false 0001070750 0001070750 2021-11-03 2021-11-03

 

 

UNITED STATES

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 3, 2021

 

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.)

 

4747 Bethesda Avenue, Suite 1300 Bethesda, Maryland		20814
(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))

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		The Nasdaq Stock Market LLC

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 3, 2021, Host Hotels & Resorts, Inc. issued a press release announcing its financial results for the third quarter ended September 30, 2021. 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 third quarter 2021.
99.2		Host Hotels & Resorts, Inc. Third Quarter 2021 Supplemental Financial Information.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

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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.

 

				HOST HOTELS & RESORTS, INC.
Date: November 3, 2021				By:		/S/ Joseph C. Ottinger
				Name:		Joseph C. Ottinger
				Title:		Senior Vice President and Corporate Controller

 

 

		Exhibit 99.1
	SOURAV GHOSH Chief Financial Officer (240) 744-5267	JAIME MARCUS  Investor Relations (240) 744-5117 ir@hosthotels.com

 

Host Hotels & Resorts, Inc. Reports Results for Third Quarter 2021

Continued Quarterly Revenue Growth and Sequentially Improved Operations;

Exited Credit Facility Covenant Waiver - Three Quarters Ahead of its Expiration;

Successful Execution of Capital Allocation Strategy - Acquisition of Alila Ventana Big Sur and Disposition of Five Assets

BETHESDA, MD; November 3, 2021 – Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the nation’s largest lodging real estate investment trust (“REIT”), today announced results for third quarter 2021.

Operating Results

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

	Quarter ended September 30,								Percent Change			Percent Change				Year-to-date ended September 30,								Percent Change			Percent Change
	2021				2020				vs. Q3 2020			vs. Q3 2019⁽²⁾				2021				2020				vs. YTD 2020			vs. YTD 2019⁽²⁾
Revenues	$	844			$	198				326.3	%		(33.1	)%		$	1,892			$	1,353				39.8	%		(54.2	)%
All owned hotel revenues      (pro forma)⁽¹⁾		853				220				287.7	%		(32.0	)%			1,978				1,429				38.4	%		(51.5	)%
All owned hotel (pro forma)      Total RevPAR -      Constant US$		194.82				50.15				288.5	%		(32.3	)%			152.19				109.72				38.7	%		(51.7	)%
All owned hotel (pro forma)      RevPAR - Constant US$		129.14				31.71				307.3	%		(31.3	)%			99.68				65.82				51.5	%		(49.6	)%
	Quarter ended September 30,								Percent							Year-to-date ended September 30,								Percent
	2021				2020				Change							2021				2020				Change
Net loss		(120	)			(316	)			62.0	%					$	(334	)		$	(675	)			50.5	%
EBITDAre(1)		179				(154	)		N/M								295				(180	)		N/M
Adjusted EBITDAre(1)		177				(111	)		N/M								290				(136	)		N/M
Diluted loss per common      share		(0.17	)			(0.44	)			61.4	%						(0.47	)			(0.95	)			50.5	%
NAREIT FFO per diluted      share⁽¹⁾		0.20				(0.21	)		N/M								0.33				(0.25	)		N/M
Adjusted FFO per diluted      share⁽¹⁾		0.20				(0.11	)		N/M								0.33				(0.14	)		N/M

* Additional detail on the Company’s results, including data for 21 domestic markets, is available in the Third Quarter 2021 Supplemental Financial Information available on the Company’s website at www.hosthotels.com.

James F. Risoleo, President and Chief Executive Officer, said, “During the third quarter, we continued to see strong positive operating trends and significant sequential improvements across our portfolio. RevPAR was $129 for the quarter, representing a 26% increase over the prior quarter. While much of the recovery has been concentrated in Sunbelt markets, our urban markets also saw significant RevPAR improvements during the third quarter."

 

N/M = Not Meaningful

 

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HOST HOTELS & RESORTS, INC. NEWS RELEASE	NOVEMBER 3, 2021

 

Risoleo continued, “In September, we completed another off-market acquisition, buying the Alila Ventana Big Sur in California, bringing our total acquisitions for 2021 to $1.2 billion. Subsequent to quarter end, we disposed of five hotels, totaling 2,323 keys, for $551 million. Additionally, our positive hotel operating results led to improved credit metrics and we exited the credit facility covenant waiver period three quarters ahead of its expiration. We continue to believe we are in the early stages of a prolonged lodging recovery, and remain focused on improving the quality and EBITDA growth profile of our portfolio."

Highlights:

Results for Third Quarter 2021

Subsequent Events

Balance Sheet

Subsequent to quarter end, the Company terminated its credit facility's covenant waiver period, as it met the required minimum fixed charge coverage ratio for its first phase-in quarter test. The Company will be required to meet the modified phase-in financial covenant thresholds for the following five quarters and, after that time, will be subject to the original covenant levels in the credit facility prior to amendment. Upon termination of the waiver period, the 40 basis point additional interest rate applicable to borrowings under the credit facility was removed, in addition to lifting additional restrictions on repayments, investments and distributions.

Sourav Ghosh, Executive Vice President, Chief Financial Officer, stated, “The third quarter represents a turning point in our recovery as continued sequential operating improvements led to positive cash flow. As a result, we have met the minimum covenant levels required under our senior notes, lifting the restriction on incurring debt. In addition, we have exited our credit facility waiver period, which provides immediate savings through a decrease in our interest rate and reflects the continued strength of our balance sheet. Despite the challenging environment during the quarter, we improved our flexibility for financing transactions and enhanced the quality of our portfolio through hotel acquisitions, dispositions, and reinvestment in our assets."

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HOST HOTELS & RESORTS, INC. NEWS RELEASE	NOVEMBER 3, 2021

 

The Company maintains a robust balance sheet, with the following balances at September 30, 2021:

Operating Results

The following presents the monthly pro forma hotel operating results on a constant dollar basis for the full portfolio owned as of September 30, 2021 compared to 2020 and 2019 for the months presented(3):

		July				July								August				August								September				September								Quarter ended September 30,
		2021				2020				Change				2021				2020				Change				2021				2020				Change				2021				2020				Change
Number of hotels			84				83								84				83								84				83								84				83
Number of rooms			47,474				47,309								47,474				47,309								47,474				47,309								47,474				47,309
Average      Occupancy      Percentage			57.2	%			13.2	%			44.0 pts				54.1	%			19.1	%			35.0 pts				55.4	%			19.9	%			35.5 pts				55.6	%			17.4	%			38.2 pts
Average Room      Rate		$	240.10			$	190.38				26.1	%		$	228.78			$	173.27				32.0	%		$	227.85			$	186.16				22.4	%		$	232.40			$	182.46				27.4	%
RevPAR		$	137.32			$	25.04				448.3	%		$	123.76			$	33.13				273.6	%		$	126.23			$	37.13				240.0	%		$	129.14			$	31.71				307.3	%

 

		July				July								August				August								September				September								Quarter ended September 30,
		2021				2019				Change				2021				2019				Change				2021				2019				Change				2021				2019				Change
Number of hotels			84				83								84				83								84				83								84				83
Number of rooms			47,474				47,309								47,474				47,309								47,474				47,309								47,474				47,309
Average      Occupancy      Percentage			57.2	%			82.4	%			(25.2 pts)				54.1	%			80.5	%			(26.4 pts)				55.4	%			78.2	%			(22.8 pts)				55.6	%			80.4	%			(24.8 pts)
Average Room      Rate		$	240.10			$	233.89				2.7	%		$	228.78			$	222.06				3.0	%		$	227.85			$	246.32				(7.5	)%		$	232.40			$	233.84				(0.6	)%
RevPAR		$	137.32			$	192.79				(28.8	)%		$	123.76			$	178.73				(30.8	)%		$	126.23			$	192.55				(34.4	)%		$	129.14			$	187.97				(31.3	)%

 

Third Quarter 2021 Revenue Performance

PAGE 3 OF 25

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HOST HOTELS & RESORTS, INC. NEWS RELEASE	NOVEMBER 3, 2021

 

Third Quarter 2021 Hotel Operating Expense Performance

Hotel Business Mix Update

The Company’s customers fall into three broad groups: transient, group and contract business, which accounted for approximately 61%, 35%, and 4%, respectively, of its 2019 room sales.

During the third quarter, demand continued to be primarily driven by leisure at drive-to and resort destinations. The following are the sequential results of the Company’s consolidated portfolio, including all owned hotels at September 30, 2021 on a pro forma basis, for transient, group and contract business in comparison to 2019 performance:

	Quarter ended September 30, 2021												Quarter ended  June 30, 2021
	Transient				Group				Contract				Transient				Group				Contract
Room nights (in thousands)		1,678				594				157				1,416				346				109
Percentage change in room nights      vs. same period in 2019		(23.3	)%			(47.8	)%			(9.9	)%			(29.6	)%			(74.4	)%			(34.3	)%
Room Revenues (in millions)	$	424			$	114			$	26			$	367			$	60			$	18
Percentage change in revenues vs.      same period in 2019		(19.6	)%			(54.0	)%			(40.5	)%			(30.6	)%			(81.7	)%			(59.0	)%

Capital Allocation Strategy

The Company continued to execute on its capital allocation strategy by recycling capital into assets that the Company believes will improve the quality and EBITDA growth profile of its portfolio. During the quarter, the Company acquired the 200-room Baker's Cay Resort Key Largo, Curio Collection by Hilton, for $200 million, a 223-room luxury downtown Houston hotel for $65 million and the 59-room Alila Ventana Big Sur for $150 million. The downtown Houston hotel has been rebranded as The Laura Hotel, as part of the Autograph Collection by Marriott. It will be managed by HEI Hotels & Resorts and is expected to open in the fourth quarter of 2021. Year-to-date, the Company has acquired five hotels and land for a total purchase price of $1.2 billion.

