Host Hotels & Resorts Provides Update on Maui Wildfires and Other Recent Weather Events
BETHESDA, Md., Sept. 06, 2023 (GLOBE NEWSWIRE) — Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the nation’s largest lodging real estate investment trust, today provided an update regarding the impact of the Maui wildfires and other recent weather events on its hotels and the communities where they operate.
As the largest hotel real estate owner on Maui with a presence for over 20 years, Host Hotels & Resorts shares a deep connection to the island’s people and culture. Lahaina has long been revered as a sacred place and home to some of the island’s most precious historical and cultural assets. The August wildfires touched everyone on the island and the Company’s hotels are partnering together to support the safety and wellbeing of the Maui community.
The Company’s hotels are providing food and shelter for employees, their families, and emergency response teams while also remaining open to guests. General managers at the Andaz Maui at Wailea Resort and the Fairmont Kea Lani, along with other Wailea area general managers, are working in partnership with World Central Kitchen to provide meals for Maui shelters. In addition, the Company is working with its hotels and operators to provide available resources to support employees as quickly and meaningfully as possible. This includes providing direct employee relief and making charitable donations to emergency response relief organizations on the ground, including the American Red Cross – Maui, World Central Kitchen, Maui Food Bank and Hawaii Community Foundation Maui Strong Fund—all of which are supporting employees and people across Maui in need.
James F. Risoleo, President and Chief Executive Officer, said, “We are deeply saddened by what has happened on Maui, and we are prioritizing the care of our hotels’ employees, their family members, and the larger community. Maui has a rich history with significant cultural and archaeological assets, and it has been a wonderful home to Host for two decades. We are committed to supporting the island’s resilient people and communities as recovery and rebuilding efforts progress and – like so many others – we remain inspired by the 150-year-old banyan tree that remains standing in the middle of Lahaina.”
To date, there has not been any reported property damage to the Company’s hotels or golf courses on Maui, and all its hotels remained open and operational through the wildfires. The Hyatt Regency Maui Resort and Spa remains open to first responders and expects to begin welcoming guests back in mid-October.
The Company estimates that net income and hotel EBITDA from its three Maui hotels was impacted by approximately $5 million in the month of August. The Company is not otherwise updating or reaffirming its full year 2023 guidance provided on August 2, 2023, as it is too early in the quarter to provide a comprehensive update or estimated full-year impact to future periods due to the rapidly evolving nature of demand trends on the island. The Company’s risk management team is engaged with its insurers about potential business interruption coverage, and, as those conversations are ongoing, timing and amounts of any potential business interruption proceeds are not yet known.
The Company does not expect a delay in the completion of the comprehensive renovation currently underway at the Fairmont Kea Lani, which remains on track to be completed in the fourth quarter of 2023. This project is the final of 24 recent comprehensive renovations in the Company’s portfolio.
Other Recent Weather Events
In the second half of 2023, the Company expects to begin recognizing business interruption gains related to Hurricane Ian, which impacted the Company’s two non-comparable hotels, The Ritz-Carlton, Naples, and Hyatt Regency Coconut Point Resort and Spa.
With respect to Hurricane Hilary in Southern California and Hurricane Idalia on the Gulf Coast of Florida, the Company’s hotels did not experience any material property damage or business disruption.
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 72 properties in the United States and five properties internationally totaling approximately 41,900 rooms. The Company also holds non-controlling interests in seven domestic and one international joint ventures.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements which include, but may not be limited to, our expectations regarding the impact of the Maui wildfires on our business, the recovery of travel and the lodging industry, the impact of Hurricane Ian and 2023 estimates with respect to our business, including our anticipated capital expenditures and financial and operating results. 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, those described in the Company’s annual report on Form 10-K and other filings 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 September 6, 2023 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.
Chief Financial Officer