Host Hotels & Resorts, Inc. is a Maryland corporation that operates as a self-managed
and self-administered real estate investment trust, or REIT. Host Hotels &
Resorts, Inc. owns properties and conducts operations through Host Hotels &
Resorts, L.P., a Delaware limited partnership, of which Host Hotels & Resorts,
Inc. is the sole general partner and in which it holds approximately 96.5% of
the partnership interests.
Our primary business objective is to provide superior total returns to our
stockholders through a combination of appreciation in asset values and growth
in earnings and dividends. To achieve this objective we seek to:
• maximize the value of our existing portfolio through aggressive asset
management, which includes working with the managers of our hotels to continue
to increase revenues while minimizing operating costs, completing selective
capital improvements designed to increase profitability and exploring opportunities
to utilize our properties for more valuable or profitable purposes;
• acquire luxury and upper upscale hotels that are generally located
in urban and resort/convention destinations and are operated by leading management
companies; and
• dispose of non-core assets, including older hotels that are at a competitive
risk or hotels that are located in slower-growth markets.
Asset Management. We are the largest REIT owner of luxury and upper upscale
properties in the U.S. and our hotels are affiliated with many of the top operators
and brands in the industry. The size and composition of our portfolio and our
experience with multiple brands allow us to benchmark similar hotels and identify
best practices, value enhancement opportunities and efficiencies that can be
communicated to our managers. We continue to evaluate key performance indicators
to ensure an appropriate level of assistance is provided to our managers to
maximize opportunities at each asset. Areas of focus include enhancing revenue
management for rooms, food and beverage and other services, reducing operating
costs and identifying operating efficiencies, all of which improve the long-term
profitability of the hotel.
Acquisitions. Our acquisition strategy focuses on luxury and upper upscale
hotels both domestically and internationally. We continue to believe there will
be opportunities to acquire these hotels at attractive multiples of cash flow
and at discounts to replacement cost. Our acquisition strategy continues to
focus on:
• properties with locations in markets with high barriers to entry for
prospective competitors;
• properties operated under premium brand names;
• larger hotels that are consistent with our portfolio objectives and
that may require investment on a scale that limits the number of potential buyers;
• properties that further diversify our portfolio, both domestically and
internationally; and
• acquisitions through various structures, including transactions involving
portfolios, single assets and joint ventures.
Competition
The lodging industry is highly competitive. Competition is often specific to
individual markets and is based on a number of factors, including location,
brand, guest facilities and amenities, level of service, room rates and the
quality of accommodations. The lodging industry is generally viewed as consisting
of six different groupings, each of which caters to a discreet set of customer
taste and needs: luxury, upper upscale, upscale, midscale (with and without
food and beverage service) and economy. Most of our hotels operate in urban
and resort markets either as luxury properties, under such brand names as Ritz-Carlton®,
Fairmont®, Four Seasons®, The Luxury Collection®, St. Regis®
and W® or as upper upscale properties, under such brand names as Marriott®,
Hyatt®, Westin®, Hilton®, Sheraton®, Swissôtel® and
Delta®. Our hotels compete with other hotels operated under brands in these
groupings, as well as with hotels operated under upscale or other lower-tier
groupings in certain locations.
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