Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the
nation’s largest lodging real estate investment trust (“REIT”),
today announced results for fourth quarter and full year 2023.
|
OPERATING RESULTS(unaudited, in millions, except
per share and hotel statistics) |
| |
| |
Quarter ended December 31, |
|
|
|
Year ended December 31, |
|
|
| |
2023 |
|
2022 |
|
Percent Change |
|
2023 |
|
2022 |
|
Percent Change |
|
Revenues |
$ |
1,323 |
|
$ |
1,263 |
|
4.8 |
% |
|
$ |
5,311 |
|
$ |
4,907 |
|
8.2 |
% |
| Comparable hotel
revenues⁽¹⁾ |
|
1,260 |
|
|
1,251 |
|
0.7 |
% |
|
|
5,169 |
|
|
4,773 |
|
8.3 |
% |
| Comparable hotel Total
RevPAR⁽¹⁾ |
|
333.43 |
|
|
331.14 |
|
0.7 |
% |
|
|
344.63 |
|
|
318.25 |
|
8.3 |
% |
| Comparable hotel
RevPAR⁽¹⁾ |
|
202.92 |
|
|
199.97 |
|
1.5 |
% |
|
|
211.71 |
|
|
195.87 |
|
8.1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Net income |
$ |
134 |
|
$ |
149 |
|
(10.1 |
%) |
|
$ |
752 |
|
$ |
643 |
|
17.0 |
% |
| EBITDAre⁽¹⁾ |
|
381 |
|
|
364 |
|
4.7 |
% |
|
|
1,632 |
|
|
1,504 |
|
8.5 |
% |
| Adjusted EBITDAre⁽¹⁾ |
|
378 |
|
|
364 |
|
3.8 |
% |
|
|
1,629 |
|
|
1,498 |
|
8.7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per common
share |
|
0.19 |
|
|
0.20 |
|
(5.0 |
%) |
|
|
1.04 |
|
|
0.88 |
|
18.2 |
% |
| NAREIT FFO per diluted
share⁽¹⁾ |
|
0.44 |
|
|
0.44 |
|
— |
% |
|
|
1.92 |
|
|
1.79 |
|
7.3 |
% |
| Adjusted FFO per diluted
share⁽¹⁾ |
|
0.44 |
|
|
0.44 |
|
— |
% |
|
|
1.92 |
|
|
1.79 |
|
7.3 |
% |
* Additional detail on the Company’s results,
including data for 22 domestic markets and top 40 hotels by Total
RevPAR, is available in the Fourth Quarter 2023 Supplemental
Financial Information on the Company’s website at
www.hosthotels.com.
James F. Risoleo, President and Chief Executive
Officer, said, "We ended 2023 on a high note, marking the seventh
consecutive quarter that Host achieved comparable hotel Total
RevPAR, RevPAR, and comparable hotel EBITDA and comparable hotel
margins at or above 2019 levels. Full year comparable hotel RevPAR
grew 8.1% over 2022, driven by both rate and occupancy increases.
In the fourth quarter, our RevPAR grew 1.5% over the fourth quarter
of 2022 to $202.92. Our results during the quarter were driven by
rate increases of 0.4% and continued occupancy improvements at our
convention and downtown hotels.”
Risoleo continued, “Over the course of the year,
we continued to successfully allocate capital through reinvestment
in our portfolio, share repurchases, and dividend increases. We are
especially pleased with the work we have completed on our strategic
objectives, which included redefining the hotel operating model
with our managers, gaining market share through comprehensive
renovations, and strategically allocating capital to development
ROI projects. We believe we will continue to benefit from these
ongoing efforts, which is underscored by our 2024 comparable hotel
RevPAR guidance range of 2.5% to 5.5% growth over 2023. During the
quarter, we increased our quarterly cash dividend by 11% to $0.20
per share, returning to our pre-pandemic quarterly dividend level,
and declared a $0.25 special dividend. Additionally, we repurchased
$31 million of common stock in the fourth quarter, bringing
total repurchases for the year to $181 million. We are
optimistic on the backdrop for our business, and we will continue
to position Host to take advantage of potential opportunities in
the future.”
_______________________________
(1) 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.
2023 HIGHLIGHTS:
- Comparable hotel
RevPAR and Total RevPAR were $211.71 and $344.63, respectively, for
full year 2023, representing an increase of 8.1% and 8.3%,
respectively, compared to 2022, driven by an increase in both
occupancy and rate during the year. Growth in city-center markets,
fueled by improvements in group business, led to the overall
improvement, offsetting moderating rates at resorts in comparison
to 2022.
- GAAP net income was
$752 million for full year 2023 reflecting a 17.0% increase
compared to 2022, primarily due to an increase in operating profit
and gain on asset sales, while GAAP operating profit margin
declined 20 basis points compared to 2022 to 15.6%. Results
included $83 million of business interruption gains.
- Comparable hotel
EBITDA was $1,557 million for full year 2023, a 2.4% increase
compared to 2022 results, while comparable hotel EBITDA margin
declined 170 basis points to 30.1%.
- As expected, margin
declines for the year were driven by stabilized staffing levels in
comparison to 2022, higher insurance and utility expenses and lower
attrition and cancelation fees.
- Adjusted EBITDAre
was $1,629 million for full year 2023, exceeding 2022 by 8.7%,
reflecting increased operations and the business interruption
proceeds discussed below.
- Reopened The
Ritz-Carlton, Naples in July 2023 following restoration efforts as
a result of Hurricane Ian in September 2022. The reopening
introduced transformational renovations to all guestrooms and
suites, as well as a new tower expansion, and a reimagined arrival
experience. As of December 31, 2023, the Company has received
insurance proceeds of $213 million out of the expected potential
insurance recovery of approximately $310 million for covered costs
related to damage and disruption caused by Hurricane Ian. Of these
proceeds, $80 million was recognized as a gain on business
interruption in 2023, including $26 million recognized in the
fourth quarter.
- Completed the
Marriott Transformational Capital Program. The program, which began
in 2018, included extensive guestroom and public area renovations
at 16 assets and finished under budget. In December 2023, also
debuted the renovations at Fairmont Kea Lani, including a
transformed lobby and updated guestrooms.
- Reached an
agreement with Hyatt to complete transformational reinvestment
capital projects at six properties in the Company's portfolio: the
Grand Hyatt Atlanta in Buckhead, Grand Hyatt Washington, Manchester
Grand Hyatt San Diego, Hyatt Regency Austin, Hyatt Regency
Washington on Capitol Hill, and Hyatt Regency Reston.
- Broke ground on the
development of 40 fee-simple condominiums on a five-acre
development parcel at Golden Oak in Orlando, adjacent to Four
Seasons Resort Orlando at Walt Disney World® Resort. Construction
is expected to be completed in the fourth quarter of 2025.
- Declared dividends
per common share of $0.90 for the full year 2023, including a $0.25
per share special dividend, and returned the quarterly dividend to
its pre-pandemic level of $0.20 per share in the fourth
quarter.
- Continuing its progress towards the
Company's renewable energy goals, five properties achieved LEED®
certification during the year, bringing the total to 14, and
reached the required milestone for a 2.5 basis point reduction in
the interest rate on the outstanding term loans under the Company's
sustainability-linked credit facility, per the January 2023
amendments.
- Maintained
investment grade balance sheet and attained upgrades to Host Hotels
& Resorts, L.P.'s issuer-credit ratings from Fitch to BBB and
S&P Global to BBB-.
Results for Fourth Quarter
2023
- Comparable hotel
RevPAR and Total RevPAR were $202.92 and $333.43, respectively, in
the fourth quarter representing an increase of 1.5% and 0.7%,
respectively, compared to the same period in 2022, driven by an
increase in both occupancy and rate, while the increase in Total
RevPAR was slightly lower due to a decline in attrition and
cancelation fees.
- GAAP net income was
$134 million in the fourth quarter, a decrease from the fourth
quarter of 2022 of 10.1%, while GAAP operating profit margin was
13.1% for the quarter, a decrease of 90 basis points compared to
the fourth quarter of 2022. Business interruption gains of $26
million in the quarter were offset by the decline in comparable
hotel EBITDA, which is discussed below, as well as taxes related to
the business interruption gains.
- Comparable hotel
EBITDA was $355 million for the fourth quarter, representing a
decline compared to fourth quarter 2022 results, primarily driven
by the evolving nature of demand in Maui and reflecting a decrease
in comparable hotel EBITDA margin of 180 basis points to
28.1%.
- Adjusted EBITDAre
was $378 million for the fourth quarter, exceeding the same period
in 2022 by 3.8% and benefiting from business interruption
proceeds.
Maui Update
- As a result of the
August wildfires in Maui, Hawaii, and the resulting impact on the
Company's Maui hotels, golf courses and joint venture timeshare,
the Company estimates that, in the fourth quarter, net income and
Adjusted EBITDAre were impacted by approximately $15 million,
RevPAR was impacted by 130 basis points, and Total RevPAR was
impacted by 150 basis points. Operating profit margin and
comparable hotel EBITDA margin are estimated to have been impacted
by approximately 40 basis points and 30 basis points, respectively,
for the fourth quarter.
- For the full year,
the estimated impact to net income and Adjusted EBITDAre was
approximately $22 million, RevPAR was impacted by 50 basis points,
and Total RevPAR was impacted by 70 basis points. Operating profit
margin and comparable hotel EBITDA margin are both estimated to
have been impacted by approximately 10 basis points for the
year.
BALANCE SHEET
The Company maintains a robust balance sheet,
with the following balances at December 31, 2023:
- Total assets of
$12.2 billion.
- Debt balance of
$4.2 billion, with a weighted average maturity of 4.2 years, a
weighted average interest rate of 4.5%, and a balanced maturity
schedule with the next significant maturity of $400 million due in
April 2024. Following the Company's ratings increase, the spread on
the credit facility term loans was reduced by 25 basis points.
- Total available
liquidity of approximately $2.9 billion, including furniture,
fixtures and equipment escrow reserves of $217 million and $1.5
billion available under the revolver portion of the credit
facility.
During the fourth quarter of 2023, the $250
million loan to the buyer of the Sheraton New York Times Square
Hotel was repaid in full.
