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 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 intelligent asset management and capital investment
Powerful and Flexible Capital Structure – Embrace a flexible capital structure that allows us to execute our strategy throughout the lodging cycle
Top Employer and Responsible Corporate Citizen – Align our organizational structure with our business objectives to be a top employer and a responsible corporate citizen
International Brands and Markets
Discipline and successful execution have been, and always will be, the cornerstone of our global acquisition strategy. We pursue properties in key markets that we believe offer the potential for high revenue growth and limited new supply in order to seek to maximize profits and drive stockholder value. We focus on premium branded, upper-upscale hotels that appeal to multiple customer segments and which meet our demanding, best-in-class standards. Our acquisition strategy targets hotel products, whether in the United States, Europe, or other international markets, that we believe have a diversified corporate, leisure and group demand base, strong and growing destination appeal, with strong airlift and vibrant economies.
Superior Asset Management
Our strategy is simple—create significant value through intelligent positioning and operating strategies. To achieve this goal, we analyze each property individually in order to create value from its unique attributes within its specific market. Working with our operators, we strive to develop the optimal business mix for each property, while constantly seeking to adapt to the changes in the economic environment to enhance revenue growth. We have employed proprietary benchmarking analysis, taking advantage of the size and composition of our portfolio and affiliation with the leading operators and brands in the industry in an effort to try to augment the performance of each asset by increasing market share, reducing costs and driving better flow through. We constantly strive to develop more efficient ways to operate our hotels whatever the economic climate, then work to deploy these cost saving initiatives on a system-wide basis. Ultimately, through successful execution of these strategies we hope to maximize the performance of our hotels and position us to reap the rewards through higher sales proceeds upon disposition.
Strategic Capital Allocation and Value Enhancement
Our business is capital intensive and whether we are acquiring hotels or enhancing our existing portfolio our goal is to drive revenue growth and create long-term stockholder value. We look to reinvest intelligently in our assets, eliminating deferred maintenance that can lead to increased costs and reduced guest satisfaction, while using our scale and industry relationships to reduce purchasing costs and improve quality. We continually explore opportunities to invest in profit-generating projects that we expect to improve cash flow, or green initiatives, such as co-generation power plants, laundry water recycling and other energy management systems, that are designed to increase energy efficiency thereby reducing costs. Historically, these expenditures have provided some of the highest investment returns and ensure that our hotels are in superior physical condition, highly competitive in the marketplace and meet our own high-quality standards, as well as those of our managers.
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.