SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): November 1, 2018

 

HOST HOTELS & RESORTS, INC.

(Exact Name of Registrant as Specified in Charter)

 

 

 

Registrant’s telephone number, including area code: (240) 744-1000

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

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Item 2.02. Results of Operations and Financial Condition.

On November 1, 2018, Host Hotels & Resorts, Inc. issued a press release announcing its financial results for the third quarter ended September 30, 2018. The press release referred to supplemental financial information for the quarter that is available on the Company’s website at www.hosthotels.com. A copy of the press release and the supplemental financial information are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Report.

The information in this Report, including the exhibits, is provided under Item 2.02 of Form 8-K and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. Furthermore, the information in this Report, including the exhibits, shall not be deemed to be incorporated by reference into the filings of the registrant under the Securities Act of 1933 regardless of any general incorporation language in such filings.

 

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

 

 

 

 

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

NEWS RELEASE

HOST HOTELS & RESORTS, INC. REPORTS RESULTS FOR THE THIRD QUARTER 2018

BETHESDA, MD; November 1, 2018 – Host Hotels & Resorts, Inc. (NYSE: HST) (“Host Hotels” or the “Company”), the nation’s largest lodging real estate investment trust (“REIT”), today announced results for the third quarter of 2018.

James F. Risoleo, President and Chief Executive Officer, said, “We continue to be pleased with our operating results. For the third quarter, the growth in RevPAR, which was in-line with our expectations, was complemented by food and beverage outperformance and broad productivity gains that drove profitability and boosted our bottom-line performance above expectations.”

“During the quarter, we continued to enhance our irreplaceable U.S. hotel portfolio through targeted dispositions,” continued Mr. Risoleo. “We continue to focus our capital recycling efforts on reducing our international and New York exposure, as evidenced by the sale of the JW Marriott Hotel Mexico City and reaching an agreement to sell our interest in the European joint venture to our existing partners. In New York, we completed the previously announced sale of the W New York – Union Square and placed the Westin New York Grand Central hotel under contract for $300 million, including FF&E funds. In addition, we sold the retail space at the New York Marriott Marquis for $442 million. This transaction was an excellent example of creating value for stockholders through portfolio investment, while also exiting a non-core asset at an attractive price. Proceeds from the sales that have closed, plus those that we expect to close, total approximately $1.2 billion. Combined with our existing cash on hand, these dispositions provide us incredible flexibility as we explore investment opportunities to create shareholder value, including adding to our irreplaceable portfolio, investing in our existing assets, or buying back stock.”

Operating Results ¹

(unaudited, in millions, except per share and hotel statistics)  

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Additional detail on the Company’s results, including data for 22 domestic markets and top 40 hotels by RevPAR, is available in the Third Quarter 2018 Supplemental Financial Information available on the Company’s website at www.hosthotels.com.

Operating Performance

GAAP Metrics

Other Metrics

Dispositions

On September 27, 2018, the Company completed the sale of the JW Marriott Hotel Mexico City for $183 million. This hotel was the previously announced but unidentified asset held for sale. The Company is a 52% majority owner of the partnership that owned the hotel. As previously announced on September 21, 2018, the Company sold the New York Marriott Marquis retail and theater commercial units and the related signage areas of the hotel (the “Retail”) to Vornado Realty Trust for $442 million. Substantially all of the net proceeds from the sale of the Retail were used to close out a reverse like-kind exchange structure established in connection with the acquisition of the Hyatt portfolio in March 2018. In addition, on September 6, 2018 the Company closed on the sale of the W New York – Union Square for a sale price of $171 million, including $3 million of FF&E funds.  

Subsequent to quarter end, the Company entered into an agreement to sell The Westin New York Grand Central for $300 million, including approximately $20 million of FF&E funds. The sale is expected to close in the first quarter of 2019, subject to customary closing conditions. The Company also reached an agreement to sell its approximate 33% interest in the European joint venture to its partners for proceeds of approximately €435 million ($505 million). The sale is expected to close during the fourth quarter, subject to customary closing conditions, including the receipt of required consents.

Capital Allocation

During the third quarter, the Company spent approximately $119 million on capital expenditures, of which $48 million was return on investment (“ROI”) capital expenditures and $71 million was on renewal and replacement projects. Year-to-date, the Company spent $320 million on capital expenditures, of which $106 million was ROI capital expenditures and $214 million was on renewal and replacement projects.

For 2018, the Company continues to anticipate capital expenditures of $475 million to $520 million. This total spend consists of $195 million to $220 million in ROI projects and $280 million to $300 million in renewal and replacement projects.

While it is early in the 2019 capital budgeting process, the Company reached an agreement with Marriott International to complete a number of transformational brand reinvestment capital projects, similar to that at the San Francisco Marriott

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Marquis, over a phased four-year period. These portfolio investments are designed to better position these assets to compete in their respective markets and enhance long-term performance. As a result, the Company intends to spend an incremental $150 million to $200 million per year above its total historical capex spend during this time frame. In exchange, Marriott has provided additional priority returns on the agreed upon investments and operating profit guarantees to offset expected business disruption.

Dividends

The Company paid a regular quarterly cash dividend of $0.20 per share on its common stock on October 15, 2018 to stockholders of record as of September 28, 2018. All future dividends, including any special dividends, are subject to approval by the Company’s Board of Directors.

Balance Sheet

“We continued to enhance our investment grade balance sheet with accretive dispositions in the quarter.  We believe our strong liquidity position and access to capital provides a meaningful strategic advantage as we pursue a variety of investment activities that will provide long-term stockholder value,” said Michael D. Bluhm, Chief Financial Officer.

At September 30, 2018, the Company had approximately $1,269 million of unrestricted cash, not including $205 million in the FF&E escrow reserve, and $702 million of available capacity under the revolver portion of its credit facility. Total debt as of September 30, 2018, was $4.1 billion, with an average maturity of 4.3 years and an average interest rate of 4.1%. The Company has no debt maturities until 2020.

As previously announced, the Company entered into a distribution agreement by which the Company may issue and sell, from time to time, shares of common stock having an aggregate offering price of up to $500 million. No shares have been issued in 2018. The Company also has $500 million of capacity available under its current common share repurchase program. No shares have been repurchased in 2018.

2018 Outlook

The Company anticipates that its 2018 operating results as compared to the prior year will change in the following range:

__________

Based upon the above parameters, the Company estimates its 2018 guidance as follows:

See the 2018 Forecast Schedules and the Notes to Financial Information for other assumptions used in the forecasts and items that may affect forecast results.

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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 88 properties in the United States and five properties internationally totaling approximately 52,000 rooms. The Company also holds non-controlling interests in seven domestic and 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^®, Le Méridien^®, The Luxury Collection^®, Hyatt^®, Fairmont^®, Hilton^®, Swissôtel^®, ibis^® and Novotel^®, as well as independent brands in the operation of properties in over 50 major markets. 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 forecast results and are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “plan,” “predict,” “project,” “will,” “continue” and other similar terms and phrases, including references to assumptions and forecasts of future 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: changes in national and local economic and business conditions and other factors such as natural disasters, pandemics and weather that will affect occupancy rates at our hotels and the demand for hotel products and services; the impact of geopolitical developments outside the U.S. on lodging demand; volatility in global financial and credit markets; operating risks associated with the hotel business; risks and limitations in our operating flexibility associated with the level of our indebtedness and our ability to meet covenants in our debt agreements; risks associated with our relationships with property managers and joint venture partners; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; the effects of hotel renovations on our hotel occupancy and financial results; our ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; risks associated with our ability to complete acquisitions and dispositions and develop new properties and the risks that acquisitions and new developments may not perform in accordance with our expectations; our ability to continue to satisfy complex rules in order for us to remain a REIT for federal income tax purposes; risks associated with our ability to effectuate our dividend policy, including factors such as operating results and the economic outlook influencing our board’s decision whether to pay further dividends at levels previously disclosed or to use available cash to make special dividends; and other risks and uncertainties associated with our business described in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of November 1, 2018, 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.

*** Tables to Follow ***

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Host Hotels & Resorts, Inc., herein referred to as “we” or “Host Inc.,” is a self-managed and self-administered real estate investment trust that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resorts, L.P. (“Host LP”), of which we are the sole general partner. When distinguishing between Host Inc. and Host LP, the primary difference is approximately 1% of the partnership interests in Host LP held by outside partners as of September 30, 2018, which is non-controlling interests in Host LP in our consolidated balance sheets and is included in net income attributable to non-controlling interests in our consolidated statements of operations. Readers are encouraged to find further detail regarding our organizational structure in our annual report on Form 10-K.

 

 

 

 

 

 

 

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HOST HOTELS & RESORTS, INC.

Condensed Consolidated Balance Sheets

(unaudited, in millions, except shares and per share amounts)

 

 

 

 

 

 

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HOST HOTELS & RESORTS, INC.

Condensed Consolidated Statements of Operations

(unaudited, in millions, except per share amounts)

          

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HOST HOTELS & RESORTS, INC.

Earnings per Common Share

(unaudited, in millions, except per share amounts)

 

 

 

 

 

 

  

 

 

 

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HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels ⁽¹⁾

Comparable Hotels by Location in Constant US$

 

All Owned Hotels in Constant US$ ⁽²⁾

 

Comparable Hotels in Nominal US$

 

 

 

 

 

 

 

 

 

 

 

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HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels ⁽¹⁾ (cont.)

Comparable Hotels by Location in Constant US$

 

 

All Owned Hotels in Constant US$ ⁽²⁾

 

Comparable Hotels in Nominal US$  

 

 

 

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HOST HOTELS & RESORTS, INC.

Schedule of Comparable Hotel Results ⁽¹⁾

(unaudited, in millions, except hotel statistics)

 

 

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HOST HOTELS & RESORTS, INC.

Schedule of Comparable Hotel Results ⁽¹⁾

(unaudited, in millions, except hotel statistics)

 

 

 

 

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HOST HOTELS & RESORTS, INC.

Reconciliation of Net Income to

EBITDA, EBITDAre and Adjusted EBITDAre ⁽¹⁾

(unaudited, in millions)

 

 

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HOST HOTELS & RESORTS, INC.

Reconciliation of Net Income to NAREIT and

Adjusted Funds From Operations per Diluted Share ⁽¹⁾

(unaudited, in millions, except per share amounts)

  

 

 

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HOST HOTELS & RESORTS, INC.

Reconciliation of Net Income to EBITDA, EBITDAre, Adjusted EBITDAre and

NAREIT and Adjusted Funds From Operations per Diluted Share for 2018 Forecasts ⁽¹⁾

(unaudited, in millions, except per share amounts)

 

For a discussion of additional items that may affect forecasted results, see the Notes to Financial Information.

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HOST HOTELS & RESORTS, INC.

Schedule of Comparable Hotel Results

for 2018 Forecasts ⁽¹⁾

(unaudited, in millions, except hotel statistics)

  

 

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HOST HOTELS & RESORTS, INC.

Schedule of Comparable Hotel Results

for 2018 Forecasts ⁽¹⁾ (cont.)

(unaudited, in millions, except hotel statistics)

 

 

 

 

 

 

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HOST HOTELS & RESORTS, INC.

Notes to Financial Information

 

Forecasts   

Our forecast of 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 and margin growth; the amount and timing of acquisitions and dispositions of hotel properties is an estimate that can substantially affect financial results, including such items as net income, depreciation and gains on dispositions; the level of capital expenditures may change significantly, which will directly affect the level of depreciation expense and net income; 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

To facilitate a quarter-to-quarter comparison of our operations, we present certain operating statistics (i.e., RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in this report on a comparable hotel basis.

Because these statistics and operating results relate only to our hotel properties, they exclude results for our non-hotel properties and other real estate investments. We define our comparable hotels as properties:

(i) that are owned or leased by us and the operations of which are included in our consolidated results for the entirety of the reporting periods being compared; and

(ii) that have not sustained substantial property damage or business interruption, or undergone large-scale capital projects (as further defined below) during the reporting periods being compared.

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 that would cause a hotel to be excluded from our comparable hotel set is an extensive renovation of several core aspects of the hotel, such as rooms, meeting space, lobby, bars, restaurants and other public spaces. Both quantitative and qualitative factors are taken into consideration in determining if the renovation would cause a hotel to be removed from the comparable hotel set, including unusual or exceptional circumstances such as: a reduction or increase in room count, rebranding, a significant alteration of the business operations, or the closing of the hotel during the renovation.

