On Tuesday, Shares of Host Hotels and Resorts Inc (NYSE:HST), lost -1.69% to $15.39.
Host Hotels & Resorts, Inc. (HST) declared that in connection with potential future capital markets transactions counting additional repurchases of Company stock and in light of a combination of anticipated asset sale transactions, hotel administration transitions, and recent market developments, it is providing an update to its full year guidance.
The Company has made considerable progress on several international asset sales which are predictable to close over the next 60 days, subject to standard closing conditions. These sales should generate net proceeds to the Company of about $200 million after debt repayment of $94 million. The proceeds are predictable to be used to fund the stock repurchase plan and for other corporate purposes. The sale of these assets will reduce the previous forecast for 2015 Adjusted EBITDA issued on July 30, 2015 by about $5 million. The full year impact of these sales on 2016 Adjusted EBITDA is predictable to be about $22 million.
Since its last earnings call, the Company has substantially accomplished negotiations for two additional franchise agreements to convert the operator of a hotel in Chicago and Indianapolis from brand-managed to franchise. In connection with those administration transitions, staff reductions in the Company’s office in Singapore, and staff relocations, the Company anticipates to incur severance and other costs of about $3 million.
Furthermore, after benefitting from 5% comparable hotel RevPAR growth on a constant dollar basis in July, the Company practiced weak comparable hotel RevPAR growth of just 0.7% in August due to soft leisure business in the United States and lower than predictable growth at its international properties. These trends are predictable to continue into September, and may have some impact on fourth quarter operations. However, based on a solid group booking pace and initial transient bookings, the Company still anticipates the fourth quarter will be its strongest quarter of the year. In addition, the Company remains positive about the strength of industry fundamentals and its group booking pace for 2016.
Host Hotels & Resorts, Inc. (Host Inc.) operates as a self-managed and self-administered real estate investment trust (REIT). Host Inc. owns properties and conducts operations through Host Hotels & Resorts, L.P. (Host L.P.) of which Host Inc. is the sole general partner and in which it holds about 99% of the partnership interests (OP units) as of December 31, 2014.
Shares of Valeant Pharmaceuticals Intl Inc (NYSE:VRX), declined -5.06% to $158.08, during its last trading session.
analysts came to the defense of Canadian drug giant Valeant Pharmaceuticals (NYSE:VRX) on Tuesday, after the stock sold off on word that some members of Congress were targeting it for its pricing policy. news.investors
partly due to a larger drug sell-off but also because a group of congressional Democrats sent a letter to Rep. Jason Chaffetz, chair of the House Committee on Oversight and Government Reform, requesting a subpoena to make Valeant turn over documents related to last Februarys triple-digit price improvements on two heart drugs, Nitropress and Isuprel. The representatives had asked Valeant for those documents a month ago, but Valeant refused, calling them proprietary information. news.investors
It is beyond the scope of our expertise to predict whether Chairman Chaffetz will cooperate with the Democrats on this issue; however, the tone of the letters and the sequence of events suggest that Mr. Chaffetz is unlikely to cooperate, wrote BMO Capital Markets analyst Alex Arfaei in a research note Tuesday. news.investors
Still, Valeant stock fell as much as 8% in early trading on the stock market recently, to a nine-month low below 153. By midday, though, shares were down 1%, near 164.50. That still leaves Valeant stock 38% below its record high near 264, touched on Aug. 6. news.investors
Valeant Pharmaceuticals International, Inc. is a specialty pharmaceutical and medical device company. The Company is engaged in developing, manufacturing, and marketing a range of branded, generic and branded generic pharmaceuticals, over-the-counter (OTC) products, and medical devices (contact lenses, intraocular lenses, ophthalmic surgical equipment, and aesthetics devices), which are marketed directly or indirectly in over 100 countries.
Shares of Seadrill Ltd (NYSE:SDRL), inclined 3.38% to $5.81, during its last trading session, as oil prices were rebounding from recent losses on expectations that the recent slowdown in U.S. oil production will accelerate.
WTI crude oil for November delivery was up 1.96% to $45.30 a barrel mid-day Tuesday, and Brent crude oil for November delivery was up 2.13% to $48.35 a barrel.
In a note to investors, analyst firm Deutsche Bank said that revised supply estimates that non-OPEC supply will contract next year for the first time since 2008.
Deutsche Bank analysts said they expect the oil market to remain oversupplied in 2016 despite an anticipated contraction from non-OPEC countries. The analyst firm anticipates the oil market will continue to be oversupplied by about 1 million barrels a day in the first half of 2016, falling to a deficit of 310,000 barrels a day in the second half of the year.
Seadrill Limited is an offshore drilling contractor providing offshore drilling services to the oil and gas industry. The Companys primary business is the ownership and operation of drillships, semi-submersible rigs and jack-up rigs for operations in shallow and deep water areas, in addition to benign and harsh environments. The Company has three operating segments: Floaters, Jack-ups rigs and Other. The Companys Floaters segment comprises drillships and semi-submersible rigs. The Companys Jack-ups rigs segment comprises jack-up rigs.
Finally, JD.Com Inc(ADR) (NASDAQ:JD), ended its last trade with -1.05% loss, and closed at $24.43, after the Shanghai Composite Index closed down alongside other Asian markets as tumbling commodities prices highlight Chinas reduced demand.
The Shanghai Composite Index ended Tuesday down by 2.02% as Asian markets declined sharply.
Contributing to the losses were Chinas continued economic struggles and the U.S.s uncertain timing of an interest rate hike, paired with big losses in commodity trading and mining company Glencore on Monday, The Wall Street Journal reports.
Shares of Glencore tanked on Monday, which heightened concerns about waning China demand for commodities, according to The Journal.
Underscoring reduced demand for commodities by China, the worlds largest metals consumer, were data released on Monday that showed weak industrial profits from the country, The Journal adds.
JD.com, Inc. is an online direct sales company. The Company engages primarily in the sale of electronics and home appliance products and general merchandise products (counting audio, video products and books) sourced from manufacturers, distributors and publishers in Peoples republic of China (PRC) on the Internet through its Website jd.com. It also operates its online marketplace under which third-party sellers sell products on the Companys Website to customers.
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