Subsequent to quarter end, the Company sold the Westfields Marriott Washington Dulles, San Ramon Marriott, The Westin Buckhead Atlanta, The Westin Los Angeles Airport and The Whitley for $551 million, including approximately $11 million for the FF&E replacement funds, and expects to record a gain on sale of $300 million in the fourth quarter.

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HOST HOTELS & RESORTS, INC. NEWS RELEASE	NOVEMBER 3, 2021

 

Capital Expenditures

The following presents the Company’s year-to-date 2021 capital expenditures spend and the forecast for full year 2021 (in millions):

 

		Year-to-date ended September 30, 2021				2021 Full Year Forecast
		Actuals				Low-end of range				High-end of range
ROI - Marriott transformational capital program		$	82			$	115			$	140
ROI - All other ROI projects			119				170				180
Total ROI project spend			201				285				320
Renewals and Replacements			92				125				145
Total Capital Expenditures		$	293			$	410			$	465

The Company is utilizing the lower occupancy environment to accelerate certain projects and minimize future disruption and believes the renovations will position these hotels to capture additional revenue during the economic recovery. The Company is on track to complete 85% of the Marriott transformational capital program by the end of 2021. The Company expects to receive approximately $14 million in operating profit guarantees in 2021 under the Marriott transformational capital program. As of September 30, 2021, the Company has received $12 million in operating profit guarantees for the year, with $2 million received in the third quarter.

2021 Outlook

Given the global economic uncertainty COVID-19 has created for the travel, airline, lodging and tourism and event industries, the Company cannot provide guidance for its operations or fully estimate the effect of COVID-19 or its variants and the current U.S. vaccination deployment on its operations.

The Company believes that recovery within the lodging industry will be driven by the strength of the economy, increased consumer confidence that the risks associated with travelling and contracting COVID-19 have been significantly reduced, and the return of business and group customers.

While the Company is not providing guidance on operations at this time, it estimates that for full year 2021, interest expense and corporate and other expenses will be in the following ranges (in millions):

		Full Year 2021
		Low-end of range				High-end of range
Interest expense		$	169			$	171
Corporate and other expenses			98				100

The Company does not intend to provide further guidance updates unless deemed appropriate.

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 75 properties in the United States and five properties internationally totaling approximately 45,400 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®, Four Seasons®, Swissôtel®, ibis® and Novotel®, as well as independent brands. For additional information, please visit the Company’s website at www.hosthotels.com.

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements include 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: the duration and scope of the COVID-19 pandemic and its short and longer-term impact on the demand for travel, transient and group business, and levels of consumer confidence; actions governments, businesses and individuals take in response to the pandemic, including limiting or banning travel or the size of gatherings; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies, travel, and economic activity, including the duration and magnitude of its impact on unemployment rates, business investment and consumer discretionary spending; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in U.S. markets where we own hotels and a worsening of economic conditions or low levels of economic growth in these markets; the effects of steps we

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HOST HOTELS & RESORTS, INC. NEWS RELEASE	NOVEMBER 3, 2021

 

and our hotel managers take to reduce operating costs in response to the COVID-19 pandemic; other changes (apart from the COVID-19 pandemic) in national and local economic and business conditions and other factors such as natural disasters 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 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 3, 2021 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 6 OF 25

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HOST HOTELS & RESORTS, INC. NEWS RELEASE	NOVEMBER 3, 2021

 

Host Hotels & Resorts, Inc., herein referred to as “we,” “Host Inc.,” or the “Company,” is a self-managed and self-administered real estate investment trust that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resorts, L.P. (“Host LP”), of which we are the sole general partner. When distinguishing between Host Inc. and Host LP, the primary difference is approximately 1% of the partnership interests in Host LP held by outside partners as of September 30, 2021, which is non-controlling interests in Host LP in our consolidated balance sheets and is included in net (income) loss 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.

2021 OPERATING RESULTS		PAGE NO.
Condensed Consolidated Balance Sheets (unaudited)      September 30, 2021 and December 31, 2020		8
Condensed Consolidated Statements of Operations (unaudited)      Quarter and Year-to-date ended September 30, 2021 and 2020		9
Earnings (Loss) per Common Share (unaudited)      Quarter and Year-to-date ended September 30, 2021 and 2020		10
Hotel Operating Data
Hotel Operating Data for Consolidated Hotels (by Location)		11
Schedule of All Owned Hotel Pro Forma Results		15
Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre		20
Reconciliation of Diluted Earnings (Loss) per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share		21
Notes to Financial Information		22

 

 

 

 

 

 

PAGE 7 OF 25

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HOST HOTELS & RESORTS, INC.

Condensed Consolidated Balance Sheets

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

 

		September 30,  2021				December 31, 2020
ASSETS
Property and equipment, net		$	10,124			$	9,416
Right-of-use assets			559				597
Assets held for sale			280				—
Due from managers			58				22
Advances to and investments in affiliates			62				21
Furniture, fixtures and equipment replacement fund			138				139
Other			453				360
Cash and cash equivalents			1,038				2,335
Total assets		$	12,712			$	12,890
LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY
Debt⁽¹⁾
Senior notes		$	3,068			$	3,065
Credit facility, including the term loans of $997			2,472				2,471
Other debt			5				5
Total debt			5,545				5,541
Lease liabilities			572				610
Accounts payable and accrued expenses			91				71
Due to managers			55				64
Liabilities held for sale			37				—
Other			167				170
Total liabilities			6,467				6,456
Redeemable non-controlling interests - Host Hotels & Resorts, L.P.			119				108
Host Hotels & Resorts, Inc. stockholders’ equity:
Common stock, par value $.01, 1,050 million shares authorized,      714.0 million shares and 705.4 million shares issued and      outstanding, respectively			7				7
Additional paid-in capital			7,700				7,568
Accumulated other comprehensive loss			(75	)			(74	)
Deficit			(1,511	)			(1,180	)
Total equity of Host Hotels & Resorts, Inc. stockholders			6,121				6,321
Non-redeemable non-controlling interests—other consolidated      partnerships			5				5
Total equity			6,126				6,326
Total liabilities, non-controlling interests and equity		$	12,712			$	12,890
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HOST HOTELS & RESORTS, INC.

Condensed Consolidated Statements of Operations

(unaudited, in millions, except per share amounts)

 

		Quarter ended September 30,								Year-to-date ended September 30,
		2021				2020				2021				2020
Revenues
Rooms		$	557			$	126			$	1,237			$	813
Food and beverage			191				31				405				372
Other			96				41				250				168
Total revenues			844				198				1,892				1,353
Expenses
Rooms			150				69				324				299
Food and beverage			146				72				313				356
Other departmental and support expenses			252				109				621				541
Management fees			27				5				59				33
Other property-level expenses			82				77				239				240
Depreciation and amortization			263				166				597				498
Corporate and other expenses⁽¹⁾			24				18				73				68
Gain on insurance and business interruption settlements			(5	)			—				(5	)			—
Total operating costs and expenses			939				516				2,221				2,035
Operating loss			(95	)			(318	)			(329	)			(682	)
Interest income			1				—				2				7
Interest expense			(43	)			(66	)			(128	)			(143	)
Other gains			2				—				4				13
Equity in earnings (losses) of affiliates⁽²⁾			2				(5	)			36				(26	)
Loss before income taxes			(133	)			(389	)			(415	)			(831	)
Benefit for income taxes⁽³⁾			13				73				81				156
Net loss			(120	)			(316	)			(334	)			(675	)
Less: Net loss attributable to non-controlling      interests			1				3				3				7
Net loss attributable to Host Inc.		$	(119	)		$	(313	)		$	(331	)		$	(668	)
Basic and diluted loss per common share		$	(.17	)		$	(.44	)		$	(.47	)		$	(.95	)
___________

		Quarter ended September 30,								Year-to-date ended September 30,
		2021				2020				2021				2020
General and administrative costs		$	20			$	14			$	60			$	57
Non-cash stock-based compensation expense			4				4				13				11
Total		$	24			$	18			$	73			$	68

 

PAGE 9 OF 25

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HOST HOTELS & RESORTS, INC.

