BETHESDA, Md., Nov. 06, 2024 (GLOBE NEWSWIRE) --
Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the
nation’s largest lodging real estate investment trust (“REIT”),
today announced results for third quarter of 2024.
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OPERATING RESULTS
(unaudited, in millions, except per share and hotel
statistics)
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Quarter ended
September 30,
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Year-to-date ended
September 30,
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2024
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2023
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Percent
Change
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2024
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2023
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Percent
Change
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Revenues |
$ |
1,319 |
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$ |
1,214 |
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8.6 |
% |
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$ |
4,256 |
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$ |
3,988 |
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6.7 |
% |
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Comparable hotel revenues⁽¹⁾ |
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1,299 |
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1,259 |
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3.2 |
% |
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4,235 |
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4,151 |
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2.0 |
% |
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Comparable hotel Total RevPAR⁽¹⁾ |
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328.86 |
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319.01 |
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3.1 |
% |
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360.07 |
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354.40 |
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1.6 |
% |
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Comparable hotel RevPAR⁽¹⁾ |
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206.21 |
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204.56 |
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0.8 |
% |
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218.09 |
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217.72 |
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0.2 |
% |
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Net income |
$ |
84 |
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$ |
113 |
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(25.7 |
%) |
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$ |
598 |
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$ |
618 |
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(3.2 |
%) |
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EBITDAre⁽¹⁾ |
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353 |
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361 |
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(2.2 |
%) |
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1,359 |
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1,251 |
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8.6 |
% |
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Adjusted EBITDAre⁽¹⁾ |
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324 |
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361 |
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(10.2 |
%) |
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1,283 |
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1,251 |
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2.6 |
% |
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Diluted earnings per common share |
$ |
0.12 |
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$ |
0.16 |
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(25.0 |
%) |
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$ |
0.84 |
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$ |
0.85 |
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(1.2 |
%) |
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NAREIT FFO per diluted share⁽¹⁾ |
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0.36 |
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0.41 |
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(12.2 |
%) |
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1.53 |
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1.48 |
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3.4 |
% |
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Adjusted FFO per diluted share⁽¹⁾ |
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0.36 |
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0.41 |
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(12.2 |
%) |
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1.53 |
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1.48 |
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3.4 |
% |
* Additional detail on the
Company’s results, including data for 24 domestic
markets, is available in the Third
Quarter 2024 Supplemental Financial
Information on the Company’s website at
www.hosthotels.com.
James F. Risoleo, President and Chief Executive
Officer, said, “Host delivered comparable hotel Total RevPAR growth
of 3.1% over the third quarter of 2023, driven by improvements in
food and beverage revenues from group business. Comparable hotel
RevPAR increased 0.8% for the quarter as a result of continued
strong group demand and improving trends in Maui."
Risoleo continued, “Despite the impact of the
hurricanes in Florida, we are maintaining our previous full year
comparable hotel guidance at the midpoint. During the quarter, we
repurchased $57 million of common stock, bringing our total
repurchases for the year to $107 million at an average price of
$16.99, and completed the issuance of $700 million of Series L
senior notes at 5.5%. We believe our investment grade balance sheet
continues to put us in a position to execute on multiple fronts,
leaving Host well positioned for growth in the future.”
_______________________________
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(1) |
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NAREIT Funds From Operations (“FFO”) per diluted share,
Adjusted FFO per diluted share, EBITDAre, Adjusted
EBITDAre and comparable hotel revenues are non-GAAP (U.S.
generally accepted accounting principles) financial measures within
the meaning of the rules of the Securities and Exchange Commission
(“SEC”). See the Notes to Financial Information on why the Company
believes these supplemental measures are useful, reconciliations to
the most directly comparable GAAP measure, and the limitations on
the use of these supplemental measures. Additionally, comparable
hotel results and statistics include adjustments for dispositions,
acquisitions and non-comparable hotels. See Hotel Operating Data
for RevPAR results of the portfolio based on the Company's
ownership period without these adjustments. |
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HIGHLIGHTS:
- Comparable hotel Total RevPAR was
$328.86 for the third quarter of 2024 and $360.07 year to date,
representing an increase of 3.1% and 1.6%, respectively, compared
to the same periods in 2023, due primarily to improvements in food
& beverage revenues driven by group business, as well as an
increase in other revenues from ancillary spend.
- Comparable hotel RevPAR was $206.21
and $218.09 for the third quarter and year-to-date of 2024,
respectively, representing an increase of 0.8% and 0.2%, compared
to the same periods in 2023 and reflecting continued strong group
demand, along with moderating domestic leisure demand and the slow,
yet improving, recovery in Maui.
- GAAP net income was $84 million for
the third quarter of 2024, reflecting a 25.7% decrease compared to
the third quarter of 2023, and GAAP operating profit margin was
10.2%, a decline of 270 basis points compared to the third quarter
of 2023, both affected by a $25 million decrease in gains on
insurance settlements. Year-to-date GAAP net income was $598
million, a 3.2% decrease compared to 2023, reflecting a decline in
gains on asset sales, and operating profit margin was 16.9%, an
improvement of 50 basis points compared to 2023, benefiting from a
$59 million increase in gains on insurance settlements for
year-to-date compared to 2023.
- Comparable hotel EBITDA was $329
million for the third quarter of 2024, a 1.8% decrease compared to
the third quarter of 2023, leading to a comparable hotel EBITDA
margin decline of 130 basis points to 25.3%. The decline for the
quarter was driven by Maui performance and the business
interruption proceeds included in 2023, while the revenue
improvements described above were offset by increased wages and
other inflationary pressures in comparison to third quarter 2023.
Year-to-date, comparable hotel EBITDA was $1,261 million, a
decrease of 1.1% compared to 2023, leading to a comparable hotel
EBITDA margin decline of 90 basis points to 29.8%.
- Adjusted EBITDAre was $324 million
for the third quarter of 2024, a decrease of 10.2% compared to
2023. Third quarter 2023 results benefited from business
interruption of $54 million, while none were recognized in third
quarter 2024. Year-to-date, Adjusted EBITDAre was
$1,283 million, exceeding 2023 by 2.6%, driven by operations
from the recent acquisitions and The Ritz-Carlton, Naples, which
was closed in the first half of 2023 due to Hurricane Ian.
- In July 2024, the Company completed
the previously announced acquisitions of the fee simple interest in
the 234-room 1 Hotel Central Park for $265 million and the
450-room The Ritz-Carlton O’ahu, Turtle Bay for $680 million, net
of key money received from Marriott International.
Hurricane and Maui Update
- Many of the Company's hotels in
Florida were affected by Hurricanes Helene and Milton, which made
landfall in September and October of 2024, respectively. Due to
evacuation mandates and/or loss of commercial power, four of the
Company's properties in Florida were temporarily closed, three of
which have reopened. The enhanced resilience projects implemented
during the reconstruction of The Ritz-Carlton, Naples were
successful in minimizing damage to the resort during the two
storms. The most significant damage sustained during the storms
occurred at The Don CeSar, which remains closed to guests. Due to
proximity of the event to quarter end, operating results for the
third quarter of 2024 were not materially impacted, however the
impact will carry into the fourth quarter as well as 2025. The
Company is still evaluating the complete remediation plans and
disruption impacts of the storms. The Company currently expects a
phased reopening of The Don CeSar beginning in late first quarter
of 2025.
- The Company reached a final
settlement with its insurance carriers on covered costs related to
damage and disruption caused by Hurricane Ian, which totaled $308
million, and received the remaining $29 million of property
insurance proceeds in the third quarter, resulting in a gain on
property insurance settlement of $25 million. In total, $99
million of the insurance receipts were recognized as a gain on
business interruption, and the Company does not expect to recognize
any additional gains on business interruption related to Hurricane
Ian.
- Effects from the August 2023
wildfires in Maui, Hawaii continued into 2024. In the third
quarter, the Company's Maui hotels and golf courses impacted RevPAR
by 170 basis points. The impact in the quarter is understated,
however, as the Company would have expected Maui to contribute 20
basis points to portfolio RevPAR growth in the third quarter given
the renovation disruption at Fairmont Kea Lani in 2023. As a
result, the total estimated impact of the wildfires on third
quarter RevPAR is 190 basis points. Operating profit margin and
comparable hotel EBITDA margin were impacted by Maui's operations
by approximately 70 basis points for the third quarter.
- The Company previously settled its
claim on the Maui wildfires and recognized $21 million of insurance
proceeds as a gain on business interruption in the second quarter
of 2024.
BALANCE SHEET
In August, the Company issued $700 million of
5.5% Series L senior notes due 2035 in an underwritten public
offering for proceeds of approximately $683 million, net of
original issue discount, underwriting fees and expenses. The net
proceeds were used in part to repay all $525 million of
borrowings then outstanding under the revolver portion of the
Company's credit facility, including amounts borrowed in connection
with recent acquisitions.
The Company maintains a robust balance sheet, with
the following balances at September 30, 2024:
- Total assets of $13.1 billion.
- Debt balance of $5.1 billion, with a weighted average maturity
of 5.5 years, a weighted average interest rate of 4.8%, and a
balanced maturity schedule.
- Total available liquidity of
approximately $2.3 billion, including furniture, fixtures and
equipment escrow reserves of $240 million and $1.5 billion
available under the revolver portion of the credit facility.
SHARE REPURCHASES AND
DIVIDENDS
During the third quarter of 2024, the Company
repurchased 3.5 million shares of common stock at an average price
of $16.33 per share, exclusive of commissions, through its common
share repurchase program for a total of $57 million. As of
September 30, 2024, the Company has approximately $685 million
of remaining capacity under the repurchase program, pursuant to
which its common stock may be purchased from time to time,
depending upon market conditions.
The Company paid a third quarter common stock
cash dividend of $0.20 per share on October 15, 2024 to
stockholders of record on September 30, 2024. All future
dividends, including any special dividends, are subject to approval
by the Company’s Board of Directors.
HOTEL BUSINESS MIX UPDATE
The Company’s customers fall into three broad
groups: transient, group and contract business, which accounted for
approximately 61%, 35%, and 4%, respectively, of its full year 2023
room sales.
The following are the results for transient,
group and contract business in comparison to 2023 performance, for
the Company's current portfolio:
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Quarter ended September 30, 2024 |
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Year-to-date ended September 30, 2024 |
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Transient |
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Group |
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Contract |
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Transient |
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Group |
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Contract |
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Room nights (in thousands) |
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1,607 |
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1,023 |
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202 |
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4,538 |
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3,320 |
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560 |
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Percent change in room nights vs. same period in 2023 |
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(0.1 |
%) |
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(0.1 |
%) |
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(0.9 |
%) |
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(1.3 |
%) |
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2.5 |
% |
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3.6 |
% |
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Rooms revenues (in millions) |
$ |
509 |
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$ |
265 |
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$ |
41 |
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$ |
1,516 |
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$ |
933 |
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$ |
116 |
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Percent change in revenues vs. same period in 2023 |
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0.2 |
% |
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1.0 |
% |
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8.8 |
% |
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(2.9 |
%) |
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5.3 |
% |
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13.0 |
% |
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CAPITAL EXPENDITURES
The following presents the Company’s capital
expenditures spend through the third quarter of 2024 and the
forecast for full year 2024 (in millions):
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Year-to-date ended
September 30,
2024 |
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2024 Full Year Forecast |
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Actual |
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Low-end of
range |
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High-end of
range |
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ROI - Marriott and Hyatt Transformational Capital Programs |
$ |
94 |
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$ |
125 |
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$ |
140 |
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All other return on investment ("ROI") projects |
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70 |
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100 |
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115 |
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Total ROI Projects |
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164 |
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225 |
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255 |
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Renewals and Replacements ("R&R") |
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181 |
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225 |
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275 |
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R&R and ROI Capital expenditures |
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345 |
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450 |
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530 |
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R&R - Property Damage Reconstruction |
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30 |
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35 |
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50 |
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Total Capital Expenditures |
$ |
375 |
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$ |
485 |
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$ |
580 |
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Inventory spend for condo development(1) |
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36 |
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50 |
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60 |
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Total capital allocation |
$ |
411 |
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$ |
535 |
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$ |
640 |
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__________
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(1) |
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Represents construction costs for the development of
condominium units on a land parcel adjacent to Four Seasons Resort
Orlando at Walt Disney World® Resort. Under GAAP, costs to develop
units for resale are considered an operating activity on the
statement of cash flows, and categorized as inventory. This spend
is separate from payments for capital expenditures, which are
considered investing activities. |
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Forecast spend for property damage
reconstruction includes estimated spend in 2024 related to
Hurricanes Helene and Milton, however a significant portion of the
total spending will occur in 2025 and those amounts are not
reflected in the 2024 forecast. Under the Hyatt Transformational
Capital Program, the Company received $2 million, of the expected
full year $9 million, of operating guarantees in the third quarter
of 2024 to offset business disruptions.
2024 OUTLOOK
The Company has maintained its previous midpoint
full year comparable hotel guidance, which assumes a continued
recovery in Maui and steady demand trends in the fourth quarter,
despite the impacts of Hurricanes Helene and Milton. Operating
profit margin and comparable hotel EBITDA margins in 2024 are
expected to decline compared to 2023, impacted by the Maui
wildfires and continued growth in wages, real estate taxes and
insurance.
The Company's full year forecast comparable
hotel set now includes the operations of The Ritz-Carlton O'ahu,
Turtle Bay and 1 Hotel Central Park properties that were acquired
in July 2024, and excludes The Don CeSar, which closed on September
25, 2024, as described above. The estimated impact to net income
and Adjusted EBITDAre from the loss of business due to the
hurricanes for 2024 is approximately $15 million.
