hst-8k_20190331.htm

 

 

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): May 1, 2019

 

HOST HOTELS & RESORTS, INC.

(Exact Name of Registrant as Specified in Charter)

 

 

Maryland

 

001-14625

 

53-0085950

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

6903 Rockledge Drive, Suite 1500

Bethesda, Maryland

 

20817

(Address of Principal Executive Offices)

 

(Zip Code)

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:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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.

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

  

Trading Symbol

  

Name of Each Exchange on

Which Registered

Common Stock, $.01 par value

  

HST

  

New York Stock Exchange

 

 

 

 


Item 2.02. Results of Operations and Financial Condition.

On May 1, 2019, Host Hotels & Resorts, Inc. issued a press release announcing its financial results for the first quarter ended March 31, 2019. 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

 

Exhibit No.

  

Description

99.1

  

Host Hotels & Resorts, Inc.’s earnings release for the first quarter of 2019.

99.2

 

Host Hotels & Resorts, Inc. First Quarter 2019 Supplemental Financial Information.

 

 

 


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.

 

 

 

 

 

HOST HOTELS & RESORTS, INC.

 

 

 

 

 

 

 

Date: May 1, 2019

 

 

 

By:

 

/S/ BRIAN G. MACNAMARA

 

 

 

 

Name:

 

Brian G. Macnamara

 

 

 

 

Title:

 

Senior Vice President,

Corporate Controller

 

hst-ex991_6.htm

 

 

Exhibit 99.1

 

 

 

Michael D. Bluhm, Chief Financial Officer

240.744.5110

Gee Lingberg, Senior Vice President

240.744.5275

 

 

 

 

NEWS RELEASE

HOST HOTELS & RESORTS, INC. REPORTS RESULTS FOR THE FIRST QUARTER 2019

BETHESDA, MD; May 1, 2019 – 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 first quarter of 2019.

Operating Results 1

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

  

Quarter ended

March 31,

 

 

Percent

 

 

2019

 

 

2018

 

 

Change

 

Total revenues

$

1,390

 

 

$

1,346

 

 

 

3.3

%

Comparable hotel revenues (1)

 

1,184

 

 

 

1,182

 

 

 

0.2

%

Net income

 

189

 

 

 

256

 

 

 

(26.2

)%

EBITDAre and Adjusted EBITDAre (1)

 

406

 

 

 

370

 

 

 

9.7

%

Change in comparable hotel RevPAR:

 

 

 

 

 

 

 

 

 

 

 

Domestic properties

 

(1.2

)

 

 

 

 

 

 

 

 

International properties -

     Constant US$

 

11.4

 

 

 

 

 

 

 

 

 

Total - Constant US$

 

(1.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

0.25

 

 

 

0.34

 

 

 

(26.5

)%

NAREIT FFO and Adjusted FFO per diluted share (1)

 

0.48

 

 

 

0.43

 

 

 

11.6

%

 

 

 

 

 

 

 

 

 

 

 

 

*Additional detail on the Company’s results, including data for 22 domestic markets and top 40 hotels by RevPAR, is available in the First Quarter 2019 Supplemental Financial Information available on the Company’s website at www.hosthotels.com.

Highlights

 

Total revenues improved 3.3% for the quarter, driven by the acquisitions of four premier hotels since March 2018. Also helping drive the improvement in revenues was a 30 basis point increase in comparable Total RevPAR to $274 for the quarter, which includes all hotel-level revenues per available room.

 

The Company increased its overall profitability, despite a comparable hotel RevPAR decline of 1.0% for the quarter on a constant dollar basis. The decline in RevPAR was primarily driven by the Marriott transformational capital program and the effect of the government shutdown.

 

Net income and earnings per share of $189 million and $0.25, respectively, were affected by a reduction in gains on sales of assets compared to the first quarter of 2018. However, the Company experienced strong growth in Adjusted EBITDAre of 9.7% to $406 million and Adjusted FFO per share of 11.6% to $0.48 per share.

James F. Risoleo, President and Chief Executive Officer, said, “Our first quarter results reflect our proven ability to drive operational outperformance as well as the scale and strength of Host Hotels’ integrated investment platform. Our margin

 

(1)

NAREIT Funds From Operations (“FFO”) per diluted share, Adjusted FFO per diluted share, EBITDAre, Adjusted EBITDAre and comparable hotel results are non-GAAP (U.S. generally accepted accounting principles) financial measures within the meaning of the rules of the Securities and Exchange Commission (“SEC”). See the Notes to Financial Information on why the Company believes these supplemental measures are useful, reconciliations to the most directly comparable GAAP measure, and the limitations on the use of these supplemental measures.