SHARE REPURCHASE PROGRAM AND
DIVIDENDS
During the fourth quarter of 2023, the Company
repurchased 1.9 million shares at an average price of $16.50 per
share through its common share repurchase program for a total of
$31 million. For full year 2023, the Company repurchased
11.4 million shares at an average price of $15.93 per share
for a total of $181 million. The Company has approximately
$792 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 fourth quarter common stock
cash dividend of $0.45 per share on January 16, 2024 to
stockholders of record on December 29, 2023, which included a
$0.25 per share special dividend. The Company's regular quarterly
cash dividend of $0.20 per share represented an 11% increase over
the prior quarter. On February 21, 2024, the Company announced
a regular quarterly cash dividend of $0.20 per share on its common
stock. The dividend will be paid on April 15, 2024 to
stockholders of record on March 28, 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 2022 performance, for
the Company's current portfolio:
| |
Quarter ended December 31, 2023 |
|
Year ended December 31, 2023 |
| |
Transient |
|
Group |
|
Contract |
|
Transient |
|
Group |
|
Contract |
|
Room nights (in thousands) |
|
1,381 |
|
|
|
974 |
|
|
|
187 |
|
|
|
5,756 |
|
|
|
4,086 |
|
|
|
720 |
|
| Percent change in room nights
vs. same period in 2022 |
|
(2.5 |
%) |
|
|
4.7 |
% |
|
|
11.4 |
% |
|
|
1.3 |
% |
|
|
12.4 |
% |
|
|
14.1 |
% |
| Rooms revenues (in
millions) |
$ |
457 |
|
|
$ |
274 |
|
|
$ |
36 |
|
|
$ |
1,922 |
|
|
$ |
1,118 |
|
|
$ |
135 |
|
| Percent change in revenues vs.
same period in 2022 |
|
(5.3 |
%) |
|
|
13.0 |
% |
|
|
18.2 |
% |
|
|
0.9 |
% |
|
|
20.9 |
% |
|
|
25.4 |
% |
CAPITAL EXPENDITURES
The following presents the Company’s capital
expenditures spend for 2023 and the forecast for full year 2024 (in
millions):
| |
Year ended December 31, 2023 |
|
2024 Full Year Forecast |
| |
|
|
|
|
|
| |
Actual |
|
Low-end of range |
|
High-end of range |
|
ROI - Marriott and Hyatt Transformational Capital Programs |
$ |
51 |
|
$ |
125 |
|
$ |
150 |
| All other return on investment
("ROI") projects |
|
144 |
|
|
100 |
|
|
130 |
| Total ROI Projects |
|
195 |
|
|
225 |
|
|
280 |
| Renewals and Replacements
("R&R") |
|
274 |
|
|
250 |
|
|
300 |
| R&R and ROI Capital
expenditures |
|
469 |
|
|
475 |
|
|
580 |
| R&R - Insurable
Reconstruction |
|
177 |
|
|
25 |
|
|
25 |
| Total Capital
Expenditures |
$ |
646 |
|
$ |
500 |
|
$ |
605 |
| |
|
|
|
|
|
| Inventory spend for condo
development(1) |
|
15 |
|
|
50 |
|
|
70 |
| Total capital allocation |
$ |
661 |
|
$ |
550 |
|
$ |
675 |
__________
(1) 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 U.S.
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.
In addition to completing the Marriott
Transformational Capital Program in 2023, the Company completed
transformational renovations at eight other hotels, which started
in 2020, and believes the renovations will continue to position
these hotels to capture additional revenue. Under the new Hyatt
Transformational Capital Program, the Company expects to receive $9
million of operating guarantees in 2024 to offset expected business
disruptions. The 2024 forecast for capital expenditures also
includes an estimated $25 million for final restoration efforts at
The Ritz-Carlton, Naples.
2024
OUTLOOK
The 2024 guidance range contemplates a stable
operating environment with a continued improvement in group
business, a gradual recovery in business transient, steady leisure
demand, and continued evolution of demand on Maui as the island
recovers from the recent wildfires. Growth in the first half of
2024 is expected to be in the low single-digits, with January 2024
comparable hotel RevPAR estimated to be $187, representing a 140
basis point increase to 2023. The first half of the year faces
difficult comparisons to 2023, which saw a surge in the recovery of
downtown markets, driven by group business improvements, and
elevated leisure demand. The second half of the year is expected to
have stronger year-over-year improvements due to better group
booking pace, less renovation disruption compared to the second
half of 2023 and diminishing impacts from the wildfire event in
Maui, which occurred in early August of 2023.
Operating profit margin in 2024 is expected to
remain static to 2023, while comparable hotel EBITDA margins are
expected to decline compared to 2023, due to the impacts from the
Maui wildfires and continued growth in wages, real estate taxes and
insurance. At the midpoint of guidance, the impact from the Maui
wildfires is expected to be an approximate decline of 100 basis
points in both RevPAR and Total RevPAR and 50 basis points in
margins. At the midpoint, in comparison to 2019, operating profit
margin is expected to increase 120 basis points and comparable
hotel EBITDA margins are expected to be down only 20 basis points
compared to 2019, as portfolio-wide cost reductions continue to
curb inflation.
The guidance range for net income and Adjusted
EBITDAre includes $10 million of gains from business interruption
proceeds expected to be received in 2024 related to Hurricane Ian
and an estimated contribution from operations at The Ritz-Carlton,
Naples, which is excluded from the comparable hotel set in 2024, of
$12 million to net income and $60 million to Adjusted EBITDAre. The
guidance range does not include any assumption for business
interruption proceeds from the Maui wildfires, and any additional
insurance receipts related to Hurricane Ian are still under
discussion with insurance carriers, with the majority of the
remaining proceeds expected to be related to property damages.
The Company anticipates its 2024 operating
results as compared to 2023 will be in the following range:
| |
Full Year 2024
Guidance |
| |
Low-end of range |
|
High-end of range |
|
Change vs 2023 |
|
Comparable hotel Total RevPAR |
$ |
355 |
|
|
$ |
365 |
|
|
2.9% to 5.8% |
| Comparable hotel RevPAR |
|
217 |
|
|
|
223 |
|
|
2.5% to 5.5% |
| Total revenues under GAAP |
|
5,589 |
|
|
|
5,743 |
|
|
5.2% to 8.1% |
| Operating profit margin under
GAAP |
|
15.2 |
% |
|
|
16.3 |
% |
|
(40) bps to 70 bps |
| Comparable hotel EBITDA
margin |
|
28.9 |
% |
|
|
29.7 |
% |
|
(120) bps to (40) bps |
Based upon the above parameters, the Company
estimates its 2024 guidance as follows:
| |
Full Year 2024
Guidance |
| |
Low-end of range |
|
High-end of range |
|
Net income (in millions) |
$ |
708 |
|
$ |
794 |
| Adjusted EBITDAre (in
millions) |
|
1,590 |
|
|
1,680 |
| Diluted earnings per common
share |
|
0.99 |
|
|
1.11 |
| NAREIT FFO per diluted
share |
|
1.92 |
|
|
2.04 |
| Adjusted FFO per diluted
share |
|
1.92 |
|
|
2.04 |
See the 2024 Forecast Schedules and the Notes to
Financial Information for items that may affect forecast results
and the Fourth Quarter 2023 Supplemental Financial Information for
additional detail on the mid-point of full year 2024 guidance.
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 72 properties in the United States and
five properties internationally totaling approximately 42,000
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®, 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
February 21, 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 December 31, 2023, 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.
|
HOST HOTELS & RESORTS, INC. Condensed
Consolidated Balance Sheets(unaudited, in millions, except
shares and per share amounts) |
| |
| |
December 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