Earnings (Loss) per Common Share

(unaudited, in millions, except per share amounts)

 

		Quarter ended September 30,								Year-to-date ended September 30,
		2021				2020				2021				2020
Net loss		$	(120	)		$	(316	)		$	(334	)		$	(675	)
Less: Net loss attributable to non-controlling      interests			1				3				3				7
Net loss attributable to Host Inc.		$	(119	)		$	(313	)		$	(331	)		$	(668	)
Basic weighted average shares outstanding			713.9				705.2				709.0				706.1
Diluted weighted average shares outstanding⁽¹⁾			713.9				705.2				709.0				706.1
Basic and diluted loss per common share		$	(.17	)		$	(.44	)		$	(.47	)		$	(.95	)
___________

 

 

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HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels (1)(2)

All Owned Hotels (pro forma) by Location in Constant US$ Compared to 2020

	As of September 30, 2021						Quarter ended September 30, 2021												Quarter ended September 30, 2020
Location	No. of Properties			No. of Rooms			Average Room Rate			Average Occupancy Percentage			RevPAR			Total RevPAR			Average Room Rate			Average Occupancy Percentage			RevPAR			Total RevPAR			Percent Change in RevPAR			Percent Change in Total RevPAR
Maui/Oahu		4			2,007		$	514.34			82.8	%	$	425.86		$	635.28		$	172.74			11.3	%	$	19.47		$	25.42			2,087.7	%		2,399.1	%
Jacksonville		1			446			465.60			68.7			319.90			683.35			419.23			43.3			181.67			383.23			76.1			78.3
Miami		3			1,276			364.54			55.2			201.40			333.79			209.34			26.8			56.08			98.65			259.1			238.3
Florida Gulf Coast		5			1,842			314.16			45.2			141.93			286.62			288.56			33.7			97.38			194.67			45.7			47.2
Phoenix		4			1,822			245.88			57.7			141.92			321.83			201.12			22.0			44.33			110.66			220.1			190.8
Orlando		2			2,448			332.90			37.4			124.35			228.19			433.28			7.0			30.40			63.13			309.1			261.5
Los Angeles/    Orange County		5			2,119			218.60			71.1			155.40			216.04			182.68			26.4			48.15			62.24			222.8			247.1
Philadelphia		2			810			191.85			79.1			151.74			223.07			147.01			32.2			47.36			68.09			220.4			227.6
San Diego		3			3,288			247.61			72.1			178.55			281.14			203.85			15.6			31.78			52.66			461.8			433.9
Houston		4			1,716			149.60			66.6			99.67			133.88			105.12			32.4			34.07			47.93			192.5			179.3
Atlanta		4			1,682			178.31			56.6			100.94			142.30			139.03			31.6			43.89			60.57			130.0			134.9
Northern Virginia		3			1,252			169.41			60.6			102.70			156.44			157.90			19.7			31.11			43.91			230.1			256.3
San Antonio/    Austin		3			1,960			181.37			56.1			101.79			152.09			130.06			15.4			20.04			28.10			408.0			441.3
Washington, D.C. (CBD)		5			3,238			185.06			37.1			68.65			96.94			163.25			6.3			10.22			12.42			571.6			680.6
Denver		3			1,340			169.25			65.4			110.75			141.64			122.10			21.5			26.24			34.58			322.0			309.6
Chicago		4			1,816			191.01			62.4			119.27			149.38			124.78			17.6			21.95			26.96			443.2			454.1
New York		3			4,261			217.90			46.2			100.72			130.88			187.37			11.0			20.70			23.16			386.5			465.2
Seattle		2			1,315			202.49			53.5			108.25			130.03			172.32			6.1			10.48			12.33			932.5			954.7
New Orleans		1			1,333			136.76			54.3			74.30			91.66			112.64			26.6			30.00			35.57			147.7			157.7
San Francisco/    San Jose		7			4,530			163.42			50.0			81.72			104.30			165.35			13.1			21.59			27.13			278.4			284.5
Boston		3			2,715			204.56			48.1			98.46			117.58			135.30			4.9			6.62			9.43			1,387.8			1,146.4
Other		8			2,759			252.92			53.8			136.07			189.18			198.70			26.0			51.63			73.67			163.6			156.8
Domestic		79			45,975			236.65			55.7			131.82			199.00			184.34			17.6			32.40			51.32			306.8			287.7
International		5			1,499			90.99			51.4			46.77			66.43			93.15			11.3			10.56			14.14			342.8			369.8
All Locations -   Constant   US$		84			47,474			232.40			55.6			129.14			194.82			182.46			17.4			31.71			50.15			307.3			288.5

 

 

All Owned Hotels (pro forma) in Nominal US$ Compared to 2020

	As of September 30, 2021						Quarter ended September 30, 2021												Quarter ended September 30, 2020
	No. of Properties			No. of Rooms			Average Room Rate			Average Occupancy Percentage			RevPAR			Total RevPAR			Average Room Rate			Average Occupancy Percentage			RevPAR			Total RevPAR			Percent Change in RevPAR			Percent Change in Total RevPAR
International		5			1,499		$	90.99			51.4	%	$	46.77		$	66.43		$	88.93			11.3	%	$	10.08		$	13.50			363.8	%		392.0	%
Domestic		79			45,975			236.65			55.7			131.82			199.00			184.34			17.6			32.40			51.32			306.8			287.7
All Locations		84			47,474			232.40			55.6			129.14			194.82			182.37			17.4			31.69			50.13			307.5			288.7

 

 

 

 

 

 

PAGE 11 OF 25

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HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels (1)(2) (cont.)

All Owned Hotels (pro forma) by Location in Constant US$ Compared to 2019

	As of September 30, 2021						Quarter ended September 30, 2021												Quarter ended September 30, 2019
Location	No. of Properties			No. of Rooms			Average Room Rate			Average Occupancy Percentage			RevPAR			Total RevPAR			Average Room Rate			Average Occupancy Percentage			RevPAR			Total RevPAR			Percent Change in RevPAR			Percent Change in Total RevPAR
Maui/Oahu		4			2,007		$	514.34			82.8	%	$	425.86		$	635.28		$	385.51			91.5	%	$	352.78		$	554.15			20.7	%		14.6	%
Jacksonville		1			446			465.60			68.7			319.90			683.35			363.69			69.0			251.05			516.90			27.4			32.2
Miami		3			1,276			364.54			55.2			201.40			333.79			235.65			73.9			174.18			294.09			15.6			13.5
Florida Gulf Coast		5			1,842			314.16			45.2			141.93			286.62			242.93			61.6			149.63			302.07			(5.1	)		(5.1	)
Phoenix		4			1,822			245.88			57.7			141.92			321.83			197.07			57.9			114.19			287.59			24.3			11.9
Orlando		2			2,448			332.90			37.4			124.35			228.19			250.13			61.0			152.55			315.38			(18.5	)		(27.6	)
Los Angeles/    Orange County		5			2,119			218.60			71.1			155.40			216.04			229.84			86.3			198.43			289.80			(21.7	)		(25.5	)
Philadelphia		2			810			191.85			79.1			151.74			223.07			207.13			88.2			182.60			295.52			(16.9	)		(24.5	)
San Diego		3			3,288			247.61			72.1			178.55			281.14			256.92			83.5			214.41			372.78			(16.7	)		(24.6	)
Houston		4			1,716			149.60			66.6			99.67			133.88			170.32			67.0			114.07			159.84			(12.6	)		(16.2	)
Atlanta		4			1,682			178.31			56.6			100.94			142.30			168.37			85.6			144.09			219.82			(29.9	)		(35.3	)
Northern Virginia		3			1,252			169.41			60.6			102.70			156.44			199.70			72.7			145.09			217.46			(29.2	)		(28.1	)
San Antonio/    Austin		3			1,960			181.37			56.1			101.79			152.09			171.99			70.8			121.83			182.42			(16.4	)		(16.6	)
Washington, D.C. (CBD)		5			3,238			185.06			37.1			68.65			96.94			211.15			84.4			178.19			254.63			(61.5	)		(61.9	)
Denver		3			1,340			169.25			65.4			110.75			141.64			184.28			84.5			155.64			218.16			(28.8	)		(35.1	)
Chicago		4			1,816			191.01			62.4			119.27			149.38			220.91			85.5			188.78			264.29			(36.8	)		(43.5	)
New York		3			4,261			217.90			46.2			100.72			130.88			271.11			92.0			249.40			341.59			(59.6	)		(61.7	)
Seattle		2			1,315			202.49			53.5			108.25			130.03			260.45			90.2			234.96			291.64			(53.9	)		(55.4	)
New Orleans		1			1,333			136.76			54.3			74.30			91.66			156.82			77.0			120.78			175.05			(38.5	)		(47.6	)
San Francisco/    San Jose		7			4,530			163.42			50.0			81.72			104.30			266.18			84.2			224.20			301.99			(63.6	)		(65.5	)
Boston		3			2,715			204.56			48.1			98.46			117.58			243.00			91.1			221.28			291.41			(55.5	)		(59.6	)
Other		8			2,759			252.92			53.8			136.07			189.18			199.21			80.2			159.70			245.36			(14.8	)		(22.9	)
Domestic		79			45,975			236.65			55.7			131.82			199.00			236.51			80.5			190.47			291.96			(30.8	)		(31.8	)
International		5			1,499			90.99			51.4			46.77			66.43			147.24			75.9			111.82			155.21			(58.2	)		(57.2	)
All Locations -   Constant   US$		84			47,474			232.40			55.6			129.14			194.82			233.84			80.4			187.97			287.63			(31.3	)		(32.3	)

 

All Owned Hotels (pro forma) in Nominal US$ Compared to 2019

	As of September 30, 2021						Quarter ended September 30, 2021												Quarter ended September 30, 2019
	No. of Properties			No. of Rooms			Average Room Rate			Average Occupancy Percentage			RevPAR			Total RevPAR			Average Room Rate			Average Occupancy Percentage			RevPAR			Total RevPAR			Percent Change in RevPAR			Percent Change in Total RevPAR
International		5			1,499		$	90.99			51.4	%	$	46.77		$	66.43		$	159.14			75.9	%	$	120.86		$	166.88			(61.3	)%		(60.2	)%
Domestic		79			45,975			236.65			55.7			131.82			199.00			236.51			80.5			190.47			291.96			(30.8	)		(31.8	)
All Locations		84			47,474			232.40			55.6			129.14			194.82			234.20			80.4			188.26			288.00			(31.4	)		(32.4	)

 

 

PAGE 12 OF 25

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HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels (1)(2) (cont.)

