HST Host Hotels and Resorts Inc

$1.5 Billion of Acquisitions Completed in 2024
Full Year Comparable Hotel Total RevPAR Growth of 2.1%
Balanced Maturity Schedule with Net Issuance of $900 Million of Senior Notes in 2024

BETHESDA, Md., Feb. 19, 2025 (GLOBE NEWSWIRE) -- 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 2024.

^{* Additional detail on the Company’s results, including data for 24 domestic markets and Top 40 hotels by Total RevPAR, is available in the Fourth Quarter 2024 Supplemental Financial Information on the Company’s website at www.hosthotels.com.}

James F. Risoleo, President and Chief Executive Officer, said, “Host delivered comparable hotel Total RevPAR growth of 3.3% over the fourth quarter of 2023, and full year growth of 2.1% driven by improvements in food and beverage revenues from group business. Comparable hotel RevPAR increased 3.0% for the quarter and 0.9% for the full year as a result of higher rates, improving leisure transient trends in Maui and strong group demand."

Risoleo continued, “Over the course of 2024, we continued to successfully allocate capital through acquisitions, reinvestment in our portfolio, share repurchases and dividends. During the year, we acquired $1.5 billion of iconic and irreplaceable real estate across four properties, three of which are in new markets for Host. We also reinvested $548 million in our portfolio through capital expenditures and resiliency investments and made progress on the Hyatt Transformational Capital Program and the condo development at the Four Seasons Resort Orlando at Walt Disney World® Resort. Additionally, we returned $844 million of capital to stockholders through dividends and share repurchases. Looking into 2025, we are encouraged by the state of travel. Our 2025 comparable hotel Total RevPAR guidance range estimates growth of 1.0% to 3.0% over 2024, and we continue to believe our investment grade balance sheet puts Host in a position to take advantage of potential opportunities in the future.”

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^{(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.}

2024 HIGHLIGHTS:

• Comparable hotel Total RevPAR was $355.88 for full year 2024, representing an increase of 2.1% compared to 2023, primarily due to improvements in food & beverage revenues driven by strengthening group business throughout the year, as well as an increase in other revenues from ancillary spend.
• Comparable hotel RevPAR was $216.06 for full year 2024, representing an increase of 0.9% compared to 2023, reflecting strong group demand tempered by moderating domestic leisure demand and a delayed recovery in Maui following the August 2023 wildfires.
• GAAP net income was $707 million for full year 2024, a 6.0% decrease compared to 2023, reflecting a decline in gains on asset sales and an increase in interest expense. Operating profit margin was 15.4%, a decline of 20 basis points compared to 2023 driven by Maui performance combined with increased wages and other inflationary expense pressures in comparison to 2023, partially offset by an increase in net gains on insurance settlements.
• Comparable hotel EBITDA was $1,622 million, an increase of 0.3% compared to 2023, benefiting from an increase in business interruption proceeds at the Company's comparable hotels. However, comparable hotel EBITDA margin declined 60 basis points to 29.2%. The decline, as expected, was driven by Maui performance and the increased wages and other inflationary expense pressures.
• Adjusted EBITDAre was $1,656 million, exceeding 2023 by 1.7%, despite a $43 million decrease in business interruption proceeds. The improvements were driven by operations from properties acquired in 2024 and The Ritz-Carlton, Naples, which was closed in the first half of 2023 due to Hurricane Ian.
• Invested over $1.5 billion in the acquisition of four hotels, including the 450-room The Ritz-Carlton O'ahu, Turtle Bay, 234-room 1 Hotel Central Park, 215-room 1 Hotel Nashville and 506-room Embassy Suites by Hilton Nashville Downtown.
• Completed vertical construction of the mid-rise building and started framing construction of the boutique villas, marking a significant milestone in the development of 40 Four Seasons-branded and managed residences at the Four Seasons Resort Orlando at Walt Disney World® Resort. Sales efforts began in November 2024 resulting in commitments for nearly one-third of the units.
• Issued $1.3 billion of senior notes through two separate underwritten public offerings and repaid $400 million of senior notes at maturity.
• Repurchased 6.3 million shares during 2024 at an average price of $16.99 per share through the Company's common share repurchase program for a total of $107 million. As of December 31, 2024, the Company has approximately $685 million of remaining capacity under the repurchase program, pursuant to which its common stock may be purchased from time to time, depending upon market conditions.
• The Company achieved a new milestone in its sustainability efforts for renewable energy use and green building recertifications, resulting in the maximum pricing benefit under its credit facility, for a total reduction of 5 basis points on the interest rate for the outstanding term loans. The Company had four properties achieve LEED® certification during the year, and now owns a total of 20 in its portfolio.