|
ASSETS |
|
Property and equipment, net |
$ |
9,624 |
|
|
$ |
9,748 |
|
| Right-of-use assets |
|
550 |
|
|
|
556 |
|
| Due from managers |
|
128 |
|
|
|
94 |
|
| Advances to and investments in
affiliates |
|
126 |
|
|
|
132 |
|
| Furniture, fixtures and
equipment replacement fund |
|
217 |
|
|
|
200 |
|
| Notes receivable |
|
72 |
|
|
|
413 |
|
| Other |
|
382 |
|
|
|
459 |
|
| Cash and cash equivalents |
|
1,144 |
|
|
|
667 |
|
|
Total assets |
$ |
12,243 |
|
|
$ |
12,269 |
|
| |
|
|
|
|
LIABILITIES, NON-CONTROLLING INTERESTS AND
EQUITY |
| Debt⁽¹⁾ |
|
|
|
|
Senior notes |
$ |
3,120 |
|
|
$ |
3,115 |
|
|
Credit facility, including the term loans of $997 and $998,
respectively |
|
989 |
|
|
|
994 |
|
|
Mortgage and other debt |
|
100 |
|
|
|
106 |
|
|
Total debt |
|
4,209 |
|
|
|
4,215 |
|
| Lease liabilities |
|
563 |
|
|
|
568 |
|
| Accounts payable and accrued
expenses |
|
408 |
|
|
|
372 |
|
| Due to managers |
|
64 |
|
|
|
67 |
|
| Other |
|
173 |
|
|
|
168 |
|
|
Total liabilities |
|
5,417 |
|
|
|
5,390 |
|
| |
|
|
|
| Redeemable non-controlling
interests - Host Hotels & Resorts, L.P. |
|
189 |
|
|
|
164 |
|
| |
|
|
|
| Host Hotels & Resorts,
Inc. stockholders’ equity: |
|
|
|
|
Common stock, par value $0.01, 1,050 million shares authorized,
703.6 million shares and 713.4 million shares issued and
outstanding, respectively |
|
7 |
|
|
|
7 |
|
|
Additional paid-in capital |
|
7,535 |
|
|
|
7,717 |
|
|
Accumulated other comprehensive loss |
|
(70 |
) |
|
|
(75 |
) |
|
Deficit |
|
(839 |
) |
|
|
(939 |
) |
|
Total equity of Host Hotels & Resorts, Inc. stockholders |
|
6,633 |
|
|
|
6,710 |
|
| Non-redeemable non-controlling
interests—other consolidated partnerships |
|
4 |
|
|
|
5 |
|
|
Total equity |
|
6,637 |
|
|
|
6,715 |
|
|
Total liabilities, non-controlling interests and equity |
$ |
12,243 |
|
|
$ |
12,269 |
|
__________
(1) Please see our Fourth Quarter 2023
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 December 31, |
|
Year ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Revenues |
|
|
|
|
|
|
|
|
Rooms |
$ |
797 |
|
|
$ |
763 |
|
|
$ |
3,244 |
|
|
$ |
3,014 |
|
|
Food and beverage |
|
408 |
|
|
|
386 |
|
|
|
1,582 |
|
|
|
1,418 |
|
|
Other |
|
118 |
|
|
|
114 |
|
|
|
485 |
|
|
|
475 |
|
|
Total revenues |
|
1,323 |
|
|
|
1,263 |
|
|
|
5,311 |
|
|
|
4,907 |
|
| Expenses |
|
|
|
|
|
|
|
|
Rooms |
|
197 |
|
|
|
188 |
|
|
|
787 |
|
|
|
727 |
|
|
Food and beverage |
|
269 |
|
|
|
253 |
|
|
|
1,042 |
|
|
|
928 |
|
|
Other departmental and support expenses |
|
328 |
|
|
|
308 |
|
|
|
1,280 |
|
|
|
1,181 |
|
|
Management fees |
|
64 |
|
|
|
67 |
|
|
|
249 |
|
|
|
217 |
|
|
Other property-level expenses |
|
93 |
|
|
|
74 |
|
|
|
383 |
|
|
|
325 |
|
|
Depreciation and amortization |
|
186 |
|
|
|
166 |
|
|
|
697 |
|
|
|
664 |
|
|
Corporate and other expenses⁽¹⁾ |
|
42 |
|
|
|
30 |
|
|
|
132 |
|
|
|
107 |
|
|
Gain on insurance settlements |
|
(29 |
) |
|
|
— |
|
|
|
(86 |
) |
|
|
(17 |
) |
|
Total operating costs and expenses |
|
1,150 |
|
|
|
1,086 |
|
|
|
4,484 |
|
|
|
4,132 |
|
| Operating
profit |
|
173 |
|
|
|
177 |
|
|
|
827 |
|
|
|
775 |
|
|
Interest income |
|
19 |
|
|
|
14 |
|
|
|
75 |
|
|
|
30 |
|
|
Interest expense |
|
(49 |
) |
|
|
(43 |
) |
|
|
(191 |
) |
|
|
(156 |
) |
|
Other gains (losses) |
|
1 |
|
|
|
(2 |
) |
|
|
71 |
|
|
|
17 |
|
|
Equity in earnings (losses) of affiliates |
|
(1 |
) |
|
|
— |
|
|
|
6 |
|
|
|
3 |
|
| Income before income
taxes |
|
143 |
|
|
|
146 |
|
|
|
788 |
|
|
|
669 |
|
| Benefit (provision) for income
taxes |
|
(9 |
) |
|
|
3 |
|
|
|
(36 |
) |
|
|
(26 |
) |
| Net
income |
|
134 |
|
|
|
149 |
|
|
|
752 |
|
|
|
643 |
|
| Less: Net income attributable
to non-controlling interests |
|
(2 |
) |
|
|
(2 |
) |
|
|
(12 |
) |
|
|
(10 |
) |
| Net income
attributable to Host Inc. |
$ |
132 |
|
|
$ |
147 |
|
|
$ |
740 |
|
|
$ |
633 |
|
|
Basic earnings per common share |
$ |
0.19 |
|
|
$ |
0.21 |
|
|
$ |
1.04 |
|
|
$ |
0.89 |
|
| Diluted
earnings per common share |
$ |
0.19 |
|
|
$ |
0.20 |
|
|
$ |
1.04 |
|
|
$ |
0.88 |
|
___________
(1) Corporate and other expenses include the
following items:
| |
Quarter ended December 31, |
|
Year ended December 31, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
General and administrative costs |
$ |
24 |
|
$ |
21 |
|
$ |
85 |
|
$ |
76 |
| Non-cash stock-based
compensation expense |
|
11 |
|
|
7 |
|
|
30 |
|
|
26 |
| Litigation accruals |
|
7 |
|
|
2 |
|
|
17 |
|
|
5 |
|
Total |
$ |
42 |
|
$ |
30 |
|
$ |
132 |
|
$ |
107 |
|
HOST HOTELS & RESORTS, INC.Earnings
per Common Share(unaudited, in millions, except per share
amounts) |
| |
| |
Quarter ended December 31, |
|
Year ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net income |
$ |
134 |
|
|
$ |
149 |
|
|
$ |
752 |
|
|
$ |
643 |
|
|
Less: Net income attributable to non-controlling interests |
|
(2 |
) |
|
|
(2 |
) |
|
|
(12 |
) |
|
|
(10 |
) |
| Net income attributable to
Host Inc. |
$ |
132 |
|
|
$ |
147 |
|
|
$ |
740 |
|
|
$ |
633 |
|
| |
|
|
|
|
|
|
|
| Basic weighted average shares
outstanding |
|
704.5 |
|
|
|
715.0 |
|
|
|
709.7 |
|
|
|
714.7 |
|
|
Assuming distribution of common shares granted under the
comprehensive stock plans, less shares assumed purchased at
market |
|
3.1 |
|
|
|
2.7 |
|
|
|
3.1 |
|
|
|
2.8 |
|
| Diluted weighted average
shares outstanding⁽¹⁾ |
|
707.6 |
|
|
|
717.7 |
|
|
|
712.8 |
|
|
|
717.5 |
|
|
Basic earnings per common share |
$ |
0.19 |
|
|
$ |
0.21 |
|
|
$ |
1.04 |
|
|
$ |
0.89 |
|
| Diluted
earnings per common share |
$ |
0.19 |
|
|
$ |
0.20 |
|
|
$ |
1.04 |
|
|
$ |
0.88 |
|
___________
(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 December 31, 2023 |
|
Quarter ended December 31, 2023 |
|
Quarter ended December 31, 2022 |
|
|
|
|
|
Location |
No. ofProperties |
|
No. ofRooms |
|
AverageRoom Rate |
|
AverageOccupancyPercentage |
|
RevPAR |
|
Total RevPAR |
|
AverageRoom Rate |
|
AverageOccupancyPercentage |
|
RevPAR |
|
Total RevPAR |
|
PercentChange inRevPAR |
|
PercentChange inTotal RevPAR |
|
Maui/Oahu |
4 |
|
2,006 |
|
$ |
538.69 |
|
68.2 |
% |
|
$ |
367.34 |
|
$ |
526.58 |
|
$ |
566.33 |
|
70.7 |
% |
|
$ |
400.27 |
|
$ |
610.91 |
|
(8.2 |
)% |
|
(13.8 |
)% |
| Miami |
2 |
|
1,033 |
|
|
519.42 |
|
70.1 |
% |
|
|
364.20 |
|
|
634.85 |
|
|
632.51 |
|
56.8 |
% |
|
|
359.45 |
|
|
600.78 |
|
1.3 |
% |
|
5.7 |
% |
| Jacksonville |
1 |
|
446 |
|
|
462.07 |
|
61.0 |
% |
|
|
282.04 |
|
|
667.98 |
|
|
503.06 |
|
52.8 |
% |
|
|
265.77 |
|
|
601.87 |
|
6.1 |
% |
|
11.0 |
% |
| New York |
2 |
|
2,486 |
|
|
425.56 |
|
86.1 |
% |
|
|
366.52 |
|
|
521.48 |
|
|
400.42 |
|
84.6 |
% |
|
|
338.82 |
|
|
490.08 |
|
8.2 |
% |
|
6.4 |
% |
| Phoenix |
3 |
|
1,545 |
|
|
394.12 |
|
70.6 |
% |
|
|
278.15 |
|
|
656.24 |
|
|
393.60 |
|
73.3 |
% |
|
|
288.65 |
|
|
676.69 |
|
(3.6 |
%) |
|
(3.0 |
%) |
| Florida Gulf Coast |
3 |
|
941 |
|
|
359.77 |
|
66.2 |
% |
|
|
238.22 |
|
|
502.10 |
|
|
367.97 |
|
73.9 |
% |
|
|
271.97 |
|
|
529.59 |
|
(12.4 |
%) |
|
(5.2 |
%) |
| Orlando |
2 |
|
2,448 |
|
|
440.40 |
|
57.7 |
% |
|
|
253.96 |
|
|
484.34 |
|
|
458.37 |
|
62.1 |
% |
|
|
284.45 |
|
|
538.94 |
|
(10.7 |
%) |
|
(10.1 |
%) |
| Los Angeles/Orange County |
3 |
|
1,067 |
|
|
291.79 |
|
78.7 |
% |
|
|
229.71 |
|
|
362.26 |
|
|
284.41 |
|
78.9 |
% |
|
|
224.39 |
|
|
353.32 |
|
2.4 |
% |
|
2.5 |
% |
| San Diego |
3 |
|
3,294 |
|
|
266.67 |
|
70.1 |
% |
|
|
187.00 |
|
|
361.53 |
|
|
260.81 |
|
70.3 |
% |
|
|
183.47 |
|
|
356.03 |
|
1.9 |
% |
|
1.5 |
% |
| Boston |
2 |
|
1,496 |
|
|
270.00 |
|
76.8 |
% |
|
|
207.42 |
|
|
286.74 |
|
|
239.76 |
