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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
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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
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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
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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
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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.
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