Water Energy GhGEmissions Information Employeeperks Assets Balancesheet Charity Children Community Dotmenu Download Email Environmentalstewardship Excel Excellence Financialinformation Fooddonation Fundraiser Greencertification Gridview Habitatforhumanity Hamburger Healthcare Integrity Listview Location Meals Numberofrooms Numberofsuites Partnership Pdf Personalcareerdevelopment Phone Photo Print Redevelopmentroi Responsibleinvestment Resturant Search Squarefootage Stockinformation Thirdpartyoperated Uparrow Valueenhancement Website Word Worklifebalance Xml Yearendreview arrow-up 401kplan Accolade Barlounge Businessattirecasual Businesscenter Businesstravelaccidentalinsurance Careerdevelopment Companypaidparking Corporatecitizenship Dependedcare Disabilty Employeeassistanceprogram Employees Employeestockpurchase Fareshareprogram Financialbenefits Fooddonation Golf Governance Habitatforhumanity Healthadvocate Hotelroomdiscount Hours Incomeprotection Lifeinsurance Longtermcare Meetingbanquetfacilities Oceanwaterfrontview Onairportground Outdoorindoorpool Parking Redevelopmentandroi Renewalandreplacement Retailoutletsonsite icon-Retrospect Sauna Shortandlongtermdisability Spasalon Tennis Volunteer Waterpark Whirlpoolsauna icon-Basketballcourts icon-Cabanas icon-Freewifi icon-Garden icon-Internetaccess icon-Newsstand icon-Petfriendly icon-Virtualconcierge icon-Volleyballcourt icon-Winetasting icon-Seniorlivingcommunity icon-Fullservicehotels

A Retrospective

Host Hotels & Resorts, Inc. shares “corporate DNA” with a Washington, D.C. root beer stand first opened in 1927 by J. Willard Marriott and his wife Alice, which they named “The Hot Shoppe.” A lot has happened since then. Here is a look at the The New Face of Host Hotels & Resorts.

Timeline

Let’s take a look back at how we became the company we are today.

1993

Host Marriott Corporation is Formed

Marriott Corporation was renamed Host Marriott Corporation on October 8, 1993, as a result of a tax-free spin-off of Marriott Corporation, creating two separate and distinct companies: Host Marriott Corporation and Marriott International, Inc. Host Marriott retained Marriott’s lodging real estate and airport/toll road concessions business, while Marriott International took over management of the lodging and contract service businesses.

As of December 31, 1993:

24

Full Service Hotels

102

Limited Service Hotels

24,301

Rooms

$67.12

RevPAR

14

Senior Living Communities

$3.6B

Total Enterprise Value

1996

Premium Lodging Portfolio Established

By year end 1996, we had solidified our long-term strategy of “acquiring high quality, full service hotels with the potential for significant capital appreciation.” – Host Marriott Corporation Annual Report, 1996. In the three years from 1994 through 1996, Host Marriott acquired a total of 55 hotels with an aggregate investment value of $2.8 billion. Host Marriott also held a minority interest in 25 lodging partnerships, which owned 31 full service hotels and 220 limited service hotels. At the same time, we divested of our airport and toll road concessions business through the spin-off of Host Marriott Services in December of 1995 and completed the sale/leaseback of all of our remaining Courtyard by Marriott and Residence Inn hotels.

As of December 31, 1996:

77

Full Service Hotels

2

Limited Service Hotels

37,210

Rooms

$92.71

RevPAR

29

Senior Living Communities

$6.7B

Total Enterprise Value

1998

Brand Diversification Strategy Launched

During 1998, we significantly expanded our portfolio through the acquisition of 12 world-class hotels with 5,000 rooms for $1.5 billion from the Blackstone Group — launching a brand diversification strategy by acquiring luxury and upper upscale hotels that included brand names such as Ritz-Carlton and Hyatt. We also gained nearly 100% control over 28 hotels, some of which had previously been unconsolidated, by exchanging limited partner interest for units in our balance sheet.