|
61.6 |
% |
|
|
147.71 |
|
|
214.21 |
|
40.4 |
% |
|
33.9 |
% |
| Washington, D.C. (CBD) |
5 |
|
3,240 |
|
|
276.09 |
|
66.5 |
% |
|
|
183.60 |
|
|
265.57 |
|
|
263.84 |
|
65.2 |
% |
|
|
171.95 |
|
|
254.52 |
|
6.8 |
% |
|
4.3 |
% |
| Philadelphia |
2 |
|
810 |
|
|
237.30 |
|
78.4 |
% |
|
|
186.01 |
|
|
297.12 |
|
|
236.57 |
|
83.0 |
% |
|
|
196.33 |
|
|
304.40 |
|
(5.3 |
%) |
|
(2.4 |
%) |
| Austin |
2 |
|
767 |
|
|
301.13 |
|
63.1 |
% |
|
|
189.87 |
|
|
317.18 |
|
|
303.76 |
|
67.3 |
% |
|
|
204.34 |
|
|
337.97 |
|
(7.1 |
%) |
|
(6.2 |
%) |
| Northern Virginia |
2 |
|
916 |
|
|
250.71 |
|
70.1 |
% |
|
|
175.77 |
|
|
306.43 |
|
|
230.54 |
|
66.5 |
% |
|
|
153.24 |
|
|
271.96 |
|
14.7 |
% |
|
12.7 |
% |
| Chicago |
3 |
|
1,562 |
|
|
241.08 |
|
67.9 |
% |
|
|
163.77 |
|
|
234.57 |
|
|
247.44 |
|
65.8 |
% |
|
|
162.89 |
|
|
231.90 |
|
0.5 |
% |
|
1.1 |
% |
| San Francisco/San Jose |
6 |
|
4,162 |
|
|
245.15 |
|
65.2 |
% |
|
|
159.91 |
|
|
238.77 |
|
|
231.97 |
|
62.7 |
% |
|
|
145.39 |
|
|
218.72 |
|
10.0 |
% |
|
9.2 |
% |
| Seattle |
2 |
|
1,315 |
|
|
229.80 |
|
59.8 |
% |
|
|
137.51 |
|
|
194.01 |
|
|
214.72 |
|
57.4 |
% |
|
|
123.18 |
|
|
171.44 |
|
11.6 |
% |
|
13.2 |
% |
| Atlanta |
2 |
|
810 |
|
|
189.95 |
|
71.1 |
% |
|
|
135.11 |
|
|
217.58 |
|
|
183.46 |
|
72.3 |
% |
|
|
132.59 |
|
|
209.53 |
|
1.9 |
% |
|
3.8 |
% |
| Houston |
5 |
|
1,942 |
|
|
199.88 |
|
65.5 |
% |
|
|
131.02 |
|
|
192.13 |
|
|
190.61 |
|
65.1 |
% |
|
|
123.99 |
|
|
181.23 |
|
5.7 |
% |
|
6.0 |
% |
| New Orleans |
1 |
|
1,333 |
|
|
198.05 |
|
67.8 |
% |
|
|
134.37 |
|
|
202.90 |
|
|
211.90 |
|
68.7 |
% |
|
|
145.57 |
|
|
229.12 |
|
(7.7 |
%) |
|
(11.4 |
%) |
| San Antonio |
2 |
|
1,512 |
|
|
209.83 |
|
58.4 |
% |
|
|
122.59 |
|
|
196.80 |
|
|
216.59 |
|
63.2 |
% |
|
|
136.97 |
|
|
218.39 |
|
(10.5 |
%) |
|
(9.9 |
%) |
| Denver |
3 |
|
1,340 |
|
|
188.69 |
|
58.3 |
% |
|
|
109.97 |
|
|
184.52 |
|
|
178.57 |
|
56.1 |
% |
|
|
100.12 |
|
|
146.12 |
|
9.8 |
% |
|
26.3 |
% |
| Other |
10 |
|
3,061 |
|
|
287.52 |
|
60.4 |
% |
|
|
173.53 |
|
|
270.49 |
|
|
287.36 |
|
60.5 |
% |
|
|
173.85 |
|
|
275.44 |
|
(0.2 |
%) |
|
(1.8 |
%) |
| Domestic |
70 |
|
39,532 |
|
|
306.03 |
|
67.5 |
% |
|
|
206.48 |
|
|
339.61 |
|
|
305.15 |
|
66.8 |
% |
|
|
203.71 |
|
|
337.63 |
|
1.4 |
% |
|
0.6 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| International |
5 |
|
1,499 |
|
|
179.17 |
|
60.8 |
% |
|
|
108.98 |
|
|
168.78 |
|
|
169.63 |
|
59.7 |
% |
|
|
101.26 |
|
|
158.39 |
|
7.6 |
% |
|
6.6 |
% |
| All Locations |
75 |
|
41,031 |
|
$ |
301.84 |
|
67.2 |
% |
|
$ |
202.92 |
|
$ |
333.43 |
|
$ |
300.71 |
|
66.5 |
% |
|
$ |
199.97 |
|
$ |
331.14 |
|
1.5 |
% |
|
0.7 |
% |
|
HOST HOTELS & RESORTS, INC.Hotel
Operating Data for Consolidated Hotels (cont.) |
|
|
|
Comparable Hotel Results by
Location(1) |
| |
| |
As of December 31, 2023 |
|
Year ended December 31, 2023 |
|
Year ended December 31, 2022 |
|
|
|
|
|
Location |
No. ofProperties |
|
No. ofRooms |
|
AverageRoom Rate |
|
AverageOccupancyPercentage |
|
RevPAR |
|
Total RevPAR |
|
AverageRoom Rate |
|
AverageOccupancyPercentage |
|
RevPAR |
|
Total RevPAR |
|
PercentChange inRevPAR |
|
PercentChange inTotal RevPAR |
|
Maui/Oahu |
4 |
|
2,006 |
|
$ |
576.75 |
|
71.9 |
% |
|
$ |
414.84 |
|
$ |
612.98 |
|
$ |
560.86 |
|
74.7 |
% |
|
$ |
418.70 |
|
$ |
646.24 |
|
(0.9 |
%) |
|
(5.1 |
%) |
| Miami |
2 |
|
1,033 |
|
|
533.31 |
|
66.9 |
% |
|
|
356.86 |
|
|
624.20 |
|
|
621.56 |
|
61.3 |
% |
|
|
380.89 |
|
|
635.56 |
|
(6.3 |
%) |
|
(1.8 |
%) |
| Jacksonville |
1 |
|
446 |
|
|
503.57 |
|
69.9 |
% |
|
|
351.80 |
|
|
784.10 |
|
|
527.16 |
|
65.3 |
% |
|
|
344.37 |
|
|
749.99 |
|
2.2 |
% |
|
4.5 |
% |
| New York |
2 |
|
2,486 |
|
|
349.99 |
|
82.7 |
% |
|
|
289.53 |
|
|
412.23 |
|
|
333.65 |
|
72.8 |
% |
|
|
242.88 |
|
|
345.93 |
|
19.2 |
% |
|
19.2 |
% |
| Phoenix |
3 |
|
1,545 |
|
|
399.79 |
|
71.5 |
% |
|
|
285.85 |
|
|
637.23 |
|
|
392.52 |
|
70.3 |
% |
|
|
275.96 |
|
|
625.68 |
|
3.6 |
% |
|
1.8 |
% |
| Florida Gulf Coast |
3 |
|
941 |
|
|
389.43 |
|
72.3 |
% |
|
|
281.40 |
|
|
593.72 |
|
|
394.84 |
|
73.7 |
% |
|
|
291.11 |
|
|
577.93 |
|
(3.3 |
%) |
|
2.7 |
% |
| Orlando |
2 |
|
2,448 |
|
|
384.63 |
|
67.9 |
% |
|
|
261.32 |
|
|
521.26 |
|
|
410.76 |
|
63.8 |
% |
|
|
262.20 |
|
|
508.78 |
|
(0.3 |
%) |
|
2.5 |
% |
| Los Angeles/Orange County |
3 |
|
1,067 |
|
|
300.29 |
|
81.7 |
% |
|
|
245.49 |
|
|
360.91 |
|
|
288.81 |
|
79.4 |
% |
|
|
229.44 |
|
|
337.54 |
|
7.0 |
% |
|
6.9 |
% |
| San Diego |
3 |
|
3,294 |
|
|
282.20 |
|
78.4 |
% |
|
|
221.29 |
|
|
414.34 |
|
|
272.28 |
|
74.6 |
% |
|
|
203.24 |
|
|
371.28 |
|
8.9 |
% |
|
11.6 |
% |
| Boston |
2 |
|
1,496 |
|
|
264.18 |
|
78.2 |
% |
|
|
206.66 |
|
|
275.90 |
|
|
244.35 |
|
58.5 |
% |
|
|
142.90 |
|
|
193.67 |
|
44.6 |
% |
|
42.5 |
% |
| Washington, D.C. (CBD) |
5 |
|
3,240 |
|
|
276.74 |
|
70.1 |
% |
|
|
193.92 |
|
|
280.31 |
|
|
259.57 |
|
61.7 |
% |
|
|
160.13 |
|
|
230.71 |
|
21.1 |
% |
|
21.5 |
% |
| Philadelphia |
2 |
|
810 |
|
|
231.94 |
|
79.7 |
% |
|
|
184.83 |
|
|
288.44 |
|
|
218.52 |
|
80.6 |
% |
|
|
176.19 |
|
|
270.04 |
|
4.9 |
% |
|
6.8 |
% |
| Austin |
2 |
|
767 |
|
|
269.26 |
|
65.7 |
% |
|
|
176.88 |
|
|
311.25 |
|
|
271.65 |
|
69.5 |
% |
|
|
188.91 |
|
|
324.19 |
|
(6.4 |
%) |
|
(4.0 |
%) |
| Northern Virginia |
2 |
|
916 |
|
|
243.70 |
|
70.4 |
% |
|
|
171.48 |
|
|
268.97 |
|
|
219.41 |
|
65.6 |
% |
|
|
143.96 |
|
|
227.21 |
|
19.1 |
% |
|
18.4 |
% |
| Chicago |
3 |
|
1,562 |
|
|
243.59 |
|
68.9 |
% |
|
|
167.80 |
|
|
238.73 |
|
|
240.66 |
|
65.1 |
% |
|
|
156.57 |
|
|
217.31 |
|
7.2 |
% |
|
9.9 |
% |
| San Francisco/San Jose |
6 |
|
4,162 |
|
|
251.98 |
|
66.4 |
% |
|
|
167.25 |
|
|
244.44 |
|
|
230.88 |
|
63.0 |
% |
|
|
145.42 |
|
|
211.87 |
|
15.0 |
% |
|
15.4 |
% |
| Seattle |
2 |
|
1,315 |
|
|
239.33 |
|
66.8 |
% |
|
|
159.81 |
|
|
218.64 |
|
|
229.92 |
|
62.4 |
% |
|
|
143.52 |
|
|
188.58 |
|
11.4 |
% |
|
15.9 |
% |
| Atlanta |
2 |
|
810 |
|
|
190.67 |
|
74.0 |
% |
|
|
141.12 |
|
|
227.52 |
|
|
181.81 |
|
72.2 |
% |
|
|
131.35 |
|
|
205.87 |
|
7.4 |
% |
|
10.5 |
% |
| Houston |
5 |
|
1,942 |
|
|
201.17 |
|
69.4 |
% |
|
|
139.51 |
|
|
195.30 |
|
|
182.97 |
|
63.8 |
% |
|
|
116.73 |
|
|
163.85 |
|
19.5 |
% |
|
19.2 |
% |
| New Orleans |
1 |
|
1,333 |
|
|
196.29 |
|
68.6 |
% |
|
|
134.72 |
|
|
203.93 |
|
|
200.59 |
|
66.2 |
% |
|
|
132.74 |
|
|
198.18 |
|
1.5 |
% |
|
2.9 |
% |
| San Antonio |
2 |
|
1,512 |
|
|
215.77 |
|
61.4 |
% |
|
|
132.55 |
|
|
212.13 |
|
|
199.52 |
|
66.3 |
% |
|
|
132.30 |
|
|
206.09 |
|
0.2 |
% |
|
2.9 |
% |
| Denver |
3 |
|
1,340 |
|
|
192.48 |
|
63.3 |
% |
|
|
121.90 |
|
|
181.72 |
|
|
182.33 |
|
61.9 |
% |
|
|
112.85 |
|
|
163.64 |
|
8.0 |
% |
|
11.1 |
% |
| Other |
10 |
|
3,061 |
|
|
313.84 |
|
64.2 |
% |
|
|
201.47 |
|
|
308.08 |
|
|
320.85 |
|
60.7 |
% |
|
|
194.89 |
|
|
294.37 |
|
3.4 |
% |
|
4.7 |
% |
| Domestic |
70 |
|
39,532 |
|
|
304.48 |
|
70.7 |
% |
|
|
215.33 |
|
|
351.26 |
|
|
299.40 |
|
66.8 |
% |
|
|
199.90 |
|
|
325.31 |
|
7.7 |
% |
|
8.0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| International |
5 |
|
1,499 |
|
|
186.14 |
|
62.4 |
% |
|
|
116.16 |
|
|
168.42 |
|
|
162.33 |
|
55.1 |
% |
|
|
89.51 |
|
|
130.24 |
|
29.8 |
% |
|
29.3 |
% |
| All Locations |
75 |
|
41,031 |
|
$ |
300.66 |
|
70.4 |
% |
|
$ |
211.71 |
|
$ |
344.63 |
|
$ |
295.24 |
|
66.3 |
% |
|
$ |
195.87 |
|
$ |
318.25 |
|
8.1 |
% |
|
8.3 |
% |
___________
(1) See the Notes to Financial Information for a
discussion of comparable hotel operating statistics. 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.
