Investing.com — Host Hotels & Resorts Inc (NASDAQ:HST)., a prominent lodging owner, is reportedly considering the sale of more than 10 of its properties. The company is working with an adviser to put a portfolio of hotels, worth over $1 billion, on the market, according to a report from Bloomberg, citing sources.
Potential buyers have been given the opportunity to place bids on individual properties. The portfolio includes notable properties such as the Grand Hyatt San Francisco, W Seattle, and the Coronado Island Marriott in California. A representative for Host Hotels & Resorts declined to comment on the matter.
The hospitality industry has seen a stabilization in demand after experiencing significant declines early in the pandemic, followed by a swift recovery. This stability has led to expectations of more hotel transactions in the coming year. The certainty surrounding the cost of debt is giving both buyers and sellers increased confidence in asset values.
Last year, under the leadership of Chief Executive Officer Jim Risoleo, Host Hotels & Resorts expanded its luxury hotel portfolio. The company acquired 1 Hotel locations in New York and Nashville, as well as the Turtle Bay Resort in Hawaii.
In a conversation with investors last November, Risoleo indicated that the company might explore selling “noncore” assets. These are quality hotels that no longer align with the company’s strategic direction over the past seven to eight years.
Risoleo stated that if the pricing for these assets is attractive, they would sell. If not, the company would retain ownership and invest in the assets themselves.
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