House
»
America Journey Information
»
Host Accommodations & Resorts Prepares for Phased Reopening of Don CeSar in 2025 Following Hurricane Influence
Friday, November 8, 2024
Hurricane season introduced important disruptions to Host Accommodations & Resorts, with its famend Don CeSar resort in St. Pete Seaside, Florida, sustaining in depth harm from Hurricane Helene. This iconic property stays quickly closed, and the corporate anticipates a phased reopening starting in late Q1 2025. Nonetheless, latest resilience-focused renovations proved helpful at The Ritz-Carlton Naples, permitting it to resist the storms with minimal harm.
Two main storms, Hurricane Helene and Hurricane Milton, impacted Host properties throughout Florida, quickly closing 4 accommodations. Whereas three reopened inside ten days, The Don CeSar requires a extra prolonged restoration interval. The Ritz-Carlton Naples, nonetheless, was shielded from substantial storm harm on account of latest upgrades, together with elevated constructing tools and enhanced waterproofing, which mitigated harm from heavy rains and excessive water ranges.
Host has additionally efficiently managed hurricane impacts via favorable insurance coverage settlements. As an illustration, the corporate secured a $308 million ultimate insurance coverage settlement associated to Hurricane Ian’s damages, receiving the final $29 million installment in Q3 2024, bolstering its monetary place.
Energetic Portfolio Enlargement in 2024
Regardless of no acquisitions in Q3, Host has strategically expanded its portfolio in 2024 with important investments. Notable purchases embody Nashville’s 1 Resort and Embassy Suites for $530 million in Might, adopted by the acquisition of the Ritz-Carlton O‘ahu, Turtle Bay, for approximately $680 million. Host also closed a $265 million deal for 1 Hotel Central Park in Manhattan over the summer. These acquisitions reflect Host’s dedication to buying premium properties in top-tier places.
Host ended the third quarter with $2.3 billion in complete liquidity, together with $240 million in escrow reserves and $1.5 billion in accessible credit score facility funds. This liquidity offers a strong basis for additional development and monetary stability in response to market adjustments.
Moreover, Host is exploring residential growth choices on a 49-acre parcel close to The Ritz-Carlton O‘ahu, Turtle Bay. Host is contemplating both a sale of the land or an identical condominium challenge, signaling an progressive method to increasing its income streams via high-end residential developments.
Monetary Efficiency in Q3 2024
Host Accommodations & Resorts posted an 8.6% income improve year-over-year, reaching $1.3 billion in Q3 2024. Nonetheless, web earnings stood at $84 million, marking a 25.7% year-over-year lower, whereas adjusted EBITDA for actual property declined by 10.2% to $324 million. The portfolio’s comparable RevPAR rose barely by 0.8% to $206.21, with the typical day by day price up by 1% at $287.57, and occupancy remaining steady at 71.7%.
Regardless of these combined monetary metrics, Host Accommodations & Resorts stays a resilient chief within the hospitality REIT sector. As of the third quarter’s shut, Host’s inventory traded at $18 per share, reflecting an 8.6% decline year-to-date, whereas the Nasdaq Composite Index gained 30.5% over the identical interval. Host’s continued investments in premium belongings and growth into residential developments place it as a dynamic participant in an evolving hospitality panorama.