We do not include an acquired hotel in our comparable hotel set until the operating results for that hotel have been included in our consolidated results for one full calendar year. For example, we acquired The Don CeSar in February 2017. The hotel will not be included in our comparable hotels until January 1, 2019. Hotels that we sell are excluded from the comparable hotel set once the transaction has closed. Similarly, hotels are excluded from our comparable hotel set from the date that they sustain substantial property damage or business interruption or commence a large-scale capital project. 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 completion of the repair of the property damage or cessation of the business interruption, or the completion of large-scale capital projects, as applicable.

Of the 93 hotels that we owned on September 30, 2018, 85 have been classified as comparable hotels. The operating results of the following hotels that we owned as of September 30, 2018 are excluded from comparable hotel results for these periods:

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HOST HOTELS & RESORTS, INC.

Notes to Financial Information

 

The operating results of eight hotels disposed of in 2018 and 2017 are not included in comparable hotel results for the periods presented herein. These operations are also excluded from the hotel operating data for all owned hotels on pages 9 and 10.

Operating statistics for the non-comparable hotels listed above are included in the hotel operating data for all owned hotels. By definition, the RevPAR results for these properties are not comparable due to the reasons listed above, and, therefore, are not indicative of the overall trends for our portfolio. The operating results for the five hotels acquired in 2017 and 2018 are included in the all owned hotel operating data on a pro forma basis, which includes operating results assuming the hotels were owned as of January 1, 2017 and based on actual results obtained from the manager 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. All owned hotel operating statistics are provided for completeness and to show the difference between our comparable hotel information (upon which we usually evaluate performance) and all of our hotels, including non-comparable hotels. Also, while they may not be illustrative of trends (as compared to comparable hotel operating statistics), changes in all owned hotel statistics will have an effect on our overall revenues.

Constant US$ and Nominal US$

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. For comparative purposes, we also present the RevPAR results for the prior year assuming the results for our foreign operations were translated using the same exchange rates that were effective for the comparable periods in the current year, thereby eliminating the effect of currency fluctuation for the year-over-year comparisons. For the full year forecast results, we use the applicable forward currency curve (as published by Bloomberg L.P.) for each monthly period to estimate forecast foreign operations in U.S. dollars and have restated the prior year RevPAR results using the same forecast exchange rates to estimate year-over-year growth in RevPAR in constant US$. We believe this presentation is useful to investors as it shows growth in RevPAR in the local currency of the hotel consistent with how we would evaluate our domestic portfolio. However, the estimated effect of changes in foreign currency has been reflected in the actual and forecast results of net income, EBITDA, Adjusted EBITDAre, earnings per diluted share and Adjusted FFO per diluted share. Nominal US$ results 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 Property Level Operating 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. NAREIT defines FFO as net income (calculated in accordance with GAAP) excluding gains and losses from sales of real estate, the cumulative effect of changes in accounting principles, real estate-related depreciation, amortization and impairments and adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures 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 earnings per share, provides beneficial information to investors. By excluding the effect of real estate depreciation, amortization, impairments 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 April 2002 “White Paper on Funds From Operations,” since real estate values have historically risen or fallen with market conditions, many industry investors have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. For these reasons, NAREIT adopted the FFO metric in order to promote an industry-wide measure of REIT operating performance.

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HOST HOTELS & RESORTS, INC.

Notes to Financial Information

 

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 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:

In unusual circumstances, we may also 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 corporate income tax rates from 35% to 21% caused 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 the deferred tax assets and increase the provision for income taxes by approximately $11 million. Additionally, similar corporate income tax rate reductions affected our European Joint Venture, causing the remeasurement of the net deferred tax assets and liabilities in France and Belgium, resulting in a net tax benefit to us of $5 million. We do not consider these adjustments to be reflective of our on-going operating performance and therefore excluded these items 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 who 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, 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 write-downs of 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:

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HOST HOTELS & RESORTS, INC.

Notes to Financial Information

 

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 such adjustment was a 2013 exclusion of a gain from an eminent domain claim.

In the past, we presented Adjusted EBITDA as a supplemental measure of our performance. That metric is calculated in a similar manner as Adjusted EBITDAre presented here, with the exception of the adjustment for non-controlling partners’ pro rata share of Adjusted EBITDA, which totaled $2 million and $7 million for the third quarter and year-to-date of 2017, respectively. The rationale for including 100% of EBITDAre for consolidated affiliates with non-controlling interests is that the full amount of any debt of these affiliates is reported in our consolidated balance sheet and therefore metrics using total debt to EBITDAre provide a better understanding of the Company’s leverage. This is also consistent with NAREIT’s definition of EBITDAre.

Limitations on the Use of NAREIT FFO per Diluted Share, Adjusted FFO per Diluted Share, EBITDA, EBITDAre and Adjusted EBITDAre

We calculate NAREIT FFO per diluted share in accordance with standards established by NAREIT, which may not be comparable to measures calculated by other companies who do not use the NAREIT definition of FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance. In addition, although FFO per diluted share is a useful measure when comparing our results to other REITs, it may not be helpful to investors when comparing us to non-REITs. We also calculate Adjusted FFO per diluted share, which is not in accordance with NAREIT guidance and may not be comparable to measures calculated by other REITs. EBITDA, EBITDAre and Adjusted EBITDAre, as presented, may also not be comparable to measures calculated 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) 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 statement of operations and cash flows 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 a measure 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 a measure 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 seven domestic and international partnerships that own a total of 21 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 outside partners and a 15% interest held by outside partners 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 investors. Our comparable hotel results present operating results for hotels owned during the entirety of the periods being compared without giving effect to any acquisitions or dispositions, significant property damage or large scale capital improvements incurred during these periods. We present comparable hotel EBITDA to help us and our investors evaluate the ongoing operating performance of our comparable properties after removing the impact of the Company’s capital structure (primarily interest expense), and its asset base (primarily depreciation and amortization). Corporate-level costs and expenses are also removed to arrive at property-level results.  We believe these property-level results provide investors with supplemental information into the ongoing operating performance of our comparable hotels. Comparable hotel results are presented both by location and for the Company’s comparable properties in the aggregate. We eliminate depreciation and amortization because, even though depreciation and amortization 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.

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HOST HOTELS & RESORTS, INC.

Notes to Financial Information

 

As noted earlier, because real estate values have historically risen or fallen with market conditions, many real estate industry investors have considered presentation of historical cost accounting for operating results to be insufficient by themselves.

As a result of the elimination of corporate-level costs and expenses and depreciation and amortization, 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, such as the effect of acquisitions or dispositions. While management believes that presentation of comparable hotel results is a “same store” 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 these hotels, as these decisions are based on data for individual hotels and are not based on comparable hotel results. For these reasons, we believe that comparable hotel operating results, when combined with the presentation of GAAP operating profit, revenues and expenses, provide useful information to investors and management.

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Third Quarter 2018 Supplemental Financial Information September 30, 2018 Host Hotels & Resorts, Inc. Exhibit 99.2

Table of Contents Host Hotels & Resorts

Overview 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 88 properties in the United States and five properties internationally totaling approximately 52,000 rooms. The Company also holds non-controlling interests in seven domestic and 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®, Le Méridien®, The Luxury Collection®, Hyatt®, Fairmont®, Hilton®, Swissôtel®, ibis® and Novotel®, as well as independent brands in the operation of properties in over 50 major markets. For additional information, please visit the Company’s website at www.hosthotels.com. Host Hotels & Resorts, Inc., herein referred to as “we,” the “Company” or “Host Inc.,” is a self-managed and self-administered real estate investment trust (“REIT”) that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resorts, L.P. (“Host LP”), of which we are the sole general partner. When distinguishing between Host Inc. and Host LP, the primary difference is approximately 1% of the partnership interests in Host LP held by outside partners as of September 30, 2018, which is non-controlling interests in Host LP in our consolidated balance sheets and is included in net income attributable to non-controlling interests in our 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 Corporate Headquarters Host Hotels & Resorts, Inc. 6903 Rockledge Drive, Suite 1500 Bethesda, MD 20817 Phone: 240-744-5484 Website: www.hosthotels.com Contacts James F. Risoleo, Chief Executive Officer Michael D. Bluhm, Chief Financial Officer Bret D. S. McLeod, Senior Vice President, Treasurer, Corporate Finance & Investor Relations Gee Lingberg, Vice President, Investor Relations Analyst Coverage Bank of America Merrill Lynch Shaun Kelley 646 855-1005 shaun.kelley@baml.com Barclays Capital Anthony Powell 212 526-8768 anthony.powell@barclays.com BTIG James Sullivan 212 738-6139 jsullivan@btig.com Citi Investment Research Smedes Rose 212 816-6243 smedes.rose@citi.com Deutsche Banc Securities Chris Woronka 212 250-9376 Chris.Woronka@db.com Evercore ISI Richard Hightower 212-752-0886 rhightower@evercoreisi.com Goldman Sachs & Co. Stephen Grambling 212 902-7832 Stephen.Grambling@gs.com Green Street Advisors Lukas Hartwich 949 640-8780 lhartwich@greenstreetadvisors.com Instinet LLC Harry Curtis 212 310-5414 Harry.curtis@instinet.com J.P. Morgan Securities Joe Greff 212 622-0548 Joseph.greff@jpmorgan.com Morgan Stanley & Co. Thomas Allen 212 761-3356  Thomas.Allen@morganstanley.com Raymond James & Associates Bill Crow 727 567-2594 Bill.crow@raymondjames.com RBC Capital Markets Wes Golladay 440 715-2650 Wes.Golladay@rbccm.com Robert W. Baird Mike Bellisario 414 298-6130 mbellisario@rwbaird.com Stifel, Nicolaus & Co. Simon Yarmak 443 224-1345 yarmaks@stifel.com SunTrust Robert Humphrey C. Patrick Scholes 212 319-3915 Patrick.scholes@suntrust.com UBS Securities LLC Robin Farley 212 713-2060 Robin.farley@ubs.com Wells Fargo Securities LLC Jeff Donnelly 617 603-4262 Jeff.donnelly@wellsfargo.com Wolfe Research Jared Shojaian 646-854-0722 jshojaian@wolferesearch.com The Company is followed by the analysts listed above.  Please note that any opinions, estimates or forecasts regarding the Company’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of the Company or its management.  The Company does not by its reference above imply its endorsement of or concurrence with any of such analysts’ information, conclusions or recommendations.

Overview Forward-Looking Statements This supplemental information contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements include forecast results and are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “plan,” “predict,” “project,” “will,” “continue” and other similar terms and phrases, including references to assumptions and forecasts of future 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: changes in national and local economic and business conditions and other factors such as natural disasters, pandemics and weather that will affect occupancy rates at our hotels and the demand for hotel products and services; the impact of geopolitical developments outside the U.S. on lodging demand; volatility in global financial and credit markets; operating risks associated with the hotel business; risks and limitations in our operating flexibility associated with the level of our indebtedness and our ability to meet covenants in our debt agreements; risks associated with our relationships with property managers and joint venture partners; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; the effects of hotel renovations on our hotel occupancy and financial results; our ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; risks associated with our ability to complete acquisitions and dispositions and develop new properties and the risks that acquisitions and new developments may not perform in accordance with our expectations; our ability to continue to satisfy complex rules in order for us to remain a REIT for federal income tax purposes; risks associated with our ability to effectuate our dividend policy, including factors such as operating results and the economic outlook influencing our board’s decision whether to pay further dividends at levels previously disclosed or to use available cash to make special dividends; and other risks and uncertainties associated with our business described in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed 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 supplemental presentation is as of November 1, 2018, 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. Comparable Hotel Operating Statistics and Non-GAAP Financial Measures To facilitate a quarter-to-quarter comparison of our operations, we present certain operating statistics (i.e., RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in this presentation on a comparable hotel basis. See the Notes to Supplemental Financial Information for the details on how we determine our comparable hotel set. Included in this supplemental information 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 (U.S. generally accepted accounting principles), within the meaning of applicable SEC rules. They are as follows: (i) FFO and FFO per diluted share (both NAREIT and Adjusted), (ii) EBITDA (for both the Company and hotel level), (iii) EBITDAre and Adjusted EBITDAre and (iv) Comparable Hotel Property Level Operating Results (and the related margins). Also included are reconciliations to the most directly comparable GAAP measures. See the Notes to Supplemental Financial Information for definitions of these measures, why we believe these measures are useful and limitations on their use. Also included in this supplemental information is our leverage and fixed charge coverage ratios, calculated in accordance with our credit facility, along with our EBITDA to interest coverage ratio, calculated in accordance with our senior notes indenture covenants. Included with these ratios are reconciliations calculated in accordance with GAAP. See the Notes to Supplemental Financial Information for information on how these supplemental measures are calculated, why we believe they are useful and limitations on their use. Host Hotels & Resorts