All Owned Hotels (pro forma) by Location in Constant US$ Compared to 2020

	As of September 30, 2021						Year-to-date ended September 30, 2021												Year-to-date ended September 30, 2020
Location	No. of Properties			No. of Rooms			Average Room Rate			Average Occupancy Percentage			RevPAR			Total RevPAR			Average Room Rate			Average Occupancy Percentage			RevPAR			Total RevPAR			Percent Change in RevPAR			Percent Change in Total RevPAR
Maui/Oahu		4			2,007		$	470.97			67.4	%	$	317.20		$	480.87		$	415.84			29.7	%	$	123.66		$	186.54			156.5	%		157.8	%
Jacksonville		1			446			506.77			57.8			293.02			587.76			405.40			42.8			173.66			356.40			68.7			64.9
Miami		3			1,276			472.94			57.4			271.38			424.17			370.39			35.3			130.64			211.54			107.7			100.5
Florida Gulf Coast		5			1,842			416.57			54.8			228.24			426.68			369.22			40.7			150.28			314.92			51.9			35.5
Phoenix		4			1,822			301.23			56.5			170.12			346.53			317.49			32.0			101.46			238.55			67.7			45.3
Orlando		2			2,448			398.72			27.3			108.98			196.25			347.84			21.5			74.64			159.82			46.0			22.8
Los Angeles/    Orange County		5			2,119			190.62			53.1			101.25			138.42			204.60			33.9			69.42			100.22			45.9			38.1
Philadelphia		2			810			169.58			58.7			99.52			147.38			160.15			35.2			56.35			88.08			76.6			67.3
San Diego		3			3,288			218.39			45.3			98.85			155.68			234.30			26.4			61.82			120.05			59.9			29.7
Houston		4			1,716			140.32			59.7			83.73			113.03			145.80			35.9			52.30			76.89			60.1			47.0
Atlanta		4			1,682			170.45			48.0			81.83			111.31			171.23			34.7			59.48			91.63			37.6			21.5
Northern Virginia		3			1,252			161.62			44.3			71.60			107.52			187.00			26.7			50.00			79.88			43.2			34.6
San Antonio/    Austin		3			1,960			162.63			43.8			71.26			103.90			176.22			23.1			40.72			65.85			75.0			57.8
Washington, D.C. (CBD)		5			3,238			161.96			42.2			68.41			81.26			223.18			21.5			48.07			68.76			42.3			18.2
Denver		3			1,340			149.35			42.1			62.95			80.24			145.92			26.5			38.63			56.80			63.0			41.3
Chicago		4			1,816			168.03			37.4			62.92			77.59			134.05			25.0			33.45			45.13			88.1			71.9
New York		3			4,261			189.90			31.7			60.17			75.05			190.05			32.4			61.49			87.59			(2.1	)		(14.3	)
Seattle		2			1,315			188.47			27.8			52.43			63.79			191.36			20.4			38.98			55.62			34.5			14.7
New Orleans		1			1,333			128.95			37.6			48.51			65.71			176.44			30.6			54.04			78.28			(10.2	)		(16.1	)
San Francisco/    San Jose		7			4,530			153.68			31.5			48.40			62.82			266.39			25.5			67.87			98.41			(28.7	)		(36.2	)
Boston		3			2,715			180.00			25.7			46.18			56.54			173.40			19.3			33.48			50.97			37.9			10.9
Other		8			2,759			245.69			43.7			107.40			151.39			187.25			32.7			61.21			88.43			75.5			71.2
Domestic		79			45,975			240.30			42.5			102.15			156.04			235.37			28.5			67.02			111.88			52.4			39.5
International		5			1,499			85.10			28.0			23.85			34.15			119.06			24.3			28.94			43.76			(17.6	)		(22.0	)
All Locations -   Constant   US$		84			47,474			237.03			42.1			99.68			152.19			232.21			28.3			65.82			109.72			51.5			38.7

 

All Owned Hotels (pro forma) in Nominal US$ Compared to 2020

	As of September 30, 2021						Year-to-date ended September 30, 2021												Year-to-date ended September 30, 2020
	No. of Properties			No. of Rooms			Average Room Rate			Average Occupancy Percentage			RevPAR			Total RevPAR			Average Room Rate			Average Occupancy Percentage			RevPAR			Total RevPAR			Percent Change in RevPAR			Percent Change in Total RevPAR
International		5			1,499		$	85.10			28.0	%	$	23.85		$	34.15		$	121.49			24.3	%	$	29.53		$	44.01			(19.3	)%		(22.4	)%
Domestic		79			45,975			240.30			42.5			102.15			156.04			235.37			28.5			67.02			111.88			52.4			39.5
All Locations		84			47,474			237.03			42.1			99.68			152.19			232.27			28.3			65.84			109.73			51.4			38.7

 

PAGE 13 OF 25

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HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels (1)(2) (cont.)

All Owned Hotels (pro forma) by Location in Constant US$ Compared to 2019

	As of September 30, 2021						Year-to-date ended September 30, 2021												Year-to-date ended September 30, 2019
Location	No. of Properties			No. of Rooms			Average Room Rate			Average Occupancy Percentage			RevPAR			Total RevPAR			Average Room Rate			Average Occupancy Percentage			RevPAR			Total RevPAR			Percent Change in RevPAR			Percent Change in Total RevPAR
Maui/Oahu		4			2,007		$	470.97			67.4	%	$	317.20		$	480.87		$	401.92			90.9	%	$	365.45		$	577.41			(13.2	)%		(16.7	)%
Jacksonville		1			446			506.77			57.8			293.02			587.76			383.37			77.2			296.02			652.91			(1.0	)		(10.0	)
Miami		3			1,276			472.94			57.4			271.38			424.17			318.31			80.1			254.98			401.39			6.4			5.7
Florida Gulf Coast		5			1,842			416.57			54.8			228.24			426.68			340.73			72.8			247.94			507.99			(7.9	)		(16.0	)
Phoenix		4			1,822			301.23			56.5			170.12			346.53			292.22			71.7			209.42			472.19			(18.8	)		(26.6	)
Orlando		2			2,448			398.72			27.3			108.98			196.25			285.49			70.7			201.76			412.06			(46.0	)		(52.4	)
Los Angeles/    Orange County		5			2,119			190.62			53.1			101.25			138.42			223.42			86.0			192.10			285.12			(47.3	)		(51.5	)
Philadelphia		2			810			169.58			58.7			99.52			147.38			216.10			85.4			184.46			301.70			(46.0	)		(51.1	)
San Diego		3			3,288			218.39			45.3			98.85			155.68			255.81			81.2			207.62			372.41			(52.4	)		(58.2	)
Houston		4			1,716			140.32			59.7			83.73			113.03			178.46			72.4			129.22			184.58			(35.2	)		(38.8	)
Atlanta		4			1,682			170.45			48.0			81.83			111.31			193.72			79.7			154.41			241.44			(47.0	)		(53.9	)
Northern Virginia		3			1,252			161.62			44.3			71.60			107.52			208.03			72.1			150.02			245.90			(52.3	)		(56.3	)
San Antonio/    Austin		3			1,960			162.63			43.8			71.26			103.90			192.68			76.3			146.98			225.63			(51.5	)		(54.0	)
Washington, D.C. (CBD)		5			3,238			161.96			42.2			68.41			81.26			246.65			83.1			204.99			293.15			(66.6	)		(72.3	)
Denver		3			1,340			149.35			42.1			62.95			80.24			175.15			76.3			133.61			195.92			(52.9	)		(59.0	)
Chicago		4			1,816			168.03			37.4			62.92			77.59			207.76			76.2			158.28			224.27			(60.2	)		(65.4	)
New York		3			4,261			189.90			31.7			60.17			75.05			268.50			83.0			222.99			329.67			(73.0	)		(77.2	)
Seattle		2			1,315			188.47			27.8			52.43			63.79			231.59			84.3			195.17			256.01			(73.1	)		(75.1	)
New Orleans		1			1,333			128.95			37.6			48.51			65.71			188.24			79.9			150.35			219.33			(67.7	)		(70.0	)
San Francisco/    San Jose		7			4,530			153.68			31.5			48.40			62.82			279.15			81.5			227.38			315.49			(78.7	)		(80.1	)
Boston		3			2,715			180.00			25.7			46.18			56.54			238.71			82.8			197.72			271.22			(76.6	)		(79.2	)
Other		8			2,759			245.69			43.7			107.40			151.39			193.55			77.3			149.55			224.34			(28.2	)		(32.5	)
Domestic		79			45,975			240.30			42.5			102.15			156.04			252.14			79.7			200.84			320.24			(49.1	)		(51.3	)
International		5			1,499			85.10			28.0			23.85			34.15			142.14			71.1			101.09			147.50			(76.4	)		(76.8	)
All Locations -   Constant   US$		84			47,474			237.03			42.1			99.68			152.19			249.02			79.4			197.68			314.77			(49.6	)		(51.7	)