The impact from Maui operations is expected to
be an approximate decline of 150 basis points in RevPAR and 110
basis points in Total RevPAR. When combined with the expected
pre-wildfire Maui contribution, the total impact is estimated to be
220 basis points and 180 basis points, respectively. Net of the
benefit of the business interruption gains relating to the
wildfires received earlier this year, the year-over-year impact
from Maui on net income and Adjusted EBITDAre for full year is
expected to be a decline of $25 million, and on margins is expected
to be a decline of approximately 20 basis points.
The Company anticipates its 2024 operating
results as compared to 2023 will be approximately as follows:
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Current Full Year
2024 Guidance |
Current Full Year
2024 Guidance
Change vs. 2023 |
Previous Full Year
2024 Guidance
Midpoint Change
vs. 2023 |
Change in Full Year
2024 Guidance |
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Comparable hotel Total RevPAR |
$353 |
1.2% |
1.2% |
0 bps |
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Comparable hotel RevPAR |
$215 |
0.0% |
0.0% |
0 bps |
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Total revenues under GAAP (in millions) |
$5,637 |
6.1% |
6.8% |
(70) bps |
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Operating profit margin under GAAP |
15.2% |
(40) bps |
0 bps |
(40) bps |
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Comparable hotel EBITDA margin |
29.0% |
(90) bps |
(90) bps |
0 bps |
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Based upon the above parameters, the Company
estimates its 2024 guidance will be approximately as follows:
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Current Full Year
2024 Guidance |
Previous Full Year
2024 Guidance
Midpoint |
Change in Full Year
2024 Guidance |
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Net income (in millions) |
$687 |
$712 |
$(25) |
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Adjusted EBITDAre (in millions) |
$1,630 |
$1,645 |
$(15) |
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Diluted earnings per common share |
$0.96 |
$0.99 |
$(0.03) |
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NAREIT and Adjusted FFO per diluted share |
$1.92 |
$1.94 |
$(0.02) |
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See the 2024 Forecast Schedules and the Notes to
Financial Information for items that may affect forecast
results.
ABOUT HOST HOTELS &
RESORTS
Host Hotels & Resorts, Inc. is an S&P
500 company and is the largest lodging real estate investment trust
and one of the largest owners of luxury and upper-upscale hotels.
The Company currently owns 76 properties in the United States and
five properties internationally totaling approximately 43,400
rooms. The Company also holds non-controlling interests in seven
domestic and one international joint ventures. Guided by a
disciplined approach to capital allocation and aggressive asset
management, the Company partners with premium brands such as
Marriott®, Ritz-Carlton®, Westin®,
Sheraton®, W®, St. Regis®, The
Luxury Collection®, Hyatt®,
Fairmont®, 1 Hotels®, Hilton®, Four
Seasons®, Swissôtel®, ibis® and
Novotel®, as well as independent brands. For additional
information, please visit the Company’s website at
www.hosthotels.com.
Note: This press release contains
forward-looking statements within the meaning of federal securities
regulations. These forward-looking statements which include, but
may not be limited to, our expectations regarding the recovery of
travel and the lodging industry, the impact of the Maui wildfires
and 2024 estimates with respect to our business,
including our anticipated capital expenditures and financial and
operating results. Forward-looking statements are not guarantees of
future performance and involve known and unknown risks,
uncertainties and other factors which may cause the actual results
to differ materially from those anticipated at the time the
forward-looking statements are made. These risks include, but are
not limited to, those described in the Company’s annual report on
Form 10-K and other filings with the SEC. Although the Company
believes the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, it can give no
assurance that the expectations will be attained or that any
deviation will not be material. All information in this release is
as of November 6, 2024, and the Company
undertakes no obligation to update any forward-looking statement to
conform the statement to actual results or changes in the Company’s
expectations.
* This press release contains registered
trademarks that are the exclusive property of their respective
owners. None of the owners of these trademarks has any
responsibility or liability for any information contained in this
press release.
*** Tables to Follow ***
Host Hotels & Resorts, Inc., herein referred
to as “we,” “Host Inc.,” or the “Company,” is a self-managed and
self-administered real estate investment trust that owns hotel
properties. We conduct our operations as an umbrella partnership
REIT through an operating partnership, Host Hotels & Resorts,
L.P. (“Host LP”), of which we are the sole general partner. When
distinguishing between Host Inc. and Host LP, the primary
difference is approximately 1% of the partnership interests in Host
LP held by outside partners as of September 30, 2024, which
are non-controlling interests in Host LP in our consolidated
balance sheets and are included in net (income) loss attributable
to non-controlling interests in our condensed consolidated
statements of operations. Readers are encouraged to find further
detail regarding our organizational structure in our annual report
on Form 10-K.
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HOST HOTELS & RESORTS, INC.
Condensed Consolidated Balance Sheets
(unaudited, in millions, except shares and per share amounts) |
|
|
|
|
|
|
|
September 30,
2024 |
|
December 31,
2023 |
|
|
|
|
|
|
ASSETS |
|
Property and equipment, net |
$ |
10,962 |
|
|
$ |
9,624 |
|
|
Right-of-use assets |
|
549 |
|
|
|
550 |
|
|
Due from managers |
|
77 |
|
|
|
128 |
|
|
Advances to and investments in affiliates |
|
162 |
|
|
|
126 |
|
|
Furniture, fixtures and equipment replacement fund |
|
240 |
|
|
|
217 |
|
|
Notes receivable |
|
78 |
|
|
|
72 |
|
|
Other |
|
448 |
|
|
|
382 |
|
|
Cash and cash equivalents |
|
564 |
|
|
|
1,144 |
|
|
Total assets |
$ |
13,080 |
|
|
$ |
12,243 |
|
|
|
|
|
|
|
LIABILITIES, NON-CONTROLLING INTERESTS AND
EQUITY |
|
Debt⁽¹⁾ |
|
|
|
|
Senior notes |
$ |
3,991 |
|
|
$ |
3,120 |
|
|
Credit facility, including the term loans of $997 |
|
991 |
|
|
|
989 |
|
|
Mortgage and other debt |
|
99 |
|
|
|
100 |
|
|
Total debt |
|
5,081 |
|
|
|
4,209 |
|
|
Lease liabilities |
|
559 |
|
|
|
563 |
|
|
Accounts payable and accrued expenses |
|
248 |
|
|
|
408 |
|
|
Due to managers |
|
77 |
|
|
|
64 |
|
|
Other |
|
233 |
|
|
|
173 |
|
|
Total liabilities |
|
6,198 |
|
|
|
5,417 |
|
|
|
|
|
|
|
Redeemable non-controlling interests - Host Hotels &
Resorts, L.P. |
|
167 |
|
|
|
189 |
|
|
|
|
|
|
|
Host Hotels & Resorts, Inc. stockholders’ equity: |
|
|
|
|
Common stock, par value $0.01, 1,050 million shares authorized,
699.0 million shares and 703.6 million shares issued and
outstanding, respectively |
|
7 |
|
|
|
7 |
|
|
Additional paid-in capital |
|
7,454 |
|
|
|
7,535 |
|
|
Accumulated other comprehensive loss |
|
(75 |
) |
|
|
(70 |
) |
|
Deficit |
|
(674 |
) |
|
|
(839 |
) |
|
Total equity of Host Hotels & Resorts, Inc. stockholders |
|
6,712 |
|
|
|
6,633 |
|
|
Non-redeemable non-controlling interests—other consolidated
partnerships |
|
3 |
|
|
|
4 |
|
|
Total equity |
|
6,715 |
|
|
|
6,637 |
|
|
Total liabilities, non-controlling interests and equity |
$ |
13,080 |
|
|
$ |
12,243 |
|
__________
|
(1) |
|
Please see our Third Quarter 2024 Supplemental Financial
Information for more detail on our debt balances and financial
covenant ratios under our credit facility and senior notes
indentures.
|
|
|
|
|
HOST HOTELS & RESORTS, INC.
Condensed Consolidated Statements of
Operations
(unaudited, in millions, except per share amounts) |
|
|
|
|
|
|
|
Quarter ended
September 30, |
|
Year-to-date ended
September 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Revenues |
|
|
|
|
|
|
|
|
Rooms |
$ |
825 |
|
|
$ |
777 |
|
|
$ |
2,563 |
|
|
$ |
2,447 |
|
|
Food and beverage |
|
365 |
|
|
|
328 |
|
|
|
1,285 |
|
|
|
1,174 |
|
|
Other |
|
129 |
|
|
|
109 |
|
|
|
408 |
|
|
|
367 |
|
|
Total revenues |
|
1,319 |
|
|
|
1,214 |
|
|
|
4,256 |
|
|
|
3,988 |
|
|
Expenses |
|
|
|
|
|
|
|
|
Rooms |
|
216 |
|
|
|
196 |
|
|
|
632 |
|
|
|
590 |
|
|
Food and beverage |
|
267 |
|
|
|
241 |
|
|
|
848 |
|
|
|
773 |
|
|
Other departmental and support expenses |
|
345 |
|
|
|
314 |
|
|
|
1,022 |
|
|
|
952 |
|
|
Management fees |
|
55 |
|
|
|
51 |
|
|
|
193 |
|
|
|
185 |
|
|
Other property-level expenses |
|
108 |
|
|
|
106 |
|
|
|
313 |
|
|
|
290 |
|
|
Depreciation and amortization |
|
197 |
|
|
|
174 |
|
|
|
565 |
|
|
|
511 |
|
|
Corporate and other expenses⁽¹⁾ |
|
25 |
|
|
|
29 |
|
|
|
81 |
|
|
|
90 |
|
|
Gain on insurance settlements |
|
(29 |
) |
|
|
(54 |
) |
|
|
(116 |
) |
|
|
(57 |
) |
|
Total operating costs and expenses |
|
1,184 |
|
|
|
1,057 |
|
|
|
3,538 |
|
|
|
3,334 |
|
|
Operating profit |
|
135 |
|
|
|
157 |
|
|
|
718 |
|
|
|
654 |
|
|
Interest income |
|
11 |
|
|
|
22 |
|
|
|
43 |
|
|
|
56 |
|
|
Interest expense |
|
(59 |
) |
|
|
(48 |
) |
|
|
(156 |
) |
|
|
(142 |
) |
|
Other gains |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
70 |
|
|
Equity in earnings (losses) of affiliates |
|
2 |
|
|
|
(4 |
) |
|
|
12 |
|
|
|
7 |
|
|
Income before income taxes |
|
90 |
|
|
|
128 |
|
|
|
618 |
|
|
|
645 |
|
|
Provision for income taxes |
|
(6 |
) |
|
|
(15 |
) |
|
|
(20 |
) |
|
|
(27 |
) |
|
Net income |
|
84 |
|
|
|
113 |
|
|
|
598 |
|
|
|
618 |
|
|
Less: Net income attributable to non-controlling interests |
|
(2 |
) |
|
|
(2 |
) |
|
|
(9 |
) |
|
|
(10 |
) |
|
Net income attributable to Host Inc. |
$ |
82 |
|
|
$ |
111 |
|
|
$ |
589 |
|
|
$ |
608 |
|
|
Basic and diluted earnings per common share |
$ |
0.12 |
|
|
$ |
0.16 |
|
|
$ |
0.84 |
|
|
$ |
0.85 |
|
___________
|
(1) |
|
Corporate and other expenses include the following
items: |
|
|
|
|
|
|
Quarter ended
September 30, |
|
Year-to-date ended
September 30, |
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
General and administrative costs |
$ |
19 |
|
|
$ |
20 |
|
|
$ |
64 |
|
|
$ |
61 |
|
|
Non-cash stock-based compensation expense |
|
6 |
|
|
|
6 |
|
|
|
17 |
|
|
|
19 |
|
|
Litigation accruals |
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
10 |
|
|
Total |
$ |
25 |
|
|
$ |
29 |
|
|
$ |
81 |
|
|
$ |
90 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOST HOTELS & RESORTS, INC.
Earnings per Common Share
(unaudited, in millions, except per share amounts) |
| |
|
|
|
|
|
Quarter ended September 30, |
|
Year-to-date ended September 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net income |
$ |
84 |
|
|
$ |
113 |
|
|
$ |
598 |
|
|
$ |
618 |
|
|
Less: Net income attributable to non-controlling interests |
|
(2 |
) |
|
|
(2 |
) |
|
|
(9 |
) |
|
|
(10 |
) |
|
Net income attributable to Host Inc. |
$ |
82 |
|
|
$ |
111 |
|
|
$ |
589 |
|
|
$ |
608 |
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding |
|
700.9 |
|
|
|
709.7 |
|
|
|
703.1 |
|
|
|
711.4 |
|
|
Assuming distribution of common shares granted under the
comprehensive stock plans, less shares assumed purchased at
market |
|
1.5 |
|
|
|
2.2 |
|
|
|
1.6 |
|
|
|
2.2 |
|
|
Diluted weighted average shares outstanding⁽¹⁾ |
|
702.4 |
|
|
|
711.9 |
|
|
|
704.7 |
|
|
|
713.6 |
|
|
Basic and diluted earnings per common share |
$ |
0.12 |
|
|
$ |
0.16 |
|
|
$ |
0.84 |
|
|
$ |
0.85 |
|
___________
|
(1) |
|
Dilutive securities may include shares granted under
comprehensive stock plans, preferred operating partnership units
(“OP Units”) held by non-controlling limited partners and other
non-controlling interests that have the option to convert their
limited partnership interests to common OP Units. No effect is
shown for any securities that were anti-dilutive for the
period. |
|
|
|
|
HOST HOTELS & RESORTS, INC.