Corporate Financial Information Host Hotels & Resorts

Corporate Financial Information Condensed Consolidated Balance Sheets (unaudited, in millions, except shares and per share amounts) Host Hotels & Resorts September 30, 2018 December 31, 2017 ASSETS Property and equipment, net $9,775 $9,692 Assets held for sale 274 250 Due from managers 141 79 Advances to and investments in affiliates 320 327 Furniture, fixtures and equipment replacement fund 205 195 Other 171 237 Cash and cash equivalents 1,269 913 Total assets $12,155 $11,693 LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY Debt Senior notes $2,781 $2,778 Credit facility, including term loans of $997 million and $996 million, respectively 1,292 1,170 Other debt 6 6 Total debt 4,079 3,954 Accounts payable and accrued expenses 265 283 Other 246 287 Total liabilities 4,590 4,524 Non-controlling interests - Host Hotels & Resorts, L.P. 170 167 Host Hotels & Resorts, Inc. stockholders’ equity: Common stock, par value $.01, 1,050 million shares authorized, 740 million shares and 739.1 million shares issued and outstanding, respectively 7 7 Additional paid-in capital 8,108 8,097 Accumulated other comprehensive loss (65) (60) Deficit (728) (1,071) Total equity of Host Hotels & Resorts, Inc. stockholders 7,322 6,973 Non-controlling interests—other consolidated partnerships 73 29 Total equity 7,395 7,002 Total liabilities, non-controlling interests and equity $12,155 $11,693

Corporate Financial Information Condensed Consolidated Statements of Operations (unaudited, in millions, except per share amounts) Host Hotels & Resorts Quarter ended September 30, Year-to-date ended September 30, 2018 2017 2018 2017 Revenues Rooms $874 $860 $2,691 $2,643 Food and beverage 337 314 1,199 1,152 Other 88 80 273 248 Total revenues 1,299 1,254 4,163 4,043 Expenses Rooms 234 227 696 676 Food and beverage 254 242 822 794 Other departmental and support expenses 321 309 972 952 Management fees 56 53 183 178 Other property-level expenses 90 97 287 294 Depreciation and amortization 412 176 779 534 Corporate and other expenses 24 24 82 79 Gain on insurance and business interruption settlements — (1) — (6) Total operating costs and expenses 1,391 1,127 3,821 3,501 Operating profit (loss) (92) 127 342 542 Interest income 3 2 8 4 Interest expense (45) (43) (134) (125) Gain on sale of assets 547 59 667 105 Gain (loss) on foreign currency transactions and derivatives 1 (2) — (4) Equity in earnings of affiliates 6 4 25 19 Income before income taxes 420 147 908 541 Provision for income taxes (42) (42) (63) (63) Net income 378 105 845 478 Less: Net income attributable to non-controlling interests (56) (1) (61) (6) Net income attributable to Host Inc. $322 $104 $784 $472 Basic and diluted earnings per common share $.43 $.14 $1.06 $.64

Corporate Financial Information Earnings per Common Share (unaudited, in millions, except per share amounts) ___________ (1) Dilutive securities may include shares granted under comprehensive stock plans, preferred operating partnership units (“OP Units”) held by minority 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 Quarter ended September 30, Year-to-date ended September 30, 2018 2017 2018 2017 Net income $378 $105 $845 $478 Less: Net income attributable to non-controlling interests (56) (1) (61) (6) Net income attributable to Host Inc. $322 $104 $784 $472 Basic weighted average shares outstanding 739.9 738.8 739.6 738.5 Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market .6 .2 .6 .2 Diluted weighted average shares outstanding (1) 740.5 739.0 740.2 738.7 Basic and diluted earnings per common share $.43 $.14 $1.06 $.64

Corporate Financial Information (unaudited, in millions) Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre (1) __________ (1) See the Notes to Supplemental Financial Information for discussion of these non-GAAP measures. (2) Net Income, EBITDA, EBITDAre, Adjusted EBITDAre, NAREIT FFO and Adjusted FFO include a gain of $1 million for each of the year-to-date periods ended September 30, 2018 and 2017, for the sale of the portion of land attributable to individual units sold by the Maui timeshare joint venture. (3) Reflects the sale of the New York Marriott Marquis Retail in the third quarter of 2018 and four hotels in each of 2018 and 2017. (4) Effective January 1, 2018, we adopted Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. As a result, the Hyatt portfolio acquisition was considered an asset acquisition and the related $17 million of acquisition costs were capitalized. (5) Represents our share of earnings and pro rata EBITDAre from our European Joint Venture (“Euro JV”) in which we hold an approximate one-third non-controlling interest. (6) Effective December 31, 2017, we present EBITDAre, reported in accordance with NAREIT guidelines, and Adjusted EBITDAre as supplemental measures of our performance. Prior year results have been updated to conform with the current year presentation. Under the new presentation, all of the EBITDA of consolidated partnerships is included, including the non-controlling partners’ share, which has increased the previously reported second quarter and year-to-date 2017 Adjusted EBITDA by $2 million and $7 million, respectively. See the Notes to Supplemental Financial Information for more information on this change.   Host Hotels & Resorts Quarter ended September 30, Year-to-date ended September 30, 2018 2017 2018 2017 Net income (2) $378 $105 $845 $478 Interest expense 45 43 134 125 Depreciation and amortization 173 176 519 534 Income taxes 42 42 63 63 EBITDA (2) 638 366 1,561 1,200 Gain on dispositions (3) (546) (58) (665) (101) Non-cash impairment expense 239 — 260 — Equity investment adjustments: Equity in earnings of Euro JV (5) (3) (4) (11) (9) Equity in earnings of affiliates other than Euro JV (3) — (14) (10) Pro rata EBITDAre of Euro JV (5) 13 11 36 31 Pro rata EBITDAre of equity investments other than Euro JV 6 5 23 24 EBITDAre (2)(6) 344 320 1,190 1,135 Adjustments to EBITDAre: Acquisition costs (4) — — — 1 Gain on property insurance settlement — (1) — (1) Adjusted EBITDAre (2)(6) $344 $319 $1,190 $1,135

Corporate Financial Information (unaudited, in millions, except per share amounts) Reconciliation of Net Income to NAREIT and Adjusted Funds From Operations per Diluted Share(1) __________ (1-4)Refer to the corresponding footnote on the Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre. (5) Earnings per diluted share and NAREIT FFO 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 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 Quarter ended September 30, Year-to-date ended September 30, 2018 2017 2018 2017 Net income (2) $378 $105 $845 $478 Less: Net income attributable to non-controlling interests (56) (1) (61) (6) Net income attributable to Host Inc. 322 104 784 472 Adjustments: Gain on dispositions (3) (546) (58) (665) (101) Tax on dispositions 29 22 29 22 Gain on property insurance settlement — (1) — (1) Depreciation and amortization 171 175 515 532 Non-cash impairment expense 239 — 260 — Equity investment adjustments: Equity in earnings of affiliates (6) (4) (25) (19) Pro rata FFO of equity investments 12 11 44 39 Consolidated partnership adjustments: FFO adjustment for non-controlling partnerships 53 (1) 52 (2) FFO adjustments for non-controlling interests of Host L.P. 1 (1) (2) (6) NAREIT FFO (2) 275 247 992 936 Adjustments to NAREIT FFO: Acquisition costs (4) — — — 1 Loss on debt extinguishment — — — 1 Adjusted FFO (2) $275 $247 $992 $938 For calculation on a per share basis (5): Diluted weighted average shares outstanding - EPS, NAREIT FFO and Adjusted FFO 740.5 739.0 740.2 738.7 NAREIT FFO and Adjusted FFO per diluted share $.37 $.33 $1.34 $1.27

Property Level Data Host Hotels & Resorts

Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results (1) Host Hotels & Resorts Quarter ended September 30, Year-to-date ended September 30, 2018 2017 2018 2017 Number of hotels 85 85 85 85 Number of rooms 47,455 47,455 47,455 47,455 Change in comparable hotel RevPAR (2) Constant US$ 1.6% — 1.9% — Nominal US$ 1.4% — 1.8% — Operating profit (loss) margin (3) (7.1)% 10.1% 8.2% 13.4% Comparable hotel EBITDA margin (3) 27.4% 26.9% 29.05% 28.4% Food and beverage profit margin (3) 24.6% 22.9% 31.4% 31.1% Comparable hotel food and beverage profit margin (3) 27.0% 25.6% 32.5% 32.2% Net income $378 $105 $845 $478 Depreciation and amortization 412 176 779 534 Interest expense 45 43 134 125 Provision for income taxes 42 42 63 63 Gain on sale of property and corporate level income/expense (533) (39) (618) (45) Non-comparable hotel results, net (4) (35) (31) (174) (174) Comparable hotel EBITDA $309 $296 $1,029 $981

Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results (1) (continued) Quarter ended September 30, 2018 Quarter ended September 30, 2017 Adjustments Adjustments GAAP Results Non-comparable hotel results, net (4) Depreciation and corporate level items Comparable Hotel Results GAAP Results Non-comparable hotel results, net (4) Depreciation and corporate level items Comparable Hotel Results Revenues Room $874 $(103) $ — $771 $860 $(100) $ — $760 Food and beverage 337 (45) — 292 314 (36) — 278 Other 88 (23) — 65 80 (20) — 60 Total revenues 1,299 (171) — 1,128 1,254 (156) — 1,098 Expenses Room 234 (32) — 202 227 (30) — 197 Food and beverage 254 (41) — 213 242 (35) — 207 Other 467 (63) — 404 459 (61) — 398 Depreciation and amortization 412 — (412) — 176 — (176) — Corporate and other expenses 24 — (24) — 24 — (24) — Gain on insurance and business interruption settlements — — — — (1) 1 — — Total expenses 1,391 (136) (436) 819 1,127 (125) (200) 802 Operating Profit - Comparable Hotel EBITDA $(92) $(35) $436 $309 $127 $(31) $200 $296 Host Hotels & Resorts

Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results (1) (continued) Year-to-date ended September 30, 2018 Year-to-date ended September 30, 2017 Adjustments Adjustments GAAP Results Non-comparable hotel results, net (4) Depreciation and corporate level items Comparable Hotel Results GAAP Results Non-comparable hotel results, net (4) Depreciation and corporate level items Comparable Hotel Results Revenues Room $2,691 $(364) $— $2,327 $2,643 $(358) $— $2,285 Food and beverage 1,199 (185) — 1,014 1,152 (166) — 986 Other 273 (74) — 199 248 (68) — 180 Total revenues 4,163 (623) — 3,540 4,043 (592) — 3,451 Expenses Room 696 (101) — 595 676 (97) — 579 Food and beverage 822 (138) — 684 794 (125) — 669 Other 1,442 (210) — 1,232 1,424 (202) — 1,222 Depreciation and amortization 779 — (779) — 534 — (534) — Corporate and other expenses 82 — (82) — 79 — (79) — Gain on insurance and business interruption settlements — — — — (6) 6 — — Total expenses 3,821 (449) (861) 2,511 3,501 (418) (613) 2,470 Operating Profit - Comparable Hotel EBITDA $342 $(174) $861 $1,029 $542 $(174) $613 $981 ___________ See the Notes to Supplemental Financial Information for a discussion of non-GAAP measures and the calculation of comparable hotel results. RevPAR is the product of the average daily room rate charged and the average daily occupancy achieved. Profit (loss) margins are calculated by dividing the applicable operating profit (loss) by the related revenue amount. GAAP profit (loss) margins are calculated using amounts presented in the condensed consolidated statements of operations. Comparable hotel margins are calculated using amounts presented in the above tables. (4) Non-comparable hotel results, net, includes the following items: (i) the results of operations of our non-comparable hotels and sold hotels, which operations are included in our condensed consolidated statements of operations as continuing operations, (ii) gains on insurance settlements and business interruption proceeds, and (iii) the results of our office spaces and other non-hotel income. Host Hotels & Resorts