|
HOST HOTELS & RESORTS, INC.Hotel
Operating Data for Consolidated Hotels (cont.) |
|
|
| Results
by Location - actual, based on ownership
period(1) |
| |
| |
As of December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
2023 |
|
2022 |
|
Quarter ended December 31, 2023 |
|
Quarter ended December 31, 2022 |
|
|
|
|
|
Location |
No. ofProperties |
|
No. ofProperties |
|
AverageRoom Rate |
|
AverageOccupancyPercentage |
|
RevPAR |
|
Total RevPAR |
|
AverageRoom Rate |
|
AverageOccupancyPercentage |
|
RevPAR |
|
Total RevPAR |
|
PercentChange inRevPAR |
|
PercentChange inTotal RevPAR |
|
Maui/Oahu |
4 |
|
4 |
|
$ |
538.69 |
|
68.2 |
% |
|
$ |
367.34 |
|
$ |
526.58 |
|
$ |
566.33 |
|
70.7 |
% |
|
$ |
400.27 |
|
$ |
610.91 |
|
(8.2 |
)% |
|
(13.8 |
)% |
|
Miami |
2 |
|
2 |
|
|
519.42 |
|
70.1 |
% |
|
|
364.20 |
|
|
634.85 |
|
|
632.51 |
|
56.8 |
% |
|
|
359.45 |
|
|
600.78 |
|
1.3 |
% |
|
5.7 |
% |
| Jacksonville |
1 |
|
1 |
|
|
462.07 |
|
61.0 |
% |
|
|
282.04 |
|
|
667.98 |
|
|
503.06 |
|
52.8 |
% |
|
|
265.77 |
|
|
601.87 |
|
6.1 |
% |
|
11.0 |
% |
| New York |
2 |
|
2 |
|
|
425.56 |
|
86.1 |
% |
|
|
366.52 |
|
|
521.48 |
|
|
400.42 |
|
84.6 |
% |
|
|
338.82 |
|
|
490.08 |
|
8.2 |
% |
|
6.4 |
% |
| Phoenix |
3 |
|
4 |
|
|
394.12 |
|
70.6 |
% |
|
|
278.15 |
|
|
656.24 |
|
|
371.87 |
|
73.2 |
% |
|
|
272.22 |
|
|
617.02 |
|
2.2 |
% |
|
6.4 |
% |
| Florida Gulf Coast |
5 |
|
5 |
|
|
434.92 |
|
66.5 |
% |
|
|
289.30 |
|
|
611.32 |
|
|
328.02 |
|
51.0 |
% |
|
|
167.44 |
|
|
318.80 |
|
72.8 |
% |
|
91.8 |
% |
| Orlando |
2 |
|
2 |
|
|
440.40 |
|
57.7 |
% |
|
|
253.96 |
|
|
484.34 |
|
|
458.37 |
|
62.1 |
% |
|
|
284.45 |
|
|
538.94 |
|
(10.7 |
%) |
|
(10.1 |
%) |
| Los Angeles/Orange County |
3 |
|
3 |
|
|
291.79 |
|
78.7 |
% |
|
|
229.71 |
|
|
362.26 |
|
|
284.41 |
|
78.9 |
% |
|
|
224.39 |
|
|
353.32 |
|
2.4 |
% |
|
2.5 |
% |
| San Diego |
3 |
|
3 |
|
|
266.67 |
|
70.1 |
% |
|
|
187.00 |
|
|
361.53 |
|
|
260.81 |
|
70.3 |
% |
|
|
183.47 |
|
|
356.03 |
|
1.9 |
% |
|
1.5 |
% |
| Boston |
2 |
|
2 |
|
|
270.00 |
|
76.8 |
% |
|
|
207.42 |
|
|
286.74 |
|
|
239.76 |
|
61.6 |
% |
|
|
147.71 |
|
|
214.21 |
|
40.4 |
% |
|
33.9 |
% |
| Washington, D.C. (CBD) |
5 |
|
5 |
|
|
276.09 |
|
66.5 |
% |
|
|
183.60 |
|
|
265.57 |
|
|
263.84 |
|
65.2 |
% |
|
|
171.95 |
|
|
254.52 |
|
6.8 |
% |
|
4.3 |
% |
| Philadelphia |
2 |
|
2 |
|
|
237.30 |
|
78.4 |
% |
|
|
186.01 |
|
|
297.12 |
|
|
236.57 |
|
83.0 |
% |
|
|
196.33 |
|
|
304.40 |
|
(5.3 |
%) |
|
(2.4 |
%) |
| Austin |
2 |
|
2 |
|
|
301.13 |
|
63.1 |
% |
|
|
189.87 |
|
|
317.18 |
|
|
303.76 |
|
67.3 |
% |
|
|
204.34 |
|
|
337.97 |
|
(7.1 |
%) |
|
(6.2 |
%) |
| Northern Virginia |
2 |
|
2 |
|
|
250.71 |
|
70.1 |
% |
|
|
175.77 |
|
|
306.43 |
|
|
230.54 |
|
66.5 |
% |
|
|
153.24 |
|
|
271.96 |
|
14.7 |
% |
|
12.7 |
% |
| Chicago |
3 |
|
3 |
|
|
241.08 |
|
67.9 |
% |
|
|
163.77 |
|
|
234.57 |
|
|
247.44 |
|
65.8 |
% |
|
|
162.89 |
|
|
231.90 |
|
0.5 |
% |
|
1.1 |
% |
| San Francisco/San Jose |
6 |
|
6 |
|
|
245.15 |
|
65.2 |
% |
|
|
159.91 |
|
|
238.77 |
|
|
231.97 |
|
62.7 |
% |
|
|
145.39 |
|
|
218.72 |
|
10.0 |
% |
|
9.2 |
% |
| Seattle |
2 |
|
2 |
|
|
229.80 |
|
59.8 |
% |
|
|
137.51 |
|
|
194.01 |
|
|
214.72 |
|
57.4 |
% |
|
|
123.18 |
|
|
171.44 |
|
11.6 |
% |
|
13.2 |
% |
| Atlanta |
2 |
|
2 |
|
|
189.95 |
|
71.1 |
% |
|
|
135.11 |
|
|
217.58 |
|
|
183.46 |
|
72.3 |
% |
|
|
132.59 |
|
|
209.53 |
|
1.9 |
% |
|
3.8 |
% |
| Houston |
5 |
|
5 |
|
|
199.88 |
|
65.5 |
% |
|
|
131.02 |
|
|
192.13 |
|
|
190.61 |
|
65.1 |
% |
|
|
123.99 |
|
|
181.23 |
|
5.7 |
% |
|
6.0 |
% |
| New Orleans |
1 |
|
1 |
|
|
198.05 |
|
67.8 |
% |
|
|
134.37 |
|
|
202.90 |
|
|
211.90 |
|
68.7 |
% |
|
|
145.57 |
|
|
229.12 |
|
(7.7 |
%) |
|
(11.4 |
%) |
| San Antonio |
2 |
|
2 |
|
|
209.83 |
|
58.4 |
% |
|
|
122.59 |
|
|
196.80 |
|
|
216.59 |
|
63.2 |
% |
|
|
136.97 |
|
|
218.39 |
|
(10.5 |
%) |
|
(9.9 |
%) |
| Denver |
3 |
|
3 |
|
|
188.69 |
|
58.3 |
% |
|
|
109.97 |
|
|
184.52 |
|
|
178.57 |
|
56.1 |
% |
|
|
100.12 |
|
|
146.12 |
|
9.8 |
% |
|
26.3 |
% |
| Other |
10 |
|
10 |
|
|
287.52 |
|
60.4 |
% |
|
|
173.53 |
|
|
270.49 |
|
|
279.55 |
|
60.7 |
% |
|
|
169.77 |
|
|
266.93 |
|
2.2 |
% |
|
1.3 |
% |
| Domestic |
72 |
|
73 |
|
|
310.69 |
|
67.5 |
% |
|
|
209.58 |
|
|
348.42 |
|
|
303.39 |
|
65.9 |
% |
|
|
200.06 |
|
|
331.42 |
|
4.8 |
% |
|
5.1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| International |
5 |
|
5 |
|
|
179.17 |
|
60.8 |
% |
|
|
108.98 |
|
|
168.78 |
|
|
169.63 |
|
59.7 |
% |
|
|
101.26 |
|
|
158.39 |
|
7.6 |
% |
|
6.6 |
% |
| All Locations |
77 |
|
78 |
|
$ |
306.45 |
|
67.2 |
% |
|
$ |
205.99 |
|
$ |
342.06 |
|
$ |
299.08 |
|
65.7 |
% |
|
$ |
196.55 |
|
$ |
325.33 |
|
4.8 |
% |
|
5.1 |
% |
|
HOST HOTELS & RESORTS, INC.Hotel
Operating Data for Consolidated Hotels (cont.) |
|
|
| Results
by Location - actual, based on ownership
period(1) |
| |
| |
As of December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
2023 |
|
2022 |
|
Year ended December 31, 2023 |
|
Year ended December 31, 2022 |
|
|
|
|
|
Location |
No. ofProperties |
|
No. ofProperties |
|
AverageRoom Rate |
|
AverageOccupancyPercentage |
|
RevPAR |
|
Total RevPAR |
|
AverageRoom Rate |
|
AverageOccupancyPercentage |
|
RevPAR |
|
Total RevPAR |
|
PercentChange inRevPAR |
|
PercentChange inTotal RevPAR |
|
Maui/Oahu |
4 |
|
4 |
|
$ |
576.75 |
|
71.9 |
% |
|
$ |
414.84 |
|
$ |
612.98 |
|
$ |
560.86 |
|
74.7 |
% |
|
