Host Hotels & Resorts CEO, Jim Risoleo, is poised to capitalize on distressed urban markets, eyeing potential deals as the company maintains a robust liquidity position.
In an interview, Risoleo expressed optimism about the prospects of making contrarian bets on travel recovery, particularly in major cities like San Francisco. With a healthy cash reserve of $2.9 billion, Host Hotels intends to reinvest up to $675 million into its portfolio this year, signaling a proactive stance amidst market challenges.
Risoleo emphasizes the importance of identifying opportunities in growing markets, citing Nashville, Tennessee, as a prime example where Host already holds significant investments. Additionally, the CEO is closely monitoring distressed urban markets, foreseeing a potential resurgence in certain key metropolitan areas.
"I believe that the major urban markets - not all of them - but certain major markets are going to come back," Risoleo asserted, hinting at a forthcoming urban renaissance. He remains confident in the long-term recovery of cities like San Francisco, citing positive performance indicators, including record-breaking revenue at the San Francisco Marriott Marquis.
As Host Hotels reports fourth-quarter results exceeding analyst expectations, Risoleo unveils plans for strategic acquisitions in 2024. The company's focus lies on properties with diverse demand generators encompassing leisure, business, and group travel segments.
"We're excited to put money to work," Risoleo affirmed, signaling Host's readiness to capitalize on market opportunities. With a forecasted growth in comparable-hotel revenue per available room (RevPAR) of 2.5% to 5.5% for the year ahead, the company remains poised for expansion.
Despite ongoing market turbulence, Host Hotels remains agile, leveraging its financial strength to navigate uncertainties. Risoleo's prudent approach underscores the company's commitment to long-term value creation and resilience amidst evolving market dynamics.
In conclusion, Host Hotels & Resorts, under the leadership of Jim Risoleo, emerges as a proactive player in the hospitality sector, strategically positioning itself to capitalize on emerging market opportunities while maintaining a steadfast focus on driving sustainable growth.
Source: Market Watch