S. on lodging demand; volatility in global financial and credit markets; operating risks associated with the hotel business; risks and limitations in our operating flexibility associated with the level of our indebtedness and our ability to meet covenants in our debt agreements; risks associated with our relationships with property managers and joint venture partners; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; the effects of hotel renovations on our hotel occupancy and financial results; our ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; risks associated with our ability to complete acquisitions and develop new properties and the risks that acquisitions and new developments may not perform in accordance with our expectations; our ability to continue to satisfy complex rules in order for us to remain a real estate investment trust for federal income tax purposes; risks associated with our ability to effectuate our dividend policy, including factors such as operating results and the economic outlook influencing our board’s decision whether to pay further dividends at levels previously disclosed or to use available cash to make special dividends; and other risks and uncertainties associated with our business described in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

SOURAV GHOSH
Chief Financial Officer
(240) 744-5267

JAIME MARCUS
Investor Relations
(240) 744-5117
ir@hosthotels.com

FAQ

What is the size and interest rate of Host Hotels & Resorts' (HST) new senior notes offering?

Host Hotels & Resorts is offering $500 million in senior notes due 2032 with a 5.700% interest rate.

How will Host Hotels & Resorts (HST) use the proceeds from the 2032 notes?

The proceeds, along with cash on hand, will be used to redeem all outstanding $500 million Series E senior notes due 2025.

When is the closing date for Host Hotels & Resorts' (HST) $500M notes offering?

The offering is expected to close on May 20, 2025, subject to customary closing conditions.

Which banks are managing Host Hotels & Resorts' (HST) 2032 notes offering?

The joint book-running managers are Morgan Stanley, BofA Securities, J.P. Morgan Securities, Wells Fargo Securities, Goldman Sachs, and Truist Securities.

What are the net proceeds expected from HST's $500M notes offering?

The net proceeds are expected to be approximately $490 million after deducting underwriting discount, original issue discount, and other fees and expenses.