Host Hotels & Resorts Inc., which currently owns more than 90 properties totaling about 53,000 rooms, is mulling a large portfolio sale of non-core hotels, Bloomberg reports, citing anonymous sources familiar with the matter.
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So far, details of any potential deal are still under wraps by the Bethesda, Maryland-based hotel specialist, though talks are reportedly underway with advisers. Even so, the sale's total value may exceed $2B, according to Bloomberg's sources.
The company owns hotels in the luxury category, operating under a wide variety of flags, such as Hyatt, Marriott, Ritz-Carlton, Westin, Sheraton, W, St. Regis, Le Méridien and others. Most of its properties are in the United States, though six are in other countries.
In May, Host Hotels reported that Q1 comparable hotel occupancy was 77.6%, the highest first-quarter occupancy for the company in more than 15 years. Comp revenue per available room was up 1.7% for the quarter.
The REIT has also been acquiring properties recently. In March the company completed an acquisition of the 301-room Andaz Maui at Wailea Resort, the 668-room Grand Hyatt San Francisco and the 454-room Hyatt Regency Coconut Point Resort and Spa for $1B from Hyatt Hotels Corp.
On buying these properties, the company cited Maui and San Francisco as benefiting from strong lodging demand and limited supply growth. The hotels will continue to be managed by Hyatt under long-term management agreements.
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