H
ost Hotels & Resorts is poised to divest a significant portfolio of properties, marking the next step in its decade-long transformation. The company has enlisted an advisor to market at least 10 hotels, valued at over $1 billion, according to sources familiar with the matter. Potential assets up for sale include the Grand Hyatt San Francisco, W Seattle, and Coronado Island Marriott.

    Chief executive officer James Risoleo hinted at this move in November, stating that Host would explore selling "noncore" assets that don't align with its long-term strategy. He emphasized that any sales would need to be at attractive prices, otherwise the company would retain them and reinvest in the properties.

    The hotel dealmaking market has seen a surge in activity, with 356 transactions exceeding $10 million in value last year, totaling $14.3 billion. The average deal size increased nearly 7% annually, while the sale price per room remained flat.

    In contrast to its planned sales, Host has also made significant acquisitions in the hospitality sector. Last year, it purchased 1 Hotel Central Park from Starwood Capital Group for $265 million and downsized the mortgage backing the property. Additionally, Host acquired the 1 Hotel Nashville and adjacent Embassy Suites for $500 million from a group including Barry Sternlicht's Starwood.