Results for Fourth Quarter 2024

• Comparable hotel Total RevPAR was $351.01 for the fourth quarter of 2024, representing an increase of 3.3% compared to the same period in 2023, primarily due to improvements in food & beverage revenues driven by group business, as well as an increase in other revenues from ancillary spend.
• Comparable hotel RevPAR was $212.86 for the fourth quarter, representing an increase of 3.0% compared to the same period in 2023. The increase reflected higher rates driven by transient leisure demand. However, results were tempered by a continued imbalance in international outbound travel from the U.S. compared to international inbound travel.
• GAAP net income was $109 million for the fourth quarter of 2024, reflecting a 18.7% decrease compared to the fourth quarter of 2023, and GAAP operating profit margin was 11.0%, a decline of 210 basis points compared to the fourth quarter of 2023, both affected by a $35 million decrease in net gains on insurance settlements.
• Comparable hotel EBITDA was $387 million for the fourth quarter of 2024, a 4.6% increase compared to the fourth quarter of 2023, leading to a comparable hotel EBITDA margin improvement of 30 basis points to 28.1%. The improvement for the quarter was driven by improvements in rate and an increase in ancillary spend.
• Adjusted EBITDAre was $373 million for the fourth quarter of 2024, a decrease of 1.3% compared to 2023. Fourth quarter 2024 was affected by impacts from the hurricanes, as discussed below, while fourth quarter 2023 results benefited from business interruption proceeds of $26 million, with none recognized in the fourth quarter of 2024.
  

Hurricanes and Maui Update

• Many of the Company's hotels in Florida were affected by Hurricanes Helene and Milton, which made landfall in September and October of 2024, respectively. Due to evacuation mandates and/or loss of commercial power, four of the Company's properties in Florida were temporarily closed, three of which reopened shortly after power was restored. The enhanced resilience projects implemented during the reconstruction of The Ritz-Carlton, Naples were successful in minimizing damage to the resort during the two hurricanes. The Don Cesar, where the most significant damage was sustained, is currently the only hotel that remains closed to guests.
  

The Company currently expects a phased reopening of The Don CeSar beginning late in the first quarter of 2025. The Company is still evaluating the complete remediation plans and disruption impacts of the storms, but currently estimates the total property damage and remediation costs related to The Don CeSar to be approximately $100 million - $110 million. The Company believes its insurance coverage will be sufficient to cover the property remediation and reconstruction costs and the near-term loss of business in excess of its deductibles of approximately $20 million, although the timing for the receipt of insurance proceeds remains uncertain. In the fourth quarter of 2024, the Company recorded a loss of $6 million related to property damage and remediation costs at certain other properties for which an insurance claim will not be filed. The Company estimates that Hurricanes Helene and Milton negatively impacted its full year net income by $21 million and Adjusted EBITDAre by $15 million.

• In 2024, the Company completed the final steps of the restoration efforts at The Ritz-Carlton, Naples following Hurricane Ian. These steps included bringing the permanent central energy plant online and reaching a final settlement with the Company's insurance carriers on covered costs related to damage and disruption caused by Hurricane Ian, which totaled $308 million. In total, $99 million of the insurance receipts were recognized as a gain on business interruption, of which $19 million was received in 2024.
• Effects from the wildfires in Maui that occurred in August of 2023 continued throughout 2024. For the full year, the estimated impact from the Company's Maui hotels and golf courses on RevPAR is 160 basis points, and the net impact to operating profit margin and comparable hotel EBITDA margins, including the effects of the business interruption proceeds received, was 20 basis points.

The Company previously settled its claim on the Maui wildfires and recognized $21 million of insurance proceeds as a gain on business interruption in the second quarter of 2024.

BALANCE SHEET

The Company maintains a robust balance sheet, with the following balances at December 31, 2024:

• Total assets of $13.0 billion.
• Debt balance of $5.1 billion, with a weighted average maturity of 5.2 years, a weighted average interest rate of 4.7%, and a balanced maturity schedule.
• Total available liquidity of approximately $2.3 billion, including furniture, fixtures and equipment escrow reserves of $242 million and $1.5 billion available under the revolver portion of the credit facility.
  

DIVIDENDS

The Company paid a fourth quarter common stock cash dividend of $0.30 per share on January 15, 2025 to stockholders of record on December 31, 2024, which included a $0.10 per share special dividend, bringing the total dividends declared in 2024 to $0.90 per share. On February 19, 2025, 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, 2025 to stockholders of record on March 31, 2025. All future dividends, including any special dividends, are subject to approval by the Company’s Board of Directors. There were no common share repurchases in the fourth quarter.

HOTEL BUSINESS MIX UPDATE

The Company’s customers fall into three broad groups: transient, group and contract business, which accounted for approximately 60%, 36%, and 4%, respectively, of its full year 2024 room sales.

The following are the results for transient, group and contract business in comparison to 2023 performance, for the Company's current portfolio. Results reflect lower group in the fourth quarter of 2024 as compared to 2023 as the Company's properties in Maui benefited from recovery and relief group business in fourth quarter of 2023:

CAPITAL EXPENDITURES

The following presents the Company’s capital expenditures spend for 2024 and the forecast for full year 2025 (in millions):

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^{(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 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.}

The estimated property damage reconstruction in 2025 includes the expected spend to complete the restoration at The Don CeSar following Hurricanes Helene and Milton. Under the Hyatt Transformational Capital Program, the Company received $2 million of operating guarantees in the fourth quarter of 2024 to offset business disruptions, bringing the total to $9 million in 2024. The Company expects to receive approximately $27 million of operating guarantees in 2025.

