Howard Hughes posts loss, plans to reopen 3 hotels

In a gloomy earnings report, Howard Hughes Corp. said it planned to reopen its three hotels in The Woodlands on a limited basis at the end of May in response to consumer demand and the lifting of stay-at-home restrictions.

“While we are encouraged by these positive signs and results we have seen, we recognize that the pandemic has created uncertainties as to our future results,” CEO

Paul Layne Monday afternoon in a first-quarter earnings release.

The company posted a loss of $125 million, or $2.88 a share, in the first quarter, compared with a gain of $31.8 million, (74 cents), in the year-earlier period. Quarterly revenue plunged 51 percent to $175 million.

Since the pandemic, the Hughes Corp. said it has taken steps to maintain liquidity, including generating $549 million in a stock offering and reducing overhead costs.

“Despite the challenges presented by the pandemic, our first quarter of 2020 demonstrates that our financial discipline and prudent actions have us well-positioned for a quick return as we see demand in each of our markets for development and growth,” Layne said.

The Woodlands Resort, the Westin The Woodlands and the Embassy Suites by Hilton at Hughes Landing closed in March after local officials ordered people to stay home and restaurants and bars to close.

Falling rent collections have also negatively impacted the Hughes Corp. In April, the company collected 44.3 percent of retail billings due. Its office and multifamily properties, however, saw better performance, collecting 95 percent of rents last month.

At its master-planned communities, new home sales in April fell 47.5 percent from March to 83 property sales.

The Hughes Corp. owns, manages and develops commercial, residential and mixed-use properties throughout the United States, including the Seaport District in New York; Columbia, Md.; The Woodlands, The Woodlands Hills and Bridgeland in the Houston area; as well as Summerlin in Las Vegas; and Ward Village in Honolulu.

The company is planning to move its headquarters to Houston from Dallas.