BETHESDA, Md. - Host Hotels & Resorts, Inc. (NASDAQ: HST), a prominent lodging real estate investment trust in the nation, announced on Tuesday that its affiliate, Host Hotels & Resorts, L.P., has priced a $600 million green bond offering. The senior unsecured notes, bearing an interest rate of 5.700%, are due in 2034 and are expected to close on May 10, 2024, contingent upon customary closing conditions.
The net proceeds from the sale, estimated at approximately $584 million after deductions, are designated for financing or refinancing a series of eligible green projects. Notably, this includes the recent acquisition of the 1 Hotel Nashville and Embassy Suites by Nashville Downtown, both of which have achieved LEED Silver certification.
Upon the allocation for green projects, Host L.P. plans to use the remaining proceeds to repay $215 million of the outstanding borrowings under its senior credit facility. The offering has been coordinated by a syndicate of banks, with J.P. Morgan Securities LLC acting as the Sustainability Structuring Agent.
Host L.P.'s initiative reflects a growing trend in the real estate investment trust industry to support environmentally sustainable projects. The offering is made under an effective shelf registration statement previously filed with the Securities and Exchange Commission.
InvestingPro Insights
Host Hotels & Resorts, Inc. (NASDAQ: HST), while embarking on its green bond offering, also presents an interesting profile for investors, as highlighted by InvestingPro data and tips. With a market capitalization of $13.38 billion, HST is a significant entity in the hotel and resort REIT sector. The company's commitment to sustainability through green projects is complemented by its financial metrics, which can be key indicators of its investment potential.
InvestingPro data indicates that Host Hotels & Resorts is trading at a low revenue valuation multiple, with a price to earnings (P/E) ratio of 18.29, adjusted to 19.12 for the last twelve months as of Q1 2024. This could suggest that the company's stock is reasonably valued relative to its earnings. Moreover, the company's dividend yield stands at an attractive 6.66%, which may catch the eye of income-focused investors.
An InvestingPro Tip highlights that Host Hotels & Resorts operates with a moderate level of debt, which is an important consideration for investors, especially in the context of the company's recent green bond offering. Furthermore, analysts predict that the company will be profitable this year, adding another layer of potential investor confidence. For those interested in deeper analysis, there are additional InvestingPro Tips available that provide further insight into HST’s financial health and market position.
For readers looking to delve into more comprehensive research, the InvestingPro platform offers a total of 8 InvestingPro Tips for Host Hotels & Resorts, which can be accessed at: https://www.investing.com/pro/HST. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.