Host Hotels & Resorts Temporarily Suspends Quarterly Cash Dividend to Preserve Liquidity While Navigating the Business Impact...
June 19 2020 - 4:15PM
Host Hotels & Resorts, Inc. (NYSE: HST), the nation's largest
lodging real estate investment trust (the "Company"), today
announced that its Board of Directors has temporarily suspended the
Company’s regular quarterly dividend, commencing with the second
quarter dividend that would have been paid in July 2020.
The Company previously paid a quarterly cash
dividend of $0.20 per share on its common stock on April 15, 2020
to stockholders of record as of March 31, 2020. The company
estimates that the suspension of the dividend will preserve
approximately $140 million in cash during the second quarter.
James F. Risoleo, President and Chief Executive
Officer, said, “The Board’s decision to suspend the quarterly
dividend is consistent with the other measures the Company has
implemented to preserve liquidity and maintain balance sheet
flexibility, including reducing capital expenditures by $100 to
$125 million and corporate expenses by 10% to 15%. The Board will
continue to monitor the Company’s financial performance and
operating environment to determine the appropriate time to
reinstate a regular quarterly dividend.”
About Host Hotels &
Resorts
Host Hotels & Resorts, Inc. is an S&P
500 company and is the largest lodging real estate investment trust
and one of the largest owners of luxury and upper-upscale hotels.
The Company currently owns 75 properties in the United States and
five properties internationally totaling approximately 46,700
rooms. The Company also holds non-controlling interests in six
domestic and one international joint ventures. Guided by a
disciplined approach to capital allocation and aggressive asset
management, the Company partners with premium brands such as
Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The
Luxury Collection®, Hyatt®, Fairmont®, Hilton®, Swissôtel®, ibis®
and Novotel®, as well as independent brands. For additional
information, please visit the Company’s website at
www.hosthotels.com.
* This press release
contains registered trademarks that are the exclusive property of
their respective owners. None of the owners of these trademarks has
any responsibility or liability for any information contained in
this press release.
Note: This press release contains
forward-looking statements within the meaning of federal securities
regulations. These forward-looking statements include forecast
results and are identified by their use of terms and phrases such
as “anticipate,” “believe,” “could,” “estimate,” “expect,”
“intend,” “may,” “should,” “plan,” “predict,” “project,” “will,”
“continue” and other similar terms and phrases. Forward-looking
statements are not guarantees of future performance and involve
known and unknown risks, uncertainties and other factors which may
cause the actual results to differ materially from those
anticipated at the time the forward-looking statements are made.
These risks include, but are not limited to: changes in national
and local economic and business conditions and other factors such
as natural disasters, pandemics and weather that will affect
occupancy rates at our hotels and the demand for hotel products and
services; the impact of geopolitical developments outside the U.S.
on lodging demand; volatility in global financial and credit
markets; operating risks associated with the hotel business; risks
and limitations in our operating flexibility associated with the
level of our indebtedness and our ability to meet covenants in our
debt agreements; risks associated with our relationships with
property managers and joint venture partners; our ability to
maintain our properties in a first-class manner, including meeting
capital expenditure requirements; the effects of hotel renovations
on our hotel occupancy and financial results; our ability to
compete effectively in areas such as access, location, quality of
accommodations and room rate structures; risks associated with our
ability to complete acquisitions and dispositions and develop new
properties and the risks that acquisitions and new developments may
not perform in accordance with our expectations; our ability to
continue to satisfy complex rules in order for us to remain a REIT
for federal income tax purposes; risks associated with our ability
to effectuate our dividend policy, including factors such as
operating results and the economic outlook influencing our board’s
decision whether to pay further dividends at levels previously
disclosed or to use available cash to make special dividends; and
other risks and uncertainties associated with our business
described in the Company’s annual report on Form 10-K, quarterly
reports on Form 10-Q and current reports on Form 8-K filed with
the SEC. Although the Company believes the expectations
reflected in such forward-looking statements are based upon
reasonable assumptions, it can give no assurance that the
expectations will be attained or that any deviation will not be
material. All information in this release is as of the date of this
release, and the Company undertakes no obligation to update any
forward-looking statement to conform the statement to actual
results or changes in the Company’s expectations.
Tejal EngmanVice President240.744.5116
Host Hotels and Resorts (NYSE:HST)
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