Hotel Operating Data for Consolidated Hotels |
|
|
Comparable Hotel Results by
Location(1)
|
|
As of September 30, 2024 |
|
Quarter ended September 30, 2024 |
|
Quarter ended September 30, 2023 |
|
|
|
|
|
Location |
No. of
Properties |
|
No. of
Rooms |
|
Average
Room Rate |
|
Average
Occupancy
Percentage |
|
RevPAR |
|
Total
RevPAR |
|
Average
Room Rate |
|
Average
Occupancy
Percentage |
|
RevPAR |
|
Total
RevPAR |
|
Percent
Change in
RevPAR |
|
Percent
Change in
Total
RevPAR |
|
Jacksonville |
1 |
|
446 |
|
$ |
500.84 |
|
71.6 |
% |
|
$ |
358.59 |
|
$ |
805.21 |
|
$ |
479.33 |
|
69.2 |
% |
|
$ |
331.47 |
|
$ |
726.78 |
|
8.2 |
% |
|
10.8 |
% |
|
Maui |
3 |
|
1,580 |
|
|
626.00 |
|
57.0 |
% |
|
|
356.87 |
|
|
569.42 |
|
|
710.27 |
|
62.2 |
% |
|
|
442.00 |
|
|
631.23 |
|
(19.3 |
%) |
|
(9.8 |
%) |
|
Oahu (2) |
2 |
|
876 |
|
|
458.26 |
|
81.6 |
% |
|
|
373.80 |
|
|
562.08 |
|
|
452.27 |
|
82.4 |
% |
|
|
372.46 |
|
|
578.74 |
|
0.4 |
% |
|
(2.9 |
%) |
|
Miami |
2 |
|
1,038 |
|
|
366.49 |
|
59.2 |
% |
|
|
216.89 |
|
|
414.64 |
|
|
377.39 |
|
50.3 |
% |
|
|
189.66 |
|
|
358.25 |
|
14.4 |
% |
|
15.7 |
% |
|
New York |
3 |
|
2,720 |
|
|
379.23 |
|
87.5 |
% |
|
|
331.84 |
|
|
447.06 |
|
|
357.95 |
|
86.5 |
% |
|
|
309.77 |
|
|
412.96 |
|
7.1 |
% |
|
8.3 |
% |
|
Nashville |
2 |
|
721 |
|
|
335.61 |
|
80.5 |
% |
|
|
270.28 |
|
|
435.21 |
|
|
342.53 |
|
78.2 |
% |
|
|
267.92 |
|
|
422.57 |
|
0.9 |
% |
|
3.0 |
% |
|
Phoenix |
3 |
|
1,545 |
|
|
269.17 |
|
54.5 |
% |
|
|
146.75 |
|
|
374.60 |
|
|
263.79 |
|
59.6 |
% |
|
|
157.18 |
|
|
368.20 |
|
(6.6 |
%) |
|
1.7 |
% |
|
Florida Gulf Coast |
4 |
|
1,403 |
|
|
272.83 |
|
61.2 |
% |
|
|
167.03 |
|
|
361.33 |
|
|
279.05 |
|
63.9 |
% |
|
|
178.25 |
|
|
357.14 |
|
(6.3 |
%) |
|
1.2 |
% |
|
Orlando |
2 |
|
2,448 |
|
|
312.21 |
|
60.3 |
% |
|
|
188.39 |
|
|
426.35 |
|
|
309.53 |
|
64.9 |
% |
|
|
200.78 |
|
|
419.73 |
|
(6.2 |
%) |
|
1.6 |
% |
|
San Diego |
3 |
|
3,294 |
|
|
305.38 |
|
84.2 |
% |
|
|
257.27 |
|
|
455.83 |
|
|
295.59 |
|
83.5 |
% |
|
|
246.81 |
|
|
441.94 |
|
4.2 |
% |
|
3.1 |
% |
|
Los Angeles/Orange County |
3 |
|
1,067 |
|
|
303.51 |
|
81.9 |
% |
|
|
248.54 |
|
|
369.47 |
|
|
314.25 |
|
85.9 |
% |
|
|
269.85 |
|
|
375.29 |
|
(7.9 |
%) |
|
(1.6 |
%) |
|
Boston |
2 |
|
1,496 |
|
|
301.09 |
|
84.4 |
% |
|
|
253.98 |
|
|
316.86 |
|
|
273.06 |
|
83.8 |
% |
|
|
228.75 |
|
|
291.12 |
|
11.0 |
% |
|
8.8 |
% |
|
Washington, D.C. (CBD) |
5 |
|
3,245 |
|
|
261.33 |
|
69.0 |
% |
|
|
180.29 |
|
|
265.21 |
|
|
244.50 |
|
71.5 |
% |
|
|
174.94 |
|
|
248.36 |
|
3.1 |
% |
|
6.8 |
% |
|
Philadelphia |
2 |
|
810 |
|
|
236.34 |
|
83.7 |
% |
|
|
197.75 |
|
|
298.37 |
|
|
231.09 |
|
82.6 |
% |
|
|
190.83 |
|
|
288.59 |
|
3.6 |
% |
|
3.4 |
% |
|
Northern Virginia |
2 |
|
916 |
|
|
246.97 |
|
74.3 |
% |
|
|
183.58 |
|
|
272.79 |
|
|
233.30 |
|
72.0 |
% |
|
|
168.00 |
|
|
250.70 |
|
9.3 |
% |
|
8.8 |
% |
|
Chicago |
3 |
|
1,562 |
|
|
284.56 |
|
79.3 |
% |
|
|
225.77 |
|
|
302.96 |
|
|
253.34 |
|
79.5 |
% |
|
|
201.35 |
|
|
280.27 |
|
12.1 |
% |
|
8.1 |
% |
|
Seattle |
2 |
|
1,315 |
|
|
278.67 |
|
84.2 |
% |
|
|
234.60 |
|
|
295.93 |
|
|
271.12 |
|
81.0 |
% |
|
|
219.56 |
|
|
285.88 |
|
6.9 |
% |
|
3.5 |
% |
|
San Francisco/San Jose |
6 |
|
4,162 |
|
|
221.47 |
|
71.4 |
% |
|
|
158.03 |
|
|
224.25 |
|
|
241.34 |
|
72.8 |
% |
|
|
175.71 |
|
|
241.07 |
|
(10.1 |
%) |
|
(7.0 |
%) |
|
Austin |
2 |
|
767 |
|
|
206.04 |
|
60.4 |
% |
|
|
124.50 |
|
|
226.42 |
|
|
225.87 |
|
59.0 |
% |
|
|
133.29 |
|
|
242.58 |
|
(6.6 |
%) |
|
(6.7 |
%) |
|
Houston |
5 |
|
1,942 |
|
|
207.33 |
|
66.6 |
% |
|
|
138.07 |
|
|
189.00 |
|
|
191.21 |
|
66.3 |
% |
|
|
126.73 |
|
|
172.15 |
|
8.9 |
% |
|
9.8 |
% |
|
Denver |
3 |
|
1,342 |
|
|
212.74 |
|
82.1 |
% |
|
|
174.65 |
|
|
252.81 |
|
|
204.48 |
|
79.9 |
% |
|
|
163.34 |
|
|
235.48 |
|
6.9 |
% |
|
7.4 |
% |
|
New Orleans |
1 |
|
1,333 |
|
|
161.65 |
|
68.4 |
% |
|
|
110.53 |
|
|
180.91 |
|
|
147.45 |
|
58.9 |
% |
|
|
86.87 |
|
|
133.83 |
|
27.2 |
% |
|
35.2 |
% |
|
San Antonio |
2 |
|
1,512 |
|
|
201.02 |
|
56.3 |
% |
|
|
113.14 |
|
|
179.56 |
|
|
194.04 |
|
53.5 |
% |
|
|
103.87 |
|
|
167.34 |
|
8.9 |
% |
|
7.3 |
% |
|
Atlanta |
2 |
|
810 |
|
|
193.10 |
|
62.3 |
% |
|
|
120.29 |
|
|
182.01 |
|
|
182.03 |
|
75.0 |
% |
|
|
136.49 |
|
|
210.62 |
|
(11.9 |
%) |
|
(13.6 |
%) |
|
Other |
9 |
|
3,007 |
|
|
283.60 |
|
69.3 |
% |
|
|
196.42 |
|
|
303.39 |
|
|
281.41 |
|
68.1 |
% |
|
|
191.51 |
|
|
287.59 |
|
2.6 |
% |
|
5.5 |
% |
|
Domestic |
74 |
|
41,357 |
|
|
290.32 |
|
71.9 |
% |
|
|
208.61 |
|
|
334.05 |
|
|
287.43 |
|
72.1 |
% |
|
|
207.22 |
|
|
324.22 |
|
0.7 |
% |
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
5 |
|
1,499 |
|
|
206.99 |
|
67.6 |
% |
|
|
140.02 |
|
|
183.91 |
|
|
199.27 |
|
65.7 |
% |
|
|
130.95 |
|
|
174.16 |
|
6.9 |
% |
|
5.6 |
% |
|
All Locations |
79 |
|
42,856 |
|
$ |
287.57 |
|
71.7 |
% |
|
$ |
206.21 |
|
$ |
328.86 |
|
$ |
284.61 |
|
71.9 |
% |
|
$ |
204.56 |
|
$ |
319.01 |
|
0.8 |
% |
|
3.1 |
% |
___________
|
(1) |
|
See the Notes to Financial Information for a discussion of
comparable hotel operating statistics. Beginning in third quarter
of 2024, we have separated the Oahu and Maui markets. CBD of a
location refers to the central business district. Hotel RevPAR is
calculated as room revenues divided by the available room nights.
Hotel Total RevPAR is calculated by dividing the sum of rooms, food
and beverage and other revenues by the available room
nights. |
|
(2) |
|
Prior to our ownership of The Ritz Carlton O'ahu, Turtle Bay,
golf revenues were recorded by the property based on gross sales.
After our acquisition of the property in July 2024, the golf course
operates under a lease agreement, under which we record rental
income, resulting in lower total revenues when comparing to the
periods prior to our ownership. |
|
|
|
|
Comparable Hotel Results by
Location(1)
|
|
As of September 30, 2024 |
|
Year-to-date ended September 30, 2024 |
|
Year-to-date ended September 30, 2023 |
|
|
|
|
|
Location |
No. of
Properties |
|
No. of
Rooms |
|
Average
Room Rate |
|
Average
Occupancy
Percentage |
|
RevPAR |
|
Total
RevPAR |
|
Average
Room Rate |
|
Average
Occupancy
Percentage |
|
RevPAR |
|
Total
RevPAR |
|
Percent
Change in
RevPAR |
|
Percent
Change in
Total
RevPAR |
|
Jacksonville |
1 |
|
446 |
|
$ |
527.92 |
|
74.2 |
% |
|
$ |
391.58 |
|
$ |
876.65 |
|
$ |
515.29 |
|
72.8 |
% |
|
$ |
375.31 |
|
$ |
823.23 |
|
4.3 |
% |
|
6.5 |
% |
|
Maui |
3 |
|
1,580 |
|
|
658.69 |
|
59.3 |
% |
|
|
390.76 |
|
|
639.14 |
|
|
716.28 |
|
69.5 |
% |
|
|
497.61 |
|
|
758.00 |
|
(21.5 |
%) |
|
(15.7 |
%) |
|
Oahu (2) |
2 |
|
876 |
|
|
454.33 |
|
82.5 |
% |
|
|
374.93 |
|
|
589.86 |
|
|
441.48 |
|
77.0 |
% |
|
|
339.77 |
|
|
549.45 |
|
10.3 |
% |
|
7.4 |
% |
|
Miami |
2 |
|
1,038 |
|
|
521.24 |
|
70.2 |
% |
|
|
365.80 |
|
|
636.48 |
|
|
538.29 |
|
65.8 |
% |
|
|
354.38 |
|
|
620.61 |
|
3.2 |
% |
|
2.6 |
% |
|
New York |
3 |
|
2,720 |
|
|
360.45 |
|
82.9 |
% |
|
|
298.70 |
|
|
421.87 |
|
|
343.87 |
|
81.4 |
% |
|
|
279.88 |
|
|
396.80 |
|
6.7 |
% |
|
6.3 |
% |
|
Nashville |
2 |
|
721 |
|
|
341.19 |
|
80.8 |
% |
|
|
275.55 |
|
|
445.00 |
|
|
343.42 |
|
76.0 |
% |
|
|
260.91 |
|
|
394.85 |
|
5.6 |
% |
|
12.7 |
% |
|
Phoenix |
3 |
|
1,545 |
|
|
393.86 |
|
69.8 |
% |
|
|
275.08 |
|
|
632.88 |
|
|
401.67 |
|
71.8 |
% |
|
|
