See How Four Lodging And Resort REITs Performed In Q2
Though the hotel industry is facing a few challenges this year, these four hotel real estate investment trusts each reported strong second-quarter results, the majority of which beat Wall Street expectations and completed acquisitions.
Take a look at how these hotel REITs fared in Q2.
Host Hotel & Resorts
The Bethesda, MD-based REIT reported earnings that met analyst expectations in Q2, with $347M (47 cents/share) in profits for the quarter. It posted revenues of $1.46B in the quarter, where Zacks analysts expected $1.47B.
During the quarter, the REIT sold five properties totaling $345M, and repurchased 5.2 million shares for $15.39 per share. Comparable RevPar (revenue per available room) was 2% for the quarter, and 2.7% for the year. Company shares have increased 13% since the beginning of the year.
MGM Growth Properties
MGM Growth Properties raised over $1.05B in its IPO in April, selling 50 million shares for $21/share on the NYSE.
And the REIT had a successful quarter, beating the street with its $9.6M in net income and revenues of $110.9M (51 cents/share). Analysts expected 32 cents/share for the quarter. The company also acquired Borgata Hotel Casino & Spa for $545M in debt last quarter.
Gaming and Leisure Properties
Gaming and Leisure Properties owns roughly 4,195 acres of land and 14.7M SF across 35 casinos. Though it did not meet Wall Street expectations in Q2, the trust did profit $73.3M for the quarter, compared to $56M in the year-ago quarter. Revenues totaled $207.4M in Q2, though five analysts following the company expected revenues of $211.6M.
During the quarter, the REIT completed the acquisition of Pinnacle Entertainment, a company that owns 15 gaming and entertainment businesses throughout the country.
Hersha Hospitality Trust
Hersha Hospitality posted strong results in Q2, with net income of $102.2M ($2.33/share) and revenues of $127.7M. Analysts anticipated $129.7M in revenues.
This year, the company entered a joint venture with Chinese-based investor Cindat Capital Manager—a JV valued at $571M. The deal gives Cindat a majority stake in seven Manhattan hotels.