Host Hotels & Resorts, Inc. (Host Inc.) operates as a self-managed and self-administered real estate investment trust (REIT). The Company operates through hotel ownership segment. The Company operates through hotel ownership segment. The Company owned properties and conducted operations through Host Hotels & Resorts, L.P. (Host L.P.), of which Host Inc. was the general partner and of which it held approximately 99% of the partnership interests (OP units), as of December 31, 2016. As of February 20, 2017, its lodging portfolio consisted of 96 primarily luxury and upper-upscale hotels containing approximately 53,500 rooms, with the majority located in the United States, and with seven of the properties located outside of the United States in Australia, Brazil, Canada and Mexico. In addition, it owns non-controlling interests in two international joint ventures: approximately a 33% interest in a joint venture in Europe, and a 9% indirect interest, through joint ventures in India.
Business Analysis of Host Hotels & Resorts
The Real Estate & REITs Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Host Hotels & Resorts compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Host Hotels & Resorts to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Host Hotels & Resorts with an interactive chart.
- Revenue Growth: Host Hotels & Resorts reported a revenue growth of 1.5% year-on-year during 2016. Hotel & Lodging REITs Industry grew at 3.2% in the same period
- COGS share of Revenues: As a percentage of revenue, Host Hotels & Resorts spent 68.1% of its total revenues on COGS. Hotel & Lodging REITs industry average (COGS share of revenue) in the same period was 62.1%
- R&D share of Revenues: Host Hotels & Resorts R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Host Hotels & Resorts spent 6.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Hotel & Lodging REITs industry average SG&A spending in the same period was 5.6%
- Inventory share of Revenues: Host Hotels & Resorts Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: As a percentage of revenue, Host Hotels & Resorts invested 5.1% of its total revenues on Accounts Payable (A/P) Hotel & Lodging REITs industry average Accounts Payable investment in the same period was 10.5%
- Accounts Receivable share of Revenues: As a percentage of revenue, Host Hotels & Resorts invested 1.0% of its total revenues on Accounts Receivable (A/R). Hotel & Lodging REITs industry average Accounts Receivable investment in the same period was 2.9%
- PP&E share of Revenues: As a percentage of revenue, Host Hotels & Resorts invested 186.8% of its total revenues on Property, Plants, and Equipments (PP&E). Hotel & Lodging REITs industry average PPE investment in the same period was 255.8%
- Intangibles share of Revenues: Host Hotels & Resorts Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
- Net Margins: Host Hotels & Resorts Net Margins in the year 2016 were 14.0%. Hotel & Lodging REITs industry average Net Margins in the same period were 11.9%
Sector and Industry Association of Host Hotels & Resorts
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
Host Hotels & Resorts is associated with Financials Sector Group, Real Estate & REITs Sector, and Hotel & Lodging REITs Industry.
Real Estate & REITs (Real Estate Investment Trusts) sector is comprised of the following industries: Diversified REITs; Industrial & Office REITs; Hotel & Lodging REITs; Retail REITs; Residential REITs; Specialty REITs; Mortgage REITs; Real Estate Holding & Development; Real Estate Services. The definitions for each of the industries is as follows:
- Diversified REITs industry includes REITs or corporations that invest in a variety of property types without a concentration on any single type.
- Industrial & Office REITs industry includes REITs that primarily invest in office, industrial, and flex properties.
- Hotel & Lodging REITs industry includes REITs that primarily invest in hotels or lodging properties.
- Retail REITs industry includes REITs that primarily invest in retail properties, malls, shopping centers, strip centers and factory outlets.
- Residential REITs industry includes REITs that primarily invest in residential home properties, apartment buildings, and residential communities.
- Specialty REITs industry includes REITs that invest in self storage properties, properties in the health care industry such as hospitals, assisted living facilities and health care laboratories, and other specialized properties such as auto dealership facilities, timber properties and net lease properties.
- Mortgage REITs industry includes REITs that are directly involved in lending money to real estate owners and operators or indirectly through the purchase or mortgages or mortgage backed securities.
- Real Estate Holding & Development industry includes companies that invest directly or indirectly in real estate through development, investment or ownership.
- Real Estate Services industry includes companies that provide services to real estate companies but do not own the properties themselves. It includes agencies, brokers, leasing companies, management companies and advisory services.
Industry Ranking of Host Hotels & Resorts
With $5.4 billion revenues, Host Hotels & Resorts ranked number 1 of all the companies in the US Hotel & Lodging REITs industry. There were a total of 18 public companies in the US Hotel & Lodging REITs industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Hotel & Lodging REITs industry by revenues during 2016 were:
- Host Hotels & Resorts ($5.4 billion)
- Hospitality Properties Trust ($2 billion)
- Ashford Hospitality Trust ($1.5 billion)
- Lasalle Hotel Properties ($1.2 billion)
- Sunstone Hotel Investors ($1.2 billion)
- RLJ Lodging Trust ($1.2 billion)
- Ryman Hospitality Properties ($1.1 billion)
- Apple Hospitality Reit ($1 billion)
- Xenia Hotels & Resorts ($950.2 million)
- Diamondrock Hospitality ($896.6 million)
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
- Get in touch with us to learn more about Business Model Analysis Framework
- Get free data, charts, and analysis of Host Hotels & Resortsand its peers on select key performance indicators by clicking the reports provided below