288.45 |
|
|
630.82 |
|
(4.6 |
%) |
|
0.3 |
% |
|
Florida Gulf Coast |
4 |
|
1,403 |
|
|
357.96 |
|
71.5 |
% |
|
|
256.00 |
|
|
548.61 |
|
|
359.25 |
|
72.8 |
% |
|
|
261.52 |
|
|
554.05 |
|
(2.1 |
%) |
|
(1.0 |
%) |
|
Orlando |
2 |
|
2,448 |
|
|
363.77 |
|
68.3 |
% |
|
|
248.43 |
|
|
527.80 |
|
|
369.46 |
|
71.4 |
% |
|
|
263.81 |
|
|
533.70 |
|
(5.8 |
%) |
|
(1.1 |
%) |
|
San Diego |
3 |
|
3,294 |
|
|
298.26 |
|
81.5 |
% |
|
|
243.21 |
|
|
452.45 |
|
|
286.71 |
|
81.2 |
% |
|
|
232.85 |
|
|
432.14 |
|
4.4 |
% |
|
4.7 |
% |
|
Los Angeles/Orange County |
3 |
|
1,067 |
|
|
297.47 |
|
79.1 |
% |
|
|
235.16 |
|
|
350.72 |
|
|
303.01 |
|
82.8 |
% |
|
|
250.80 |
|
|
360.45 |
|
(6.2 |
%) |
|
(2.7 |
%) |
|
Boston |
2 |
|
1,496 |
|
|
280.49 |
|
79.8 |
% |
|
|
223.91 |
|
|
292.37 |
|
|
262.27 |
|
78.7 |
% |
|
|
206.41 |
|
|
272.25 |
|
8.5 |
% |
|
7.4 |
% |
|
Washington, D.C. (CBD) |
5 |
|
3,245 |
|
|
289.07 |
|
71.0 |
% |
|
|
205.24 |
|
|
298.07 |
|
|
276.94 |
|
71.3 |
% |
|
|
197.40 |
|
|
285.28 |
|
4.0 |
% |
|
4.5 |
% |
|
Philadelphia |
2 |
|
810 |
|
|
233.93 |
|
80.5 |
% |
|
|
188.37 |
|
|
286.45 |
|
|
230.17 |
|
80.1 |
% |
|
|
184.43 |
|
|
285.52 |
|
2.1 |
% |
|
0.3 |
% |
|
Northern Virginia |
2 |
|
916 |
|
|
255.73 |
|
73.0 |
% |
|
|
186.80 |
|
|
287.34 |
|
|
241.35 |
|
70.5 |
% |
|
|
170.04 |
|
|
256.35 |
|
9.9 |
% |
|
12.1 |
% |
|
Chicago |
3 |
|
1,562 |
|
|
255.00 |
|
70.5 |
% |
|
|
179.73 |
|
|
249.82 |
|
|
244.43 |
|
69.2 |
% |
|
|
169.15 |
|
|
240.13 |
|
6.3 |
% |
|
4.0 |
% |
|
Seattle |
2 |
|
1,315 |
|
|
254.22 |
|
70.5 |
% |
|
|
179.21 |
|
|
239.04 |
|
|
242.11 |
|
69.1 |
% |
|
|
167.33 |
|
|
226.93 |
|
7.1 |
% |
|
5.3 |
% |
|
San Francisco/San Jose |
6 |
|
4,162 |
|
|
245.14 |
|
68.2 |
% |
|
|
167.30 |
|
|
244.90 |
|
|
254.24 |
|
66.8 |
% |
|
|
169.73 |
|
|
246.35 |
|
(1.4 |
%) |
|
(0.6 |
%) |
|
Austin |
2 |
|
767 |
|
|
247.35 |
|
66.2 |
% |
|
|
163.68 |
|
|
292.67 |
|
|
259.09 |
|
66.6 |
% |
|
|
172.50 |
|
|
309.26 |
|
(5.1 |
%) |
|
(5.4 |
%) |
|
Houston |
5 |
|
1,942 |
|
|
215.18 |
|
70.9 |
% |
|
|
152.65 |
|
|
210.55 |
|
|
201.57 |
|
70.6 |
% |
|
|
142.37 |
|
|
196.37 |
|
7.2 |
% |
|
7.2 |
% |
|
Denver |
3 |
|
1,342 |
|
|
201.25 |
|
70.5 |
% |
|
|
141.92 |
|
|
215.52 |
|
|
193.63 |
|
65.0 |
% |
|
|
125.92 |
|
|
180.78 |
|
12.7 |
% |
|
19.2 |
% |
|
New Orleans |
1 |
|
1,333 |
|
|
191.16 |
|
72.3 |
% |
|
|
138.16 |
|
|
219.14 |
|
|
195.70 |
|
68.9 |
% |
|
|
134.85 |
|
|
204.28 |
|
2.5 |
% |
|
7.3 |
% |
|
San Antonio |
2 |
|
1,512 |
|
|
216.80 |
|
61.4 |
% |
|
|
133.13 |
|
|
214.38 |
|
|
217.64 |
|
62.4 |
% |
|
|
135.91 |
|
|
217.29 |
|
(2.0 |
%) |
|
(1.3 |
%) |
|
Atlanta |
2 |
|
810 |
|
|
204.24 |
|
61.4 |
% |
|
|
125.42 |
|
|
207.89 |
|
|
190.91 |
|
75.0 |
% |
|
|
143.15 |
|
|
230.87 |
|
(12.4 |
%) |
|
(10.0 |
%) |
|
Other |
9 |
|
3,007 |
|
|
285.03 |
|
65.7 |
% |
|
|
187.28 |
|
|
289.56 |
|
|
287.76 |
|
65.1 |
% |
|
|
187.34 |
|
|
285.72 |
|
— |
% |
|
1.3 |
% |
|
Domestic |
74 |
|
41,357 |
|
|
308.20 |
|
71.9 |
% |
|
|
221.50 |
|
|
366.58 |
|
|
308.05 |
|
71.8 |
% |
|
|
221.31 |
|
|
361.09 |
|
0.1 |
% |
|
1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
5 |
|
1,499 |
|
|
196.00 |
|
63.2 |
% |
|
|
123.88 |
|
|
178.79 |
|
|
188.41 |
|
62.9 |
% |
|
|
118.58 |
|
|
168.30 |
|
4.5 |
% |
|
6.2 |
% |
|
All Locations |
79 |
|
42,856 |
|
$ |
304.74 |
|
71.6 |
% |
|
$ |
218.09 |
|
$ |
360.07 |
|
$ |
304.37 |
|
71.5 |
% |
|
$ |
217.72 |
|
$ |
354.40 |
|
0.2 |
% |
|
1.6 |
% |
___________
|
(1) |
|
See the Notes to Financial Information for a discussion of
comparable hotel operating statistics. Beginning in third quarter
of 2024, we have separated the Oahu and Maui markets. CBD of a
location refers to the central business district. Hotel RevPAR is
calculated as room revenues divided by the available room nights.
Hotel Total RevPAR is calculated by dividing the sum of rooms, food
and beverage and other revenues by the available room
nights. |
|
(2) |
|
Prior to our ownership of The Ritz Carlton O'ahu, Turtle Bay,
golf revenues were recorded by the property based on gross sales.
After our acquisition of the property in July 2024, the golf course
operates under a lease agreement, under which we record rental
income, resulting in lower total revenues when comparing to the
periods prior to our ownership. |
|
|
|
|
Results by Location -
actual, based on ownership
period(1)
|
|
As of September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
Quarter ended September 30, 2024 |
|
Quarter ended September 30, 2023 |
|
|
|
|
|
Location |
No. of
Properties |
|
No. of
Properties |
|
Average
Room Rate |
|
Average
Occupancy
Percentage |
|
RevPAR |
|
Total
RevPAR |
|
Average
Room Rate |
|
Average
Occupancy
Percentage |
|
RevPAR |
|
Total
RevPAR |
|
Percent
Change in
RevPAR |
|
Percent
Change in
Total
RevPAR |
|
Jacksonville |
1 |
|
1 |
|
$ |
500.84 |
|
71.6 |
% |
|
$ |
358.59 |
|
$ |
805.21 |
|
$ |
479.33 |
|
69.2 |
% |
|
$ |
331.47 |
|
$ |
726.78 |
|
8.2 |
% |
|
10.8 |
% |
|
Maui |
3 |
|
3 |
|
|
626.00 |
|
57.0 |
% |
|
|
356.87 |
|
|
569.42 |
|
|
710.27 |
|
62.2 |
% |
|
|
442.00 |
|
|
631.23 |
|
(19.3 |
%) |
|
(9.8 |
%) |
|
Oahu |
2 |
|
1 |
|
|
386.23 |
|
82.6 |
% |
|
|
318.97 |
|
|
462.52 |
|
|
220.44 |
|
97.3 |
% |
|
|
214.45 |
|
|
246.44 |
|
48.7 |
% |
|
87.7 |
% |
|
Miami |
2 |
|
2 |
|
|
366.49 |
|
59.2 |
% |
|
|
216.89 |
|
|
414.64 |
|
|
377.39 |
|
50.3 |
% |
|
|
189.66 |
|
|
358.25 |
|
14.4 |
% |
|
15.7 |
% |
|
New York |
3 |
|
2 |
|
|
378.23 |
|
87.7 |
% |
|
|
331.88 |
|
|
441.73 |
|
|
334.84 |
|
87.0 |
% |
|
|
291.33 |
|
|
387.71 |
|
13.9 |
% |
|
13.9 |
% |
|
Nashville |
2 |
|
— |
|
|
335.61 |
|
80.5 |
% |
|
|
270.28 |
|
|
435.21 |
|
|
— |
|
— |
% |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
Phoenix |
3 |
|
3 |
|
|
269.17 |
|
54.5 |
% |
|
|
146.75 |
|
|
374.60 |
|
|
263.79 |
|
59.6 |
% |
|
|
157.18 |
|
|
368.20 |
|
(6.6 |
%) |
|
1.7 |
% |
|
Florida Gulf Coast |
5 |
|
5 |
|
|
332.00 |
|
57.0 |
% |
|
|
189.13 |
|
|
403.96 |
|
|
328.97 |
|
58.5 |
% |
|
|
192.44 |
|
|
384.90 |
|
(1.7 |
%) |
|
5.0 |
% |
|
Orlando |
2 |
|
2 |
|
|
312.21 |
|
60.3 |
% |
|
|
188.39 |
|
|
426.35 |
|
|
309.53 |
|
64.9 |
% |
|
|
200.78 |
|
|
419.73 |
|
(6.2 |
%) |
|
1.6 |
% |
|
San Diego |
3 |
|
3 |
|
|
305.38 |
|
84.2 |
% |
|
|
257.27 |
|
|
455.83 |
|
|
295.59 |
|
83.5 |
% |
|
|
246.81 |
|
|
441.94 |
|
4.2 |
% |
|
3.1 |
% |
|
Los Angeles/Orange County |
3 |
|
3 |
|
|
303.51 |
|
81.9 |
% |
|
|
248.54 |
|
|
369.47 |
|
|
314.25 |
|
85.9 |
% |
|
|
269.85 |
|
|
375.29 |
|
(7.9 |
%) |
|
(1.6 |
%) |
|
Boston |
2 |
|
2 |
|
|
301.09 |
|
84.4 |
% |
|
|
253.98 |
|
|
316.86 |
|
|
273.06 |
|
83.8 |
% |
|
|
228.75 |
|
|
291.12 |
|
11.0 |
% |
|
8.8 |
% |
|
Washington, D.C. (CBD) |
5 |
|
5 |
|
|
261.33 |
|
69.0 |
% |
|
|
180.29 |
|
|
265.21 |
|
|
244.50 |
|
71.5 |
% |
|
|
174.94 |
|
|
248.36 |
|
3.1 |
% |
|
6.8 |
% |
|
Philadelphia |
2 |
|
2 |
|
|
236.34 |
|
83.7 |
% |
|
|
197.75 |
|
|
298.37 |
|
|
231.09 |
|
82.6 |
% |
|
|
190.83 |
|
|
288.59 |
|
3.6 |
% |
|
3.4 |
% |
|
Northern Virginia |
2 |
|
2 |
|
|
246.97 |
|
74.3 |
% |
|
|
183.58 |
|
|
272.79 |
|
|
233.30 |
|
72.0 |
% |
|
|
168.00 |
|
|
250.70 |
|
9.3 |
% |
|
8.8 |
% |
|
Chicago |
3 |
|
3 |
|
|
284.56 |
|
79.3 |
% |
|
|
225.77 |
|
|
302.96 |
|
|
253.34 |
|
79.5 |
% |
|
|
201.35 |
|
|
280.27 |
|
12.1 |
% |
|
8.1 |
% |
|
Seattle |
2 |
|
2 |
|
|
278.67 |