Property Level Data (unaudited, in millions, except hotel statistics and per room basis) Comparable Hotel Results by Location in Nominal US$ _________ (1) Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses, and the provision for income taxes. These items are reflected below in “gain on sale of property and corporate level income/expense”. Refer to the table below for reconciliation of net income to EBITDA by location. (2) Total Revenue per Available Room (“Total RevPAR”) is a summary measure of hotel results calculated by dividing the sum of room, food and beverage and other ancillary service revenue by room nights available to guests for the period. It includes ancillary revenues not included within RevPAR. (3) CBD refers to the central business district. Host Hotels & Resorts Quarter ended September 30, 2018 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues per Available Room (2) Hotel Net Income Hotel EBITDA (1) Maui/Oahu 3 1,682 $344.07 89.9% $309.41 $72.3 $467.06 $14.0 $23.0 Jacksonville 1 446 360.43 77.7 280.14 24.8 604.87 6.2 8.4 New York 4 5,033 281.58 90.4 254.59 160.1 345.68 5.2 23.3 Seattle 2 1,315 280.39 92.6 259.59 38.6 318.83 11.0 14.9 Washington, D.C. (CBD) 5 3,238 205.95 83.7 172.41 71.3 239.43 7.3 17.3 Boston 4 3,185 249.19 91.1 227.10 85.5 291.81 20.9 29.8 San Diego 4 4,341 239.77 85.0 203.73 135.1 338.42 24.6 45.2 Los Angeles 3 1,421 224.65 88.7 199.17 36.2 276.61 5.1 8.5 San Francisco/San Jose 5 2,353 235.07 87.2 205.07 58.4 269.79 15.4 22.1 Florida Gulf Coast 2 593 170.75 59.2 101.03 8.5 156.79 (2.2) (0.5) Philadelphia 2 810 204.34 85.9 175.60 21.7 291.60 3.0 6.2 Chicago 6 2,392 218.19 87.8 191.60 53.8 244.47 11.1 18.4 Phoenix 4 1,518 147.56 63.7 94.01 27.4 196.41 (3.1) 2.4 Orange County 4 1,429 199.42 82.8 165.11 32.0 243.28 8.3 11.4 Atlanta 5 1,936 182.19 78.8 143.65 37.3 209.39 7.2 11.9 New Orleans 1 1,333 138.93 73.9 102.70 18.8 153.27 1.8 4.4 Northern Virginia 5 1,919 178.58 75.5 134.78 34.3 194.06 3.3 8.2 San Antonio 2 1,513 168.21 74.3 125.04 25.9 186.15 3.0 5.9 Orlando 1 2,004 150.91 64.1 96.80 44.0 238.77 5.9 11.8 Denver 3 1,340 175.61 85.4 150.02 26.1 211.79 4.9 9.3 Miami 2 843 119.78 73.0 87.49 9.4 121.11 (0.4) 1.2 Houston 4 1,716 170.82 67.1 114.70 25.2 159.57 0.6 5.7 Other 8 3,596 159.15 76.1 121.05 59.9 181.00 7.9 14.5 Domestic 80 45,956 218.40 81.7 178.48 1,106.6 261.74 161.0 303.3 International 5 1,499 165.21 70.9 117.20 21.7 157.39 3.5 6.1 All Locations - Nominal US$ 85 47,455 $216.93 81.4% $176.55 $1,128.3 $258.45 $164.5 $309.4 Non-comparable hotels 8 4,664 — — — 170.7 — 8.4 34.8 Gain on sale of property and corporate level income/expense — 205.1 293.7 Total 93 52,119 — — — $1,299.0 — $378.0 $637.9

Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income to Hotel EBITDA Host Hotels & Resorts Quarter ended September 30, 2018 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation Plus: Interest Expense Plus: Income Tax Equals: Hotel EBITDA Maui/Oahu 3 1,682 $14.0 $9.0 $— $— $23.0 Jacksonville 1 446 6.2 2.2 — — 8.4 New York 4 5,033 5.2 18.1 — — 23.3 Seattle 2 1,315 11.0 3.9 — — 14.9 Washington, D.C. (CBD) 5 3,238 7.3 10.0 — — 17.3 Boston 4 3,185 20.9 8.9 — — 29.8 San Diego 4 4,341 24.6 20.6 — — 45.2 Los Angeles 3 1,421 5.1 3.4 — — 8.5 San Francisco/San Jose 5 2,353 15.4 6.7 — — 22.1 Florida Gulf Coast 2 593 (2.2) 1.7 — — (0.5) Philadelphia 2 810 3.0 3.2 — — 6.2 Chicago 6 2,392 11.1 7.3 — — 18.4 Phoenix 4 1,518 (3.1) 5.5 — — 2.4 Orange County 4 1,429 8.3 3.1 — — 11.4 Atlanta 5 1,936 7.2 4.7 — — 11.9 New Orleans 1 1,333 1.8 2.6 — — 4.4 Northern Virginia 5 1,919 3.3 4.9 — — 8.2 San Antonio 2 1,513 3.0 2.9 — — 5.9 Orlando 1 2,004 5.9 5.9 — — 11.8 Denver 3 1,340 4.9 4.4 — — 9.3 Miami 2 843 (0.4) 1.6 — — 1.2 Houston 4 1,716 0.6 5.1 — — 5.7 Other 8 3,596 7.9 6.6 — — 14.5 Domestic 80 45,956 161.0 142.3 — — 303.3 International 5 1,499 3.5 2.6 — — 6.1 All Locations - Nominal US$ 85 47,455 $164.5 $144.9 $— $— $309.4 Non-comparable hotels 8 4,664 8.4 26.4 — — 34.8 Gain on sale of property and corporate level income/ expense 205.1 1.2 45.1 42.3 293.7 Total 93 52,119 $378.0 $172.5 $45.1 $42.3 $637.9

Property Level Data (unaudited, in millions, except hotel statistics and per room basis) Comparable Hotel Results by Location in Nominal US$ __________ (1) Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses, and the provision for income taxes. These items are reflected below in “gain on sale of property and corporate level income/expense”. Refer to the table below for reconciliation of net income to EBITDA by location. Host Hotels & Resorts Quarter ended September 30, 2017 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues per Available Room Hotel Net Income Hotel EBITDA (1) Maui/Oahu 3 1,682 $325.44 92.4% $300.75 $70.0 $452.30 $14.9 $24.1 Jacksonville 1 446 347.34 64.5 224.07 20.0 488.25 3.5 5.7 New York 4 5,033 282.83 92.6 261.91 157.4 339.96 3.5 23.3 Seattle 2 1,315 267.84 93.6 250.75 37.5 309.74 10.9 14.7 Washington, D.C. (CBD) 5 3,238 216.94 86.9 188.63 76.2 255.99 9.4 20.0 Boston 4 3,185 244.72 88.5 216.68 82.9 283.06 18.8 27.7 San Diego 4 4,341 233.72 86.4 201.92 130.5 326.76 21.3 42.1 Los Angeles 3 1,421 230.75 93.5 215.73 38.4 295.15 7.6 11.0 San Francisco/San Jose 5 2,353 221.52 86.1 190.71 54.2 250.52 11.2 18.5 Florida Gulf Coast 2 593 168.26 62.1 104.45 8.4 153.51 (1.9) (0.3) Philadelphia 2 810 188.80 84.2 158.99 19.8 265.98 1.9 5.5 Chicago 6 2,392 204.47 88.5 180.94 53.6 243.69 12.5 19.7 Phoenix 4 1,518 142.34 65.7 93.47 27.9 199.56 (2.7) 2.8 Orange County 4 1,429 196.64 82.1 161.35 31.1 236.26 7.2 10.4 Atlanta 5 1,936 189.32 75.9 143.69 37.1 207.92 5.1 10.3 New Orleans 1 1,333 135.25 71.0 96.02 16.9 137.48 0.7 3.5 Northern Virginia 5 1,919 173.28 77.1 133.68 35.3 199.78 4.1 8.9 San Antonio 2 1,513 165.71 66.9 110.88 23.3 167.23 1.3 4.6 Orlando 1 2,004 148.77 63.7 94.82 38.7 209.95 1.6 7.5 Denver 3 1,340 167.43 87.3 146.09 25.1 203.67 4.5 9.0 Miami 2 843 121.88 65.5 79.87 8.8 113.54 (1.1) 0.6 Houston 4 1,716 168.11 66.3 111.49 24.2 153.43 0.2 5.7 Other 8 3,596 160.43 75.2 120.61 59.4 179.62 7.2 14.6 Domestic 80 45,956 215.42 81.7 176.05 1,076.7 254.70 141.7 289.9 International 5 1,499 168.75 68.3 115.31 21.3 154.06 3.0 6.0 All Locations - Nominal US$ 85 47,455 $214.18 81.3% $174.13 $1,098.0 $251.52 $144.7 $295.9 Non-comparable hotels 8 4,664 — — — 156.0 — 6.5 31.3 Gain on sale of property and corporate level income/ expense — (46.0) 38.7 Total 93 52,119 — — — $1,254.0 — $105.2 $365.9

Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income to Hotel EBITDA Host Hotels & Resorts Quarter ended September 30, 2017 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation Plus: Interest Expense Plus: Income Tax Equals: Hotel EBITDA Maui/Oahu 3 1,682 $14.9 $9.2 $— $— $24.1 Jacksonville 1 446 3.5 2.2 — — 5.7 New York 4 5,033 3.5 19.8 — — 23.3 Seattle 2 1,315 10.9 3.8 — — 14.7 Washington, D.C. (CBD) 5 3,238 9.4 10.6 — — 20.0 Boston 4 3,185 18.8 8.9 — — 27.7 San Diego 4 4,341 21.3 20.8 — — 42.1 Los Angeles 3 1,421 7.6 3.4 — — 11.0 San Francisco/San Jose 5 2,353 11.2 7.3 — — 18.5 Florida Gulf Coast 2 593 (1.9) 1.6 — — (0.3) Philadelphia 2 810 1.9 3.6 — — 5.5 Chicago 6 2,392 12.5 7.2 — — 19.7 Phoenix 4 1,518 (2.7) 5.5 — — 2.8 Orange County 4 1,429 7.2 3.2 — — 10.4 Atlanta 5 1,936 5.1 5.2 — — 10.3 New Orleans 1 1,333 0.7 2.8 — — 3.5 Northern Virginia 5 1,919 4.1 4.8 — — 8.9 San Antonio 2 1,513 1.3 3.3 — — 4.6 Orlando 1 2,004 1.6 5.9 — — 7.5 Denver 3 1,340 4.5 4.5 — — 9.0 Miami 2 843 (1.1) 1.7 — — 0.6 Houston 4 1,716 0.2 5.5 — — 5.7 Other 8 3,596 7.2 7.4 — — 14.6 Domestic 80 45,956 141.7 148.2 — — 289.9 International 5 1,499 3.0 3.0 — — 6.0 All Locations - Nominal US$ 85 47,455 $144.7 $151.2 $— $— $295.9 Non-comparable hotels 8 4,664 6.5 23.6 1.2 — 31.3 Gain on sale of property and corporate level income/ expense (46.0) 1.0 41.7 42.0 38.7 Total 93 52,119 $105.2 $175.8 $42.9 $42.0 $365.9

Property Level Data (unaudited, in millions, except hotel statistics and per room basis) Comparable Hotel Results by Location in Nominal US$ _________ (1) Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses, and the provision for income taxes. These items are reflected below in “gain on sale of property and corporate level income/expense”. Refer to the table below for reconciliation of net income to EBITDA by location. Host Hotels & Resorts Year-to-date ended September 30, 2018 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues per Available Room (2) Hotel Net Income Hotel EBITDA (1) Maui/Oahu 3 1,682 $360.97 91.0% $328.41 $228.6 $497.81 $53.1 $80.7 Jacksonville 1 446 373.17 77.9 290.68 77.5 636.50 20.4 27.0 New York 4 5,033 279.83 86.6 242.31 475.3 345.92 15.8 72.6 Seattle 2 1,315 248.28 85.5 212.25 99.3 276.50 20.2 31.9 Washington, D.C. (CBD) 5 3,238 248.62 81.8 203.28 252.1 285.16 46.3 76.5 Boston 4 3,185 235.72 83.7 197.34 230.7 265.35 41.6 68.3 San Diego 4 4,341 234.70 83.8 196.79 401.6 338.84 70.0 131.6 Los Angeles 3 1,421 216.97 89.5 194.24 106.5 274.62 15.4 25.6 San Francisco/San Jose 5 2,353 230.22 84.2 193.86 170.6 265.58 39.9 60.3 Florida Gulf Coast 2 593 250.18 72.9 182.26 48.9 302.03 8.4 13.4 Philadelphia 2 810 207.10 86.2 178.43 65.2 295.01 9.5 19.3 Chicago 6 2,392 204.60 79.7 163.14 140.4 215.02 20.3 42.1 Phoenix 4 1,518 212.76 75.5 160.71 130.1 314.00 26.4 43.1 Orange County 4 1,429 193.34 80.2 155.07 91.0 233.16 20.5 29.9 Atlanta 5 1,936 185.87 79.2 147.22 119.3 225.75 24.2 39.6 New Orleans 1 1,333 178.86 80.6 144.23 75.2 206.59 17.0 24.9 Northern Virginia 5 1,919 186.89 76.9 143.67 114.6 218.79 16.2 30.7 San Antonio 2 1,513 186.50 74.5 138.94 86.1 208.37 14.3 22.9 Orlando 1 2,004 185.03 73.5 136.06 170.4 311.50 39.0 56.4 Denver 3 1,340 167.17 78.1 130.63 68.8 188.14 9.0 22.3 Miami 2 843 159.30 80.7 128.63 41.2 178.90 8.2 13.4 Houston 4 1,716 176.15 72.8 128.23 88.1 188.05 9.9 25.5 Other 8 3,596 169.63 75.4 127.94 194.0 197.61 33.3 53.6 Domestic 80 45,956 224.35 81.1 181.95 3,475.5 277.02 578.9 1,011.6 International 5 1,499 161.22 66.5 107.26 64.7 158.21 8.7 17.0 All Locations - Nominal US$ 85 47,455 $222.71 80.6% $179.59 $3,540.2 $273.26 $587.6 $1,028.6 Non-comparable hotels 8 4,664 — — — 623.0 — 99.4 174.0 Gain on sale of property and corporate level income/expense — 158.0 358.4 Total 93 52,119 — — — $4,163.2 — $845.0 $1,561.0

Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income to Hotel EBITDA Host Hotels & Resorts Year-to-date ended September 30, 2018 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation Plus: Interest Expense Plus: Income Tax Equals: Hotel EBITDA Maui/Oahu 3 1,682 $53.1 $27.6 $— $— $80.7 Jacksonville 1 446 20.4 6.6 — — 27.0 New York 4 5,033 15.8 56.8 — — 72.6 Seattle 2 1,315 20.2 11.7 — — 31.9 Washington, D.C. (CBD) 5 3,238 46.3 30.2 — — 76.5 Boston 4 3,185 41.6 26.7 — — 68.3 San Diego 4 4,341 70.0 61.6 — — 131.6 Los Angeles 3 1,421 15.4 10.2 — — 25.6 San Francisco/San Jose 5 2,353 39.9 20.4 — — 60.3 Florida Gulf Coast 2 593 8.4 5.0 — — 13.4 Philadelphia 2 810 9.5 9.8 — — 19.3 Chicago 6 2,392 20.3 21.8 — — 42.1 Phoenix 4 1,518 26.4 16.7 — — 43.1 Orange County 4 1,429 20.5 9.4 — — 29.9 Atlanta 5 1,936 24.2 15.4 — — 39.6 New Orleans 1 1,333 17.0 7.9 — — 24.9 Northern Virginia 5 1,919 16.2 14.5 — — 30.7 San Antonio 2 1,513 14.3 8.6 — — 22.9 Orlando 1 2,004 39.0 17.4 — — 56.4 Denver 3 1,340 9.0 13.3 — — 22.3 Miami 2 843 8.2 5.2 — — 13.4 Houston 4 1,716 9.9 15.6 — — 25.5 Other 8 3,596 33.3 20.3 — — 53.6 Domestic 80 45,956 578.9 432.7 — — 1,011.6 International 5 1,499 8.7 8.3 — — 17.0 All Locations - Nominal US$ 85 47,455 $587.6 $441.0 $— $— $1,028.6 Non-comparable hotels 8 4,664 99.4 74.6 — — 174.0 Gain on sale of property and corporate level income/ expense 158.0 3.0 134.0 63.4 358.4 Total 93 52,119 $845.0 $518.6 $134.0 $63.4 $1,561.0

Property Level Data (unaudited, in millions, except hotel statistics and per room basis) Comparable Hotel Results by Location in Nominal US$ __________ (1) Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses, and the provision for income taxes. These items are reflected below in “gain on sale of property and corporate level income/expense”. Refer to the table below for reconciliation of net income to EBITDA by location. Host Hotels & Resorts Year-to-date ended September 30, 2017 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues per Available Room Hotel Net Income Hotel EBITDA (1) Maui/Oahu 3 1,682 $339.86 90.9% $308.79 $215.4 $469.07 $47.6 $76.1 Jacksonville 1 446 359.82 73.9 265.89 71.4 586.85 17.3 23.8 New York 4 5,033 273.51 88.0 240.73 456.8 332.43 (6.4) 56.3 Seattle 2 1,315 242.23 86.8 210.24 98.9 275.43 21.4 33.2 Washington, D.C. (CBD) 5 3,238 259.86 84.5 219.55 270.4 305.85 55.4 87.1 Boston 4 3,185 237.07 82.5 195.54 231.4 266.10 43.3 70.2 San Diego 4 4,341 233.28 84.7 197.49 393.8 332.32 67.1 129.7 Los Angeles 3 1,421 222.05 90.0 199.84 109.4 283.53 18.3 28.3 San Francisco/San Jose 5 2,353 221.22 79.7 176.28 155.6 242.20 28.4 50.7 Florida Gulf Coast 2 593 237.39 73.7 175.01 48.9 302.18 8.6 13.3 Philadelphia 2 810 197.10 82.2 162.06 59.3 268.13 5.6 16.1 Chicago 6 2,392 197.01 79.6 156.82 138.0 211.34 22.6 44.1 Phoenix 4 1,518 208.06 74.1 154.14 124.0 299.24 23.0 39.5 Orange County 4 1,429 192.63 80.2 154.50 92.1 236.13 20.9 30.5 Atlanta 5 1,936 192.65 78.1 150.46 122.2 230.85 21.8 37.4 New Orleans 1 1,333 174.77 77.0 134.55 70.7 194.31 14.2 22.8 Northern Virginia 5 1,919 184.85 76.0 140.46 115.0 219.46 17.0 31.5 San Antonio 2 1,513 182.03 73.4 133.68 83.2 201.46 11.1 21.8 Orlando 1 2,004 178.01 71.4 127.19 155.5 284.28 29.2 46.7 Denver 3 1,340 165.67 77.4 128.22 66.9 182.77 7.6 21.2 Miami 2 843 159.33 78.2 124.66 39.9 173.41 6.1 11.3 Houston 4 1,716 179.40 71.8 128.87 86.8 185.24 8.9 25.6 Other 8 3,596 168.38 73.9 124.43 187.6 191.07 28.5 50.6 Domestic 80 45,956 222.11 80.6 178.94 3,393.2 270.48 517.5 967.8 International 5 1,499 161.23 60.2 97.14 58.0 141.71 3.9 13.1 All Locations - Nominal US$ 85 47,455 $220.66 79.9% $176.35 $3,451.2 $266.41 $521.4 $980.9 Non-comparable hotels 8 4,664 — — — 592.0 — 97.1 174.0 Gain on sale of property and corporate level income/ expense — (140.5) 44.9 Total 93 52,119 — — — $4,043.2 — $478.0 $1,199.8

Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income to Hotel EBITDA Host Hotels & Resorts Year-to-date ended September 30, 2017 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation Plus: Interest Expense Plus: Income Tax Equals: Hotel EBITDA Maui/Oahu 3 1,682 $47.6 $28.5 $— $— $76.1 Jacksonville 1 446 17.3 6.5 — — 23.8 New York 4 5,033 (6.4) 62.7 — — 56.3 Seattle 2 1,315 21.4 11.8 — — 33.2 Washington, D.C. (CBD) 5 3,238 55.4 31.7 — — 87.1 Boston 4 3,185 43.3 26.9 — — 70.2 San Diego 4 4,341 67.1 62.6 — — 129.7 Los Angeles 3 1,421 18.3 10.0 — — 28.3 San Francisco/San Jose 5 2,353 28.4 22.3 — — 50.7 Florida Gulf Coast 2 593 8.6 4.7 — — 13.3 Philadelphia 2 810 5.6 10.5 — — 16.1 Chicago 6 2,392 22.6 21.5 — — 44.1 Phoenix 4 1,518 23.0 16.5 — — 39.5 Orange County 4 1,429 20.9 9.6 — — 30.5 Atlanta 5 1,936 21.8 15.6 — — 37.4 New Orleans 1 1,333 14.2 8.6 — — 22.8 Northern Virginia 5 1,919 17.0 14.5 — — 31.5 San Antonio 2 1,513 11.1 10.7 — — 21.8 Orlando 1 2,004 29.2 17.5 — — 46.7 Denver 3 1,340 7.6 13.6 — — 21.2 Miami 2 843 6.1 5.2 — — 11.3 Houston 4 1,716 8.9 16.7 — — 25.6 Other 8 3,596 28.5 22.1 — — 50.6 Domestic 80 45,956 517.5 450.3 — — 967.8 International 5 1,499 3.9 9.2 — — 13.1 All Locations - Nominal US$ 85 47,455 $521.4 $459.5 $— $— $980.9 Non-comparable hotels 8 4,664 97.1 72.0 4.9 — 174.0 Gain on sale of property and corporate level income/ expense (140.5) 2.7 120.2 62.5 44.9 Total 93 52,119 $478.0 $534.2 $125.1 $62.5 $1,199.8

Property Level Data (unaudited, in millions, except hotel statistics and per room basis) Top 40 Domestic Hotels by RevPAR For the Year ended December 31, 2017 Year ended December 31, 2017 Hotel Location No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues per Available Room Hotel Net Income (Loss) Hotel EBITDA (1) 1 The Fairmont Kea Lani Maui Maui/Oahu 450 $563.73 86.6% $488.26 $115.5 $703.36 $24.3 $40.5 2 The Ritz-Carlton, Naples Florida Gulf Coast 450 550.94 67.4% 371.13 126.1 767.96 26.3 39.8 3 W New York - Union Square (3) New York 270 387.41 88.5% 342.94 38.8 394.05 0.7 6.4 4 The Ritz-Carlton, Marina Del Rey Los Angeles 304 357.64 83.6% 298.92 52.1 469.40 7.9 12.5 5 New York Marriott Marquis New York 1,966 325.01 90.0% 292.62 346.3 482.61 42.7 77.7 6 Hyatt Regency Maui Resort & Spa Maui/Oahu 806 301.39 92.5% 278.70 142.2 483.25 33.5 49.8 7 W Hollywood (2) Los Angeles 305 315.24 84.4% 266.15 43.2 472.63 5.8 11.8 8 San Francisco Marriott Marquis San Francisco/San Jose 1,500 278.41 91.1% 253.73 204.6 373.71 36.0 54.6 9 The Westin New York Grand Central (4) New York 774 285.97 87.4% 250.02 87.0 307.93 (1.8) 12.2 10 The Ritz-Carlton, Amelia Island Jacksonville 446 349.70 71.0% 248.28 91.6 562.55 21.1 29.8 11 JW Marriott Washington DC Washington, D.C. (CBD) 777 285.24 86.2% 246.01 96.5 340.33 23.1 32.1 12 W New York (3) New York 697 280.01 86.3% 241.55 76.7 301.66 (6.2) 3.4 13 Sheraton New York Hotel Times Square New York 1,780 256.35 89.2% 228.57 193.6 297.92 (13.0) 18.1 14 New York Marriott Downtown New York 513 264.27 85.1% 224.96 51.3 273.74 7.6 13.4 15 Marina Del Rey Marriott Los Angeles 370 247.54 89.3% 221.17 42.2 312.51 9.9 13.1 16 San Francisco Marriott Fisherman's Wharf San Francisco/San Jose 285 265.99 79.8% 212.35 26.4 253.66 2.1 5.7 17 Axiom Hotel San Francisco/San Jose 152 246.01 86.1% 211.85 14.6 262.66 2.6 7.0 18 Grand Hyatt Washington Washington, D.C. (CBD) 897 255.42 82.2% 210.04 98.8 301.88 16.3 31.2 19 Coronado Island Marriott Resort & Spa San Diego 300 251.25 83.2% 209.06 37.5 342.49 6.0 12.2 20 Boston Marriott Copley Place Boston 1,144 245.75 84.9% 208.70 122.6 293.61 23.9 35.8 21 The Don CeSar (2) Florida Gulf Coast 347 283.58 73.5% 208.46 48.1 434.48 10.7 15.8 22 Marriott Marquis San Diego Marina San Diego 1,360 249.79 82.9% 207.15 175.2 352.97 24.8 57.6 23 The Westin Georgetown, Washington DC Washington, D.C. (CBD) 267 245.10 83.8% 205.29 25.1 257.75 4.5 8.4 24 The Westin Chicago River North Chicago 429 250.98 81.6% 204.85 46.4 296.32 8.3 14.9 25 W Seattle Seattle 424 248.04 82.3% 204.11 40.0 258.23 7.0 13.0 26 Washington Marriott at Metro Center Washington, D.C. (CBD) 459 246.81 81.9% 202.05 44.3 264.36 9.8 13.1 27 The Ritz-Carlton Golf Resort, Naples Florida Gulf Coast 295 316.00 62.5% 197.57 39.3 364.79 5.2 10.2 28 Manchester Grand Hyatt San Diego San Diego 1,628 236.93 82.8% 196.20 197.3 331.95 39.0 69.4 29 The Ritz-Carlton, Tysons Corner Northern Virginia 398 263.20 74.5% 196.06 51.9 357.53 3.4 10.7 30 The Phoenician, A Luxury Collection Resort Phoenix 645 372.02 51.9% 193.14 98.3 417.49 (0.8) 21.7 31 St. Regis Houston Houston 232 301.61 63.9% 192.80 24.5 289.71 1.9 5.2 32 Embassy Suites Chicago Downtown Magnificent Mile Chicago 455 215.04 88.7% 190.66 35.1 211.10 4.9 10.7 33 The Westin Seattle Seattle 891 225.78 84.3% 190.37 84.9 261.02 15.2 24.8 34 Hyatt Regency Washington on Capitol Hill Washington, D.C. (CBD) 838 240.45 78.2% 187.91 83.2 272.17 12.3 23.0 35 Sheraton Boston Hotel Boston 1,220 233.03 80.3% 187.03 110.4 247.92 13.0 28.4 36 Hyatt Regency Cambridge Boston 470 221.14 82.0% 181.33 42.9 249.84 13.3 17.4 37 The Westin Kierland Resort & Spa Phoenix 732 235.00 76.6% 179.98 111.2 416.22 23.8 34.8 38 Hyatt Place Waikiki Beach Maui/Oahu 426 193.99 91.5% 177.54 29.0 186.26 5.4 10.7 39 Santa Clara Marriott San Francisco/San Jose 759 241.26 73.2% 176.66 69.2 249.80 21.2 24.5 40 The Logan Philadelphia 391 224.43 78.1% 175.22 48.4 339.22 3.2 13.6 Total Top 40 26,852 $275.09 82.8% $227.89 $3,412.3 $349.43 $494.9 $935.0 * Remaining 54 hotels 25,708 175.18 74.9% 131.27 1,913.2 203.89 293.8 556.6 Gain on sale of property, sold property operations and corporate level income/ expense 61.4 (217.7) 34.0 Total 52,560 — — — $5,386.9 — $571.0 $1,525.6 __________ *Represents 61% of our Total EBITDA. Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses, and the benefit (provision) for income taxes. These items are reflected below in “gain on sale of property, sold property operations and corporate level income/expense.” Refer to the table below for reconciliation of net income (loss) to EBITDA by property. Property was acquired in 2017. Results represent our ownership period in 2017. Hotel was sold subsequent to December 31, 2017. Hotel was classified as held-for-sale as of September 30, 2018. Host Hotels & Resorts

