Host Hotels Stock Price, News & Analysis

On September 15, 2020, Host Hotels & Resorts (NYSE: HST) reported its preliminary hotel operating results for July and August 2020. The company has reopened 19 hotels, with 70 out of 80 consolidated hotels now operating, representing 88% of total room count. RevPAR increased by 10.4% in July and 33.7% in August due to rising leisure demand. However, Host expects $60 to $70 million in severance expenses during the year's second half. The company successfully issued $750 million in senior notes, enhancing liquidity to approximately $2.2 billion, as it prepares for a slow recovery.

Host Hotels & Resorts, Inc. (NYSE: HST) announced the pricing of a $150 million offering of 3.50% Senior Notes due 2030, following an earlier issuance of $600 million in the same series. The offering is projected to close on September 3, 2020, with estimated net proceeds around $146 million. These funds will be allocated to LEED-certified green projects and general corporate purposes, including debt repurchases. The offering is conducted under an effective shelf registration statement and is backed by major financial institutions.

On August 18, 2020, Host Hotels & Resorts, Inc. (HST) announced the expiration of its Tender Offer for its 4.750% Series C Senior Notes due 2023, which ended on August 17, 2020. Approximately $363.7 million, or 81% of the notes outstanding, were validly tendered. Host L.P. plans to accept all valid tenders and will pay $1,070 per $1,000 principal amount within three business days. The payment will be funded by proceeds from a recent offering of $600 million in new senior notes. The company owns a portfolio of 80 luxury and upper-upscale hotels, totaling about 46,700 rooms.

Host Hotels & Resorts, L.P., a subsidiary of Host Hotels & Resorts, has priced its offering of $600 million in 3.50% Senior Notes due 2030. The offering is set to close on August 20, 2020, pending customary conditions. Estimated net proceeds are approximately $588 million, intended for eligible green projects and to repurchase existing senior notes. The offering is managed by major financial institutions, including J.P. Morgan and Goldman Sachs. The press release includes forward-looking statements about ongoing transactions and risks associated with the COVID-19 pandemic.

Host Hotels & Resorts, Inc. (HST) announced a cash tender offer for its outstanding 4.750% Series C Senior Notes due 2023, totaling $450 million. Holders of the Notes can receive $1,070 per $1,000 principal amount, plus accrued interest, if they tender by the August 17, 2020 deadline. The offer is contingent upon Host L.P. raising at least $500 million through new senior notes. The payment date is expected to be August 20, 2020.

Host Hotels & Resorts (HST) reported a significant decline in revenues, posting $103 million in Q2 2020, a 93.1% drop compared to $1.48 billion in Q2 2019. The company incurred a net loss of $356 million, down from a profit of $290 million a year ago. Despite these challenges, Host successfully reopened 19 hotels and improved average occupancy by 380 basis points. To maintain liquidity, it amended a $2.5 billion credit agreement and suspended dividends and stock buybacks. The outlook remains uncertain due to COVID-19 impact on the travel industry.

Host Hotels & Resorts (HST) will announce its Q2 2020 financial results on July 30, 2020, after market close. A conference call to discuss these results and the company's outlook is scheduled for July 31, 2020, at 10:00 a.m. ET, with access provided via a toll-free number (877-407-8031) and an international number (201-689-8031). The call will also be available for replay until October 30, 2020. Host Hotels is a leading lodging REIT with 75 properties in the U.S. and 5 internationally, focusing on luxury and upper-upscale markets.

Host Hotels & Resorts (HST) announced the successful amendment of its $1.5 billion revolving credit facility and two $500 million term loans. The changes include a waiver of financial covenants until mid-2021 and modifications aimed at easing compliance post-waiver. The company aims to preserve liquidity during business disruptions and enhance investment flexibility, with permission to fund acquisitions and capital expenditures. HST plans to repay $750 million of its revolving credit by June 30, 2020, while maintaining its unsecured asset status and liquidity thresholds.

Host Hotels & Resorts (NYSE: HST) has temporarily suspended its quarterly dividend, starting with the second quarter, to preserve liquidity. This decision, affecting an estimated $140 million in cash, aligns with measures to reduce capital expenditures by $100 to $125 million and corporate expenses by 10% to 15%. The company's President and CEO stated that the Board will monitor financial performance to determine when to reinstate the dividend. Previously, the company paid a $0.20 per share dividend on April 15, 2020.