|
84.2 |
% |
|
|
234.60 |
|
|
295.93 |
|
|
271.12 |
|
81.0 |
% |
|
|
219.56 |
|
|
285.88 |
|
6.9 |
% |
|
3.5 |
% |
|
San Francisco/San Jose |
6 |
|
6 |
|
|
221.47 |
|
71.4 |
% |
|
|
158.03 |
|
|
224.25 |
|
|
241.34 |
|
72.8 |
% |
|
|
175.71 |
|
|
241.07 |
|
(10.1 |
%) |
|
(7.0 |
%) |
|
Austin |
2 |
|
2 |
|
|
206.04 |
|
60.4 |
% |
|
|
124.50 |
|
|
226.42 |
|
|
225.87 |
|
59.0 |
% |
|
|
133.29 |
|
|
242.58 |
|
(6.6 |
%) |
|
(6.7 |
%) |
|
Houston |
5 |
|
5 |
|
|
207.33 |
|
66.6 |
% |
|
|
138.07 |
|
|
189.00 |
|
|
191.21 |
|
66.3 |
% |
|
|
126.73 |
|
|
172.15 |
|
8.9 |
% |
|
9.8 |
% |
|
Denver |
3 |
|
3 |
|
|
212.74 |
|
82.1 |
% |
|
|
174.65 |
|
|
252.81 |
|
|
204.48 |
|
79.9 |
% |
|
|
163.34 |
|
|
235.48 |
|
6.9 |
% |
|
7.4 |
% |
|
New Orleans |
1 |
|
1 |
|
|
161.65 |
|
68.4 |
% |
|
|
110.53 |
|
|
180.91 |
|
|
147.45 |
|
58.9 |
% |
|
|
86.87 |
|
|
133.83 |
|
27.2 |
% |
|
35.2 |
% |
|
San Antonio |
2 |
|
2 |
|
|
201.02 |
|
56.3 |
% |
|
|
113.14 |
|
|
179.56 |
|
|
194.04 |
|
53.5 |
% |
|
|
103.87 |
|
|
167.34 |
|
8.9 |
% |
|
7.3 |
% |
|
Atlanta |
2 |
|
2 |
|
|
193.10 |
|
62.3 |
% |
|
|
120.29 |
|
|
182.01 |
|
|
182.03 |
|
75.0 |
% |
|
|
136.49 |
|
|
210.62 |
|
(11.9 |
%) |
|
(13.6 |
%) |
|
Other |
10 |
|
10 |
|
|
325.57 |
|
69.7 |
% |
|
|
226.89 |
|
|
348.53 |
|
|
326.91 |
|
68.5 |
% |
|
|
223.86 |
|
|
333.59 |
|
1.4 |
% |
|
4.5 |
% |
|
Domestic |
76 |
|
72 |
|
|
293.06 |
|
71.6 |
% |
|
|
209.71 |
|
|
336.55 |
|
|
284.23 |
|
71.7 |
% |
|
|
203.67 |
|
|
319.19 |
|
3.0 |
% |
|
5.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
5 |
|
5 |
|
|
206.99 |
|
67.6 |
% |
|
|
140.02 |
|
|
183.91 |
|
|
199.27 |
|
65.7 |
% |
|
|
130.95 |
|
|
174.16 |
|
6.9 |
% |
|
5.6 |
% |
|
All Locations |
81 |
|
77 |
|
$ |
290.24 |
|
71.4 |
% |
|
$ |
207.30 |
|
$ |
331.32 |
|
$ |
281.45 |
|
71.4 |
% |
|
$ |
201.08 |
|
$ |
314.05 |
|
3.1 |
% |
|
5.5 |
% |
___________
|
(1) |
|
Represents the results of the portfolio for the time period of
our ownership, including the results of non-comparable properties,
dispositions through their date of disposal and acquisitions
beginning as of the date of acquisition. |
|
|
|
|
Results by Location - actual, based on
ownership period(1)
|
|
As of September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
Year-to-date ended September 30, 2024 |
|
Year-to-date ended September 30, 2023 |
|
|
|
|
|
Location |
No. of
Properties |
|
No. of
Properties |
|
Average
Room Rate |
|
Average
Occupancy
Percentage |
|
RevPAR |
|
Total
RevPAR |
|
Average
Room Rate |
|
Average
Occupancy
Percentage |
|
RevPAR |
|
Total
RevPAR |
|
Percent
Change in
RevPAR |
|
Percent
Change in
Total RevPAR |
|
Jacksonville |
1 |
|
1 |
|
$ |
527.92 |
|
74.2 |
% |
|
$ |
391.58 |
|
$ |
876.65 |
|
$ |
515.29 |
|
72.8 |
% |
|
$ |
375.31 |
|
$ |
823.23 |
|
4.3 |
% |
|
6.5 |
% |
|
Maui |
3 |
|
3 |
|
|
658.69 |
|
59.3 |
% |
|
|
390.76 |
|
|
639.14 |
|
|
716.28 |
|
69.5 |
% |
|
|
497.61 |
|
|
758.00 |
|
(21.5 |
%) |
|
(15.7 |
%) |
|
Oahu |
2 |
|
1 |
|
|
286.14 |
|
90.3 |
% |
|
|
258.41 |
|
|
343.46 |
|
|
210.66 |
|
87.0 |
% |
|
|
183.19 |
|
|
212.15 |
|
41.1 |
% |
|
61.9 |
% |
|
Miami |
2 |
|
2 |
|
|
521.24 |
|
70.2 |
% |
|
|
365.80 |
|
|
636.48 |
|
|
538.29 |
|
65.8 |
% |
|
|
354.38 |
|
|
620.61 |
|
3.2 |
% |
|
2.6 |
% |
|
New York |
3 |
|
2 |
|
|
347.40 |
|
83.0 |
% |
|
|
288.45 |
|
|
406.46 |
|
|
323.10 |
|
81.6 |
% |
|
|
263.58 |
|
|
375.42 |
|
9.4 |
% |
|
8.3 |
% |
|
Nashville |
2 |
|
— |
|
|
355.57 |
|
84.0 |
% |
|
|
298.70 |
|
|
474.17 |
|
|
— |
|
— |
% |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
Phoenix |
3 |
|
3 |
|
|
393.86 |
|
69.8 |
% |
|
|
275.08 |
|
|
632.88 |
|
|
398.12 |
|
72.1 |
% |
|
|
286.88 |
|
|
619.02 |
|
(4.1 |
%) |
|
2.2 |
% |
|
Florida Gulf Coast |
5 |
|
5 |
|
|
474.03 |
|
70.0 |
% |
|
|
331.62 |
|
|
694.60 |
|
|
371.22 |
|
58.6 |
% |
|
|
217.52 |
|
|
459.32 |
|
52.5 |
% |
|
51.2 |
% |
|
Orlando |
2 |
|
2 |
|
|
363.77 |
|
68.3 |
% |
|
|
248.43 |
|
|
527.80 |
|
|
369.46 |
|
71.4 |
% |
|
|
263.81 |
|
|
533.70 |
|
(5.8 |
%) |
|
(1.1 |
%) |
|
San Diego |
3 |
|
3 |
|
|
298.26 |
|
81.5 |
% |
|
|
243.21 |
|
|
452.45 |
|
|
286.71 |
|
81.2 |
% |
|
|
232.85 |
|
|
432.14 |
|
4.4 |
% |
|
4.7 |
% |
|
Los Angeles/Orange County |
3 |
|
3 |
|
|
297.47 |
|
79.1 |
% |
|
|
235.16 |
|
|
350.72 |
|
|
303.01 |
|
82.8 |
% |
|
|
250.80 |
|
|
360.45 |
|
(6.2 |
%) |
|
(2.7 |
%) |
|
Boston |
2 |
|
2 |
|
|
280.49 |
|
79.8 |
% |
|
|
223.91 |
|
|
292.37 |
|
|
262.27 |
|
78.7 |
% |
|
|
206.41 |
|
|
272.25 |
|
8.5 |
% |
|
7.4 |
% |
|
Washington, D.C. (CBD) |
5 |
|
5 |
|
|
289.07 |
|
71.0 |
% |
|
|
205.24 |
|
|
298.07 |
|
|
276.94 |
|
71.3 |
% |
|
|
197.40 |
|
|
285.28 |
|
4.0 |
% |
|
4.5 |
% |
|
Philadelphia |
2 |
|
2 |
|
|
233.93 |
|
80.5 |
% |
|
|
188.37 |
|
|
286.45 |
|
|
230.17 |
|
80.1 |
% |
|
|
184.43 |
|
|
285.52 |
|
2.1 |
% |
|
0.3 |
% |
|
Northern Virginia |
2 |
|
2 |
|
|
255.73 |
|
73.0 |
% |
|
|
186.80 |
|
|
287.34 |
|
|
241.35 |
|
70.5 |
% |
|
|
170.04 |
|
|
256.35 |
|
9.9 |
% |
|
12.1 |
% |
|
Chicago |
3 |
|
3 |
|
|
255.00 |
|
70.5 |
% |
|
|
179.73 |
|
|
249.82 |
|
|
244.43 |
|
69.2 |
% |
|
|
169.15 |
|
|
240.13 |
|
6.3 |
% |
|
4.0 |
% |
|
Seattle |
2 |
|
2 |
|
|
254.22 |
|
70.5 |
% |
|
|
179.21 |
|
|
239.04 |
|
|
242.11 |
|
69.1 |
% |
|
|
167.33 |
|
|
226.93 |
|
7.1 |
% |
|
5.3 |
% |
|
San Francisco/San Jose |
6 |
|
6 |
|
|
245.14 |
|
68.2 |
% |
|
|
167.30 |
|
|
244.90 |
|
|
254.24 |
|
66.8 |
% |
|
|
169.73 |
|
|
246.35 |
|
(1.4 |
%) |
|
(0.6 |
%) |
|
Austin |
2 |
|
2 |
|
|
247.35 |
|
66.2 |
% |
|
|
163.68 |
|
|
292.67 |
|
|
259.09 |
|
66.6 |
% |
|
|
172.50 |
|
|
309.26 |
|
(5.1 |
%) |
|
(5.4 |
%) |
|
Houston |
5 |
|
5 |
|
|
215.18 |
|
70.9 |
% |
|
|
152.65 |
|
|
210.55 |
|
|
201.57 |
|
70.6 |
% |
|
|
142.37 |
|
|
196.37 |
|
7.2 |
% |
|
7.2 |
% |
|
Denver |
3 |
|
3 |
|
|
201.25 |
|
70.5 |
% |
|
|
141.92 |
|
|
215.52 |
|
|
193.63 |
|
65.0 |
% |
|
|
125.92 |
|
|
180.78 |
|
12.7 |
% |
|
19.2 |
% |
|
New Orleans |
1 |
|
1 |
|
|
191.16 |
|
72.3 |
% |
|
|
138.16 |
|
|
219.14 |
|
|
195.70 |
|
68.9 |
% |
|
|
134.85 |
|
|
204.28 |
|
2.5 |
% |
|
7.3 |
% |
|
San Antonio |
2 |
|
2 |
|
|
216.80 |
|
61.4 |
% |
|
|
133.13 |
|
|
214.38 |
|
|
217.64 |
|
62.4 |
% |
|
|
135.91 |
|
|
217.29 |
|
(2.0 |
%) |
|
(1.3 |
%) |
|
Atlanta |
2 |
|
2 |
|
|
204.24 |
|
61.4 |
% |
|
|
125.42 |
|
|
207.89 |
|
|
190.91 |
|
75.0 |
% |
|
|
143.15 |
|
|
230.87 |
|
(12.4 |
%) |
|
(10.0 |
%) |
|
Other |
10 |
|
10 |
|
|
312.71 |
|
65.8 |
% |
|
|
205.79 |
|
|
317.66 |
|
|
322.01 |
|
65.5 |
% |
|
|
210.89 |
|
|
320.75 |
|
(2.4 |
%) |
|
(1.0 |
%) |
|
Domestic |
76 |
|
72 |
|
|
310.56 |
|
71.7 |
% |
|
|
222.80 |
|
|
370.84 |
|
|
304.28 |
|
71.2 |
% |
|
|
216.53 |
|
|
353.71 |
|
2.9 |
% |
|
4.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
5 |
|
5 |
|
|
196.00 |
|
63.2 |
% |
|
|
123.88 |
|
|
178.79 |
|
|
188.41 |
|
62.9 |
% |
|
|
118.58 |
|
|
168.30 |
|
4.5 |
% |
|
6.2 |
% |
|
All Locations |
81 |
|
77 |
|
$ |
306.99 |
|
71.4 |
% |
|
$ |
219.32 |
|
$ |
364.14 |
|
$ |
300.61 |
|
70.9 |
% |
|
$ |
213.04 |
|
$ |
347.14 |
|
2.9 |
% |
|
4.9 |
% |
___________
|
(1) |
|
Represents the results of the portfolio for the time period of
our ownership, including the results of non-comparable properties,
dispositions through their date of disposal and acquisitions
beginning as of the date of acquisition. |
|
|
|
|
HOST HOTELS & RESORTS, INC.