Property Level Data (unaudited, in millions, except hotel statistics) Top 40 Domestic Hotels by RevPAR Reconciliation of Hotel Net Income to Hotel EBITDA Year ended December 31, 2017 Hotel Location No. of Rooms Hotel Net Income (Loss) Plus: Depreciation Plus: Interest Expense Plus: Income Tax Equals: Hotel EBITDA 1 The Fairmont Kea Lani Maui Maui/Oahu 450 $24.3 $16.2 $- $- $40.5 2 The Ritz-Carlton, Naples Florida Gulf Coast 450 26.3 13.5 - - 39.8 3 W New York - Union Square New York 270 0.7 5.7 - - 6.4 4 The Ritz-Carlton, Marina Del Rey Los Angeles 304 7.9 4.6 - - 12.5 5 New York Marriott Marquis New York 1,966 42.7 35.0 - - 77.7 6 Hyatt Regency Maui Resort & Spa Maui/Oahu 806 33.5 16.3 - - 49.8 7 W Hollywood Los Angeles 305 5.8 6.0 - - 11.8 8 San Francisco Marriott Marquis San Francisco/San Jose 1,500 36.0 18.6 - - 54.6 9 The Westin New York Grand Central New York 774 (1.8) 14.0 - - 12.2 10 The Ritz-Carlton, Amelia Island Jacksonville 446 21.1 8.7 - - 29.8 11 JW Marriott Washington DC Washington, D.C. (CBD) 777 23.1 9.0 - - 32.1 12 W New York New York 697 (6.2) 9.6 - - 3.4 13 Sheraton New York Hotel Times Square New York 1,780 (13.0) 31.1 - - 18.1 14 New York Marriott Downtown New York 513 7.6 5.8 - - 13.4 15 Marina Del Rey Marriott Los Angeles 370 9.9 3.2 - - 13.1 16 San Francisco Marriott Fisherman's Wharf San Francisco/San Jose 285 2.1 3.6 - - 5.7 17 Axiom Hotel San Francisco/San Jose 152 2.6 4.4 - - 7.0 18 Grand Hyatt Washington Washington, D.C. (CBD) 897 16.3 14.9 - - 31.2 19 Coronado Island Marriott Resort & Spa San Diego 300 6.0 6.2 - - 12.2 20 Boston Marriott Copley Place Boston 1,144 23.9 11.9 - - 35.8 21 The Don CeSar Florida Gulf Coast 347 10.7 5.1 - - 15.8 22 Marriott Marquis San Diego Marina San Diego 1,360 24.8 32.8 - - 57.6 23 The Westin Georgetown, Washington DC Washington, D.C. (CBD) 267 4.5 3.9 - - 8.4 24 The Westin Chicago River North Chicago 429 8.3 6.6 - - 14.9 25 W Seattle Seattle 424 7.0 6.0 - - 13.0 26 Washington Marriott at Metro Center Washington, D.C. (CBD) 459 9.8 3.3 - - 13.1 27 The Ritz-Carlton Golf Resort, Naples Florida Gulf Coast 295 5.2 5.0 - - 10.2 28 Manchester Grand Hyatt San Diego San Diego 1,628 39.0 30.4 - - 69.4 29 The Ritz-Carlton, Tysons Corner Northern Virginia 398 3.4 7.3 - - 10.7 30 The Phoenician, A Luxury Collection Resort Phoenix 645 (0.8) 22.5 - - 21.7 31 St. Regis Houston Houston 232 1.9 3.3 - - 5.2 32 Embassy Suites Chicago Downtown Magnificent Mile Chicago 455 4.9 5.8 - - 10.7 33 The Westin Seattle Seattle 891 15.2 9.6 - - 24.8 34 Hyatt Regency Washington on Capitol Hill Washington, D.C. (CBD) 838 12.3 10.7 - - 23.0 35 Sheraton Boston Hotel Boston 1,220 13.0 15.4 - - 28.4 36 Hyatt Regency Cambridge Boston 470 13.3 4.1 - - 17.4 37 The Westin Kierland Resort & Spa Phoenix 732 23.8 11.0 - - 34.8 38 Hyatt Place Waikiki Beach Maui/Oahu 426 5.4 5.3 - - 10.7 39 Santa Clara Marriott San Francisco/San Jose 759 21.2 3.3 - - 24.5 40 The Logan Philadelphia 391 3.2 10.4 - - 13.6 Total Top 40 26,852 $494.9 $440.1 $- $- $935.0 Remaining 54 hotels 25,708 293.8 258.6 4.2 - 556.6 Gain on sale of property, sold property operations and corporate level income/ expense (217.7) 9.1 163.1 79.5 34.0 Total 52,560 $571.0 $707.8 $167.3 $79.5 $1,525.6 Host Hotels & Resorts

Capitalization Host Hotels & Resorts

Capitalization As of As of As of As of As of September 30, June 30, March 31, December 31, September 30, Shares/Units 2018 2018 2018 2017 2017 Common shares outstanding 740.0 739.8 739.5 739.1 738.9 Common shares outstanding assuming conversion of OP Units (1) 748.1 748.0 747.8 747.4 747.4 Preferred OP Units outstanding .02 .02 .02 .02 .02 Security pricing Common stock at end of quarter (2) $21.10 $21.07 $18.64 $19.85 $18.49 High during quarter 21.94 22.25 21.30 20.58 18.91 Low during quarter 20.10 18.24 17.98 18.20 17.38 Capitalization Market value of common equity (3) $15,785 $15,760 $13,939 $14,836 $13,819 Consolidated debt 4,079 4,228 4,266 3,954 3,961 Less: Cash (1,269) (646) (323) (913) (789) Consolidated total capitalization 18,595 19,342 17,882 17,877 16,991 Plus: Share of debt in unconsolidated investments 456 458 477 472 413 Pro rata total capitalization $19,051 $19,800 $18,359 $18,349 $17,404 Quarter ended Quarter ended Quarter ended Quarter ended Quarter ended September 30, June 30, March 31, December 31, September 30, 2018 2018 2018 2017 2017 Dividends declared per common share $.20 $.20 $.20 $.25 $.20 Comparative Capitalization __________ (1) Each OP Unit is redeemable for cash or, at our option, for 1.021494 common shares of Host Inc. At September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, there were 7.9 million, 8.0 million, 8.2 million, 8.2 million and 8.3 million common OP Units, respectively, held by non-controlling interests. (2) Share prices are the closing price as reported by the New York Stock Exchange. (3) Market value of common equity is calculated as the number of common shares outstanding including assumption of conversion of OP units multiplied the closing share price on that day. (in millions, except security pricing and per share amounts) Host Hotels & Resorts

Capitalization Consolidated Debt Summary Debt Senior debt Rate Maturity date September 30, 2018 December 31, 2017 Series Z 6% 10/2021 $298 $298 Series B 5 1⁄4% 3/2022 348 348 Series C 4 3⁄4% 3/2023 447 447 Series D 3 3⁄4% 10/2023 398 398 Series E 4% 6/2025 497 496 Series F 4 1⁄2% 2/2026 397 396 Series G 3 7⁄8% 4/2024 396 395 2017 Credit facility term loan 3.3% 5/2021 498 498 2015 Credit facility term loan 3.3% 9/2020 499 498 Credit facility revolver (1) 1.4% 5/2021 295 174 4,073 3,948 Other debt Other debt (non-recourse) 8.8% 2/2024 6 6 Total debt(2)(3) $4,079 $3,954 Percentage of fixed rate debt 68% 70% Weighted average interest rate 4.1% 4.0% Weighted average debt maturity 4.3 years 5.1 years Credit Facility Total capacity $1,000 Available capacity 702 Assets encumbered by mortgage debt — (in millions) ___________ (1) The interest rate shown is the weighted average rate of the outstanding credit facility borrowings at September 30, 2018. (2) In accordance with GAAP, total debt includes the debt of entities that we consolidate, but of which we do not own 100%, and excludes the debt of entities that we do not consolidate, but of which we have a non-controlling ownership interest and record our investment therein under the equity method of accounting. As of September 30, 2018, our share of debt in unconsolidated investments is $456 million and none of our debt is attributable to non-controlling interests. (3) Total debt as of September 30, 2018 and December 31, 2017 includes net discounts and deferred financing costs of $26 million and $30 million, respectively. Host Hotels & Resorts

Capitalization Consolidated Debt Maturity as of September 30, 2018 (1) The term loan and revolver under our credit facility that are due in 2021 have extension options that would extend the maturity of both instruments to 2022, subject to meeting certain conditions, including payment of a fee. Host Hotels & Resorts

Capitalization (unaudited, in millions, except ratios) Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio GAAP Leverage Ratio September 30, 2018 Debt $4,079 Net income - trailing twelve months 938 GAAP Leverage Ratio 4.3x The following table presents the calculation of Host's leverage ratio using GAAP measures: The following table presents the calculation of Host's leverage ratio as used in the financial covenants of the credit facility: Leverage Ratio per Credit Facility September 30, 2018 Net debt (1) $3,022 Adjusted Credit Facility EBITDA - trailing twelve months (2) 1,546 Leverage Ratio 2.0x (1) The following presents the reconciliation of debt to net debt per our credit facility definition: September 30, 2018 Debt $4,079 Deferred financing cost 22 Less: Unrestricted cash over $100 million (1,079) Net debt per credit facility definition $3,022 (2) The following presents the reconciliation of net income to EBITDA, EBITDAre, Adjusted EBITDAre and EBITDA per our credit facility definition in determining leverage ratio: Host Hotels & Resorts Trailing twelve months September 30, 2018 Net income $938 Interest expense 176 Depreciation and amortization 693 Income taxes 80 EBITDA 1,887 Gain on dispositions (664) Non-cash impairment expense 303 Equity in earnings of affiliates (36) Pro rata EBITDAre of equity investments 75 EBITDAre and Adjusted EBITDAre 1,565 Pro forma EBITDA - Acquisitions 34 Pro forma EBITDA - Dispositions (41) Restricted stock expense and other non-cash items 12 Non-cash partnership adjustments (24) Adjusted Credit Facility EBITDA $1,546

