DOW JONES NEWSWIRES 
 

Host Hotels & Resorts Inc. (HST) boosted its stock offering by 10% and announced it priced the shares at a 7.6% discount to Thursday's closing price.

The real-estate investment trust priced 66 million common shares at $6.60 each. Host's shares closed Thursday at $7.10 and were up 2.1% at $7.26 in premarket trading even as the company cut its full-year outlook.

As REITs have been slammed amid the global recession, hotel REITs have seen particular pressure on cuts in airline capacity, a pullback in consumer spending and a drop in corporate travel.

Host Hotels plans to use the stock-sale proceeds for general corporate purposes and to pay down debt. Host will sell an additional 9.8 million shares if there is sufficient demand. There are 525 million shares currently outstanding.

In February, Host unexpectedly projected a loss for 2009, forecast capital spending at half of last year's level and said it would suspend its quarterly dividend in favor of a lump-sum payout at the end of the year. The loss projection was widened Thursday as revenue per available room, a key lodging measurement, is expected to fall more than previously thought.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com