$ |
418.70 |
|
$ |
646.24 |
|
(0.9 |
%) |
|
(5.1 |
%) |
| Miami |
2 |
|
2 |
|
|
533.31 |
|
66.9 |
% |
|
|
356.86 |
|
|
624.20 |
|
|
585.71 |
|
62.7 |
% |
|
|
367.36 |
|
|
607.26 |
|
(2.9 |
%) |
|
2.8 |
% |
| Jacksonville |
1 |
|
1 |
|
|
503.57 |
|
69.9 |
% |
|
|
351.80 |
|
|
784.10 |
|
|
527.16 |
|
65.3 |
% |
|
|
344.37 |
|
|
749.99 |
|
2.2 |
% |
|
4.5 |
% |
| New York |
2 |
|
2 |
|
|
349.99 |
|
82.7 |
% |
|
|
289.53 |
|
|
412.23 |
|
|
317.20 |
|
67.9 |
% |
|
|
215.38 |
|
|
305.31 |
|
34.4 |
% |
|
35.0 |
% |
| Phoenix |
3 |
|
4 |
|
|
397.16 |
|
71.7 |
% |
|
|
284.75 |
|
|
628.10 |
|
|
368.20 |
|
70.1 |
% |
|
|
258.18 |
|
|
568.19 |
|
10.3 |
% |
|
10.5 |
% |
| Florida Gulf Coast |
5 |
|
5 |
|
|
388.97 |
|
60.6 |
% |
|
|
235.74 |
|
|
497.91 |
|
|
418.86 |
|
62.2 |
% |
|
|
260.47 |
|
|
509.76 |
|
(9.5 |
%) |
|
(2.3 |
%) |
| Orlando |
2 |
|
2 |
|
|
384.63 |
|
67.9 |
% |
|
|
261.32 |
|
|
521.26 |
|
|
410.76 |
|
63.8 |
% |
|
|
262.20 |
|
|
508.78 |
|
(0.3 |
%) |
|
2.5 |
% |
| Los Angeles/Orange County |
3 |
|
3 |
|
|
300.29 |
|
81.7 |
% |
|
|
245.49 |
|
|
360.91 |
|
|
288.81 |
|
79.4 |
% |
|
|
229.44 |
|
|
337.54 |
|
7.0 |
% |
|
6.9 |
% |
| San Diego |
3 |
|
3 |
|
|
282.20 |
|
78.4 |
% |
|
|
221.29 |
|
|
414.34 |
|
|
272.28 |
|
74.6 |
% |
|
|
203.24 |
|
|
371.28 |
|
8.9 |
% |
|
11.6 |
% |
| Boston |
2 |
|
2 |
|
|
264.18 |
|
78.2 |
% |
|
|
206.66 |
|
|
275.90 |
|
|
240.63 |
|
56.9 |
% |
|
|
136.95 |
|
|
184.93 |
|
50.9 |
% |
|
49.2 |
% |
| Washington, D.C. (CBD) |
5 |
|
5 |
|
|
276.74 |
|
70.1 |
% |
|
|
193.92 |
|
|
280.31 |
|
|
259.57 |
|
61.7 |
% |
|
|
160.13 |
|
|
230.71 |
|
21.1 |
% |
|
21.5 |
% |
| Philadelphia |
2 |
|
2 |
|
|
231.94 |
|
79.7 |
% |
|
|
184.83 |
|
|
288.44 |
|
|
218.52 |
|
80.6 |
% |
|
|
176.19 |
|
|
270.04 |
|
4.9 |
% |
|
6.8 |
% |
| Austin |
2 |
|
2 |
|
|
269.26 |
|
65.7 |
% |
|
|
176.88 |
|
|
311.25 |
|
|
271.65 |
|
69.5 |
% |
|
|
188.91 |
|
|
324.19 |
|
(6.4 |
%) |
|
(4.0 |
%) |
| Northern Virginia |
2 |
|
2 |
|
|
243.70 |
|
70.4 |
% |
|
|
171.48 |
|
|
268.97 |
|
|
219.41 |
|
65.6 |
% |
|
|
143.96 |
|
|
227.21 |
|
19.1 |
% |
|
18.4 |
% |
| Chicago |
3 |
|
3 |
|
|
243.59 |
|
68.9 |
% |
|
|
167.80 |
|
|
238.73 |
|
|
232.43 |
|
63.8 |
% |
|
|
148.19 |
|
|
204.51 |
|
13.2 |
% |
|
16.7 |
% |
| San Francisco/San Jose |
6 |
|
6 |
|
|
251.98 |
|
66.4 |
% |
|
|
167.25 |
|
|
244.44 |
|
|
230.88 |
|
63.0 |
% |
|
|
145.42 |
|
|
211.87 |
|
15.0 |
% |
|
15.4 |
% |
| Seattle |
2 |
|
2 |
|
|
239.33 |
|
66.8 |
% |
|
|
159.81 |
|
|
218.64 |
|
|
229.92 |
|
62.4 |
% |
|
|
143.52 |
|
|
188.58 |
|
11.4 |
% |
|
15.9 |
% |
| Atlanta |
2 |
|
2 |
|
|
190.67 |
|
74.0 |
% |
|
|
141.12 |
|
|
227.52 |
|
|
181.81 |
|
72.2 |
% |
|
|
131.35 |
|
|
205.87 |
|
7.4 |
% |
|
10.5 |
% |
| Houston |
5 |
|
5 |
|
|
201.17 |
|
69.4 |
% |
|
|
139.51 |
|
|
195.30 |
|
|
182.97 |
|
63.8 |
% |
|
|
116.73 |
|
|
163.85 |
|
19.5 |
% |
|
19.2 |
% |
| New Orleans |
1 |
|
1 |
|
|
196.29 |
|
68.6 |
% |
|
|
134.72 |
|
|
203.93 |
|
|
200.59 |
|
66.2 |
% |
|
|
132.74 |
|
|
198.18 |
|
1.5 |
% |
|
2.9 |
% |
| San Antonio |
2 |
|
2 |
|
|
215.77 |
|
61.4 |
% |
|
|
132.55 |
|
|
212.13 |
|
|
199.52 |
|
66.3 |
% |
|
|
132.30 |
|
|
206.09 |
|
0.2 |
% |
|
2.9 |
% |
| Denver |
3 |
|
3 |
|
|
192.48 |
|
63.3 |
% |
|
|
121.90 |
|
|
181.72 |
|
|
182.33 |
|
61.9 |
% |
|
|
112.85 |
|
|
163.64 |
|
8.0 |
% |
|
11.1 |
% |
| Other |
10 |
|
10 |
|
|
313.84 |
|
64.2 |
% |
|
|
201.47 |
|
|
308.08 |
|
|
268.65 |
|
61.1 |
% |
|
|
164.13 |
|
|
242.02 |
|
22.7 |
% |
|
27.3 |
% |
| Domestic |
72 |
|
73 |
|
|
305.83 |
|
70.2 |
% |
|
|
214.78 |
|
|
352.38 |
|
|
296.15 |
|
66.1 |
% |
|
|
195.67 |
|
|
319.08 |
|
9.8 |
% |
|
10.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| International |
5 |
|
5 |
|
|
186.14 |
|
62.4 |
% |
|
|
116.16 |
|
|
168.42 |
|
|
162.33 |
|
55.1 |
% |
|
|
89.51 |
|
|
130.24 |
|
29.8 |
% |
|
29.3 |
% |
| All Locations |
77 |
|
78 |
|
$ |
302.03 |
|
69.9 |
% |
|
$ |
211.27 |
|
$ |
345.86 |
|
$ |
292.23 |
|
65.7 |
% |
|
$ |
191.97 |
|
$ |
312.55 |
|
10.1 |
% |
|
10.7 |
% |
___________
(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 December 31, |
|
Year endedDecember 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Number of hotels |
|
75 |
|
|
|
75 |
|
|
|
75 |
|
|
|
75 |
|
| Number of rooms |
|
41,031 |
|
|
|
41,031 |
|
|
|
41,031 |
|
|
|
41,031 |
|
| Change in comparable hotel
Total RevPAR |
|
0.7 |
% |
|
|
— |
|
|
|
8.3 |
% |
|
|
— |
|
| Change in comparable hotel
RevPAR |
|
1.5 |
% |
|
|
— |
|
|
|
8.1 |
% |
|
|
— |
|
| Operating profit
margin⁽²⁾ |
|
13.1 |
% |
|
|
14.0 |
% |
|
|
15.6 |
% |
|
|
15.8 |
% |
| Comparable hotel EBITDA
margin⁽²⁾ |
|
28.1 |
% |
|
|
29.9 |
% |
|
|
30.1 |
% |
|
|
31.8 |
% |
| Food and beverage profit
margin⁽²⁾ |
|
34.1 |
% |
|
|
34.5 |
% |
|
|
34.1 |
% |
|
|
34.6 |
% |
| Comparable hotel food and
beverage profit margin⁽²⁾ |
|
34.1 |
% |
|
|
34.6 |
% |
|
|
34.5 |
% |
|
|
35.0 |
% |
| |
|
|
|
|
|
|
|
| Net
income |
$ |
134 |
|
|
$ |
149 |
|
|
$ |
752 |
|
|
$ |
643 |
|
| Depreciation and
amortization |
|
186 |
|
|
|
166 |
|
|
|
697 |
|
|
|
664 |
|
| Interest expense |
|
49 |
|
|
|
43 |
|
|
|
191 |
|
|
|
156 |
|
| Provision (benefit) for income
taxes |
|
9 |
|
|
|
(3 |
) |
|
|
36 |
|
|
|
26 |
|
| Gain on sale of property and
corporate level income/expense |
|
20 |
|
|
|
18 |
|
|
|
(23 |
) |
|
|
51 |
|
| Severance expense at hotel
properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
| Property transaction