Schedule of Comparable Hotel Results
(1)
(unaudited, in millions, except hotel statistics) |
|
|
|
|
|
|
|
Quarter ended
September 30, |
|
Year-to-date ended
September 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Number of hotels |
|
79 |
|
|
|
79 |
|
|
|
79 |
|
|
|
79 |
|
|
Number of rooms |
|
42,856 |
|
|
|
42,856 |
|
|
|
42,856 |
|
|
|
42,856 |
|
|
Change in comparable hotel Total RevPAR |
|
3.1 |
% |
|
|
— |
|
|
|
1.6 |
% |
|
|
— |
|
|
Change in comparable hotel RevPAR |
|
0.8 |
% |
|
|
— |
|
|
|
0.2 |
% |
|
|
— |
|
|
Operating profit margin⁽²⁾ |
|
10.2 |
% |
|
|
12.9 |
% |
|
|
16.9 |
% |
|
|
16.4 |
% |
|
Comparable hotel EBITDA margin⁽²⁾ |
|
25.3 |
% |
|
|
26.6 |
% |
|
|
29.8 |
% |
|
|
30.7 |
% |
|
Food and beverage profit margin⁽²⁾ |
|
26.8 |
% |
|
|
26.5 |
% |
|
|
34.0 |
% |
|
|
34.2 |
% |
|
Comparable hotel food and beverage profit margin⁽²⁾ |
|
27.5 |
% |
|
|
27.1 |
% |
|
|
33.9 |
% |
|
|
34.1 |
% |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
84 |
|
|
$ |
113 |
|
|
$ |
598 |
|
|
$ |
618 |
|
|
Depreciation and amortization |
|
197 |
|
|
|
174 |
|
|
|
565 |
|
|
|
511 |
|
|
Interest expense |
|
59 |
|
|
|
48 |
|
|
|
156 |
|
|
|
142 |
|
|
Provision for income taxes |
|
6 |
|
|
|
15 |
|
|
|
20 |
|
|
|
27 |
|
|
Gain on sale of property and corporate level income/expense |
|
(18 |
) |
|
|
10 |
|
|
|
(51 |
) |
|
|
(43 |
) |
|
Property transaction adjustments⁽³⁾ |
|
4 |
|
|
|
26 |
|
|
|
42 |
|
|
|
66 |
|
|
Non-comparable hotel results, net⁽⁴⁾ |
|
(3 |
) |
|
|
(51 |
) |
|
|
(69 |
) |
|
|
(46 |
) |
|
Comparable hotel EBITDA⁽¹⁾ |
$ |
329 |
|
|
$ |
335 |
|
|
$ |
1,261 |
|
|
$ |
1,275 |
|
___________
|
(1) |
|
See the Notes to Financial Information for a discussion of
comparable hotel results, which are non-GAAP measures, and the
limitations on their use. For additional information on comparable
hotel EBITDA by location, see the Third Quarter 2024 Supplemental
Financial Information posted on our website. |
|
(2) |
|
Profit margins are calculated by dividing the applicable
operating profit by the related revenue amount. GAAP profit margins
are calculated using amounts presented in the unaudited condensed
consolidated statements of operations. Comparable hotel margins are
calculated using amounts presented in the following tables, which
include reconciliations to the applicable GAAP results: |
|
|
|
|
|
|
|
|
|
|
|
Quarter ended September 30, 2024 |
|
Quarter ended September 30, 2023 |
|
|
|
|
Adjustments |
|
|
|
|
|
Adjustments |
|
|
|
|
GAAP
Results |
|
Property
transaction
adjustments ⁽³⁾ |
|
Non-
comparable
hotel
results, net ⁽⁴⁾ |
|
Depreciation
and
corporate
level items |
|
Comparable
hotel
Results |
|
GAAP
Results |
|
Property
transaction
adjustments (3) |
|
Non-
comparable
hotel
results, net ⁽⁴⁾ |
|
Depreciation
and
corporate
level items |
|
Comparable
hotel
Results |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
$ |
825 |
|
|
$ |
10 |
|
|
$ |
(20 |
) |
|
$ |
— |
|
|
$ |
815 |
|
|
$ |
777 |
|
|
$ |
50 |
|
|
$ |
(20 |
) |
|
$ |
— |
|
|
$ |
807 |
|
|
Food and beverage |
|
365 |
|
|
|
4 |
|
|
|
(12 |
) |
|
|
— |
|
|
|
357 |
|
|
|
328 |
|
|
|
19 |
|
|
|
(11 |
) |
|
|
— |
|
|
|
336 |
|
|
Other |
|
129 |
|
|
|
3 |
|
|
|
(5 |
) |
|
|
— |
|
|
|
127 |
|
|
|
109 |
|
|
|
11 |
|
|
|
(4 |
) |
|
|
— |
|
|
|
116 |
|
|
Total revenues |
|
1,319 |
|
|
|
17 |
|
|
|
(37 |
) |
|
|
— |
|
|
|
1,299 |
|
|
|
1,214 |
|
|
|
80 |
|
|
|
(35 |
) |
|
|
— |
|
|
|
1,259 |
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
|
216 |
|
|
|
3 |
|
|
|
(5 |
) |
|
|
— |
|
|
|
214 |
|
|
|
196 |
|
|
|
12 |
|
|
|
(5 |
) |
|
|
— |
|
|
|
203 |
|
|
Food and beverage |
|
267 |
|
|
|
4 |
|
|
|
(12 |
) |
|
|
— |
|
|
|
259 |
|
|
|
241 |
|
|
|
15 |
|
|
|
(11 |
) |
|
|
— |
|
|
|
245 |
|
|
Other |
|
508 |
|
|
|
6 |
|
|
|
(17 |
) |
|
|
— |
|
|
|
497 |
|
|
|
471 |
|
|
|
27 |
|
|
|
(17 |
) |
|
|
— |
|
|
|
481 |
|
|
Depreciation and amortization |
|
197 |
|
|
|
— |
|
|
|
— |
|
|
|
(197 |
) |
|
|
— |
|
|
|
174 |
|
|
|
— |
|
|
|
— |
|
|
|
(174 |
) |
|
|
— |
|
|
Corporate and other expenses |
|
25 |
|
|
|
— |
|
|
|
— |
|
|
|
(25 |
) |
|
|
— |
|
|
|
29 |
|
|
|
— |
|
|
|
— |
|
|
|
(29 |
) |
|
|
— |
|
|
Gain on insurance settlements |
|
(29 |
) |
|
|
— |
|
|
|
— |
|
|
|
29 |
|
|
|
— |
|
|
|
(54 |
) |
|
|
— |
|
|
|
49 |
|
|
|
— |
|
|
|
(5 |
) |
|
Total expenses |
|
1,184 |
|
|
|
13 |
|
|
|
(34 |
) |
|
|
(193 |
) |
|
|
970 |
|
|
|
1,057 |
|
|
|
54 |
|
|
|
16 |
|
|
|
(203 |
) |
|
|
924 |
|
|
Operating Profit - Comparable hotel EBITDA |
$ |
135 |
|
|
$ |
4 |
|
|
$ |
(3 |
) |
|
$ |
193 |
|
|
$ |
329 |
|
|
$ |
157 |
|
|
$ |
26 |
|
|
$ |
(51 |
) |
|
$ |
203 |
|
|
$ |
335 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-date ended September 30, 2024 |
|
Year-to-date ended September 30, 2023 |
|
|
|
|
Adjustments |
|
|
|
|
|
Adjustments |
|
|
|
|
GAAP
Results |
|
Property
transaction
adjustments ⁽³⁾ |
|
Non-
comparable
hotel
results, net ⁽⁴⁾ |
|
Depreciation
and
corporate
level items |
|
Comparable
hotel
Results |
|
GAAP
Results |
|
Property
transaction
adjustments (3) |
|
Non-
comparable
hotel
results, net ⁽⁴⁾ |
|
Depreciation
and
corporate
level items |
|
Comparable
hotel
Results |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
$ |
2,563 |
|
|
$ |
93 |
|
|
$ |
(91 |
) |
|
$ |
— |
|
|
$ |
2,565 |
|
|
$ |
2,447 |
|
|
$ |
136 |
|
|
$ |
(33 |
) |
|
$ |
— |
|
|
$ |
2,550 |
|
|
Food and beverage |
|
1,285 |
|
|
|
39 |
|
|
|
(67 |
) |
|
|
— |
|
|
|
1,257 |
|
|
|
1,174 |
|
|
|
52 |
|
|
|
(15 |
) |
|
|
— |
|
|
|
1,211 |
|
|
Other |
|
408 |
|
|
|
22 |
|
|
|
(17 |
) |
|
|
— |
|
|
|
413 |
|
|
|
367 |
|
|
|
30 |
|
|
|
(7 |
) |
|
|
— |
|
|
|
390 |
|
|
Total revenues |
|
4,256 |
|
|
|
154 |
|
|
|
(175 |
) |
|
|
— |
|
|
|
4,235 |
|
|
|
3,988 |
|
|
|
218 |
|
|
|
(55 |
) |
|
|
— |
|
|
|
4,151 |
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
|
632 |
|
|
|
23 |
|
|
|
(17 |
) |
|
|
— |
|
|
|
638 |
|
|
|
590 |
|
|
|
33 |
|
|
|
(8 |
) |
|
|
— |
|
|
|
615 |
|
|
Food and beverage |
|
848 |
|
|
|
32 |
|
|
|
(49 |
) |
|
|
— |
|
|
|
831 |
|
|
|
773 |
|
|
|
42 |
|
|
|
(18 |
) |
|
|
— |
|
|
|
797 |
|
|
Other |
|
1,528 |
|
|
|
57 |
|
|
|
(59 |
) |
|
|
— |
|
|
|
1,526 |
|
|
|
1,427 |
|
|
|
77 |
|
|
|
(32 |
) |
|
|
— |
|
|
|
1,472 |
|
|
Depreciation and amortization |
|
565 |
|
|
|
— |
|
|
|
— |
|
|
|
(565 |
) |
|
|
— |
|
|
|
511 |
|
|
|
— |
|
|
|
— |
|
|
|
(511 |
) |
|
|
— |
|
|
Corporate and other expenses |
|
81 |
|
|
|
— |
|
|
|
— |
|
|
|
(81 |
) |
|
|
— |
|
|
|
90 |
|
|
|
— |
|
|
|
— |
|
|
|
(90 |
) |
|
|
— |
|
|
Gain on insurance settlements |
|
(116 |
) |
|
|
— |
|
|
|
19 |
|
|
|
76 |
|
|
|
(21 |
) |
|
|
(57 |
) |
|
|
— |
|
|
|
49 |
|
|
|
— |
|
|
|
(8 |
) |
|
Total expenses |
|
3,538 |
|
|
|
112 |
|
|
|
(106 |
) |
|
|
(570 |
) |
|
|
2,974 |
|
|
|
3,334 |
|
|
|
152 |
|
|
|
(9 |
) |
|
|
(601 |
) |
|
|
2,876 |
|
|
Operating Profit - Comparable hotel EBITDA |
$ |
718 |
|
|
$ |
42 |
|
|
$ |
(69 |
) |
|
$ |
570 |
|
|
$ |
1,261 |
|
|
$ |
654 |
|
|
$ |
66 |
|
|
$ |
(46 |
) |
|
$ |
601 |
|
|
$ |
1,275 |
|
|
(3) |
|
Property transaction adjustments represent the following
items: (i) the elimination of results of operations of hotels sold
or held-for-sale as of the reporting date, which operations are
included in our unaudited condensed consolidated statements of
operations as continuing operations, and (ii) the addition of
results for periods prior to our ownership for hotels acquired as
of the reporting date. |
|
(4) |
|
Non-comparable hotel results, net, includes the following
items: (i) the results of operations of our non-comparable hotels,
which operations are included in our condensed consolidated
statements of operations as continuing operations, and (ii) gains
on business interruption proceeds covering lost revenues while the
property was considered non-comparable. |
|
|
|
|
HOST HOTELS & RESORTS, INC.
Reconciliation of Net Income to
EBITDA, EBITDAre and Adjusted EBITDAre
(1)
(unaudited, in millions) |
|
|
|
|
|
|
|
Quarter ended September 30, |
|
Year-to-date ended September 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net income |
$ |
84 |
|
|
$ |
113 |
|
|
$ |
598 |
|
|
$ |
618 |
|
|
Interest expense |
|
59 |
|
|
|
48 |
|
|
|
156 |
|
|
|
142 |
|
|
Depreciation and amortization |
|
197 |
|
|
|
174 |
|
|
|
565 |
|
|
|
511 |
|
|
Income taxes |
|
6 |
|
|
|
15 |
|
|
|
20 |
|
|
|
27 |
|
|
EBITDA |
|
346 |
|
|
|
350 |
|
|
|
1,339 |
|
|
|
1,298 |
|
|
Gain on dispositions⁽²⁾ |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(69 |
) |
|
Equity investment adjustments: |
|
|
|
|
|
|
|
|
Equity in (earnings) losses of affiliates |
|
(2 |
) |
|
|
4 |
|
|
|
(12 |
) |
|
|
(7 |
) |
|
Pro rata EBITDAre of equity investments(3) |
|
9 |
|
|
|
7 |
|
|
|
32 |
|
|
|
29 |
|
|
EBITDAre |
|
353 |
|
|
|
361 |
|
|
|
1,359 |
|
|
|
1,251 |
|
|
Adjustments to EBITDAre: |
|
|
|
|
|
|
|
|
Gain on property insurance settlement |
|
(29 |
) |
|
|
— |
|
|
|
(76 |
) |
|
|
— |
|
|
Adjusted EBITDAre |
$ |
324 |
|
|
$ |
361 |
|
|
$ |
1,283 |
|
|
$ |
1,251 |
|
___________
|
(1) |
|
See the Notes to Financial Information for discussion of
non-GAAP measures. |
|
(2) |
|
Reflects the sale of one hotel in 2023. |
|
(3) |
|
Unrealized gains of our unconsolidated investments are not
recognized in our EBITDAre, Adjusted EBITDAre, NAREIT FFO or
Adjusted FFO until they have been realized by the unconsolidated
partnership. |
|
|
|
|
HOST HOTELS & RESORTS, INC.
Reconciliation of Diluted Earnings per Common Share
to
NAREIT and Adjusted Funds From Operations per Diluted Share
(1)
(unaudited, in millions, except per share amounts) |
|
|
|
|
|
|
|
Quarter ended September 30, |
|
Year-to-date ended September 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net income |
$ |
84 |
|
|
$ |
113 |
|
|
$ |
598 |
|
|
$ |
618 |
|
|
Less: Net income attributable to non-controlling interests |
|
(2 |
) |
|
|
(2 |
) |
|
|
(9 |
) |
|
|
(10 |
) |
|
Net income attributable to Host Inc. |
|
82 |
|
|
|
111 |
|
|
|
589 |
|
|
|
608 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Gain on dispositions⁽²⁾ |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(69 |
) |
|
Gain on property insurance settlement |
|
(29 |
) |
|
|
— |
|
|
|
(76 |
) |
|
|
— |
|
|
Depreciation and amortization |
|
197 |
|
|
|
174 |
|
|
|
564 |
|
|
|
510 |
|
|
Equity investment adjustments: |
|
|
|
|
|
|
|
|
Equity in (earnings) losses of affiliates |
|
(2 |
) |
|
|
4 |
|
|
|
(12 |
) |
|
|
(7 |
) |
|
Pro rata FFO of equity investments(3) |
|
5 |
|
|
|
4 |
|
|
|
18 |
|
|
|
20 |
|
|
Consolidated partnership adjustments: |
|
|
|
|
|
|
|
|
FFO adjustment for non-controlling partnerships |
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
FFO adjustments for non-controlling interests of Host L.P. |
|
(2 |
) |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
(6 |
) |
|
NAREIT FFO |
|
250 |
|
|
|
290 |
|
|
|
1,075 |
|
|
|
1,055 |
|
|
Adjustments to NAREIT FFO: |
|
|
|
|
|
|
|
|
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
Adjusted FFO |
$ |
250 |
|
|
$ |
290 |
|
|
$ |
1,075 |
|
|
$ |
1,059 |
|
|
|
|
|
|
|
|
|
|
|
For calculation on a per share basis:⁽⁴⁾ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding - EPS, NAREIT
FFO and Adjusted FFO |
|
702.4 |
|
|
|
711.9 |
|
|
|
704.7 |
|
|
|
713.6 |
|
|
Diluted earnings per common share |
$ |
0.12 |
|
|
$ |
0.16 |
|
|
$ |
0.84 |
|
|
$ |
0.85 |
|
|
NAREIT FFO per diluted share |
$ |
0.36 |
|
|
$ |
0.41 |
|
|
$ |
1.53 |
|
|
$ |
1.48 |
|
|
Adjusted FFO per diluted share |
$ |
0.36 |
|
|
$ |
0.41 |
|
|
$ |
1.53 |
|
|
$ |
1.48 |
|
___________
|
(1-3) |
|
Refer to the corresponding footnote on the Reconciliation of
Net Income to EBITDA, EBITDAre and Adjusted
EBITDAre. |
|
(4) |
|
Diluted earnings per common share, NAREIT FFO per diluted
share and Adjusted FFO per diluted share are adjusted for the
effects of dilutive securities. Dilutive securities may include
shares granted under comprehensive stock plans, preferred OP units
held by non-controlling limited partners and other non-controlling
interests that have the option to convert their limited partner
interests to common OP units. No effect is shown for securities if
they are anti-dilutive.
|
|
|
|
|
HOST HOTELS & RESORTS, INC.
