Host Hotels & Resorts (HST) risk factors, FY2024 10-K

Other

1. 01Our revenues and the value of our hotels are subject to conditions affecting the lodging industry
2. 02We depend on external sources of capital for future growth; therefore, any disruption to our ability to access capital at times, and on terms reasonably acceptable to us, may affect adversely our business and results of operations
3. 03We operate in a highly competitive industry
4. 04There are inherent risks with investments in real estate, including their relative illiquidity
5. 05We have significant indebtedness and may incur additional indebtedness
6. 06The terms of our indebtedness place restrictions on us and on our subsidiaries, and these restrictions reduce our operational flexibility and create default risks
7. 07Our expenses may not decrease if our revenues decrease
8. 08Our acquisition of hotels may have a significant effect on our business, liquidity, financial condition and/or results of operations
9. 09We may not achieve the value we anticipate from new hotel developments or value enhancement projects at our existing hotels
10. 10We do not control our hotel operations, and we are dependent on the managers of our hotels
11. 11The hotels managed by Marriott International account for most of our revenues and operating income. Adverse developments in Marriott’s business and affairs or financial condition could have a material adverse effect on us
12. 12We are subject to risks associated with the employment of hotel personnel, particularly with hotels that employ unionized labor
13. 13We may be deemed to be a joint employer with our third-party hotel managers under certain new laws, rules and regulations
14. 14A large proportion of our hotels are located in a limited number of large urban cities and, accordingly, we could be disproportionately harmed by adverse changes to these markets or events impacting these markets
15. 15We may acquire or develop hotels in joint ventures with third parties that could result in conflicts
16. 16Some potential losses are not covered by insurance
17. 17We face the risk of material data breaches and disruptions of our managers’ or our own information technology systems, or the information technology systems of third parties on which we or our managers rely, which could materially adversely affect our business and results
18. 18Applicable REIT laws may restrict certain business activities
19. 19We face possible risks associated with natural disasters and the physical effects of climate change
20. 20There are limitations on the acquisition of Host Inc. common stock and changes in control
21. 21Adverse tax consequences would occur if Host Inc. or its subsidiary REIT fails to qualify as a REIT
22. 22If our hotel managers do not qualify as “eligible independent contractors,” or if our hotels are not “qualified lodging facilities,” each of Host Inc. and our subsidiary REIT will fail to qualify as a REIT
23. 23The size of our TRS is limited, and our transactions with our TRS will cause us to be subject to a 100% excise tax on certain income or deductions if such transactions are not conducted on arm’s-length terms
24. 24Despite the REIT status of each of Host Inc. and its subsidiary REIT, we remain subject to various taxes
25. 25Legislative or other actions affecting REITs could have a negative effect on us

Risks Relating to Redemption of OP Units

1. 26A holder who offers its OP units for redemption may have adverse tax consequences
2. 27Shares of Host Inc.’s common stock that are or become available for sale could affect the share price of Host Inc.’s common stock
3. 28An increase in interest rates would increase the interest costs on our credit facility and on our floating rate indebtedness and could impact adversely our ability to refinance existing indebtedness or to sell assets
4. 29Compliance with the Americans with Disabilities Act and other government regulations can be costly
5. 30Litigation judgments or settlements could have a significant adverse effect on our financial condition
6. 31Environmental liabilities are possible and can be costly
7. 32An increased focus on metrics and reporting related to corporate responsibility, specifically related to environmental, social and governance ("ESG") factors, may impose additional costs and expose us to new risks