BETHESDA, Md. – Host Motels & Resorts, Inc. (NASDAQ: HST) (the “Firm”), the nation’s largest lodging actual property funding belief, at the moment offered an replace relating to the impression of the Maui wildfires and different latest climate occasions on its accommodations and the communities the place they function.
As the most important resort actual property proprietor on Maui with a presence for over 20 years, Host Motels & Resorts shares a deep connection to the island’s individuals and tradition. Lahaina has lengthy been revered as a sacred place and residential to a few of the island’s most treasured historic and cultural belongings. The August wildfires touched everybody on the island and the Firm’s accommodations are partnering collectively to help the protection and wellbeing of the Maui group.
The Firm’s accommodations are offering meals and shelter for workers, their households, and emergency response groups whereas additionally remaining open to company. Normal managers on the Andaz Maui at Wailea Resort and the Fairmont Kea Lani, together with different Wailea space common managers, are working in partnership with World Central Kitchen to supply meals for Maui shelters. As well as, the Firm is working with its accommodations and operators to supply out there sources to help workers as rapidly and meaningfully as doable. This consists of offering direct worker aid and making charitable donations to emergency response aid organizations on the bottom, together with the American Pink Cross – Maui, World Central Kitchen, Maui Meals Financial institution and Hawaii Group Basis Maui Sturdy Fund—all of that are supporting workers and folks throughout Maui in want.
We’re deeply saddened by what has occurred on Maui, and we’re prioritizing the care of our accommodations’ workers, their relations, and the bigger group. Maui has a wealthy historical past with vital cultural and archaeological belongings, and it has been a beautiful residence to Host for twenty years. We’re dedicated to supporting the island’s resilient individuals and communities as restoration and rebuilding efforts progress and – like so many others – we stay impressed by the 150-year-old banyan tree that continues to be standing in the course of Lahaina. James F. Risoleo, President and Chief Government Officer
To this point, there has not been any reported property harm to the Firm’s accommodations or golf programs on Maui, and all its accommodations remained open and operational by way of the wildfires. The Hyatt Regency Maui Resort and Spa stays open to first responders and expects to start welcoming company again in mid-October.
The Firm estimates that web earnings and resort EBITDA from its three Maui accommodations was impacted by roughly $5 million within the month of August. The Firm just isn’t in any other case updating or reaffirming its full 12 months 2023 steerage offered on August 2, 2023, as it’s too early within the quarter to supply a complete replace or estimated full-year impression to future durations because of the quickly evolving nature of demand developments on the island. The Firm’s danger administration workforce is engaged with its insurers about potential enterprise interruption protection, and, as these conversations are ongoing, timing and quantities of any potential enterprise interruption proceeds are usually not but identified.
The Firm doesn’t count on a delay within the completion of the excellent renovation at the moment underway on the Fairmont Kea Lani, which stays on observe to be accomplished within the fourth quarter of 2023. This challenge is the ultimate of 24 latest complete renovations within the Firm’s portfolio.
Different Latest Climate Occasions
Within the second half of 2023, the Firm expects to start recognizing enterprise interruption good points associated to Hurricane Ian, which impacted the Firm’s two non-comparable accommodations, The Ritz-Carlton, Naples, and Hyatt Regency Coconut Level Resort and Spa.
With respect to Hurricane Hilary in Southern California and Hurricane Idalia on the Gulf Coast of Florida, the Firm’s accommodations didn’t expertise any materials property harm or enterprise disruption.
About Host Motels & Resorts
Host Motels & Resorts, Inc. is an S&P 500 firm and is the most important lodging actual property funding belief and one of many largest homeowners of luxurious and upper-upscale accommodations. The Firm at the moment owns 72 properties in the USA and 5 properties internationally totaling roughly 41,900 rooms. The Firm additionally holds non-controlling pursuits in seven home and one worldwide joint ventures.