adjustments⁽³⁾ |
|
— |
|
|
|
(1 |
) |
|
|
(3 |
) |
|
|
23 |
|
| Non-comparable hotel results,
net⁽⁴⁾ |
|
(43 |
) |
|
|
3 |
|
|
|
(93 |
) |
|
|
(45 |
) |
| Comparable hotel
EBITDA⁽¹⁾ |
$ |
355 |
|
|
$ |
375 |
|
|
$ |
1,557 |
|
|
$ |
1,520 |
|
___________
(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 Fourth
Quarter 2023 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 December 31, 2023 |
|
Quarter ended December 31, 2022 |
| |
|
|
Adjustments |
|
|
|
|
|
Adjustments |
|
|
| |
GAAP Results |
|
Non-comparable hotel results,net ⁽⁴⁾ |
|
Depreciation and corporate levelitems |
|
Comparable Hotel Results |
|
GAAP Results |
|
Property transaction adjustments⁽³⁾ |
|
Non-comparable hotel results,net ⁽⁴⁾ |
|
Depreciation and corporate levelitems |
|
Comparable Hotel Results |
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
$ |
797 |
|
|
$ |
(30 |
) |
|
$ |
— |
|
|
$ |
767 |
|
$ |
763 |
|
$ |
(2 |
) |
|
$ |
(5 |
) |
|
$ |
— |
|
|
$ |
756 |
|
Food and beverage |
|
408 |
|
|
|
(27 |
) |
|
|
— |
|
|
|
381 |
|
|
386 |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
— |
|
|
|
381 |
|
Other |
|
118 |
|
|
|
(6 |
) |
|
|
— |
|
|
|
112 |
|
|
114 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
114 |
|
Total revenues |
|
1,323 |
|
|
|
(63 |
) |
|
|
— |
|
|
|
1,260 |
|
|
1,263 |
|
|
(3 |
) |
|
|
(9 |
) |
|
|
— |
|
|
|
1,251 |
| Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
|
197 |
|
|
|
(6 |
) |
|
|
— |
|
|
|
191 |
|
|
188 |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
187 |
|
Food and beverage |
|
269 |
|
|
|
(18 |
) |
|
|
— |
|
|
|
251 |
|
|
253 |
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
|
249 |
|
Other |
|
485 |
|
|
|
(22 |
) |
|
|
— |
|
|
|
463 |
|
|
449 |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
— |
|
|
|
440 |
|
Depreciation and amortization |
|
186 |
|
|
|
— |
|
|
|
(186 |
) |
|
|
— |
|
|
166 |
|
|
— |
|
|
|
— |
|
|
|
(166 |
) |
|
|
— |
|
Corporate and other expenses |
|
42 |
|
|
|
— |
|
|
|
(42 |
) |
|
|
— |
|
|
30 |
|
|
— |
|
|
|
— |
|
|
|
(30 |
) |
|
|
— |
|
Gain on insurance settlements |
|
(29 |
) |
|
|
26 |
|
|
|
3 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total expenses |
|
1,150 |
|
|
|
(20 |
) |
|
|
(225 |
) |
|
|
905 |
|
|
1,086 |
|
|
(2 |
) |
|
|
(12 |
) |
|
|
(196 |
) |
|
|
876 |
| Operating Profit -
Comparable hotel EBITDA |
$ |
173 |
|
|
$ |
(43 |
) |
|
$ |
225 |
|
|
$ |
355 |
|
$ |
177 |
|
$ |
(1 |
) |
|
$ |
3 |
|
|
$ |
196 |
|
|
$ |
375 |
| |
| |
Year ended December 31, 2023 |
|
Year ended December 31, 2022 |
| |
|
|
Adjustments |
|
|
|
|
|
Adjustments |
|
|
| |
GAAP Results |
|
Property transactionadjustments ⁽³⁾ |
|
Non-comparable hotelresults, net ⁽⁴⁾ |
|
Depreciation andcorporate level items |
|
Comparable hotelResults |
|
GAAP Results |
|
Severance at hotelproperties |
|
Property transactionadjustments ⁽³⁾ |
|
Non-comparable hotelresults, net ⁽⁴⁾ |
|
Depreciation andcorporate level items |
|
Comparable hotelResults |
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
$ |
3,244 |
|
|
$ |
(5 |
) |
|
$ |
(64 |
) |
|
$ |
— |
|
|
$ |
3,175 |
|
|
$ |
3,014 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(76 |
) |
|
$ |
— |
|
|
$ |
2,938 |
|
|
Food and beverage |
|
1,582 |
|
|
|
(2 |
) |
|
|
(58 |
) |
|
|
— |
|
|
|
1,522 |
|
|
|
1,418 |
|
|
|
— |
|
|
|
3 |
|
|
|
(54 |
) |
|
|
— |
|
|
|
1,367 |
|
|
Other |
|
485 |
|
|
|
— |
|
|
|
(13 |
) |
|
|
— |
|
|
|
472 |
|
|
|
475 |
|
|
|
— |
|
|
|
9 |
|
|
|
(16 |
) |
|
|
— |
|
|
|
468 |
|
|
Total revenues |
|
5,311 |
|
|
|
(7 |
) |
|
|
(135 |
) |
|
|
— |
|
|
|
5,169 |
|
|
|
4,907 |
|
|
|
— |
|
|
|
12 |
|
|
|
(146 |
) |
|
|
— |
|
|
|
4,773 |
|
| Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
|
787 |
|
|
|
(1 |
) |
|
|
(16 |
) |
|
|
— |
|
|
|
770 |
|
|
|
727 |
|
|
|
— |
|
|
|
(10 |
) |
|
|
(14 |
) |
|
|
— |
|
|
|
703 |
|
|
Food and beverage |
|
1,042 |
|
|
|
(1 |
) |
|
|
(43 |
) |
|
|
— |
|
|
|
998 |
|
|
|
928 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(38 |
) |
|
|
— |
|
|
|
889 |
|
|
Other |
|
1,912 |
|
|
|
(2 |
) |
|
|
(58 |
) |
|
|
— |
|
|
|
1,852 |
|
|
|
1,723 |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(49 |
) |
|
|
— |
|
|
|
1,672 |
|
|
Depreciation and amortization |
|
697 |
|
|
|
— |
|
|
|
— |
|
|
|
(697 |
) |
|
|
— |
|
|
|
664 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(664 |
) |
|
|
— |
|
|
Corporate and other expenses |
|
132 |
|
|
|
— |
|
|
|
— |
|
|
|
(132 |
) |
|
|
— |
|
|
|
107 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(107 |
) |
|
|
— |
|
|
Gain on insurance settlements |
|
(86 |
) |
|
|
— |
|
|
|
75 |
|
|
|
3 |
|
|
|
(8 |
) |
|
|
(17 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
(11 |
) |
|
Total expenses |
|
4,484 |
|
|
|
(4 |
) |
|
|
(42 |
) |
|
|
(826 |
) |
|
|
3,612 |
|
|
|
4,132 |
|
|
|
(2 |
) |
|
|
(11 |
) |
|
|
(101 |
) |
|
|
(765 |
) |
|
|
3,253 |
|
|
Operating Profit - Comparable hotel EBITDA |
$ |
827 |
|
|
$ |
(3 |
) |
|
$ |
(93 |
) |
|
$ |
826 |
|
|
$ |
1,557 |
|
|
$ |
775 |
|
|
$ |
2 |
|
|
$ |
23 |
|
|
$ |
(45 |
) |
|
$ |
765 |
|
|
$ |
1,520 |
|
(3) Property transaction adjustments represent
the following items: (i) the elimination of results of operations
of our 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
consolidated statements of operations as continuing operations, and
(ii) gains on business interruption proceeds relating to events
that occurred while the hotels were classified as
non-comparable.