 

All Owned Hotels (pro forma) in Nominal US$ Compared to 2019

 

	As of September 30, 2021						Year-to-date ended September 30, 2021												Year-to-date ended September 30, 2019
	No. of Properties			No. of Rooms			Average Room Rate			Average Occupancy Percentage			RevPAR			Total RevPAR			Average Room Rate			Average Occupancy Percentage			RevPAR			Total RevPAR			Percent Change in RevPAR			Percent Change in Total RevPAR
International		5			1,499		$	85.10			28.0	%	$	23.85		$	34.15		$	154.30			71.1	%	$	109.74		$	159.00			(78.3	)%		(78.5	)%
Domestic		79			45,975			240.30			42.5			102.15			156.04			252.14			79.7			200.84			320.24			(49.1	)		(51.3	)
All Locations		84			47,474			237.03			42.1			99.68			152.19			249.36			79.4			197.95			315.13			(49.6	)		(51.7	)

___________

N/M = Not meaningful

PAGE 14 OF 25

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HOST HOTELS & RESORTS, INC.

Schedule of All Owned Hotel Pro Forma Results (1)

(unaudited, in millions, except hotel statistics)

 

 

 

		Quarter ended September 30,												Year-to-date ended September 30,
		2021				2020				2019				2021				2020				2019
Number of hotels			84				83				83				84				83				83
Number of rooms			47,474				47,309				47,309				47,474				47,309				47,309
Change in hotel Total RevPAR -
Constant US$			288.5	%			—				—				38.7	%			—				—
Nominal US$			288.7	%			—				—				38.7	%			—				—
Change in hotel RevPAR -
Constant US$			307.3	%			—				—				51.5	%			—				—
Nominal US$			307.5	%			—				—				51.4	%			—				—
Operating profit (loss) margin⁽²⁾			(11.3	)%			(160.6	)%			10.9	%			(17.4	)%			(50.4	)%			15.3	%
All Owned Hotel Pro Forma      EBITDA margin⁽²⁾			23.0	%			(44.5	)%			25.3	%			18.4	%			(5.6	)%			29.0	%
Food and beverage profit margin⁽²⁾			23.6	%			(132.3	)%			23.8	%			22.7	%			4.3	%			31.7	%
All Owned Hotel Pro Forma food      and beverage profit margin⁽²⁾			22.9	%			(47.4	)%			23.5	%			22.2	%			11.1	%			31.6	%
Net income (loss)		$	(120	)		$	(316	)		$	372			$	(334	)		$	(675	)		$	851
Depreciation and amortization			263				166				165				597				498				501
Interest expense			43				66				46				128				143				132
Provision (benefit) for income taxes			(13	)			(73	)			4				(81	)			(156	)			22
Gain on sale of property and      corporate level      income/expense			19				23				(263	)			31				74				(296	)
Severance expense (reversal) at      hotel properties			(2	)			43				—				(5	)			44				—
Pro forma adjustments⁽³⁾			6				(7	)			(6	)			28				(8	)			(29	)
All Owned Hotel Pro Forma      EBITDA⁽⁴⁾		$	196			$	(98	)		$	318			$	364			$	(80	)		$	1,181

 

PAGE 15 OF 25

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HOST HOTELS & RESORTS, INC.

Schedule of All Owned Hotel Pro Forma Results (1) (cont.)

(unaudited, in millions, except hotel statistics)

 

	Quarter ended September 30, 2021																				Quarter ended September 30, 2020
					Adjustments																				Adjustments
	GAAP Results				Severance at hotel properties				Pro forma adjustments⁽³⁾				Depreciation and corporate level items				All Owned Hotel Pro Forma Results⁽⁴⁾				GAAP Results				Severance at hotel properties				Pro forma adjustments⁽³⁾				Depreciation and corporate level items				All Owned Hotel Pro Forma Results⁽⁴⁾
Revenues
Room	$	557			$	—			$	7			$	—			$	564			$	126			$	—			$	12			$	—			$	138
Food and      beverage		191				—				1				—				192				31				—				7				—				38
Other		96				—				1				—				97				41				—				3				—				44
Total revenues		844				—				9				—				853				198				—				22				—				220
Expenses
Room		150				1				1				—				152				69				(13	)			4				—				60
Food and      beverage		146				1				1				—				148				72				(24	)			8				—				56
Other		361				—				1				—				362				191				(6	)			17				—				202
Depreciation      and      amortization		263				—				—				(263	)			—				166				—				—				(166	)			—
Corporate and      other      expenses		24				—				—				(24	)			—				18				—				—				(18	)			—
Gain on      insurance and      business      interruption      settlements		(5	)			—				—				—				(5	)			—				—				—				—				—
Total expenses		939				2				3				(287	)			657				516				(43	)			29				(184	)			318
Operating Profit      - All Owned      Hotel Pro      Forma      EBITDA⁽⁴⁾	$	(95	)		$	(2	)		$	6			$	287			$	196			$	(318	)		$	43			$	(7	)		$	184			$	(98	)

 

 

PAGE 16 OF 25

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HOST HOTELS & RESORTS, INC.

Schedule of All Owned Hotel Pro Forma Results (1) (cont.)

(unaudited, in millions, except hotel statistics)

 

		Quarter ended September 30, 2021																				Quarter ended September 30, 2019
						Adjustments																				Adjustments
		GAAP Results				Severance at hotel properties				Pro forma adjustments⁽³⁾				Depreciation and corporate level items				All Owned Hotel Pro Forma Results⁽⁴⁾				GAAP Results				Pro forma adjustments⁽³⁾				Depreciation and corporate level items				All Owned Hotel Pro Forma Results⁽⁴⁾
Revenues
Room		$	557			$	—			$	7			$	—			$	564			$	830			$	(11	)		$	—			$	819
Food and      beverage			191				—				1				—				192				341				—				—				341
Other			96				—				1				—				97				91				4				—				95
Total revenues			844				—				9				—				853				1,262				(7	)			—				1,255
Expenses
Room			150				1				1				—				152				221				(2	)			—				219
Food and      beverage			146				1				1				—				148				260				1				—				261
Other			361				—				1				—				362				457				—				—				457
Depreciation      and      amortization			263				—				—				(263	)			—				165				—				(165	)			—
Corporate and      other      expenses			24				—				—				(24	)			—				26				—				(26	)			—
Gain on insurance      and business      interruption      settlements			(5	)			—				—				—				(5	)			(4	)			—				4				—
Total expenses			939				2				3				(287	)			657				1,125				(1	)			(187	)			937
Operating Profit      - All Owned      Hotel Pro      Forma      EBITDA⁽⁴⁾		$	(95	)		$	(2	)		$	6			$	287			$	196			$	137			$	(6	)		$	187			$	318

 

PAGE 17 OF 25

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HOST HOTELS & RESORTS, INC.

Schedule of All Owned Hotel Pro Forma Results (1) (cont.)

(unaudited, in millions, except hotel statistics)

 

		Year-to-date ended September 30, 2021																				Year-to-date ended September 30, 2020
						Adjustments																				Adjustments
		GAAP Results				Severance at hotel properties				Pro forma adjustments⁽³⁾				Depreciation and corporate level items				All Owned Hotel Pro Forma Results⁽⁴⁾				GAAP Results				Severance at hotel properties				Pro forma adjustments⁽³⁾				Depreciation and corporate level items				All Owned Hotel Pro Forma Results⁽⁴⁾
Revenues
Room		$	1,237			$	—			$	55			$	—			$	1,292			$	813			$	—			$	41			$	—			$	854
Food and      beverage			405				—				18				—				423				372				—				24				—				396
Other			250				—				13				—				263				168				—				11				—				179
Total revenues			1,892				—				86				—				1,978				1,353				—				76				—				1,429
Expenses
Room			324				1				10				—				335				299				(13	)			12				—				298
Food and      beverage			313				1				15				—				329				356				(24	)			20				—				352
Other			919				3				33				—				955				814				(7	)			52				—				859
Depreciation      and      amortization			597				—				—				(597	)			—				498				—				—				(498	)			—
Corporate and      other      expenses			73				—				—				(73	)			—				68				—				—				(68	)			—
Gain on      insurance and      business      interruption      settlements			(5	)			—				—				—				(5	)			—				—				—				—				—
Total expenses			2,221				5				58				(670	)			1,614				2,035				(44	)			84				(566	)			1,509
Operating Profit      - All Owned      Hotel Pro      Forma      EBITDA⁽⁴⁾		$	(329	)		$	(5	)		$	28			$	670			$	364			$	(682	)		$	44			$	(8	)		$	566			$	(80	)

 

PAGE 18 OF 25

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HOST HOTELS & RESORTS, INC.