Capitalization (unaudited, in millions, except ratios) Reconciliation of GAAP Fixed Charge Coverage Ratio to Credit Facility Fixed Charge Coverage Ratio The following tables present the calculation of our fixed charge coverage ratio using GAAP measures and as used in the financial covenants of the credit facility: GAAP Fixed Charge Coverage Ratio Credit Facility Fixed Charge Coverage Ratio September 30, 2018 September 30, 2018 Net income - trailing twelve months $938 Credit Facility Fixed Charge Coverage Ratio EBITDA(1) $1,272 Interest Expense - trailing twelve months 176 Fixed Charges(2) 196 GAAP Fixed Charge Coverage Ratio 5.3x Credit Facility Fixed Charge Coverage Ratio 6.5x ___________ (1) The following reconciles Adjusted Credit Facility EBITDA to Credit Facility Fixed Charge Coverage Ratio EBITDA. See Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio for calculation and reconciliation of Adjusted Credit Facility EBITDA. Trailing twelve months September 30, 2018 Adjusted Credit Facility EBITDA $1,546 Less: 5% of Hotel Property Gross Revenue (274) Credit Facility Fixed Charge Coverage Ratio EBITDA $1,272 (2) The following table reconciles GAAP interest expense to interest expense per our credit facility definition to fixed charges: Trailing twelve months September 30, 2018 GAAP Interest expense $176 Deferred financing cost amortization (6) Capitalized interest 2 Accretion expense (4) Pro forma interest adjustments (6) Adjusted Credit Facility interest expense 162 Cash taxes on ordinary income 34 Fixed Charges $196 Host Hotels & Resorts

Capitalization (unaudited, in millions, except ratios) Reconciliation of GAAP Interest Coverage Ratio to EBITDA to Interest Coverage Ratio The following tables present the calculation of our interest coverage ratio using GAAP measures and as used in the senior notes indenture covenants: GAAP Interest Coverage Ratio Trailing twelve months September 30, 2018 Net income $938 Interest expense 176 GAAP Interest Coverage Ratio 5.3x EBITDA to Interest Coverage Ratio Trailing twelve months September 30, 2018 Adjusted Credit Facility EBITDA (1) $1,546 Non-controlling interest adjustment 2 Adjusted Senior Notes EBITDA $1,548 Adjusted Credit Facility interest expense (2) $162 EBITDA to Interest Coverage Ratio 9.6x __________ (1) See Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio for the calculation of Adjusted Credit Facility EBITDA and reconciliation to net income. (2) See Reconciliation of GAAP Fixed Charge Coverage Ratio to Credit Facility Fixed Charge Coverage Ratio for the calculation of Adjusted Credit Facility interest expense and reconciliation to GAAP interest expense. This same measure is used for our senior notes. Host Hotels & Resorts

Capitalization Ground Lease Summary as of December 31, 2017 As of December 31, 2017 Hotel No. of rooms Minimum rent Current expiration Expiration after all potential options(1) 1 Atlanta Marriott Midtown Suites 254 714,236 1/3/2025 1/3/2105 2 Boston Marriott Copley Place 1,144 N/A(2) 12/13/2077 12/13/2077 3 Coronado Island Marriott Resort & Spa 300 1,378,850 10/31/2062 10/31/2078 4 Denver Marriott West 305 160,000 12/28/2018 12/28/2058 5 Houston Airport 573 1,560,000 10/31/2053 10/31/2053 6 Houston Marriott at Texas Medical Center 395 160,000 12/28/2019 12/28/2059 7 Manchester Grand Hyatt San Diego 1,628 6,600,000 5/31/2067 5/31/2067 8 Marina del Rey Marriott 370 872,612 3/31/2043 3/31/2043 9 Marriott Marquis San Diego Marina 1,360 8,102,192 11/30/2061 11/30/2061 10 Newark Airport Marriott 591 2,476,119 12/31/2055 12/31/2055 11 Philadelphia Airport Marriott 419 1,187,308 6/29/2045 6/29/2045 12 San Antonio Marriott Rivercenter 1,001 700,000 12/31/2033 12/31/2063 13 San Antonio Marriott Riverwalk (5) 512 50,000 4/28/2033 4/28/2053 14 San Francisco Marriott Marquis 1,500 1,500,000 8/25/2046 8/25/2076 15 San Ramon Marriott 368 482,144 5/29/2034 5/29/2064 16 Santa Clara Marriott 759 90,932 11/30/2028 11/30/2058 17 Sheraton San Diego Hotel & Marina 1,053 2,029,000 10/31/2078 10/31/2078 18 Tampa Airport Marriott 298 1,033,005 12/31/2033 12/31/2033 19 The Ritz-Carlton, Marina del Rey 304 1,453,104 7/29/2067 7/29/2067 20 The Ritz-Carlton, Tysons Corner 398 992,722 6/30/2112 6/30/2112 21 The Westin Cincinnati 456 100,000 6/30/2045 6/30/2075(3) 22 The Westin Los Angeles Airport 740 1,225,050 1/31/2054 1/31/2074(4) 23 The Westin South Coast Plaza 390 178,160 9/30/2025 9/30/2025 24 Toronto Marriott Eaton Centre 461 404,891 9/20/2082 9/20/2082 25 W Hollywood 305 366,579 3/28/2106 3/28/2106 26 Washington Dulles Airport 368 874,481 9/30/2027 9/30/2027 __________ Exercise of Host’s option to extend is subject to certain conditions, including the existence of no defaults and subject to any applicable rent escalation or rent re-negotiation provisions. All rental payments have been previously paid and no further rental payments are required for the remainder of the lease term. No renewal term in the event the Lessor determines to discontinue use of building as a hotel. A condition of renewal is that the hotel’s occupancy compares favorably to similar hotels for the preceding three years. Host acquired the land associated with this ground lease subsequent to December 31, 2017. Host Hotels & Resorts

2018 Outlook Host Hotels & Resorts

2018 Outlook The Company anticipates that its 2018 operating results as compared to the prior year will change in the following range: Based upon the above parameters, the Company estimates its 2018 guidance as follows: See the 2018 Forecast Schedules and the Notes to Supplemental Financial Information for other assumptions used in the forecasts and items that may affect forecast results. Host Hotels & Resorts Previous Full Year 2018 Guidance Current Full Year 2018 Guidance Change in Full Year 2018 Guidance to the Mid-Point Total comparable hotel RevPAR - Constant US$ (1) 1.75% to 2.5% 1.9% to 2.1% (12.5 bps) Total revenues under GAAP 2.2% to 2.9% 2.4% to 2.6% (5 bps) Operating profit margin under GAAP 80 bps to 140 bps (320 bps) to (300 bps) (420 bps) Comparable hotel EBITDA margins (2) 25 bps to 75 bps 50 bps to 60 bps 5 bps Previous Full Year 2018 Guidance Current Full Year 2018 Guidance Change in Full Year 2018 Guidance to the Mid-Point Net income (in millions) $662 to $698 $971 to $981 $296 Adjusted EBITDAre (in millions) $1,525 to $1,565 $1,545 to $1,555 $5 Diluted earnings per common share $.88 to $.93 $1.23 to $1.24 $.33 NAREIT FFO per diluted share $1.71 to $1.76 $1.74 to $1.76 $.015 Adjusted FFO per diluted share $1.71 to $1.76 $1.74 to $1.76 $.015 __________ Forecast comparable hotel results include 85 hotels that are assumed will be classified as comparable as of December 31, 2018. See the 2018 Forecast Schedules for a listing of hotels excluded from the full year 2018 comparable hotel set. At the 2.0% midpoint of the RevPAR guidance, the improvement in comparable hotel EBITDA margin is13 basis points higher compared to the previous guidance.

2018 Outlook (unaudited, in millions, except per share amounts) Reconciliation of Net Income to EBITDA, EBITDAre, Adjusted EBITDAre and NAREIT and Adjusted Funds From Operations per Diluted Share for 2018 Forecasts(1) (1) The forecasts are based on the below assumptions: Total comparable hotel RevPAR in constant US$ will increase 1.9% to 2.1% for the low and high end of the forecast range, which excludes the effect of changes in foreign currency. However, the effect of estimated changes in foreign currency has been reflected in the forecast of net income, EBITDA, earnings per diluted share and Adjusted FFO per diluted share. Comparable hotel EBITDA margins will increase 50 basis points to 60 basis points for the low and high ends of the forecasted RevPAR range, respectively. We expect to spend approximately $195 million to $220 million on ROI capital expenditures and approximately $280 million to $300 million on renewal and replacement capital expenditures. The above forecast assumes the sale of the Company’s interest in the European joint venture. The transaction is subject to customary and other closing conditions which may not be satisfied and there can be no assurances that we will be able to complete the transaction at the price assumed in the forecast.. For a discussion of additional items that may affect forecasted results, see the Notes to Supplemental Financial Information. Host Hotels & Resorts Full Year 2018 Low-end of range High-end of range Net income $971 $981 Interest expense 179 179 Depreciation and amortization 688 688 Income taxes 66 66 EBITDA 1,904 1,914 Gain on dispositions (665) (665) Non-cash impairment loss 260 260 Equity investment adjustments: Equity in earnings of Euro JV (13) (13) Equity in earnings of affiliates other than Euro JV (14) (14) Pro rata EBITDAre of Euro JV 45 45 Pro rata EBITDAre of equity investments other than Euro JV 28 28 EBITDAre 1,545 1,555 Adjusted EBITDAre $1,545 $1,555 Full Year 2018 Low-end of range High-end of range Net income $971 $981 Less: Net income attributable to non-controlling interests (63) (63) Net income attributable to Host Inc. 908 918 Adjustments: Gain on dispositions (665) (665) Tax on dispositions 29 29 Depreciation and amortization 684 684 Non-cash impairment loss 260 260 Equity investment adjustments: Equity in earnings of affiliates (27) (27) Pro rata FFO of equity investments 53 53 Consolidated partnership adjustments: FFO adjustment for non-controlling partnerships 52 52 FFO adjustment for non-controlling interests of Host LP (4) (4) NAREIT FFO 1,290 1,300 Adjusted FFO $1,290 $1,300 Weighted average diluted shares - EPS, NAREIT and Adjusted FFO 740.3 740.3 Diluted earnings per common share $1.23 $1.24 NAREIT FFO per diluted share $1.74 $1.76 Adjusted FFO per diluted share $1.74 $1.76 ___________

2018 Outlook (unaudited, in millions, except hotel statistics) Schedule of Comparable Hotel Results for 2018 Forecasts(1) Full Year 2018 Low-end of range High-end of range Operating profit margin (2) 9.3% 9.5% Comparable hotel EBITDA margin (3) 28.7% 28.8% Net income $971 $981 Depreciation and amortization 948 948 Interest expense 179 179 Provision for income taxes 66 66 Gain on sale of property and corporate level income/expense (589) (589) Non-comparable hotel results, net (4) (227) (229) Comparable hotel EBITDA $1,348 $1,356 Low-end of range Adjustments GAAP Results Non-comparable hotel results, net(4) Depreciation and corporate level items Comparable Hotel Results Revenues Rooms $3,543 $(466) $ — $3,077 Food and beverage 1,611 (248) — 1,363 Other 360 (96) — 264 Total revenues 5,514 (810) — 4,704 Expenses Hotel expenses 3,939 (583) — 3,356 Depreciation 948 — (948) — Corporate and other expenses 113 — (113) — Total expenses 5,000 (583) (1,061) 3,356 Operating Profit - Comparable Hotel EBITDA $514 $(227) $1,061 $1,348 High-end of range Adjustments GAAP Results Non-comparable hotel results, net(4) Depreciation and corporate level items Comparable Hotel Results Revenues Rooms $3,550 $(467) $ — $3,083 Food and beverage 1,615 (249) — 1,366 Other 360 (96) — 264 Total revenues 5,525 (812) — 4,713 Expenses Hotel expenses 3,940 (583) — 3,357 Depreciation and amortization 948 — (948) — Corporate and other expenses 113 — (113) — Total expenses 5,001 (583) (1,061) 3,357 Operating Profit - Comparable Hotel EBITDA $524 $(229) $1,061 $1,356 ___________ (1)Forecast comparable hotel results include 85 hotels (of our 93 hotels owned at September 30, 2018) that we have assumed will be classified as comparable as of December 31, 2018. See “Comparable Hotel Operating Statistics” in the Notes to Supplemental Financial Information. No assurances can be made as to the hotels that will be in the comparable hotel set for 2018. Also, see the notes to the “Reconciliation of Net Income to EBITDA, EBITDAre, Adjusted EBITDAre and NAREIT and Adjusted Funds From Operations per Diluted Share for 2018 Forecasts” for other forecast assumptions and further discussion of transactions affecting our comparable hotel set. (2)Operating profit margin under GAAP is calculated as the operating profit divided by the forecast total revenues per the condensed consolidated statements of operations. (3)Comparable hotel EBITDA margin is calculated as the comparable hotel EBITDA divided by the comparable hotel sales per the tables above. (4)Non-comparable hotel results, net, includes the following items: (i) the results of operations of our non-comparable hotels and sold hotels, which operations are included in our condensed consolidated statements of operations as continuing operations, (ii) gains on insurance settlements and business interruption proceeds, and (iii) the results of our office spaces other non-hotel income. The following hotels are considered non-comparable for full-year forecast:   Acquisitions: The Don CeSar and Beach House Suites complex (acquired in February 2017) W Hollywood (acquired in March 2017) Andaz Maui at Wailea Resort (acquired in March 2018) Grand Hyatt San Francisco (acquired in March 2018) Hyatt Regency Coconut Point Resort and Spa (acquired in March 2018)   Renovations: The Phoenician (business disruption beginning in the second quarter of 2016) The Ritz-Carlton, Naples (business disruption beginning in the second quarter of 2018) San Francisco Marriott Marquis (business disruption beginning in the third quarter of 2018)   Dispositions or properties under contract (includes forecast or actual results from January 1, 2018 through the anticipated or actual sale date): Key Bridge Marriott (sold January 9, 2018) W New York (sold May 9, 2018) W New York – Union Square (sold September 6, 2018) JW Marriott Hotel Mexico City (sold September 27, 2018) Host Hotels & Resorts

