Host Hotels & Resorts

Mike Lentz

Resilient Development Authority

Extreme weather tests every portfolio. For those of us responsible for physical assets that house guests, support communities and generate long-term value, the central question is about when a disruptive event occurs and how well-prepared you are.

At Host Hotels & Resorts, we have spent the better part of a decade answering that question with disciplined capital planning and a construction approach that treats resilience as a core design requirement, not a retrofit afterthought. We own properties in some of the most sought-after destinations in the country—coastal Florida, Hawaii, New York, New Orleans, Big Sur—and we recognize that the places people most want to visit are often the places most exposed to climate risk. Managing those risks with discipline and rigor is what separates a well-positioned portfolio from one that is simply well-located.

A Differentiated Approach to Climate Risk

Our approach begins with asset-level climate risk analysis. We evaluate each property for flood exposure, wind vulnerability, wildfire proximity, grid disruption and other location-specific factors. We use forward-looking climate analytics and catastrophe modeling to understand both near-term and longer-term risks, including 100- and 500-year storm surge scenarios.

This level of analysis allows us to make better capital decisions. It also helps us prioritize the right measures for the right assets, rather than applying a one-size-fits-all standard across a diverse portfolio. In some cases, the solution may be physical hardening. In others, it may be elevating critical systems, improving drainage, strengthening the building envelope or timing the work so resilience can be integrated into a broader renovation.

From Strategy to Capital

We deploy capital with intention. Since 2016, we have invested approximately $300 million in resilience measures across our portfolio, including hurricane-rated doors and windows, building envelope improvements, dry floodproofing, elevation of critical mechanical and electrical systems and deployable flood barriers at properties with elevated storm surge risk.

On average, resilience investments have represented between 6% and 8% of our annual capital expenditures over the past six years. In addition, we have identified more than 60 investment opportunities across the portfolio and approved more than 30 proactive resilience projects, prioritizing markets with near-term wind, flood and wildfire risk.

The most important factor in integrating resilience into any development or renovation project is understanding the specific risk profile of each asset. We also think carefully about sequencing. Major renovation projects create a window of opportunity as walls are opened and systems are being replaced, work that may otherwise be prohibitively expensive. We look for those windows and use them intentionally.

When the Strategy Gets Tested

The clearest lesson from our resilience journey is that what you do before a crisis determines how quickly you recover. The Ritz-Carlton, Naples did not just survive two major hurricanes in two years. Instead, it became the proof of concept for everything that followed. The $10.7 million in resilience investments we made following Hurricane Ian in 2022, including elevated critical equipment, improved floodproofing and building envelope upgrades designed to withstand a 500-year event were tested two years later when Hurricanes Helene and Milton brought comparable storm surges to the same coastline. The property sustained minimal damage and there was a negligible impact to business continuity.

When The Don CeSar in St. Pete Beach was severely damaged in that same 2024 hurricane season, we applied those same lessons immediately: rapid stabilization with temporary systems, followed by a rebuild that relocated and elevated critical infrastructure. A phased reopening prioritized core guestroom inventory and key amenities, minimizing business disruption while construction continued. Rigorous project management and strong associate retention also shortened the recovery curve significantly.

Where the Industry Is Heading?

Resilience requirements are tightening, and that trend is only accelerating. Building codes in high-risk markets are evolving, insurers are scrutinizing physical risk more closely, and investors are asking harder questions about long-term exposure. In this environment, resilience cannot be the casualty of value engineering.

My advice to development leaders is straightforward: start with the data. Conduct serious asset-level risk assessments and let those findings guide capital priorities. Look for integration opportunities during planned construction and renovation cycles, when resilience upgrades can be implemented more efficiently and cost-effectively. Build relationships early with insurers, engineers and operators so that resilience is considered from the start, not added at the end.

The best outcomes we have achieved have come from close collaboration across disciplines, not from any single decision made in isolation. Resilience is ultimately a construction and operating discipline as much as it is a planning one.

And finally, think long term. Resilience investments may not deliver an immediate return, but they pay off when it matters most. That is the standard we hold ourselves to, and it is the standard I would encourage other development leaders to adopt.