 


 

performance for the quarter is nothing short of remarkable. We are very pleased to report a beat and raise quarter and to raise net income, Adjusted EBITDAre and Adjusted FFO per share guidance for the full year. Our disciplined and strategic capital allocation decisions have significantly enhanced the quality of our portfolio and we remain focused on value-enhancing growth opportunities to complement our collection of iconic and irreplaceable assets. As discussed last quarter, we have nearly $2.5 billion of investment capacity that can be comfortably deployed while maintaining our commitment to our investment-grade balance sheet. We do not intend to move higher than our targeted leverage range, nor do we intend to invest beyond that capacity.”

Operating Performance

GAAP Metrics

 

The improvement in total revenues of 3.3% for the quarter was due to the operations of the 1 Hotel South Beach acquired in February and the Hyatt hotel portfolio acquired in 2018, partially offset by the disposition of five hotels in 2019 and 2018.

 

GAAP operating profit margin increased 280 basis points for the quarter, due to higher margins at hotels acquired in 2019 and 2018 and items that affected comparable margins discussed below.

 

Net income decreased by $67 million to $189 million for the quarter, primarily due to a decrease in gain on sale of assets, partially offset by the improvement in operating profit.

 

Diluted earnings per common share decreased 26.5% for the quarter.

Other Metrics

 

Comparable RevPAR on a constant dollar basis declined 1.0% for the quarter, due to a 180 basis point decrease in occupancy, partially offset by a 1.3% increase in average room rate. The decline in RevPAR was primarily the result of an estimated 40 basis point decrease for the comparable hotels in the Marriott transformational capital program and an estimated 30 basis point decrease related to the government shutdown primarily affecting Washington, D.C. and San Diego.

 

Comparable hotel revenues increased 0.2% for the quarter.

 

Comparable hotel EBITDA increased by $7 million, or 1.9%, for the quarter.

 

Comparable hotel EBITDA margins improved 50 basis points for the quarter due to several factors, including:

 

o

an increase in average room rates;

 

o

improvement in rooms and food and beverage productivity and a decrease in other operating expenses resulting from Company initiatives;

 

o

an increase in ancillary revenues;

 

o

benefits from synergies of the Marriott International merger with Starwood Hotels; and

 

o

the receipt of operating profit guarantees provided by Marriott related to transformational capital projects.

 

Adjusted EBITDAre increased by $36 million, or 9.7%, for the quarter.

 

Adjusted FFO per diluted share increased 11.6% for the quarter.

Acquisitions and Dispositions

During the first quarter, the Company acquired the 1 Hotel South Beach for $610 million and sold The Westin New York Grand Central for $302 million, including approximately $20 million of FF&E funds. On April 2, the Company sold The Westin Mission Hills Golf Resort & Spa for $27 million.

Capital Allocation

During the quarter, the Company invested approximately $110 million in capital expenditures, of which $52 million were return on investment (“ROI”) capital expenditures and $58 million were on renewal and replacement projects.

For 2019, the Company expects capital expenditures of between $550 million and $625 million. This comprises between $315 million and $350 million in ROI projects and between $235 million and $275 million in renewal and replacement projects. The ROI projects include approximately $225 million that are part of the previously announced agreement with Marriott International.

Page 2 of 20


 

Dividends

The Company paid a regular quarterly cash dividend of $0.20 per share on its common stock on April 15, 2019 to stockholders of record as of March 29, 2019. All future dividends, including any special dividends, are subject to approval by the Company’s Board of Directors.

Balance Sheet

At March 31, 2019, the Company had approximately $1,082 million of unrestricted cash, not including $191 million in the FF&E escrow reserves, and $944 million of available capacity under the revolver portion of its credit facility. Total debt was $3.9 billion, with an average maturity of 3.9 years and an average interest rate of 4.3%. The Company has no debt maturities until 2020.

As previously announced, the Company has $500 million of capacity available under its current common share repurchase program. No shares were repurchased in the first quarter of 2019. As previously announced, the Company has a distribution agreement in place under which it may issue and sell, from time to time, shares of common stock having an aggregate offering price of up to $500 million in “at the market” offerings. No shares were issued in the first quarter of 2019.