Schedule of All Owned Hotel Pro Forma Results (1) (cont.)

(unaudited, in millions, except hotel statistics)

 

 

		Year-to-date ended September 30, 2021																				Year-to-date ended September 30, 2019
						Adjustments																				Adjustments
		GAAP Results				Severance at hotel properties				Pro forma adjustments⁽³⁾				Depreciation and corporate level items				All Owned Hotel Pro Forma Results⁽⁴⁾				GAAP Results				Pro forma adjustments⁽³⁾				Depreciation and corporate level items				All Owned Hotel Pro Forma Results⁽⁴⁾
Revenues
Room		$	1,237			$	—			$	55			$	—			$	1,292			$	2,618			$	(61	)		$	—			$	2,557
Food and      beverage			405				—				18				—				423				1,223				(6	)			—				1,217
Other			250				—				13				—				263				294				7				—				301
Total revenues			1,892				—				86				—				1,978				4,135				(60	)			—				4,075
Expenses
Room			324				1				10				—				335				664				(17	)			—				647
Food and      beverage			313				1				15				—				329				835				(3	)			—				832
Other			919				3				33				—				955				1,426				(11	)			—				1,415
Depreciation      and      amortization			597				—				—				(597	)			—				501				—				(501	)			—
Corporate and      other      expenses			73				—				—				(73	)			—				80				—				(80	)			—
Gain on insurance      and business      interruption      settlements			(5	)			—				—				—				(5	)			(4	)			—				4				—
Total expenses			2,221				5				58				(670	)			1,614				3,502				(31	)			(577	)			2,894
Operating Profit      - All Owned      Hotel Pro      Forma      EBITDA⁽⁴⁾		$	(329	)		$	(5	)		$	28			$	670			$	364			$	633			$	(29	)		$	577			$	1,181

 

PAGE 19 OF 25

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HOST HOTELS & RESORTS, INC.

Reconciliation of Net Income (Loss) to

EBITDA, EBITDAre and Adjusted EBITDAre (1)

(unaudited, in millions)

 

		Quarter ended September 30,								Year-to-date ended September 30,
		2021				2020				2021				2020
Net loss⁽²⁾		$	(120	)		$	(316	)		$	(334	)		$	(675	)
Interest expense			43				66				128				143
Depreciation and amortization			171				166				505				498
Income taxes			(13	)			(73	)			(81	)			(156	)
EBITDA⁽²⁾			81				(157	)			218				(190	)
Gain on dispositions			—				(1	)			—				(1	)
Non-cash impairment expense			92				—				92				—
Equity investment adjustments:
Equity in (earnings) losses of affiliates			(2	)			5				(36	)			26
Pro rata EBITDAre of equity investments⁽³⁾			8				(1	)			21				(15	)
EBITDAre⁽²⁾			179				(154	)			295				(180	)
Adjustments to EBITDAre:
Severance expense (reversal) at hotel properties			(2	)			43				(5	)			44
Adjusted EBITDAre⁽²⁾		$	177			$	(111	)		$	290			$	(136	)
___________

 

 

 

 

PAGE 20 OF 25

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HOST HOTELS & RESORTS, INC.

Reconciliation of Diluted Earnings (Loss) per Common Share to

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

(unaudited, in millions, except per share amounts)

 

 

 

		Quarter ended September 30,								Year-to-date ended September 30,
		2021				2020				2021				2020
Net loss⁽²⁾		$	(120	)		$	(316	)		$	(334	)		$	(675	)
Less: Net loss attributable to non-controlling      interests			1				3				3				7
Net loss attributable to Host Inc.			(119	)			(313	)			(331	)			(668	)
Adjustments:
Gain on dispositions			—				(1	)			—				(1	)
Depreciation and amortization			171				165				504				496
Non-cash impairment expense			92				—				92				—
Equity investment adjustments:
Equity in (earnings) losses of affiliates			(2	)			5				(36	)			26
Pro rata FFO of equity investments⁽³⁾			6				(4	)			16				(21	)
Consolidated partnership adjustments:
FFO adjustment for non-controlling      partnerships			—				—				(1	)			(1	)
FFO adjustments for non-controlling interests      of Host L.P.			(3	)			(2	)			(6	)			(5	)
NAREIT FFO⁽²⁾			145				(150	)			238				(174	)
Adjustments to NAREIT FFO:
Loss on debt extinguishment			—				27				—				28
Severance expense (reversal) at hotel properties			(2	)			43				(5	)			44
Adjusted FFO⁽²⁾		$	143			$	(80	)		$	233			$	(102	)
For calculation on a per share basis:⁽⁴⁾
Diluted weighted average shares      outstanding - EPS			713.9				705.2				709.0				706.1
Assuming issuance of common shares granted      under the comprehensive stock plans			1.6				—				1.6				—
Diluted weighted average shares outstanding -      NAREIT FFO and Adjusted FFO			715.5				705.2				710.6				706.1
Diluted loss per common share		$	(.17	)		$	(.44	)		$	(.47	)		$	(.95	)
NAREIT FFO per diluted share		$	.20			$	(.21	)		$	.33			$	(.25	)
Adjusted FFO per diluted share		$	.20			$	(.11	)		$	.33			$	(.14	)
___________

(1-3) Refer to corresponding footnote on the Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre.

 

 

 

PAGE 21 OF 25

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HOST HOTELS & RESORTS, INC.

Notes to Financial Information

 

All Owned Hotel Pro Forma Operating Statistics and Results

To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in this presentation on a comparable hotel basis in order to enable our investors to better evaluate our operating performance (discussed in “Hotel Property Level Operating Results” below). However, due to the COVID-19 pandemic and its effects on operations, there is little comparability between periods. For this reason, we temporarily are suspending our comparable hotel presentation and instead present hotel operating results for all consolidated hotels and, to facilitate comparisons between periods, we are presenting results on a pro forma basis, including the following adjustments: (1) operating results are presented for all consolidated hotels owned as of September 30, 2021, but do not include the results of operations for properties sold through the reporting date; and (2) operating results for acquisitions as of September 30, 2021 are reflected for full calendar years, to include results for periods prior to our ownership. For these hotels, since the year-over-year comparison includes periods prior to our ownership, the changes will not necessarily correspond to changes in our actual results.

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 of 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. We believe this presentation is useful to investors as it provides clarity with respect to the change in RevPAR in the local currency of the hotel consistent with the manner in which we would evaluate our domestic portfolio. However, the estimated effect of changes in foreign currency has been reflected in the results of net income (loss), EBITDA, Adjusted EBITDAre, diluted earnings (loss) per common 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) All Owned Hotel Pro Forma Operating Statistics and Results. The following discussion defines these measures and presents why we believe they are useful supplemental measures of our performance.

NAREIT FFO and NAREIT FFO per Diluted Share

We present NAREIT FFO and NAREIT FFO per diluted share as non-GAAP measures of our performance in addition to our earnings per share (calculated in accordance with GAAP). We calculate NAREIT FFO per diluted share as our NAREIT FFO (defined as set forth below) for a given operating period, as adjusted for the effect of dilutive securities, divided by the number of fully diluted shares outstanding during such period, in accordance with NAREIT guidelines. Effective January 1, 2019, we adopted NAREIT’s definition of FFO included in NAREIT’s Funds From Operations White Paper – 2018 Restatement. NAREIT defines FFO as net income (calculated in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment expense of certain real estate assets and investments and adjustments for consolidated partially-owned entities and unconsolidated affiliates. Adjustments for consolidated partially-owned entities and unconsolidated affiliates are calculated to reflect our pro rata share of the FFO of those entities on the same basis.

We believe that NAREIT FFO per diluted share is a useful supplemental measure of our operating performance and that the presentation of NAREIT FFO per diluted share, when combined with the primary GAAP presentation of earnings per share, provides beneficial information to investors. By excluding the effect of real estate depreciation, amortization, impairment expense and gains and losses from sales of depreciable real estate, all of which are based on historical cost accounting and which may be of lesser significance in evaluating current performance, we believe that such measures can facilitate comparisons of operating performance between periods and with other REITs, even though NAREIT FFO per diluted share does not represent an amount that accrues directly to holders of our common stock. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. As noted by NAREIT in its Funds From Operations White Paper – 2018 Restatement, the primary purpose for including FFO as a supplemental measure of operating performance of a REIT is to address the artificial nature of historical cost depreciation and amortization of real estate and real estate-related assets mandated by GAAP. For these reasons, NAREIT adopted the FFO metric in order to promote a uniform industry-wide measure of REIT operating performance.

