Host Hotels & Resorts, Inc. (HST) is an S&P 500 and Fortune 500 company and is the largest lodging real estate investment trust (REIT) and one of the largest owners of luxury and upper-upscale hotels. HST was incorporated as a Maryland corporation in 1998 and operates as a self-managed and self-administered REIT. The Company is headquartered in Bethesda, Maryland and is traded on the New York Stock Exchange under the symbol "HST."
Luxury and value personified means putting our strategy, our values and our vision into everything we do. We are the preeminent owner of high-quality lodging real estate at the epicenter of dynamic and growing markets. Our overall goal is to generate superior long-term risk-adjusted returns for our stockholders.
Our EPIC (Excellence, Partnership, Integrity and Community) values guide us in our approach to maintaining the following:
Superior Diversified Portfolio – Own a geographically diverse portfolio of hotels located in major urban centers and resort destinations with relatively higher barriers to entry
Disciplined Capital Allocation – Allocate and recycle capital to earn returns that exceed our cost of capital and actively return capital to stockholders
Strong Asset Management Capabilities – Create value in our existing portfolio through asset management and capital investment
Powerful and Flexible Capital Structure – Maintain a strong and flexible capital structure that allows us to execute our strategy throughout all lodging cycles
Top Employer and Responsible Corporate Citizen – Align our organizational structure with our business objectives to be a top employer and a responsible corporate citizen
Our Strategy
Superior Diversified Portfolio
We own one of the most geographically diversified portfolios of superior hotel real estate in the industry and partner with leading operators and premier brands in the hospitality industry. We target high-quality assets in major markets and premier resort and convention destinations, while utilizing the strength of our balance sheet to be opportunistic and flexible in our approach. We remain disciplined yet nimble and open to investing in lodging assets that are accretive to our stockholders and where we believe our employees and analytical expertise can create real value. Our diverse portfolio of high-quality hotel properties is a key component of driving stockholder value.
Strong Asset Management
Our strategy is to drive operating performance and implement value-added real estate decisions to maximize stockholder value and drive long-term profitability. To enhance our profitability, our enterprise analytics group offers independent feasibility, business intelligence, revenue management, capital expenditures acumen and financial planning and analysis. This distinctive expertise allows us to benchmark and monitor hotel performance and cost controls and complete deep-dive analytic reviews across brands and properties to seek new opportunities that could increase profit. These core functions assist our asset management team in focusing on their key goal of maximizing EBITDA per room at every one of our hotels and enhancing the overall portfolio. Working closely with our operators, our asset managers ensure the best practices and strategic initiatives learned at individual properties are being deployed at each hotel. When possible, we also look for ways to improve contract flexibility through the extension or purchase of ground leases or the restructuring of management agreements. Ultimately, through successful execution of these strategies, we strive to maximize the performance of our hotels and position us to pursue higher sales proceeds upon disposition.
Strategic Capital Allocation and Value Enhancement
We are disciplined with capital allocation and focused on seeking to earn returns that exceed our cost of capital, with the goal of creating long-term value and strong returns for our stockholders. We are prudent with our investments and go beyond the acquisition of marquis properties, constantly mining and seeking to enhance the value of our irreplaceable real estate through value enhancement initiatives. We believe opportunities may exist across our portfolio and we critically analyze the wealth of data and information from our properties to implement strategies that capitalize on the value of the real estate.
What is a REIT
According to the National Association of Real Estate Investment Trusts (NAREIT), a Real Estate Investment Trust, or REIT, is a company that owns or finances income-producing real estate. Modeled after mutual funds, REITs provide investors of all types regular income streams, diversification and long-term capital appreciation. REITs typically pay out all of their taxable income as dividends to shareholders. In turn, shareholders pay the income taxes on those dividends.
REITs allow anyone to invest in portfolios of large-scale properties the same way they invest in other industries – through the purchase of stock. In the same way shareholders benefit by owning stocks in other corporations, the stockholders of a REIT earn a share of the income produced through real estate investment – without actually having to go out and buy or finance property.
Source: National Association of Real Estate Investment Trusts
For more information, visit the NAREIT website.