2019 Outlook

For 2019, the Company’s forecast for comparable hotel RevPAR growth is 0% to 2.0%. The RevPAR guidance reflects an estimated 45 basis points of disruption impact from the incremental capital expenditures associated with the Marriott transformational capital program. However, the estimated effect to earnings caused by these expenditures is offset by the operating profit guarantees provided by Marriott. The Company expects to receive $23 million of operating profit guarantees in 2019, of which $10 million is included in comparable hotel EBITDA, to offset the disruption to operations caused by the incremental spend on those properties. The Company estimates its 2019 operating results as compared to the prior year will change in the following range:

 

Previous Full Year 2019 Guidance

 

Current Full Year 2019 Guidance

 

Change in Full Year 2019 Guidance to the Mid-Point

Total comparable hotel RevPAR - Constant US$ (1)

 

0.0% to 2.0%

 

0.0% to 2.0%

 

0 bps

Total revenues under GAAP

 

0.6% to 2.6%

 

0.1% to 2.1%

 

(50 bps)

Operating profit margin under GAAP

 

440 bps to 530 bps

 

460 bps to 550 bps

 

20 bps

Comparable hotel EBITDA margins

 

(50) bps to 10 bps

 

(25) bps to 35 bps

 

25 bps

__________

(1)

Forecast comparable hotel results include 81 hotels that are assumed will be classified as comparable as of December 31, 2019. See the 2019 Forecast Schedules for a listing of hotels excluded from the full year 2019 comparable hotel set.

Based upon the above parameters, the Company estimates its 2019 guidance as follows:

 

 

 

Previous Full Year 2019 Guidance

 

Current Full Year 2019

Guidance

 

Change in Full Year 2019 Guidance to the Mid-Point

Net income (in millions)

 

$587 to $652

 

$619 to $683

 

$31.5

Adjusted EBITDAre (in millions)

 

$1,515 to $1,580

 

$1,535 to $1,600

 

$20

Diluted earnings per common share

 

$.78 to $.87

 

$.82 to $.91

 

$.04

NAREIT FFO per diluted share

 

$1.72 to $1.81

 

$1.76 to $1.84

 

$.03

Adjusted FFO per diluted share

 

$1.72 to $1.81

 

$1.76 to $1.84

 

$.03

See the 2019 Forecast Schedules and the Notes to Financial Information for other assumptions used in the forecasts and items that may affect forecast results.

About Host Hotels & Resorts

Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 87 properties in the United States and five properties internationally totaling approximately 51,500 rooms. The Company also holds non-controlling interests in six domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The Luxury Collection®, Hyatt®, Fairmont®, Hilton®, 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

Page 3 of 20


 

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 May 1, 2019, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

*

This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks has any responsibility or liability for any information contained in this press release.

*** Tables to Follow ***


Page 4 of 20


 

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 March 31, 2019, 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.

2019 OPERATING RESULTS

  

PAGE NO.

 

Condensed Consolidated Balance Sheets (unaudited)

     March 31, 2019 and December 31, 2018

  

6

 

Condensed Consolidated Statements of Operations (unaudited)

     Quarter Ended March 31, 2019 and 2018

  

7

 

Earnings per Common Share (unaudited)

     Quarter Ended March 31, 2019 and 2018

  

8

 

Hotel Operating Data

  

 

     Hotel Operating Data for Consolidated Hotels (by Location)

  

9

 

 

 

Schedule of Comparable Hotel Results

 

10

 

Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre

  

11

 

Reconciliation of Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share

  

12

 

2019 FORECAST INFORMATION

  

 

 

Reconciliation of Net Income to EBITDA, EBITDAre, and Adjusted EBITDAre and Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share for 2019 Forecasts

  

13

 

Schedule of Comparable Hotel Results for 2019 Forecasts

  

14

 

Notes to Financial Information

  

16

 

 

 

 

 

 

 


Page 5 of 20


HOST HOTELS & RESORTS, INC.

