Host Hotels stock falls after REIT sees negative impact of COVID-19 lasting ‘well after’ restrictions are lifted

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Shares of Host Hotels & Resorts Inc. shed 1.3% in morning trading Monday, after the real estate investment trust (REIT) which manages luxury hotels said it expects the COVID-19 pandemic to have a “material negative impact” on financial results “well after” restrictive measures to contain the outbreak have been lifted. The company said it suspended operations at 35 hotels during the first quarter, and as of Aug. 30, operations at 10 of those hotels are still suspended. During the second quarter and through July, Host Hotels said demand at its hotels was primarily leisure demand at drive-to and resort destinations. For the month ended July 31, the company said the average occupancy at its hotels was 12.9%, the average revenue per available room (RevPAR) was $22.94, the average daily rate was $177.76 and total revenue was $52 million. For reference, the FactSet consensus for third-quarter revenue is $305 million. Host Hotels’s stock has dropped 37.8% year to date, while the SPDR Real Estate Select Sector ETF has slipped 6.0% and the S&P 500 has gained 8.5%.
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