|
HOST HOTELS & RESORTS,
INC.Reconciliation of Net Income
to EBITDA, EBITDAre and Adjusted EBITDAre
(1)(unaudited, in millions) |
|
|
|
|
Quarter ended December 31, |
|
Year ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net
income |
$ |
134 |
|
|
$ |
149 |
|
|
$ |
752 |
|
|
$ |
643 |
|
|
Interest expense |
|
49 |
|
|
|
43 |
|
|
|
191 |
|
|
|
156 |
|
|
Depreciation and amortization |
|
186 |
|
|
|
166 |
|
|
|
697 |
|
|
|
664 |
|
|
Income taxes |
|
9 |
|
|
|
(3 |
) |
|
|
36 |
|
|
|
26 |
|
| EBITDA |
|
378 |
|
|
|
355 |
|
|
|
1,676 |
|
|
|
1,489 |
|
|
(Gain) loss on dispositions⁽²⁾ |
|
(1 |
) |
|
|
2 |
|
|
|
(70 |
) |
|
|
(16 |
) |
|
Equity investment adjustments: |
|
|
|
|
|
|
|
|
Equity in (earnings) losses of affiliates |
|
1 |
|
|
|
— |
|
|
|
(6 |
) |
|
|
(3 |
) |
|
Pro rata EBITDAre of equity investments⁽³⁾ |
|
3 |
|
|
|
7 |
|
|
|
32 |
|
|
|
34 |
|
|
EBITDAre |
|
381 |
|
|
|
364 |
|
|
|
1,632 |
|
|
|
1,504 |
|
| Adjustments to EBITDAre: |
|
|
|
|
|
|
|
|
Gain on property insurance settlement |
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
(6 |
) |
| Adjusted
EBITDAre |
$ |
378 |
|
|
$ |
364 |
|
|
$ |
1,629 |
|
|
$ |
1,498 |
|
___________
(1) See the Notes to Financial Information for
discussion of non-GAAP measures.(2) Reflects the sale of one hotel
in 2023 and four hotels in 2022.(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 December 31, |
|
Year ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net
income |
$ |
134 |
|
|
$ |
149 |
|
|
$ |
752 |
|
|
$ |
643 |
|
|
Less: Net income attributable to non-controlling interests |
|
(2 |
) |
|
|
(2 |
) |
|
|
(12 |
) |
|
|
(10 |
) |
| Net income
attributable to Host Inc. |
|
132 |
|
|
|
147 |
|
|
|
740 |
|
|
|
633 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
(Gain) loss on dispositions⁽²⁾ |
|
(1 |
) |
|
|
2 |
|
|
|
(70 |
) |
|
|
(16 |
) |
|
Gain on property insurance settlement |
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
(6 |
) |
|
Depreciation and amortization |
|
185 |
|
|
|
166 |
|
|
|
695 |
|
|
|
663 |
|
|
Equity investment adjustments: |
|
|
|
|
|
|
|
|
Equity in (earnings) losses of affiliates |
|
1 |
|
|
|
— |
|
|
|
(6 |
) |
|
|
(3 |
) |
|
Pro rata FFO of equity investments⁽³⁾ |
|
— |
|
|
|
4 |
|
|
|
20 |
|
|
|
25 |
|
|
Consolidated partnership adjustments: |
|
|
|
|
|
|
|
|
FFO adjustment for non-controlling partnerships |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
FFO adjustments for non-controlling interests of Host L.P. |
|
(3 |
) |
|
|
(3 |
) |
|
|
(9 |
) |
|
|
(9 |
) |
| NAREIT
FFO |
|
311 |
|
|
|
316 |
|
|
|
1,366 |
|
|
|
1,286 |
|
| Adjustments to NAREIT
FFO: |
|
|
|
|
|
|
|
|
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
| Adjusted
FFO |
$ |
311 |
|
|
$ |
316 |
|
|
$ |
1,370 |
|
|
$ |
1,286 |
|
| |
|
|
|
|
|
|
|
| For calculation on a
per share basis:⁽⁴⁾ |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Diluted weighted
average shares outstanding - EPS, NAREIT FFO and Adjusted
FFO |
|
707.6 |
|
|
|
717.7 |
|
|
|
712.8 |
|
|
|
717.5 |
|
| Diluted earnings per
common share |
$ |
0.19 |
|
|
$ |
0.20 |
|
|
$ |
1.04 |
|
|
$ |
0.88 |
|
| NAREIT FFO per diluted
share |
$ |
0.44 |
|
|
$ |
0.44 |
|
|
$ |
1.92 |
|
|
$ |
1.79 |
|
| Adjusted FFO per
diluted share |
$ |
0.44 |
|
|
$ |
0.44 |
|
|
$ |
1.92 |
|
|
$ |
1.79 |
|
___________
(1-3) Refer to 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 partnership
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 |
| |
Low-end of range |
|
High-end of range |
|
Net income |
$ |
708 |
|
|
$ |
794 |
|
|
Interest expense |
|
174 |
|
|
|
174 |
|
|
Depreciation and amortization |
|
699 |
|
|
|
699 |
|
|
Income taxes |
|
21 |
|
|
|
25 |
|
| EBITDA |
|
1,602 |
|
|
|
1,692 |
|
|
Equity investment adjustments: |
|
|
|
|
Equity in earnings of affiliates |
|
(12 |
) |
|
|
(13 |
) |
|
Pro rata EBITDAre of equity investments |
|
40 |
|
|
|
41 |
|
| EBITDAre |
|
1,630 |
|
|
|
1,720 |
|
| Adjustments to EBITDAre: |
|
|
|
|
Gain on property insurance settlement |
|
(40 |
) |
|
|
(40 |
) |
| Adjusted
EBITDAre |
$ |
1,590 |
|
|
$ |
1,680 |
|
| |
Full Year 2024 |
| |
Low-end of range |
|
High-end of range |
|
Net income |
$ |
708 |
|
|
$ |
794 |
|
|
Less: Net income attributable to non-controlling interests |
|
(11 |
) |
|
|
(12 |
) |
| Net income
attributable to Host Inc. |
|
697 |
|
|
|
782 |
|
|
Adjustments: |
|
|
|
|
Gain on property insurance settlement |
|
(40 |
) |
|
|
(40 |
) |
|
Depreciation and amortization |
|
697 |
|
|
|
697 |
|
|
Equity investment adjustments: |
|
|
|
|
Equity in earnings of affiliates |
|
(12 |
) |
|
|
(13 |
) |
|
Pro rata FFO of equity investments |
|
25 |
|
|
|
26 |
|
|
Consolidated partnership adjustments: |
|
|
|
|
FFO adjustment for non-controlling partnerships |
|
(1 |
) |
|
|
(1 |
) |
|
FFO adjustment for non-controlling interests of Host LP |
|
(9 |
) |
|
|
(9 |
) |
| NAREIT and Adjusted
FFO |
$ |
1,357 |
|
|
$ |
1,442 |
|
| |
|
|
|
| Diluted weighted
average shares outstanding - EPS, NAREIT FFO and Adjusted
FFO |
|
707.3 |
|
|
|
707.3 |
|
| Diluted earnings per
common share |
$ |
0.99 |
|
|
$ |
1.11 |
|
| NAREIT FFO per diluted
share |
$ |
1.92 |
|
|
$ |
2.04 |
|
| Adjusted FFO per
diluted share |
$ |
1.92 |
|
|
$ |
2.04 |
|
_______________
(1) The Forecasts are based on the below assumptions:
- Comparable hotel RevPAR will
increase 2.5% to 5.5% compared to 2023 for the low and high end of
the forecast range.
- Comparable hotel EBITDA margins
will decrease 120 basis points to 40 basis points compared to 2023
for the low and high ends of the forecasted comparable hotel RevPAR
range, respectively.
- We expect to spend approximately
$500 million to $605 million on capital expenditures.
- Assumes no acquisitions and no
dispositions during the year.
- Assumes $10 million of gains from
business interruption proceeds expected to be received in 2024
related to Hurricane Ian. Also includes an additional $40 million
of expected insurance proceeds that would result in a gain on
property insurance settlement.
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)(unaudited, in millions) |
| |
| |
Full Year 2024 |
| |
Low-end of range |
|
High-end of range |
|
Operating profit margin(2) |
|
15.2 |
% |
|
|
16.3 |
% |
| Comparable hotel EBITDA
margin(2) |
|
28.9 |
% |
|
|
29.7 |
% |
| |
|
|
|
| Net
income |
$ |
708 |
|
|
$ |
794 |
|
|
Depreciation and amortization |
|
699 |
|
|
|
699 |
|
|
Interest expense |
|
174 |
|
|
|
174 |
|
|
Provision for income taxes |
|
21 |
|
|
|
25 |
|
|
Gain on sale of property and corporate level income/expense |
|
24 |
|
|
|
22 |
|
|
Non-comparable hotel results, net⁽3⁾ |
|
(63 |
) |
|
|
(65 |
) |
| Comparable hotel
EBITDA(1) |
$ |
1,563 |
|
|
$ |
1,649 |
|
___________
(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. Forecast comparable
hotel results include 76 hotels (of our 77 hotels owned at
December 31, 2023) that we have assumed will be classified as
comparable as of December 31, 2024.(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:
| |
Low-end of range |
|
High-end of range |
| |
|
|
Adjustments |
|
|
|
|
|
Adjustments |
|
|
| |
GAAP Results |
|
Non-comparable hotelresults, net |
|
Depreciation andcorporate level items |
|
Comparable hotelResults |
|
GAAP Results |
|
Non-comparable hotelresults, net |
|
Depreciation and corporate level items |
|
Comparable hotelResults |
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms |
$ |
3,388 |
|
|
$ |
(92 |
) |
|
$ |
— |
|
|
$ |
3,296 |
|
$ |
3,487 |
|
|
$ |
(94 |
) |
|
$ |
— |
|
|
$ |
3,393 |
|
Food and beverage |
|
1,686 |
|
|
|
(72 |
) |
|
|
— |
|
|
|
1,614 |
|
|
1,732 |
|
|
|
(74 |
) |
|
|
— |
|
|
|
1,658 |
|
Other |
|
515 |
|
|
|
(19 |
) |
|
|
— |
|
|
|
496 |
|
|
524 |
|
|
|
(20 |
) |
|
|
— |
|
|
|
504 |
|
Total revenues |
|
5,589 |
|
|
|
(183 |
) |
|
|
— |
|
|
|
5,406 |
|
|
5,743 |
|
|
|
(188 |
) |
|
|
— |
|
|
|
5,555 |
| Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel expenses |
|
3,973 |
|
|
|
(130 |
) |
|
|
— |
|
|
|
3,843 |
|
|
4,039 |
|
|
|
(133 |
) |
|
|
— |
|
|
|
3,906 |
|
Depreciation and amortization |
|
699 |
|
|
|
— |
|
|
|
(699 |
) |
|
|
— |
|
|
699 |
|
|
|
— |
|
|
|
(699 |
) |
|
|
— |
|
Corporate and other expenses |
|
117 |
|
|
|
— |
|
|
|
(117 |
) |
|
|
— |
|
|
117 |
|
|
|
— |
|
|
|
(117 |
) |
|
|
— |
|
Gain on insurance settlements |
|
(50 |
) |
|
|
10 |
|
|
|
40 |
|
|
|
— |
|
|
(50 |
) |
|
|
10 |
|
|
|
40 |
|
|
|
— |
|
Total expenses |
|
4,739 |
|
|
|
(120 |
) |
|
|
(776 |
) |
|
|
3,843 |
|
|
4,805 |
|
|
|
(123 |
) |
|
|
(776 |
) |
|
|
3,906 |
| Operating Profit -
Comparable hotel EBITDA |
$ |
850 |
|
|
$ |
(63 |
) |
|
$ |
776 |
|
|
$ |
1,563 |
|
$ |
938 |
|
|
$ |
(65 |
) |
|
$ |
776 |
|
|
$ |
1,649 |
(3) 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
consolidated statements of operations as continuing operations, and
(ii) gains on business interruption proceeds relating to events
that occurred while the hotels were classified as
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); 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
Effective January 1, 2023, the Company ceased
presentation of All Owned Hotel results that was used while the
COVID-19 pandemic disrupted operations, limiting the usefulness of
year-over-year comparisons, and returned to a comparable hotel
presentation for its hotel level results. Management believes this
provides investors with a better understanding of underlying growth
trends for the Company’s current portfolio, without impact from
properties that experienced closures due to renovations or property
damage sustained.
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
consolidated statements of operations. Business interruption
insurance gains related to a hotel that was excluded from our
comparable hotel set also will be excluded from the comparable
hotel results.
Of the 77 hotels that we owned as of
December 31, 2023, 75 have been classified as comparable
hotels. The operating results of the following properties that we
owned as of December 31, 2023 are excluded from comparable
hotel results for these periods:
- Hyatt Regency Coconut Point Resort
& Spa (business disruption due to Hurricane Ian beginning in
September 2022, reopened in November 2022);
- 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.
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 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
35 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 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
GHOSHChief Financial Officer(240) 744-5267 |
JAIME MARCUSInvestor Relations(240)
744-5117ir@hosthotels.com |
| |
|
HOST HOTELS & RESORTS, INC.
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