Host Hotels & Resorts Inc. (HST) swung to a fiscal
third-quarter loss amid weak demand, though the loss wasn't as wide
as Wall Street had feared.
The lodging company also gave a slightly more upbeat outlook for
the year, and now expects a loss of 42 cents to 47 cents a share,
with funds from operations of 46 cents to 51 cents, including some
items, based on a 20% to 22% drop in revenue per available room.
Host Hotels in July reduced its fiscal-year forecast to a loss of
46 cents to 53 cents a share and FFO of 43 cents to 50 cents, based
on an 20% to 23% drop in revpar.
It was the third consecutive quarterly loss for the real-estate
investment trust amid a prolonged travel and tourism downturn has
hammered the industry. However, signs that sector has seen the
worst of the declines have begun to emerge. Last week Marriott
International Inc. (MAR) posted a quarterly loss, but results were
better-than-expected and the company raised hopes for smaller
revpar declines.
Host Hotels, a commercial real-estate investment trust, owns 112
properties world-wide and hires operating companies such as
Marriott or Hilton Hotels Corp. to manage them. Among commercial
REITs, hoteliers have been among the worst hit as they struggle to
fill rooms.
For the quarter ended Sept. 11, highly leveraged Host Hotels
reported a loss of $55 million, or 9 cents a share, compared with
prior-year earnings of $47 million, or 9 cents share. Funds from
operations, a key REIT profitability measurement, fell to 11 cents
from 31 cents, including the one-time items.
Revenue decreased 20% to $912 million.
Analysts polled by Thomson Reuters most recently forecast a loss
of 14 cents, FFO of 8 cents and revenue of $892 million.
Revpar declined 21%, but it was an improvement from the prior
quarter's 25% drop.
Shares closed at $11.28 on Tuesday and didn't trade premarket.
The stock is up 49% this year, after nearly quadrupling from a
March low of $3.08.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com;
