Host Hotels & Resorts (HST) as of March 31, 2026 presents a balance sheet where total assets of $13.15B are substantially offset by $6.14B in total liabilities, yielding GAAP book equity of $6.83B. Under a liquidation lens, the recovery posture is negative, consistent with MFFAIS's reported CLV/LLV/OLV of negative $7.36B. The dominant asset is PP&E net of accumulated depreciation: gross PP&E of $20.18B against $10.48B of accumulated depreciation yields a net book value of $9.70B. Applying a 50-70% liquidation haircut to this hotel real estate base (assuming a midpoint of 60%) generates approximately $5.82B in recoverable value from PP&E, materially below the $9.70B carrying amount. Against that, total debt of $5.08B ($3.99B senior notes, $0.99B revolving credit, $0.09B secured/other) plus $0.57B operating lease liability (ASC 842, face value retained in liquidation) and $0.49B in other accrued liabilities ($246M AP/accrued liabilities plus $245M other liabilities) must be settled at face value. The resulting gap between haircut assets and face-value liabilities drives the negative equity recovery. Cash of $1.70B at period end receives 100% recovery, providing meaningful offset, but post-quarter the company disclosed a $0.72/share special dividend (approximately $494M) and Q1-Q2 regular dividends totaling approximately $273M, reducing cash by approximately $767M in aggregate. Compared to the prior year-end (10-K as of December 31, 2025), the key balance sheet movements in Q1 2026 include: (1) proceeds of approximately $1.06B net from three hotel dispositions (principally the two Four Seasons properties at $1.1B gross), which boosted cash significantly; (2) portfolio reduction from 81 hotels to 76; (3) PP&E net declined as disposition proceeds exceeded capital expenditures of $122M; and (4) total debt was approximately flat at $5.1B. The leverage ratio per covenant testing was 2.1x (covenant maximum 7.25x), indicating substantial headroom. One hotel (Sheraton Parsippany) was classified held-for-sale at $9M; this is immaterial. Filing discusses the $500M term loan maturing January 2027 (with one-year extension option) in MD&A but the 10-Q XBRL does not separately tag the maturity schedule or the term loan balance distinct from the aggregate LineOfCredit tag. The operating lease liability of $566M, which does not extinguish on windup, is the most under-discussed liability in the context of liquidation.
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