Reconciliation of Net Income to
EBITDA, EBITDAre and Adjusted EBITDAre
and Diluted Earnings per Common Share to
NAREIT and Adjusted Funds From Operations per Diluted Share
for Full Year 2024 Forecasts (1)
(unaudited, in millions) |
|
|
|
|
|
Full Year 2024 |
|
Net income |
$ |
687 |
|
|
Interest expense |
|
216 |
|
|
Depreciation and amortization |
|
755 |
|
|
Income taxes |
|
21 |
|
|
EBITDA |
|
1,679 |
|
|
Equity investment adjustments: |
|
|
Equity in earnings of affiliates |
|
(12 |
) |
|
Pro rata EBITDAre of equity investments |
|
39 |
|
|
EBITDAre |
|
1,706 |
|
|
Adjustments to EBITDAre: |
|
|
Gain on property insurance settlement |
|
(76 |
) |
|
Adjusted EBITDAre |
$ |
1,630 |
|
|
|
Full Year 2024 |
|
Net income |
$ |
687 |
|
|
Less: Net income attributable to non-controlling interests |
|
(10 |
) |
|
Net income attributable to Host Inc. |
|
677 |
|
|
Adjustments: |
|
|
Gain on property insurance settlement |
|
(76 |
) |
|
Depreciation and amortization |
|
753 |
|
|
Equity investment adjustments: |
|
|
Equity in earnings of affiliates |
|
(12 |
) |
|
Pro rata FFO of equity investments |
|
21 |
|
|
Consolidated partnership adjustments: |
|
|
FFO adjustment for non-controlling partnerships |
|
(1 |
) |
|
FFO adjustment for non-controlling interests of Host LP |
|
(9 |
) |
|
NAREIT and Adjusted FFO |
$ |
1,353 |
|
|
|
|
|
Diluted weighted average shares outstanding - EPS, NAREIT
FFO and Adjusted FFO |
|
702.8 |
|
|
Diluted earnings per common share |
$ |
0.96 |
|
|
NAREIT and Adjusted FFO per diluted share |
$ |
1.92 |
|
_______________
|
(1) |
|
The Forecasts are based on the below assumptions: |
|
|
|
|
• |
|
Comparable hotel RevPAR will be approximately flat compared to
2023 for the full year forecast, based on a continued recovery
in Maui and steady demand trends in the fourth quarter. |
|
|
|
|
• |
|
Comparable hotel EBITDA margins will decrease approximately 90
basis points compared to 2023 for the full year forecasted
comparable hotel RevPAR. |
|
|
|
|
• |
|
We expect to spend approximately $485 million to $580 million
on capital expenditures. |
|
|
|
|
• |
|
Assumes no additional acquisitions and no dispositions during
the year. |
|
|
|
|
• |
|
Includes the final settlement for insurance proceeds related
to Hurricane Ian and the Maui wildfires, and we are not assuming
any additional gains on insurance settlements this year. |
|
|
|
For a discussion of items that may affect forecast results,
see the Notes to Financial
Information. |
HOST HOTELS & RESORTS, INC.
Schedule of Comparable Hotel Results for Full Year 2024
Forecasts (1)(2)
(unaudited, in millions) |
|
|
|
|
|
Full Year 2024 |
|
Operating profit margin(3) |
|
15.2 |
% |
|
Comparable hotel EBITDA margin(3) |
|
29.0 |
% |
|
|
|
|
Net income |
$ |
687 |
|
|
Depreciation and amortization |
|
755 |
|
|
Interest expense |
|
216 |
|
|
Provision for income taxes |
|
21 |
|
|
Gain on sale of property and corporate level income/expense |
|
(23 |
) |
|
Property transaction adjustments |
|
42 |
|
|
Non-comparable hotel results, net(4) |
|
(104 |
) |
|
Comparable hotel
EBITDA(1) |
$ |
1,594 |
|
___________
|
(1) |
|
See "Reconciliation of Net Income to EBITDA, EBITDAre and
Adjusted EBITDAre and Diluted Earnings per Common Share to NAREIT
and Adjusted Funds From Operations per Diluted Share for Full Year
2024 Forecasts" for other forecast assumptions. |
|
(2) |
|
Forecast comparable hotel results include 78 hotels (of our 81
hotels owned at September 30, 2024) that we have assumed will
be classified as comparable as of December 31, 2024. See footnote
(4) for details on our non-comparable hotel results. |
|
(3) |
|
Profit margins are calculated by dividing the applicable
operating profit by the related revenue amount. GAAP profit margins
are calculated using amounts presented in the unaudited condensed
consolidated statements of operations. Comparable hotel margins are
calculated using amounts presented in the following tables, which
include reconciliations to the applicable GAAP results: |
|
|
|
|
|
|
Full Year 2024 |
|
|
|
|
Adjustments |
|
|
|
|
GAAP Results |
|
Property transaction
adjustments |
|
Non-comparable hotel
results, net |
|
Depreciation and
corporate level items |
|
Comparable hotel
Results |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
Rooms |
$ |
3,403 |
|
|
$ |
93 |
|
|
$ |
(150 |
) |
|
$ |
— |
|
|
$ |
3,346 |
|
|
Food and beverage |
|
1,695 |
|
|
|
39 |
|
|
|
(106 |
) |
|
|
— |
|
|
|
1,628 |
|
|
Other |
|
539 |
|
|
|
22 |
|
|
|
(33 |
) |
|
|
— |
|
|
|
528 |
|
|
Total revenues |
|
5,637 |
|
|
|
154 |
|
|
|
(289 |
) |
|
|
— |
|
|
|
5,502 |
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
Hotel expenses |
|
4,021 |
|
|
|
112 |
|
|
|
(204 |
) |
|
|
— |
|
|
|
3,929 |
|
|
Depreciation and amortization |
|
755 |
|
|
|
— |
|
|
|
— |
|
|
|
(755 |
) |
|
|
— |
|
|
Corporate and other expenses |
|
118 |
|
|
|
— |
|
|
|
— |
|
|
|
(118 |
) |
|
|
— |
|
|
Gain on insurance settlements |
|
(116 |
) |
|
|
— |
|
|
|
19 |
|
|
|
76 |
|
|
|
(21 |
) |
|
Total expenses |
|
4,778 |
|
|
|
112 |
|
|
|
(185 |
) |
|
|
(797 |
) |
|
|
3,908 |
|
|
Operating Profit - Comparable hotel EBITDA |
$ |
859 |
|
|
$ |
42 |
|
|
$ |
(104 |
) |
|
$ |
797 |
|
|
$ |
1,594 |
|
|
(4) |
|
Non-comparable hotel results, net, includes the following
items: (i) the results of operations of our non-comparable hotels,
which operations are included in our condensed consolidated
statements of operations as continuing operations, and (ii) gains
on business interruption proceeds covering lost revenues while the
property was considered non-comparable. The following are expected
to be non-comparable for full year 2024:
|
|
|
|
|
• |
|
The Ritz-Carlton, Naples (business disruption due to Hurricane
Ian beginning in September 2022, reopened in July 2023); |
|
|
|
|
• |
|
Alila Ventana Big Sur (business disruption due to the collapse
of a portion of Highway 1, causing closure of the hotel beginning
in March 2024, reopened in May 2024); |
|
|
|
|
• |
|
The Don CeSar (business disruption due to Hurricane Helene
resulting in closure of the hotel beginning at the end of September
2024); and |
|
|
|
|
• |
|
Sales and marketing expenses related to the development and
sale of condominium units on a development parcel adjacent to Four
Seasons Resort Orlando at Walt Disney World® Resort. |
|
|
|
|
|
|
|
HOST HOTELS & RESORTS, INC.
Notes to Financial Information |
| |
FORECASTS
Our forecast of net income, earnings per diluted
share, NAREIT and Adjusted FFO per diluted share, EBITDA,
EBITDAre, Adjusted EBITDAre and comparable hotel
results are forward-looking statements and are not guarantees of
future performance and involve known and unknown risks,
uncertainties and other factors which may cause actual results and
performance to differ materially from those expressed or implied by
these forecasts. Although we believe the expectations reflected in
the forecasts are based upon reasonable assumptions, we can give no
assurance that the expectations will be attained or that the
results will not be materially different. Risks that may affect
these assumptions and forecasts include the following: potential
changes in overall economic outlook make it inherently difficult to
forecast the level of RevPAR; the amount and timing of debt
payments may change significantly based on market conditions, which
will directly affect the level of interest expense and net income;
the amount and timing of transactions involving shares of our
common stock may change based on market conditions; and other risks
and uncertainties associated with our business described herein and
in our annual report on Form 10-K, quarterly reports on Form 10-Q
and current reports on Form 8-K filed with the SEC.
COMPARABLE HOTEL OPERATING STATISTICS
AND RESULTS
To facilitate a year-to-year comparison of our
operations, we present certain operating statistics (i.e., Total
RevPAR, RevPAR, average daily rate and average occupancy) and
operating results (revenues, expenses, hotel EBITDA and associated
margins) for the periods included in our reports on a comparable
hotel basis in order to enable our investors to better evaluate our
operating performance. We define our comparable hotels as those
that: (i) are owned or leased by us as of the reporting date and
are not classified as held-for-sale; and (ii) have not sustained
substantial property damage or business interruption, or undergone
large-scale capital projects, in each case requiring closures
lasting one month or longer (as further defined below), during the
reporting periods being compared.
We make adjustments to include recent
acquisitions to include results for periods prior to our ownership.
For these hotels, since the year-over-year comparison includes
periods prior to our ownership, the changes will not necessarily
correspond to changes in our actual results. Additionally,
operating results of hotels that we sell are excluded from the
comparable hotel set once the transaction has closed or the hotel
is classified as held-for-sale.
The hotel business is capital-intensive and
renovations are a regular part of the business. Generally, hotels
under renovation remain comparable hotels. A large-scale capital
project would cause a hotel to be excluded from our comparable
hotel set if it requires the entire property to be closed to hotel
guests for one month or longer.
Similarly, hotels are excluded from our
comparable hotel set from the date that they sustain substantial
property damage or business interruption if it requires the
property to be closed to hotel guests for one month or longer. In
each case, these hotels are returned to the comparable hotel set
when the operations of the hotel have been included in our
consolidated results for one full calendar year after the hotel has
reopened. Often, related to events that cause property damage and
the closure of a hotel, we will collect business interruption
insurance proceeds for the near-term loss of business. These
proceeds are included in gain on insurance settlements on our
condensed consolidated statements of operations. Business
interruption insurance gains covering lost revenues while the
property was considered non-comparable also will be excluded from
the comparable hotel results.
Of the 81 hotels that we owned as of
September 30, 2024, 79 have been classified as comparable
hotels. The operating results of the following properties that we
owned as of September 30, 2024 are excluded from comparable
hotel results for these periods:
- Alila Ventana Big Sur (business
disruption due to the collapse of a portion of Highway 1, causing
closure of the hotel beginning in March 2024, reopened in May
2024);
- The Ritz-Carlton, Naples (business disruption due to Hurricane
Ian beginning in September 2022, reopened in July 2023); and
- Sales and marketing expenses
related to the development and sale of condominium units on a
development parcel adjacent to Four Seasons Resort Orlando at Walt
Disney World® Resort.
Additionally, The Don CeSar closed on September
25, 2024, following a mandatory evacuation order prior to the
landfall of Hurricane Helene. The hotel experienced substantial
damage from the hurricane and has yet to reopen to guests. As a
result, the property will be removed from the comparable hotel set
starting in the fourth quarter.
FOREIGN CURRENCY
TRANSLATION
Operating results denominated in foreign
currencies are translated using the prevailing exchange rates on
the date of the transaction, or monthly based on the weighted
average exchange rate for the period. Therefore, hotel statistics
and results for non-U.S. properties include the effect of currency
fluctuations, consistent with our financial statement
presentation.
NON-GAAP FINANCIAL MEASURES
Included in this press release are certain
“non-GAAP financial measures,” which are measures of our historical
or future financial performance that are not calculated and
presented in accordance with GAAP, within the meaning of applicable
SEC rules. They are as follows: (i) FFO and FFO per diluted share
(both NAREIT and Adjusted), (ii) EBITDA, (iii) EBITDAre
and Adjusted EBITDAre, and (iv) Comparable Hotel Operating
Statistics and Results. The following discussion defines these
measures and presents why we believe they are useful supplemental
measures of our performance.
NAREIT FFO AND
NAREIT FFO PER DILUTED
SHARE
We present NAREIT FFO and NAREIT FFO per diluted
share as non-GAAP measures of our performance in addition to our
earnings per share (calculated in accordance with GAAP). We
calculate NAREIT FFO per diluted share as our NAREIT FFO (defined
as set forth below) for a given operating period, as adjusted for
the effect of dilutive securities, divided by the number of fully
diluted shares outstanding during such period, in accordance with
NAREIT guidelines. As noted in NAREIT’s Funds From Operations White
Paper – 2018 Restatement, NAREIT defines FFO as net income
(calculated in accordance with GAAP) excluding depreciation and
amortization related to certain real estate assets, gains and
losses from the sale of certain real estate assets, gains and
losses from change in control, impairment expense of certain real
estate assets and investments and adjustments for consolidated
partially owned entities and unconsolidated affiliates. Adjustments
for consolidated partially owned entities and unconsolidated
affiliates are calculated to reflect our pro rata share of the FFO
of those entities on the same basis.