Condensed Consolidated Balance Sheets

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

 

 

March 31, 2019

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

ASSETS

 

Property and equipment, net

 

$

10,296

 

 

$

9,760

 

Right-of-use assets(1)

 

 

616

 

 

 

 

Assets held for sale

 

 

31

 

 

 

281

 

Due from managers

 

 

145

 

 

 

71

 

Advances to and investments in affiliates

 

 

54

 

 

 

48

 

Furniture, fixtures and equipment replacement fund

 

 

191

 

 

 

213

 

Other

 

 

162

 

 

 

175

 

Cash and cash equivalents

 

 

1,082

 

 

 

1,542

 

Total assets

 

$

12,577

 

 

$

12,090

 

 

 

 

 

 

 

 

 

 

LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY

 

Debt (2)

 

 

 

 

 

 

 

 

Senior notes

 

$

2,783

 

 

$

2,782

 

Credit facility, including the term loans of $998

 

 

1,051

 

 

 

1,049

 

Other debt

 

 

28

 

 

 

6

 

Total debt

 

 

3,862

 

 

 

3,837

 

Lease liabilities(1)

 

 

625

 

 

 

 

Accounts payable and accrued expenses

 

 

240

 

 

 

293

 

Other

 

 

183

 

 

 

266

 

Total liabilities

 

 

4,910

 

 

 

4,396

 

 

 

 

 

 

 

 

 

 

Redeemable non-controlling interests - Host Hotels & Resorts, L.P.

 

 

147

 

 

 

128

 

 

 

 

 

 

 

 

 

 

Host Hotels & Resorts, Inc. stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, par value $.01, 1,050 million shares authorized,

     740.9 million shares and 740.4 million shares issued and outstanding,

     respectively

 

 

7

 

 

 

7

 

Additional paid-in capital

 

 

8,138

 

 

 

8,156

 

Accumulated other comprehensive loss

 

 

(59

)

 

 

(59

)

Deficit

 

 

(573

)

 

 

(610

)

Total equity of Host Hotels & Resorts, Inc. stockholders

 

 

7,513

 

 

 

7,494

 

Non-redeemable non-controlling interests—other consolidated partnerships

 

 

7

 

 

 

72

 

Total equity

 

 

7,520

 

 

 

7,566

 

Total liabilities, non-controlling interests and equity

 

$

12,577

 

 

$

12,090

 

___________

 

 

 

 

 

 

 

 

(1)

On January 1, 2019, we adopted Accounting Standard Update No. 2016-02, Leases (Topic 842), as amended. The new standard requires that all leases, including operating leases, be recognized as lease assets and lease liabilities on the balance sheet. As a result, we have recognized right of use assets of $616 million and lease liabilities of $625 million as of March 31, 2019. The adoption did not affect our statement of operations.

(2)

Please see our First Quarter 2019 Supplemental Financial Information for more detail on our debt balances.                          

 

 

 

 

 

Page 6 of 20


HOST HOTELS & RESORTS, INC.

Condensed Consolidated Statements of Operations

(unaudited, in millions, except per share amounts)

 

 

Quarter ended March 31,

 

 

 

2019

 

 

2018

 

Revenues

 

 

 

 

 

 

 

 

Rooms

 

$

857

 

 

$

844

 

Food and beverage

 

 

433

 

 

 

413

 

Other

 

 

100

 

 

 

89

 

Total revenues

 

 

1,390

 

 

 

1,346

 

Expenses

 

 

 

 

 

 

 

 

Rooms

 

 

217

 

 

 

224

 

Food and beverage

 

 

285

 

 

 

278

 

Other departmental and support expenses

 

 

327

 

 

 

315

 

Management fees

 

 

54

 

 

 

54

 

Other property-level expenses

 

 

92

 

 

 

98

 

Depreciation and amortization

 

 

170

 

 

 

178

 

Corporate and other expenses(1)

 

 

29

 

 

 

28

 

Total operating costs and expenses

 

 

1,174

 

 

 

1,175

 

Operating profit

 

 

216

 

 

 

171

 

Interest income

 

 

8

 

 

 

3

 

Interest expense

 

 

(43

)

 

 

(44

)

Gain on sale of assets

 

 

5

 

 

 

120

 

Equity in earnings of affiliates

 

 

5

 

 

 

10

 

Income before income taxes

 

 

191

 

 

 

260

 

Provision for income taxes

 

 

(2

)

 

 

(4

)

Net income

 

 

189

 

 

 

256

 

Less: Net income attributable to non-controlling interests

 

 

(3

)

 

 

(3

)

Net income attributable to Host Inc.

 

$

186

 

 

$

253

 

Basic and diluted earnings per common share

 

$

.25

 

 

$

.34

 

___________

 

 

 

 

 

 

 

 

(1)

Corporate and other expenses include the following items:

 

 

Quarter ended

March 31,

 

 

 

2019

 

 

2018

 

General and administrative costs

 

$

25

 

 

$

25

 

Non-cash stock-based compensation expense

 

 

4

 

 

 

3

 

       Total

 

$

29

 

 

$

28

 

 

 

 

 

 

 

 

 

 

          


Page 7 of 20


HOST HOTELS & RESORTS, INC.

Earnings per Common Share

(unaudited, in millions, except per share amounts)

 

 

 

Quarter ended March 31,

 

 

 

2019

 

 

2018

 

Net income

 

$

189

 

 

$

256

 

Less: Net income attributable to non-controlling interests

 

 

(3

)

 

 

(3

)

Net income attributable to Host Inc.

 

$

186

 

 

$

253

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

740.6

 

 

 

739.2

 

Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market

 

 

.2

 

 

 

.4

 

Diluted weighted average shares outstanding (1)

 

 

740.8

 

 

 

739.6

 

Basic and diluted earnings per common share

 

$

.25

 

 

$

.34

 

___________

 

 

 

 

 

 

 

 

(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.  

 

 

 

 

 

  

 

 

 


Page 8 of 20


HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels (1)

Comparable Hotels by Location in Constant US$

 

 

 

 

As of March 31, 2019

 

 

Quarter ended March 31, 2019

 

 

Quarter ended March 31, 2018

 

 

 

 

 

Location

 

No. of

Properties

 

 

No. of

Rooms

 

 

Average

Room Rate

 

 

Average

Occupancy

Percentage

 

 

RevPAR

 

 

Average

Room Rate

 

 

Average

Occupancy

Percentage

 

 

RevPAR

 

 

Percent

Change in

RevPAR

 

Maui/Oahu

 

 

3

 

 

 

1,682

 

 

$

399.24

 

 

 

89.2

%

 

$

356.00

 

 

$

396.73

 

 

 

91.4

%

 

$

362.47

 

 

 

(1.8

)%

Jacksonville

 

 

1

 

 

 

446

 

 

 

367.78

 

 

 

78.6

 

 

 

289.04

 

 

 

355.15

 

 

 

71.3

 

 

 

253.14

 

 

 

14.2

 

Phoenix

 

 

5

 

 

 

2,163

 

 

 

339.86

 

 

 

84.1

 

 

 

285.90

 

 

 

317.94

 

 

 

83.7

 

 

 

266.02

 

 

 

7.5

 

Florida Gulf Coast

 

 

3

 

 

 

940

 

 

 

328.81

 

 

 

85.0

 

 

 

279.47

 

 

 

323.19

 

 

 

84.6

 

 

 

273.36

 

 

 

2.2

 

Los Angeles

 

 

4

 

 

 

1,726

 

 

 

223.86

 

 

 

86.5

 

 

 

193.59

 

 

 

230.25

 

 

 

89.2

 

 

 

205.41

 

 

 

(5.8

)

San Francisco/San Jose

 

 

5

 

 

 

2,353

 

 

 

252.45

 

 

 

76.0

 

 

 

191.79

 

 

 

225.49

 

 

 

80.2

 

 

 

180.76

 

 

 

6.1

 

Miami

 

 

2

 

 

 

843

 

 

 

210.99

 

 

 

86.9

 

 

 

183.31

 

 

 

207.22

 

 

 

88.5

 

 

 

183.36

 

 

 

 

San Diego

 

 

4

 

 

 

4,341

 

 

 

235.04

 

 

 

77.4

 

 

 

181.93

 

 

 

231.83

 

 

 

81.9

 

 

 

189.78

 

 

 

(4.1

)

Washington, D.C. (CBD)

 

 

5

 

 

 

3,238

 

 

 

247.89

 

 

 

73.3

 

 

 

181.79

 

 

 

250.33

 

 

 

71.8

 

 

 

179.63

 

 

 

1.2

 

Atlanta

 

 

5

 

 

 

1,936

 

 

 

224.73

 

 

 

77.9

 

 

 

175.00

 

 

 

192.08

 

 

 

78.7

 

 

 

151.15

 

 

 

15.8

 

New Orleans

 

 

1

 

 

 

1,333

 

 

 

209.79

 

 

 

81.6

 

 

 

171.18

 

 

 

197.38

 

 

 

82.7

 

 

 

163.21

 

 

 

4.9

 

New York

 

 

3

 

 

 

4,259

 

 

 

236.38

 

 

 

72.0

 

 

 

170.27

 

 

 

252.47

 

 

 

77.7

 

 

 

196.18

 

 

 

(13.2

)

Orlando

 

 

1

 

 

 

2,004

 

 

 

208.20

 

 

 

79.0

 

 

 

164.41

 

 

 

210.77

 

 

 

81.6

 

 

 

172.05

 

 

 

(4.4

)

San Antonio

 

 

2

 

 

 

1,513

 

 

 

196.01

 

 

 

77.4

 

 

 

151.75

 

 

 

198.26

 

 

 

75.7

 

 

 

150.18

 

 

 

1.0

 

Orange County

 

 

4

 

 

 

1,432

 

 

 

193.05

 

 

 

78.2

 

 

 

150.88

 

 

 

192.00

 

 

 

76.3

 

 

 

146.53

 

 

 

3.0

 

Seattle

 

 

2

 

 

 

1,315

 

 

 

194.12

 

 

 

77.4

 

 

 

150.15

 

 

 

201.47

 

 

 

75.1

 

 

 

151.30

 

 

 

(0.8

)

Philadelphia

 

 

2

 

 

 

810

 

 

 

190.16

 

 

 

78.1

 

 

 

148.48

 

 

 

192.13

 

 

 

83.5

 

 

 

160.48

 

 

 

(7.5

)

Houston

 

 

4

 

 

 

1,716

 

 

 

182.60

 

 

 

75.8

 

 

 

138.36

 

 

 

178.84

 

 

 

76.5

 

 

 

136.75

 

 

 

1.2

 

Northern Virginia

 

 

5

 

 

 

1,919

 

 

 

189.73

 

 

 

69.6

 

 

 

132.13

 

 

 

186.56

 

 

 

71.7

 

 

 

133.83

 

 

 

(1.3

)

Boston

 

 

4

 

 

 

3,185

 

 

 

185.32

 

 

 

68.3

 

 

 

126.54

 

 

 

183.76

 

 

 

70.7

 

 

 

129.97

 

 

 

(2.6

)

Denver

 

 

3

 

 

 

1,340

 

 

 

161.82

 

 

 

64.7

 

 

 

104.75

 

 

 

152.93

 

 

 

67.5

 

 

 

103.26

 

 

 

1.4

 

Chicago

 

 

6

 

 

 

2,393

 

 

 

141.59

 

 

 

62.4

 

 

 

88.30

 

 

 

148.46

 

 

 

67.2

 

 

 

99.80

 

 

 

(11.5

)

Other

 

 

8

 

 

 

3,596

 

 

 

174.04

 

 

 

70.4

 

 

 

122.54

 

 

 

176.71

 

 

 

72.2

 

 

 

127.59

 

 

 

(4.0

)

Domestic

 

 

82

 

 

 

46,483

 

 

 

227.85

 

 

 

75.5

 

 

 

172.07

 

 

 

224.59

 

 

 

77.5

 

 

 

174.11

 

 

 

(1.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

 

5

 

 

 

1,499

 

 

 

143.88

 

 

 

67.6

 

 

 

97.32

 

 

 

141.14

 

 

 

61.9

 

 

 

87.35

 

 

 

11.4

 

All Locations -

  Constant US$

 

 

87

 

 

 

47,982

 

 

 

225.49

 

 

 

75.3

 

 

 

169.74

 

 

 

222.50

 

 

 

77.0

 

 

 

171.40

 

 

 

(1.0

)

 

 

All Owned Hotels in Constant US$ (2)

 

 

As of March 31,

2019

 

 

Quarter ended March 31, 2019

 

 

Quarter ended March 31, 2018

 

 

 

 

 

 

 

No. of

Properties

 

 

No. of

Rooms

 

 

Average

Room Rate

 

 

Average

Occupancy

Percentage

 

 

RevPAR

 

 

Average

Room Rate

 

 

Average

Occupancy

Percentage

 

 

RevPAR

 

 

Percent

Change in

RevPAR

 

Comparable Hotels

 

 

87

 

 

 

47,982

 

 

$

225.49

 

 

 

75.3

%

 

$

169.74

 

 

$

222.50

 

 

 

77.0

%

 

$

171.40

 

 

 

(1.0

)%

Non-comparable Hotels (Pro forma)

 

 

6

 

 

 

3,803

 

 

 

486.08

 

 

 

80.7

 

 

 

392.36

 

 

 

446.16

 

 

 

88.2

 

 

 

393.42

 

 

 

(0.3

)

All Hotels

 

 

93

 

 

 

51,785

 

 

 

246.13

 

 

 

75.7

 

 

 

186.27

 

 

 

241.31

 

 

 

77.9

 

 

 

187.89

 

 

 

(0.9

)

 

Comparable Hotels in Nominal US$  

 

 

As of March 31, 2019

 

 

Quarter ended March 31, 2019

 

 

Quarter ended March 31, 2018

 

 

 

 

 

 

 

No. of

Properties

 

 

No. of

Rooms

 

 

Average

Room Rate

 

 

Average

Occupancy

Percentage

 

 

RevPAR

 

 

Average

Room Rate

 

 

Average

Occupancy

Percentage

 

 

RevPAR

 

 

Percent

Change in

RevPAR

 

International

 

 

5

 

 

 

1,499

 

 

$

143.88

 

 

 

67.6

%

 

$

97.32

 

 

$

153.01

 

 

 

61.9

%

 

$

94.70

 

 

 

2.8

%

Domestic

 

 

82

 

 

 

46,483

 

 

 

227.85

 

 

 

75.5

 

 

 

172.07

 

 

 

224.59

 

 

 

77.5

 

 

 

174.11

 

 

 

(1.2

)

All Locations

 

 

87

 

 

 

47,982

 

 

 

225.49

 

 

 

75.3

 

 

 

169.74

 

 

 

222.79

 

 

 

77.0

 

 

 

171.63

 

 

 

(1.1

)

 

(1)

See the Notes to Financial Information for a discussion of comparable hotel operating statistics and constant US$ presentation. Nominal US$ results include the effect of currency fluctuations, consistent with our financial statement presentation. CBD of a location refers to the central business district.

(2)

Operating statistics are presented for all consolidated properties owned as of March 31, 2019 and do not include the results of operations for properties sold in 2019 or 2018. Additionally, all owned hotel operating statistics include hotels that we did not own for the entirety of the periods presented and properties that are undergoing large-scale capital projects during the periods presented and, therefore, are not considered comparable hotel information upon which we usually evaluate our performance. Specifically, comparable RevPAR is calculated as room revenues divided by the available room nights, which will rarely vary on a year-over-year basis. Conversely, the available room nights included in the non-comparable RevPAR statistic will vary widely based on the timing of hotel closings, the scope of a capital project, or the development of a new property. Comparable Total RevPAR is calculated as rooms, food and beverage and other revenues by the available room nights. See the Notes to Financial Information – Comparable Hotel Operating Statistics for further information on these pro forma statistics and the limitations on their use.

 

Non-comparable hotels (pro forma) - This represents two hotels under significant renovations in 2018 and 2019, and four hotels acquired in 2018 and 2019, which are presented on a pro forma basis assuming we owned the hotels as of January 1, 2018 and includes historical operating data for periods prior to our ownership. As a result, the RevPAR decrease of 0.3% for the quarter for these six hotels is considered non-comparable.

 

 

Page 9 of 20


 

HOST HOTELS & RESORTS, INC.

Schedule of Comparable Hotel Results (1)

(unaudited, in millions, except hotel statistics)

 

 

 

Quarter ended March 31,

 

 

 

2019

 

 

2018

 

Number of hotels

 

 

87

 

 

 

87

 

Number of rooms

 

 

47,982

 

 

 

47,982

 

Change in comparable hotel RevPAR -

 

 

 

 

 

 

 

 

Constant US$

 

 

(1.0

)%

 

 

 

Nominal US$

 

 

(1.1

)%

 

 

 

Operating profit margin (2)

 

 

15.5

%

 

 

12.7

%

Comparable hotel EBITDA margin (2)

 

 

28.1

%

 

 

27.6

%

Food and beverage profit margin (2)

 

 

34.2

%

 

 

32.7

%

Comparable hotel food and beverage profit margin (2)

 

 

34.3

%

 

 

34.2

%

 

 

 

 

 

 

 

 

 

Net income

 

$

189

 

 

$

256

 

Depreciation and amortization

 

 

170