Notes to Supplemental Financial Information Host Hotels & Resorts

Notes to Supplemental Financial Information Forecasts Our forecast of 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 and margin growth; the amount and timing of acquisitions and dispositions of hotel properties is an estimate that can substantially affect financial results, including such items as net income, depreciation and gains on dispositions; the level of capital expenditures may change significantly, which will directly affect the level of depreciation expense and net income; 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 To facilitate a quarter-to-quarter comparison of our operations, we present certain operating statistics (i.e., RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in this presentation on a comparable hotel basis. Because these statistics and operating results relate only to our hotel properties, they exclude results for our non-hotel properties and other real estate investments. We define our comparable hotels as properties: (i) that are owned or leased by us and the operations of which are included in our consolidated results for the entirety of the reporting periods being compared; and (ii) that have not sustained substantial property damage or business interruption, or undergone large-scale capital projects (as further defined below) during the reporting periods being compared. 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 that would cause a hotel to be excluded from our comparable hotel set is an extensive renovation of several core aspects of the hotel, such as rooms, meeting space, lobby, bars, restaurants and other public spaces. Both quantitative and qualitative factors are taken into consideration in determining if the renovation would cause a hotel to be removed from the comparable hotel set, including unusual or exceptional circumstances such as: a reduction or increase in room count, rebranding, a significant alteration of the business operations, or the closing of the hotel during the renovation. We do not include an acquired hotel in our comparable hotel set until the operating results for that hotel have been included in our consolidated results for one full calendar year. For example, we acquired The Don CeSar in February 2017. The hotel will not be included in our comparable hotels until January 1, 2019. Hotels that we sell are excluded from the comparable hotel set once the transaction has closed. Similarly, hotels are excluded from our comparable hotel set from the date that they sustain substantial property damage or business interruption or commence a large-scale capital project. 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 completion of the repair of the property damage or cessation of the business interruption, or the completion of large-scale capital projects, as applicable. Host Hotels & Resorts

Notes to Supplemental Financial Information COMPARABLE HOTEL OPERATING STATISTICS (continued) Of the 93 hotels that we owned on September 30, 2018, 85 have been classified as comparable hotels. The operating results of the following hotels that we owned as of September 30, 2018 are excluded from comparable hotel results for these periods: The Phoenician (acquired in June 2015 and, beginning in the second quarter of 2016, business disruption due to extensive renovations, including all guestrooms and suites, a redesign of the lobby and public areas, renovation of pools, recreation areas and a restaurant and a re-configured spa and fitness center); The Don CeSar and Beach House Suites complex (acquired in February 2017); W Hollywood (acquired in March 2017); Andaz Maui at Wailea Resort (acquired in March 2018); Grand Hyatt San Francisco (acquired in March 2018); Hyatt Regency Coconut Point Resort and Spa (acquired in March 2018); The Ritz-Carlton, Naples, removed in the second quarter of 2018 (business interruption due to extensive renovations including restoration of the façade that requires closure of the hotel for over two months, coordinated with renovation and expansion of restaurant areas and renovation to the spa and ballrooms); and San Francisco Marriott Marquis, removed in the third quarter of 2018 (business interruption due to renovations of guestrooms, ballrooms, meeting space, and extensive renovations of the main lobby). The operating results of eight hotels disposed of in 2018 and 2017 are not included in comparable hotel results for the periods presented herein. Host Hotels & Resorts NON-GAAP FINANCIAL MEASURES Included in this supplemental information 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, (iv) Comparable Hotel Property Level Operating Results, (v) Credit Facility Leverage and Fixed Charge Coverage Ratios and (vi) Senior Notes EBITDA to Interest Coverage Ratio. The following discussion defines these measures and presents why we believe they are useful supplemental measures of our performance.

Notes to Supplemental Financial Information NON-GAAP FINANCIAL MEASURES (continued) 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. NAREIT defines FFO as net income (calculated in accordance with GAAP) excluding gains and losses from sales of real estate, the cumulative effect of changes in accounting principles, real estate-related depreciation, amortization and impairments and adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures 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 earnings per share, provides beneficial information to investors. By excluding the effect of real estate depreciation, amortization, impairments 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 April 2002 “White Paper on Funds From Operations,” since real estate values have historically risen or fallen with market conditions, many industry investors have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. For these reasons, NAREIT adopted the FFO metric in order to promote an 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 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 associated with 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 outside the ordinary course of business. We believe that including these items is not consistent with our ongoing operating performance. Host Hotels & Resorts

Notes to Supplemental Financial Information NON-GAAP FINANCIAL MEASURES (continued) In unusual circumstances, we may also 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 corporate income tax rates from 35% to 21% caused 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 the deferred tax assets and increase the provision for income taxes by approximately $11 million. Additionally, similar corporate income tax rate reductions affected our European Joint Venture, causing the remeasurement of the net deferred tax assets and liabilities in France and Belgium, resulting in a net tax benefit to us of $5 million. We do not consider these adjustments to be reflective of our on-going operating performance and therefore excluded these items 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 who 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, 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 write-downs of 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. Host Hotels & Resorts

Notes to Supplemental Financial Information NON-GAAP FINANCIAL MEASURES (continued) 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 outside the ordinary course of business. We believe that including these items is not consistent with our ongoing operating performance. 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 such adjustment was a 2013 exclusion of a gain from an eminent domain claim. In the past, we presented Adjusted EBITDA as a supplemental measure of our performance. That metric is calculated in a similar manner as Adjusted EBITDAre presented here, with the exception of the adjustment for non-controlling partners’ pro rata share of Adjusted EBITDA, which totaled $2 million and $7 million for the third quarter and year-to-date of 2017, respectively. The rationale for including 100% of EBITDAre for consolidated affiliates with non-controlling interests is that the full amount of any debt of these affiliates is reported in our consolidated balance sheet and therefore metrics using total debt to EBITDAre provide a better understanding of the Company’s leverage. This is also consistent with NAREIT’s definition of EBITDAre. Host Hotels & Resorts

Notes to Supplemental Financial Information NON-GAAP FINANCIAL MEASURES (continued) Limitations on the Use of NAREIT FFO per Diluted Share, Adjusted FFO per Diluted Share, EBITDA, EBITDAre and Adjusted EBITDAre We calculate NAREIT FFO per diluted share in accordance with standards established by NAREIT, which may not be comparable to measures calculated by other companies who do not use the NAREIT definition of FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance. In addition, although FFO per diluted share is a useful measure when comparing our results to other REITs, it may not be helpful to investors when comparing us to non-REITs. We also calculate Adjusted FFO per diluted share, which is not in accordance with NAREIT guidance and may not be comparable to measures calculated by other REITs. EBITDA, EBITDAre and Adjusted EBITDAre, as presented, may also not be comparable to measures calculated 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) 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 statement of operations and cash flows 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 a measure 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 a measure 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 seven domestic and international partnerships that own a total of 21 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 outside partners and a 15% interest held by outside partners 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 investors. Our comparable hotel results present operating results for hotels owned during the entirety of the periods being compared without giving effect to any acquisitions or dispositions, significant property damage or large scale capital improvements incurred during these periods. We present comparable hotel EBITDA to help us and our investors evaluate the ongoing operating performance of our comparable properties after removing the impact of the Company’s capital structure (primarily interest expense), and its asset base (primarily depreciation and amortization). Corporate-level costs and expenses are also removed to arrive at property-level results. We believe these property-level results provide investors with supplemental information into the ongoing operating performance of our comparable hotels. Comparable hotel results are presented both by location and for the Company’s comparable properties in the aggregate. We eliminate depreciation and amortization because, even though depreciation and amortization 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 have historically risen or fallen with market conditions, many real estate industry investors have considered presentation of historical cost accounting for operating results to be insufficient by themselves. Host Hotels & Resorts

Notes to Supplemental Financial Information NON-GAAP FINANCIAL MEASURES (continued) As a result of the elimination of corporate-level costs and expenses and depreciation and amortization, 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, such as the effect of acquisitions or dispositions. While management believes that presentation of comparable hotel results is a “same store” 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 these hotels, as these decisions are based on data for individual hotels and are not based on comparable hotel results. For these reasons, we believe that comparable hotel operating results, when combined with the presentation of GAAP operating profit, revenues and expenses, provide useful information to investors and management. Credit Facility Leverage and Fixed Charge Coverage Ratios and Senior Notes EBITDA to Interest Coverage Ratio Host’s credit facility and senior notes indenture contain certain financial covenants, including allowable leverage, fixed charge coverage and EBITDA to interest coverage ratios, which are determined using EBITDA as calculated under the terms of our credit facility (“Adjusted Credit Facility EBITDA”) and senior notes indenture (“Adjusted Senior Notes EBITDA”). The leverage ratio is defined as net debt plus preferred equity to Adjusted Credit Facility EBITDA. The fixed charge coverage ratio is defined as Adjusted Credit Facility EBITDA divided by fixed charges, which include interest expense, required debt amortization payments, cash taxes and preferred stock payments. The EBITDA to interest coverage ratio is defined as Adjusted Senior Notes EBITDA to interest expense as defined by our senior notes indenture. These calculations are based on pro forma results for the prior four fiscal quarters, giving effect to transactions such as acquisitions, dispositions and financings as if they occurred at the beginning of the period. Under the terms of the credit facility and senior notes indenture, interest expense excludes items such as the gains and losses on the extinguishment of debt, deferred financing charges related to the senior notes or the credit facility, amortization of debt premiums or discounts that were recorded at issuance of a loan to establish its fair value and non-cash interest expense, all of which are included in interest expense on our consolidated statement of operations. Additionally, total debt used in the calculation of our leverage ratio is based on a “net debt” concept, under which cash and cash equivalents in excess of $100 million are deducted from our total debt balance. In this presentation we have presented our credit facility leverage and fixed charge coverage ratios and senior notes EBITDA to interest coverage ratio, which are considered non-GAAP financial measures. Management believes these financial ratios provide useful information to investors regarding our ability to access the capital markets and in particular debt financing. Limitations on Credit Facility and Senior Notes Credit Ratios These metrics are useful in evaluating the Company’s compliance with the covenants contained in its credit facility and senior notes indentures. However, because of the various adjustments taken to the ratio components as a result of negotiations with the Company’s lenders and noteholders they should not be considered as an alternative to the same ratios determined in accordance with GAAP. For instance, interest expense as calculated under the credit facility and senior notes indenture excludes the items noted above such as deferred financing charges and amortization of debt premiums or discounts, all of which are included in interest expense on our consolidated statement of operations. 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 performance. In addition, because the credit facility and indenture ratio components are also based on pro forma results for the prior four fiscal quarters, giving effect to transactions such as acquisitions, dispositions and financings as if they occurred at the beginning of the period, they are not reflective of actual performance over the same period calculated in accordance with GAAP. Host Hotels & Resorts