We believe that NAREIT FFO per diluted share is
a useful supplemental measure of our operating performance and that
the presentation of NAREIT FFO per diluted share, when combined
with the primary GAAP presentation of diluted earnings per share,
provides beneficial information to investors. By excluding the
effect of real estate depreciation, amortization, impairment
expense and gains and losses from sales of depreciable real estate,
all of which are based on historical cost accounting and which may
be of lesser significance in evaluating current performance, we
believe that such measures can facilitate comparisons of operating
performance between periods and with other REITs, even though
NAREIT FFO per diluted share does not represent an amount that
accrues directly to holders of our common stock. Historical cost
accounting for real estate assets implicitly assumes that the value
of real estate assets diminishes predictably over time. As noted by
NAREIT in its Funds From Operations White Paper – 2018 Restatement,
the primary purpose for including FFO as a supplemental measure of
operating performance of a REIT is to address the artificial nature
of historical cost depreciation and amortization of real estate and
real estate-related assets mandated by GAAP. For these reasons,
NAREIT adopted the FFO metric in order to promote a uniform
industry-wide measure of REIT operating performance.
Adjusted FFO per Diluted
Share
We also present Adjusted FFO per diluted share
when evaluating our performance because management believes that
the exclusion of certain additional items described below provides
useful supplemental information to investors regarding our ongoing
operating performance. Management historically has made the
adjustments detailed below in evaluating our performance, in our
annual budget process and for our compensation programs. We believe
that the presentation of Adjusted FFO per diluted share, when
combined with both the primary GAAP presentation of diluted
earnings per share and FFO per diluted share as defined by NAREIT,
provides useful supplemental information that is beneficial to an
investor’s understanding of our operating performance. We adjust
NAREIT FFO per diluted share for the following items, which may
occur in any period, and refer to this measure as Adjusted FFO per
diluted share:
- Gains and Losses on the
Extinguishment of Debt – We exclude the effect of finance charges
and premiums associated with the extinguishment of debt, including
the acceleration of the write-off of deferred financing costs from
the original issuance of the debt being redeemed or retired and
incremental interest expense incurred during the refinancing
period. We also exclude the gains on debt repurchases and the
original issuance costs associated with the retirement of preferred
stock. We believe that these items are not reflective of our
ongoing finance costs.
- Acquisition Costs – Under GAAP,
costs associated with completed property acquisitions that are
considered business combinations are expensed in the year incurred.
We exclude the effect of these costs because we believe they are
not reflective of the ongoing performance of the Company.
- Litigation Gains and Losses – We
exclude the effect of gains or losses associated with litigation
recorded under GAAP that we consider to be outside the ordinary
course of business. We believe that including these items is not
consistent with our ongoing operating performance.
- Severance Expense – In certain
circumstances, we will add back hotel-level severance expenses when
we do not believe that such expenses are reflective of the ongoing
operation of our properties. Situations that would result in a
severance add-back include, but are not limited to, (i) costs
incurred as part of a broad-based reconfiguration of the operating
model with the specific hotel operator for a portfolio of hotels
and (ii) costs incurred at a specific hotel due to a broad-based
and significant reconfiguration of a hotel and/or its workforce. We
do not add back corporate-level severance costs or severance costs
at an individual hotel that we consider to be incurred in the
normal course of business.
In unusual circumstances, we also may adjust
NAREIT FFO for gains or losses that management believes are not
representative of the Company’s current operating performance. For
example, in 2017, as a result of the reduction of the U.S. federal
corporate income tax rate from 35% to 21% by the Tax Cuts and Jobs
Act, we remeasured our domestic deferred tax assets as of December
31, 2017 and recorded a one-time adjustment to reduce our deferred
tax assets and to increase the provision for income taxes by
approximately $11 million. We do not consider this adjustment to be
reflective of our ongoing operating performance and, therefore, we
excluded this item from Adjusted FFO.
EBITDA
Earnings before Interest Expense, Income Taxes,
Depreciation and Amortization (“EBITDA”) is a commonly used measure
of performance in many industries. Management believes EBITDA
provides useful information to investors regarding our results of
operations because it helps us and our investors evaluate the
ongoing operating performance of our properties after removing the
impact of the Company’s capital structure (primarily interest
expense) and its asset base (primarily depreciation and
amortization). Management also believes the use of EBITDA
facilitates comparisons between us and other lodging REITs, hotel
owners that are not REITs and other capital-intensive companies.
Management uses EBITDA to evaluate property-level results and as
one measure in determining the value of acquisitions and
dispositions and, like FFO and Adjusted FFO per diluted share, it
is widely used by management in the annual budget process and for
our compensation programs.
EBITDAre and Adjusted
EBITDAre
We present EBITDAre in accordance with
NAREIT guidelines, as defined in its September 2017 white paper
“Earnings Before Interest, Taxes, Depreciation and Amortization for
Real Estate,” to provide an additional performance measure to
facilitate the evaluation and comparison of the Company’s results
with other REITs. NAREIT defines EBITDAre as net income
(calculated in accordance with GAAP) excluding interest expense,
income tax, depreciation and amortization, gains or losses on
disposition of depreciated property (including gains or losses on
change of control), impairment expense for depreciated property and
of investments in unconsolidated affiliates caused by a decrease in
value of depreciated property in the affiliate, and adjustments to
reflect the entity’s pro rata share of EBITDAre of
unconsolidated affiliates.
We make additional adjustments to
EBITDAre when evaluating our performance because we
believe that the exclusion of certain additional items described
below provides useful supplemental information to investors
regarding our ongoing operating performance. We believe that the
presentation of Adjusted EBITDAre, when combined with the
primary GAAP presentation of net income, is beneficial to an
investor’s understanding of our operating performance. Adjusted
EBITDAre also is similar to the measure used to calculate
certain credit ratios for our credit facility and senior notes. We
adjust EBITDAre for the following items, which may occur
in any period, and refer to this measure as Adjusted
EBITDAre:
- Property Insurance Gains – We
exclude the effect of property insurance gains reflected in our
condensed consolidated statements of operations because we believe
that including them in Adjusted EBITDAre is not consistent
with reflecting the ongoing performance of our assets. In addition,
property insurance gains could be less important to investors given
that the depreciated asset book value written off in connection
with the calculation of the property insurance gain often does not
reflect the market value of real estate assets.
- Acquisition Costs – Under GAAP,
costs associated with completed property acquisitions that are
considered business combinations are expensed in the year incurred.
We exclude the effect of these costs because we believe they are
not reflective of the ongoing performance of the Company.
- Litigation Gains and Losses – We
exclude the effect of gains or losses associated with litigation
recorded under GAAP that we consider to be outside the ordinary
course of business. We believe that including these items is not
consistent with our ongoing operating performance.
- Severance Expense – In certain
circumstances, we will add back hotel-level severance expenses when
we do not believe that such expenses are reflective of the ongoing
operation of our properties. Situations that would result in a
severance add-back include, but are not limited to, (i) costs
incurred as part of a broad-based reconfiguration of the operating
model with the specific hotel operator for a portfolio of hotels
and (ii) costs incurred at a specific hotel due to a broad-based
and significant reconfiguration of a hotel and/or its workforce. We
do not add back corporate-level severance costs or severance costs
at an individual hotel that we consider to be incurred in the
normal course of business.
In unusual circumstances, we also may adjust
EBITDAre for gains or losses that management believes are
not representative of the Company’s current operating performance.
The last adjustment of this nature was a 2013 exclusion of a gain
from an eminent domain claim.
Limitations on the Use of NAREIT FFO
per Diluted Share, Adjusted FFO per Diluted Share, EBITDA, EBITDAre
and Adjusted EBITDAre
We calculate EBITDAre and NAREIT FFO
per diluted share in accordance with standards established by
NAREIT, which may not be comparable to measures calculated by other
companies that do not use the NAREIT definition of
EBITDAre and FFO or do not calculate FFO per diluted share
in accordance with NAREIT guidance. In addition, although
EBITDAre and FFO per diluted share are useful measures
when comparing our results to other REITs, they may not be helpful
to investors when comparing us to non-REITs. We also calculate
Adjusted FFO per diluted share and Adjusted EBITDAre,
which measures are not in accordance with NAREIT guidance and may
not be comparable to measures calculated by other REITs or by other
companies. This information should not be considered as an
alternative to net income, operating profit, cash from operations
or any other operating performance measure calculated in accordance
with GAAP. Cash expenditures for various long-term assets (such as
renewal and replacement capital expenditures), interest expense
(for EBITDA, EBITDAre and Adjusted EBITDAre
purposes only), severance expense related to significant
property-level reconfiguration and other items have been, and will
be, made and are not reflected in the EBITDA, EBITDAre,
Adjusted EBITDAre, NAREIT FFO per diluted share and
Adjusted FFO per diluted share presentations. Management
compensates for these limitations by separately considering the
impact of these excluded items to the extent they are material to
operating decisions or assessments of our operating performance.
Our consolidated statements of operations and consolidated
statements of cash flows in the Company’s annual report on Form
10-K and quarterly reports on Form 10-Q include interest expense,
capital expenditures, and other excluded items, all of which should
be considered when evaluating our performance, as well as the
usefulness of our non-GAAP financial measures. Additionally, NAREIT
FFO per diluted share, Adjusted FFO per diluted share, EBITDA,
EBITDAre and Adjusted EBITDAre should not be
considered as measures of our liquidity or indicative of funds
available to fund our cash needs, including our ability to make
cash distributions. In addition, NAREIT FFO per diluted share and
Adjusted FFO per diluted share do not measure, and should not be
used as measures of, amounts that accrue directly to stockholders’
benefit.
Similarly, EBITDAre, Adjusted
EBITDAre, NAREIT FFO and Adjusted FFO per diluted share
include adjustments for the pro rata share of our equity
investments, and NAREIT FFO and Adjusted FFO per diluted share
include adjustments for the pro rata share of non-controlling
partners in consolidated partnerships. Our equity investments
consist of interests ranging from 11% to 67% in eight domestic and
international partnerships that own a total of 36 properties and a
vacation ownership development. Due to the voting rights of the
outside owners, we do not control and, therefore, do not
consolidate these entities. The non-controlling partners in
consolidated partnerships primarily consist of the approximate 1%
interest in Host LP held by unaffiliated limited partners and a 15%
interest held by an unaffiliated limited partner in a partnership
owning one hotel for which we do control the entity and, therefore,
consolidate its operations. These pro rata results for NAREIT FFO
and Adjusted FFO per diluted share, EBITDAre and Adjusted
EBITDAre were calculated as set forth in the definitions
above. Readers should be cautioned that the pro rata results
presented in these measures for consolidated partnerships (for
NAREIT FFO and Adjusted FFO per diluted share) and equity
investments may not accurately depict the legal and economic
implications of our investments in these entities.
Comparable Hotel Property Level
Operating Results
We present certain operating results for our
hotels, such as hotel revenues, expenses, food and beverage profit,
and EBITDA (and the related margins), on a comparable hotel, or
"same store," basis as supplemental information for our investors.
Our comparable hotel results present operating results for our
hotels without giving effect to dispositions or properties that
experienced closures due to renovations or property damage, as
discussed in “Comparable Hotel Operating Statistics and Results”
above. We present comparable hotel EBITDA to help us and our
investors evaluate the ongoing operating performance of our
comparable hotels after removing the impact of the Company’s
capital structure (primarily interest expense) and its asset base
(primarily depreciation and amortization expense). Corporate-level
costs and expenses also are removed to arrive at property-level
results. We believe these property-level results provide investors
with supplemental information about the ongoing operating
performance of our comparable hotels. Comparable hotel results are
presented both by location and for the Company’s properties in the
aggregate. We eliminate from our comparable hotel level operating
results severance costs related to broad-based and significant
property-level reconfiguration that is not considered to be within
the normal course of business, as we believe this elimination
provides useful supplemental information that is beneficial to an
investor’s understanding of our ongoing operating performance. We
also eliminate depreciation and amortization expense because, even
though depreciation and amortization expense are property-level
expenses, these non-cash expenses, which are based on historical
cost accounting for real estate assets, implicitly assume that the
value of real estate assets diminishes predictably over time. As
noted earlier, because real estate values historically have risen
or fallen with market conditions, many real estate industry
investors have considered presentation of historical cost
accounting for operating results to be insufficient.
Because of the elimination of corporate-level
costs and expenses, gains or losses on disposition, certain
severance expenses and depreciation and amortization expense, the
comparable hotel operating results we present do not represent our
total revenues, expenses, operating profit or net income and should
not be used to evaluate our performance as a whole. Management
compensates for these limitations by separately considering the
impact of these excluded items to the extent they are material to
operating decisions or assessments of our operating performance.
Our condensed consolidated statements of operations include such
amounts, all of which should be considered by investors when
evaluating our performance.
We present these hotel operating results on a
comparable hotel basis because we believe that doing so provides
investors and management with useful information for evaluating the
period-to-period performance of our hotels and facilitates
comparisons with other hotel REITs and hotel owners. In particular,
these measures assist management and investors in distinguishing
whether increases or decreases in revenues and/or expenses are due
to growth or decline of operations at comparable hotels (which
represent the vast majority of our portfolio) or from other
factors. While management believes that presentation of comparable
hotel results is a supplemental measure that provides useful
information in evaluating our ongoing performance, this measure is
not used to allocate resources or to assess the operating
performance of each of our hotels, as these decisions are based on
data for individual hotels and are not based on comparable hotel
results in the aggregate. For these reasons, we believe comparable
hotel operating results, when combined with the presentation of
GAAP operating profit, revenues and expenses, provide useful
information to investors and management.
SOURAV GHOSH
Chief Financial Officer
(240) 744-5267 |
JAIME MARCUS
Investor Relations
(240) 744-5117
ir@hosthotels.com |
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