BETHESDA, Md. (AP) — Host Hotels & Resorts Inc. said Tuesday that it has ended its agreement to buy the Grand Hyatt Washington D.C. and will forfeit its $15 million deposit.
The lodging real estate investment trust said even though it is not going through with the Grand Hyatt purchase, it fully plans on pursuing other acquisitions next year.
Joseph Greff of J.P. Morgan said in a client note that Host's decision to not go through with the acquisition was a good idea, "as it was a relatively expensive acquisition in a currently tough market."
Greff said he was not overly surprised by Host's decision to back away from the proposed transaction because the company said in early October that it was reviewing the deal, which led the analyst to think that Host was having second thoughts.
Shares of Host Hotels, based in Bethesda, Md., added 19 cents to $14.28 in morning trading.