PAGE 22 OF 25

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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 diluted earnings per share and FFO per diluted share as defined by NAREIT, provides useful supplemental information that is beneficial to an investor’s understanding of our operating performance. We adjust NAREIT FFO per diluted share for the following items, which may occur in any period, and refer to this measure as Adjusted FFO per diluted share:

In unusual circumstances, we also may adjust NAREIT FFO for gains or losses that management believes are not representative of the Company’s current operating performance. For example, in 2017, as a result of the reduction of the U.S. federal corporate income tax rate from 35% to 21% by the Tax Cuts and Jobs Act, we remeasured our domestic deferred tax assets as of December 31, 2017 and recorded a one-time adjustment to reduce our deferred tax assets and to increase the provision for income taxes by approximately $11 million. We do not consider this adjustment to be reflective of our on-going operating performance and, therefore, we excluded this item from Adjusted FFO.

EBITDA

Earnings before Interest Expense, Income Taxes, Depreciation and Amortization (“EBITDA”) is a commonly used measure of performance in many industries. Management believes EBITDA provides useful information to investors regarding our results of operations because it helps us and our investors evaluate the ongoing operating performance of our properties after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization). Management also believes the use of EBITDA facilitates comparisons between us and other lodging REITs, hotel owners that are not REITs and other capital-intensive companies. Management uses EBITDA to evaluate property-level results and as one measure in determining the value of acquisitions and dispositions and, like FFO and Adjusted FFO per diluted share, it is widely used by management in the annual budget process and for our compensation programs.

EBITDAre and Adjusted EBITDAre

We present EBITDAre in accordance with NAREIT guidelines, as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate,” to provide an additional performance measure to facilitate the evaluation and comparison of the Company’s results with other REITs. NAREIT defines EBITDAre as net income (calculated in accordance with GAAP) excluding interest expense, income tax, depreciation and amortization, gains or losses on disposition of depreciated property (including gains or losses on change of control), impairment expense 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

PAGE 23 OF 25

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HOST HOTELS & RESORTS, INC.

Notes to Financial Information

 

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:

In unusual circumstances, we also may adjust EBITDAre for gains or losses that management believes are not representative of the Company’s current operating performance. The last adjustment of this nature was a 2013 exclusion of a gain from an eminent domain claim.

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

We calculate EBITDAre and NAREIT FFO per diluted share in accordance with standards established by NAREIT, which may not be comparable to measures calculated by other companies that do not use the NAREIT definition of EBITDAre and FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance. In addition, although EBITDAre and FFO per diluted share are useful measures when comparing our results to other REITs, they may not be helpful to investors when comparing us to non-REITs. We also calculate Adjusted FFO per diluted share and Adjusted EBITDAre, which are not in accordance with NAREIT guidance and may not be comparable to measures calculated by other REITs or by other companies. This information should not be considered as an alternative to net income, operating profit, cash from operations or any other operating performance measure calculated in accordance with GAAP. Cash expenditures for various long-term assets (such as renewal and replacement capital expenditures), interest expense (for EBITDA, EBITDAre and Adjusted EBITDAre purposes only), severance expense related to significant property-level reconfiguration and other items have been, and will be, made and are not reflected in the EBITDA, EBITDAre, Adjusted EBITDAre, NAREIT FFO per diluted share and Adjusted FFO per diluted share presentations. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our consolidated statements of operations and consolidated statements of cash flows (“Statements of Cash Flows”) in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures. Additionally, NAREIT FFO per diluted share, Adjusted FFO per diluted share, EBITDA, EBITDAre and Adjusted EBITDAre should not be considered as 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 10 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.

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 hotel-level pro forma basis as supplemental information for our investors. Our hotel results reflect the operating

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HOST HOTELS & RESORTS, INC.

Notes to Financial Information

 

results of our hotels as discussed in “All Owned Hotel Pro Forma Operating Statistics and Results” above. We present all owned hotel pro forma EBITDA to help us and our investors evaluate the ongoing operating performance of our hotels after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization expense). Corporate-level costs and expenses also are removed to arrive at property-level results. We believe these property-level results provide investors with supplemental information about the ongoing operating performance of our hotels. All owned hotel pro forma results are presented both by location and for the Company’s properties in the aggregate. While severance expense is not uncommon at the individual property level in the normal course of business, we eliminate from our hotel level operating results severance costs related to broad-based and significant property-level reconfiguration that is not considered to be within the normal course of business, as we believe this elimination provides useful supplemental information that is beneficial to an investor’s understanding of our ongoing operating performance. We also eliminate depreciation and amortization expense because, even though depreciation and amortization expense are property-level expenses, these non-cash expenses, which are based on historical cost accounting for real estate assets, implicitly assume that the value of real estate assets diminishes predictably over time. As noted earlier, because real estate values historically have risen or fallen with market conditions, many real estate industry investors have considered presentation of historical cost accounting for operating results to be insufficient.

Because of the elimination of corporate-level costs and expenses, gains or losses on disposition, certain severance expenses and depreciation and amortization expense, the 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.

While management believes that presentation of all owned hotel results is a supplemental measure that provides useful information in evaluating our ongoing performance, this measure is not used to allocate resources or to assess the operating performance of each of our hotels, as these decisions are based on data for individual hotels and are not based on all owned hotel results in the aggregate. For these reasons, we believe all owned 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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Supplemental Financial Information September 30, 2021 Exhibit 99.2

Table of Contents 2

OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION COVID-19 DATA NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 3

About host Hotels & Resorts 4 Premier US LODGING REIT LUXURY & UPPER UPSCALE CONSOLIDATED HOTELS PORTFOLIO(2) Based on market cap as of September 30, 2021. See Comparative Capitalization for calculation. At November 3, 2021.

5 Analyst Coverage 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.

ABOUT HOST HOTELS & RESORTS Host Hotels & Resorts, Inc., herein referred to as “we,” “Host Inc.,” or the “Company,” is a self-managed and self-administered real estate investment trust that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resorts, L.P. (“Host LP”), of which we are the sole general partner. When distinguishing between Host Inc. and Host LP, the primary difference is approximately 1% of the partnership interests in Host LP held by outside partners as of September 30, 2021, which is non-controlling interests in Host LP in our consolidated balance sheets and is included in net (income) loss 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. 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: the duration and scope of the COVID-19 pandemic and its short and longer-term impact on the demand for travel, transient and group business, and levels of consumer confidence; actions governments, businesses and individuals take in response to the pandemic, including limiting or banning travel or the size of gatherings; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies, travel, and economic activity, including the duration and magnitude of its impact on unemployment rates, business investment and consumer discretionary spending; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in U.S. markets where we own hotels and a worsening of economic conditions or low levels of economic growth in these markets; the effects of steps we and our hotel managers take to reduce operating costs in response to the COVID-19 pandemic; other changes (apart from the COVID-19 pandemic) in national and local economic and business conditions and other factors such as natural disasters 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 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 3, 2021, 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. 6 overview

To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in this supplemental information on a comparable hotel basis in order to enable our investors to better evaluate our operating performance (discussed in “Hotel Property Level Operating Results”). However, due to the COVID-19 pandemic and its effects on operations, there is little comparability between periods. For this reason, we temporarily are suspending our comparable hotel presentation and instead present hotel operating results for all consolidated hotels and, to facilitate comparisons between periods, we are presenting results on a pro forma basis, including the following adjustments: (1) operating results are presented for all consolidated hotels owned as of September 30, 2021, but do not include the results of operations for properties sold through the reporting date; and (2) operating results for acquisitions as of September 30, 2021 are reflected for full calendar years, to include results for periods prior to our ownership. For these hotels, since the year-over-year comparison includes periods prior to our ownership, the changes will not necessarily correspond to changes in our actual results. See the Notes to Supplemental Financial Information for further information on these pro forma statistics and the limitations on their use. 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) EBITDA (for both the Company and hotel level), (ii) EBITDAre and Adjusted EBITDAre, (iii) Net Operating Income (NOI) and (iv) All Owned Hotel Pro Forma Operating Statistics and Results. 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 ratio, unsecured interest coverage ratio and fixed charge coverage ratio, calculated in accordance with our credit facility, along with our EBITDA to interest coverage ratio, indenture indebtedness test, indenture secured indebtedness test, and indenture unencumbered assets to unsecured indebtedness test, 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. 7 All Owned Hotel Pro Forma Operating Statistics and Results and Non-GAAP Financial Measures

Overview Property level data capitalization Covid-19 data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 8

All owned Hotels (pro forma) Results by Location in Nominal US$ (unaudited, in millions, except hotel statistics and per room basis) RevPAR is the product of the average daily room rate charged and the average daily occupancy achieved. Total Revenues 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. Other property level includes certain ancillary revenues. CBD refers to the central business district. Pro forma adjustments represent the following items: (i) the elimination of results of operations of our sold hotels, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations and (ii) the addition of results for periods prior to our ownership for hotels acquired as of September 30, 2021. The AC Hotel Scottsdale North is a new development hotel located in Phoenix that opened in January 2021. Therefore, there were no operations for the hotel prior to January 2021 and no adjustments made for pro forma results of the hotel for periods prior to its opening. In addition, hotel results exclude the Laura Hotel, a luxury downtown Houston hotel, acquired in July 2021, as it was closed for the entirety of the quarter. Results for the five hotels sold subsequent to quarter end are included, as they were owned for the entirety of the periods presented. 9

All owned Hotels (pro forma) results by Location in Nominal US$ 10 (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. Pro forma adjustments represent the following items: (i) the elimination of results of operations of our sold hotels, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations and (ii) the addition of results for periods prior to our ownership for hotels acquired as of September 30, 2021.

