
Howard Hughes Corporation

The Howard Hughes Corporation is a real estate development and management company based in The Woodlands, Texas. It began as part of the oil drilling tool business founded by Howard R. Hughes, Sr., in 1913, which under his son Howard Hughes, Jr., diversified into real estate development. The real estate operations became a separate company, which was acquired by The Rouse Company, which in turn was acquired by General Growth Properties (GGP). In 2010, GGP spun off The Howard Hughes Corporation as a separate company.
History.
Early origins.
The company dates to 1909 when Howard Hughes, Sr. received two patents for his revolutionary oil well drilling bits. In 1913, Hughes and Walter Sharp incorporated the Sharp-Hughes Tool Company. In 1915, Hughes became the sole owner and renamed the company Hughes Tool Company. Hughes Sr. died in 1924, and was succeeded by his son Howard Jr. The younger Hughes became involved in many businesses, including aviation, motion pictures, radio and television broadcasting, and real estate. In the 1950s, Hughes acquired some vacant land in and around Las Vegas; in the 1960s, he moved to Las Vegas, where he lived in (and bought) the Desert Inn Hotel and Casino, acquired other casinos and hotels, and bought up more vacant land, which was left undeveloped during his lifetime.
Formation as Summa Corporation.
In 1972, Hughes Tool Company was separated from other Hughes interests and became a publicly owned company. The rest of Hughes' businesses were regrouped as Summa Corporation. The name "Summa" (Latin for "highest") was adopted by corporate managers against the wishes of Hughes himself, who wanted to use his name. (He suggested "HRH Properties", for "Hughes Resorts and Hotels" – also his own initials, but was ignored.)
Company refocused on real estate.
After Hughes died in 1976 at age 70, successors at Summa refocused the company on real estate development and casino operations, selling all non-core business holdings over the next few years.
Holdings sold off were:
Summa also owned hotels and casinos, primarily in Las Vegas, which constituted the bulk of Summa's business in the 1970s.
Company renamed and sold off.
In 1994, Hughes' heirs renamed Summa "The Howard Hughes Corporation". Hughes' heirs sold the company to The Rouse Company in 1996, and the company survived as a Rouse subsidiary. Rouse was acquired by General Growth Properties (GGP) in 2004.
GGP filed for Chapter 11 bankruptcy protection in 2009. The company proposed a reorganization plan that included spinning off a new company named General Growth Opportunities, which would include those properties that had long-term development potential but little or no income. The name of the proposed spin-off was later changed to The Howard Hughes Corporation (THHC). The spin-off of THHC to GGP's shareholders was completed on November 9, 2010, when GGP exited bankruptcy. The new company held a portfolio that included GGP's master planned communities, mixed-use developments, and undeveloped land. Hedge fund manager Bill Ackman was appointed chairman of the new company.
Current properties.
The company divides its properties into three segments: master planned communities, operating assets, and strategic developments.
Master planned communities.
The company has five master planned communities, with a total of approximately of land remaining to be developed or sold.
Operating assets.
This category comprises 65 revenue-generating assets, including retail, office, multi-family residential, and hotel properties, most of which are located in the company's five master planned communities. The portfolio includes 15 retail properties with 3 million square feet of space; 28 office properties with 4.3 million square feet of space; 8 apartment complexes with a total of 2,351 units; and 4 hotel properties with a total of 975 rooms. Notable properties include:
Strategic developments.
The company lists 29 strategic projects, in various stages of development. Notable projects include: