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Host Hotels & Resort won’t buy D.C.’s Grand Hyatt

By WTOP Staff

Based on Host Hotels & Resorts Inc.’s earnings, it’s more likely that economic uncertainty, not financial instability, drove the hotel company’s decision not to purchase the Grand Hyatt in D.C.

That could mean other potential hotel buyers may be similarly cautious when eying the Hyatt, at least in the short term.

Host’s decision, which was announced Tuesday, means the company is forfeiting a $15 million deposit that it made on the hotel. The Bethesda-based company disclosed its original agreement to buy the property in a regulatory filing back in July.

Despite Host’s decision not to buy the property, it has been relatively active in the market in the past year, buying 14 hotels. Though, in September, Host also canceled its plans to buy a St. Regis Monarch Beach resort in Dana Point, Calif.

In a statement Tuesday, Host said it will resume acquisition activity next year.

Like many hotel companies, Host saw its stock price fall in the third quarter by 35 percent, likely due to uncertainty surrounding the economic climate. But the quarter in general was a strong one for the company compared with the same time period in 2010. Owned hotel revenues increased 15 percent in that time to $1.1 billion. The 14 new properties the hotel bought brought in $99 million in revenue during the quarter. And quarterly net loss for Host was $35 million, compared with $61 million in the third quarter of 2010.

Although the economic uncertainty could quiet hotel acquisitions for the rest of 2011, and even early 2012, there still are plenty of hotel purchasers active in the market — particularly real estate investment trusts, many which are based in D.C. — should the Grand Hyatt seek another buyer. The hotel is owned by D.C.-based Quadrangle Development Corp., which did not immediately respond to queries on whether it would pursue another buyer.

Bethesda-based Pebblebrook Hotel Trust (NYSE: PEB) has found the local market attractive for hotel purchases, but has focused more on what it calls “upper-upscale” properties. Additionally, Virgin Group’s fledgling hotel arm has been scoping out the market and says it will explore properties in D.C. with the intent of rebranding. Bethesda’s DiamondRock Hospitality completed its acquisition of the Courtyard Denver this summer, and it also agreed to sell off three properties for $262.5 million during the third quarter, boosting its financial performance and freeing it up for future acquisition possibilities.

Despite recent caution, 2011 is still shaping up to be an active year for hotel sales, at least compared with recessionary lows. So far this year, 266 hotels have changed hands nationally, compared with 199 in 2010 and 97 in 2009, according to data from New York-based research company Real Capital Analytics Inc. The Washington area represented 23 of those properties this year, 38 properties in 2010 and just seven properties in 2009.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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