2025 OUTLOOK

The 2025 guidance range contemplates a stable operating environment with continued improvement in group business, a continued gradual recovery in business transient, steady leisure demand, and improving demand on Maui as the island recovers from the August 2023 wildfires. The Company anticipates mid-single digit RevPAR growth in the first quarter, with January comparable hotel RevPAR growth up 9.5% over 2024. For the remaining three quarters, the Company anticipates RevPAR growth in the low single digits.

Operating profit margin and comparable hotel EBITDA margin in 2025 are expected to decline compared to 2024, due to growth in wages, real estate taxes and insurance, as well as the continued impacts from the Maui wildfires and a decrease in business interruption proceeds. The guidance range for net income and Adjusted EBITDAre reflects an expected decline in interest income and includes $9 million of gains from business interruption proceeds related to Hurricanes Helene and Milton, which are expected to be received in the first half of 2025. Additional insurance receipts related to the hurricanes are under discussion with insurance carriers and the timing for the receipt of these proceeds remains uncertain. The guidance range for net income and Adjusted EBITDAre also includes an estimated $25 million contribution from sales at the condominium development adjacent to the Four Seasons Resort Orlando at Walt Disney^® Resort.

The Company anticipates its 2025 operating results as compared to 2024 will be in the following range:

Based upon the above parameters, the Company estimates its 2025 guidance as follows:

See the 2025 Forecast Schedules and the Notes to Financial Information for items that may affect forecast results and the Fourth Quarter 2024 Supplemental Financial Information for additional detail on the mid-point of full year 2025 guidance. Effective January 1, 2025, the Company will begin excluding from the calculation of Adjusted EBITDAre and Adjusted FFO per diluted share the expense recorded for non-cash stock-based compensation. In 2024, this amount totaled $24 million. In this release, 2024 results have not been adjusted to reflect this change and, accordingly, a portion of the increase in guidance relative to 2024 is a result of this change.

ABOUT HOST HOTELS & RESORTS

Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 76 properties in the United States and five properties internationally totaling approximately 43,400 rooms. The Company also holds non-controlling interests in seven domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott^®, Ritz-Carlton^®, Westin^®, Sheraton^®, W^®, St. Regis^®, The Luxury Collection^®, Hyatt^®, Fairmont^®, 1 Hotels^®, Hilton^®, Four Seasons^®, Swissôtel^®, ibis^® and Novotel^®, as well as independent brands. For additional information, please visit the Company’s website at www.hosthotels.com.

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements 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 2025 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 19, 2025, 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 have 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, 2024, which are non-controlling interests in Host LP in our consolidated balance sheets and are included in net (income) loss attributable to non-controlling interests in our condensed consolidated statements of operations. Readers are encouraged to find further detail regarding our organizational structure in our annual report on Form 10-K.

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^{(1) Please see our Fourth Quarter 2024 Supplemental Financial Information for more detail on our debt balances and financial covenant ratios under our credit facility and senior notes indentures.}

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^{(1) Corporate and other expenses include the following items:}

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^{(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⁾

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^{(1) See the Notes to Financial Information for a discussion of comparable hotel operating statistics. Beginning in third quarter of 2024, we have separated the Oahu and Maui markets. CBD of a location refers to the central business district. Hotel RevPAR is calculated as room revenues divided by the available room nights. Hotel Total RevPAR is calculated by dividing the sum of rooms, food and beverage and other revenues by the available room nights.
(2) Prior to our ownership of The Ritz Carlton O'ahu, Turtle Bay, golf revenues were recorded by the property based on gross sales. After our acquisition of the property in July 2024, the golf course operates under a lease agreement, under which we record rental income, resulting in lower total revenues when compared to the periods prior to our ownership.}

Comparable Hotel Results by Location⁽¹⁾

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^{(1) See the Notes to Financial Information for a discussion of comparable hotel operating statistics. Beginning in third quarter of 2024, we have separated the Oahu and Maui markets. CBD of a location refers to the central business district. Hotel RevPAR is calculated as room revenues divided by the available room nights. Hotel Total RevPAR is calculated by dividing the sum of rooms, food and beverage and other revenues by the available room nights.
(2) Prior to our ownership of The Ritz Carlton O'ahu, Turtle Bay, golf revenues were recorded by the property based on gross sales. After our acquisition of the property in July 2024, the golf course operates under a lease agreement, under which we record rental income, resulting in lower total revenues when compared to the periods prior to our ownership.}

Results by Location - actual, based on ownership period⁽¹⁾

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^{(1) Represents the results of the portfolio for the time period of our ownership, including the results of non-comparable properties, dispositions through their date of disposal and acquisitions beginning as of the date of acquisition.}

Results by Location - actual, based on ownership period⁽¹⁾

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^{(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.}

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^{(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 2024 Supplemental Financial Information posted on our website.
(2) Profit margins are calculated by dividing the applicable operating profit by the related revenue amount. GAAP profit margins are calculated using amounts presented in the unaudited condensed consolidated statements of operations. Comparable hotel margins are calculated using amounts presented in the following tables, which include reconciliations to the applicable GAAP results:}