As of December 31, 1998:

124

Full Service Hotels

2

Select Service Hotels

58,000

Rooms

$109.06

RevPAR

$9.9B

Total Enterprise Value

1998-1999

The Largest U.S. Lodging REIT is Born

Through several major transactions, Host Marriott qualified as a Real Estate Investment Trust effective January 1, 1999.

2002

Fortune 500 Status Obtained

Always at the forefront of the Lodging REIT Industry, in 2001 Host Marriott repurchased the leases for our hotels from Crestline Capital Corporation and established our taxable REIT subsidiary structure. As a result, we were able to consolidate 100% of the revenue stream from our hotels and became a Fortune 500 Company. To this day, we remain the only Lodging REIT within the Fortune 500.

2006

Host Hotels & Resorts – Portfolio Expansion and Diversification

We acquired a portfolio of 34 hotels from Starwood Hotels & Resorts Worldwide, Inc., including six hotels in Europe, which were acquired by us in a joint venture in which our partners included Government of Singapore Investment Corporation Pte Ltd (GIC) and APG Strategic Real Estate Pool NV. This acquisition increased our scale, adding $3.5 billion of value; established our international presence; and improved our operator diversification, as Starwood became our second largest operator. Due to this dramatic change in our brand mix, our name changed from Host Marriott Corporation to Host Hotels & Resorts, Inc., to reflect our new multi-branded portfolio.

As of December 31, 2006:

126

Full Service Hotels

2

Select Service Hotels

67,000

Rooms

$133.48

RevPAR

7

Hotels Owned by European JV (2,600 Rooms)

$9.1B

Total Enterprise Value

2007

Standard & Poor’s 500 Index Inclusion

Recognizing the growth and stability provided by our high-quality real estate assets and flexible balance sheet, Host was included within the Standard & Poor’s 500 Index, which allowed us to expand significantly our investor base. Additionally, Host was in the middle of a three-year $1.8 billion capital expenditures program to enhance the competitiveness of our properties and keep them at best-in-class levels.

2012

Asset Management Strategies Expand Operator Relationships

Throughout our history, we have utilized our unique position as the industry’s largest lodging REIT to identify and implement strategic initiatives in order to drive revenue growth, help control expenses and increase market share. In 2012, for example, we began expanding our operator relationships to include third party operators, allowing us to optimize the operator, brand and contract terms for each hotel.

2012–2014

Investment Grade Status Obtained

Our unwavering commitment to our financial strength is recognized as Moody’s Investors Services and Standard & Poor’s Ratings Services upgraded our senior unsecured debt rating to investment grade in 2012 and 2013 respectively. We succeeded in lowering our leverage ratio, as defined by our credit facility, by 270 basis points over a five-year period and it remains within our stated goal of 2.5x to 3.0x. In 2014, Host also received its first Leader in the Light Award for the Lodging/Resort property sector by the National Association of Real Estate Investment Trusts in recognition of its sustainable real estate practices. 

TODAY

The Premier Lodging REIT

Our transformational efforts over the past 15 years have streamlined our investment focus into gateway cities and key international markets. Since 2010, we have directly acquired, or purchased through our joint ventures, interests in 32 hotels, investing approximately $3.9 billion in the United States and abroad. As a result, properties in our major markets represent 90% of our revenues, and we are represented in 16 countries.

We have hotels managed by 12 different managers. Urban and Resort properties make up 83% of our portfolio (based on revenues), compared to 67% in 2001.

At the same time, we have maintained our flexible capital structure, and, since 2010, have lowered our weighted average interest rate by 250 basis points and extended our average debt maturity by 1.6 years.

As of December 31, 2015:

104

Full Service Hotels

57,000

Rooms

$166.39

RevPAR

10

Hotels Owned by European JV (3,900 Rooms)

$15.7B

Total Enterprise Value

$16.70

Stock Price (3/31/2016)