All owned Hotels (pro forma) results by Location in Nominal US$ 11 (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. Pro forma adjustments represent the following items: (i) the elimination of results of operations of our sold hotels, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations and (ii) the addition of results for periods prior to our ownership for hotels acquired as of September 30, 2021.

All owned Hotels (pro forma) results by Location in Nominal US$ 12 (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. Pro forma adjustments represent the following items: (i) the elimination of results of operations of our sold hotels, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations and (ii) the addition of results for periods prior to our ownership for hotels acquired as of September 30, 2021. The AC Hotel Scottsdale North is a new development hotel located in Phoenix that opened in January 2021. Therefore, there were no operations for the hotel prior to January 2021 and no adjustments made for pro forma results of the hotel for periods prior to its opening. In addition, hotel results exclude the Laura Hotel, a luxury downtown Houston hotel, acquired in July 2021, as it was closed for the entirety of the quarter. Results for the five hotels sold subsequent to quarter end are included, as they were owned for the entirety of the periods presented.

All owned Hotels (pro forma) results by Location in Nominal US$ 13 (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. Pro forma adjustments represent the following items: (i) the elimination of results of operations of our sold hotels, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations and (ii) the addition of results for periods prior to our ownership for hotels acquired as of September 30, 2021.

All owned Hotels (pro forma) results by Location in Nominal US$ 14 (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. Pro forma adjustments represent the following items: (i) the elimination of results of operations of our sold hotels, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations and (ii) the addition of results for periods prior to our ownership for hotels acquired as of September 30, 2021.

Overview Property level data Capitalization COVID-19 Data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 15

Comparative Capitalization (in millions, except security pricing and per share amounts) 16 Each OP Unit is redeemable for cash or, at our option, for 1.021494 common shares of Host Inc. At September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, there were 7.1 million, 7.2 million, 7.2 million, 7.2 million, and 7.3 million in common OP Units, respectively, held by non-controlling interests. Share prices are the closing price as reported by the NASDAQ. 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.

Consolidated Debt Summary 17 (in millions) The interest rate shown is the rate of the outstanding credit facility revolver borrowings at September 30, 2021, based on LIBOR plus 150 basis points. Depending on Host L.P.’s unsecured long-term debt rating, Prior to the termination of the covenant relief period, interest on revolver borrowings is equal to LIBOR plus a margin ranging from 117.5 to 185 basis points, with a 15 bps LIBOR floor. Following the waiver period, the margin is reduced by 40 bps. 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, 2021, our share of debt in unconsolidated investments is $142 million and none of our debt is attributable to non-controlling interests. Total debt as of September 30, 2021 and December 31, 2020 includes net discounts and deferred financing costs of $43 million and $47 million, respectively.

Consolidated Debt Maturity as of September 30, 2021 18 The term loan and revolver under our credit facility that are due in 2024 have extension options that would extend maturity of both instruments to 2025, subject to meeting certain conditions, including payment of a fee.

Ground Lease Summary as of December 31, 2020 19 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. The San Ramon Marriott and Westin Los Angeles Airport are considered held for sale at September 30, 2021. Therefore, the lease terms for these properties have been excluded from our calculation of the weighted average remaining lease term and the room counts have been excluded from the percentage of leases with Public/Private/Non-Profit lessors.

Property TRANSACTIONS 20 2021 dispositions include the sale of five properties through November 3, 2021. The 2021 dispositions use 2019 full year results as the trailing twelve months is not representative of normalized operations. 2021 acquisitions include five properties and two golf courses acquired in 2021, through November 3, 2021. The Hyatt Regency Austin, Four Seasons Resort Orlando and Ka’anapali golf courses use full year 2019 results. Baker’s Cay Resort Key Largo is based on 2021 forecast operations at acquisition, as the property was under renovation and closed for part of 2019. The Laura Hotel is based on forecast normalized results, which assumes a new manager, brand and operations in line with the 2019 results of comparable Houston properties. Alila Ventana Big Sur is based on 2021 forecast operations at acquisition, as the property was under renovation for 2019. Due to the impact of COVID-19, results in 2020 are not reflective of normal operations of the hotels. Any forecast incremental increases to net income compared to net income at underwriting would be equal to the incremental increases in Hotel EBITDA. The cap rate is calculated as the ratio between net operating income (NOI) and the sales price (plus avoided capital expenditures for dispositions). Avoided capital expenditures for 2021 sales represents $85 million of estimated capital expenditure spend requirements for the properties in excess of escrow funding over the next 5 years. The EBITDA multiple is calculated as the ratio between the sales price (plus avoided capital expenditures for dispositions) and Hotel EBITDA. Avoided capital expenditures for 2021 sales represents $122 million of estimated capital expenditure spend requirements for the properties including escrow funding over the next 5 years. Net income cap rate is calculated as the ratio between net income and the sales price. Net income multiple is calculated as the ratio between the sales price and Hotel net income.

HISTORICAL PRO-FORMA RESULTS 21 Historical Pro forma Hotel Metrics (1) (2) Historical Pro Forma Hotel Revenues (1) (2)

HISTORICAL PRO-FORMA RESULTS 22 Historical Pro forma Adjusted EBITDAre (1) (2)

HISTORICAL PRO FORMA RESULTS CONT. 23 Historical All Owned Hotels Pro Forma EBITDA(1) (2) The tables above include pro forma adjustments for six assets acquired as of September 30, 2021, one property sold in 2020, 14 properties sold in 2019 and one property acquired in 2019. The sale of five assets occurred subsequent to quarter end; therefore, the hotels were owned as of September 30, 2021 and their results are included above. Pro forma results represent adjustments for the following items: (i) to remove the results of operations of our sold hotels, which operations are included in our condensed consolidated statements of operations as continuing operations and (ii) to include the results for periods prior to our ownership for hotels acquired as of September 30, 2021. EBITDA, EBITDAre, Adjusted EBITDAre, All Owned Hotels Pro Forma EBITDA, and Pro Forma Adjusted EBITDAre are non-GAAP financial  measures within the meaning of the rules of the Securities and Exchange commission. See the Notes to Supplemental Financial Information for discussion of these non-GAAP measures.

Overview Property Level Data Capitalization COVID-19 Data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 24

financial Covenants: Credit Facility Amendments 25 (unaudited, in millions, except ratios) Subsequent to quarter end, we terminated the Credit Facility covenant relief period prior to its expiration, as we met the minimum fixed charge coverage ratio of 1.0x required for our first phase-in quarterly test period. Following this test period, the fixed charge coverage ratio covenant returns to a minimum of 1.25x for subsequent quarters. We will be required to meet the modified phase-in financial covenant thresholds set forth below for the following five quarters and, after that time, will be subject to the original covenant levels in the credit facility prior to amendment. The following table sets forth the financial performance test under our credit facility necessary to exit the covenant relief period as well as the ratio achieved at quarter end: If the leverage ratio is greater than 7.0x then the unsecured interest coverage ratio minimum becomes 1.50x. Per the terms of the credit facility amendments, the fixed charge coverage ratio is calculated by using the annualized credit facility fixed charge coverage ratio EBITDA of the quarter prior to terminating the covenant relief period. The GAAP ratio is not relevant for the purpose of the financial covenants. See the following pages for a reconciliation of the equivalent GAAP measure. The foregoing reflects certain terms of the amended credit facility agreement, but does not purport to be a complete description of the terms of the amendments and such description is qualified in its entirety by reference to the amendments, copies of which are filed with the SEC.

financial Covenants: Credit Facility and Senior Notes Financial Performance Tests 26 (unaudited, in millions, except ratios) Covenant ratios are calculated using Host’s credit facility definitions and are for informational purposes only, as the covenants are not currently in effect under the Amendments. The GAAP ratio is not relevant for the purpose of the financial covenants. See the subsequent pages for a reconciliation of the equivalent GAAP measure. The following tables present the financial performance tests for our credit facility and senior notes: If the leverage ratio is greater than 7.0x then the unsecured interest coverage ratio minimum becomes 1.50x. Covenant ratios are calculated using Host’s senior notes indenture definitions. The GAAP ratio is not relevant for the purpose of the financial covenants. See the following pages for a reconciliation of the equivalent GAAP measure. As of September 30, 2021, the Company has met the minimum financial covenant levels under our senior notes indentures, which reinstates our ability to incur additional debt so long as we maintain these covenant levels and subject to the provisions of our credit facility and senior notes indentures.

Financial covenants: Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio 27 (unaudited, in millions, except ratios) The following table presents the calculation of our leverage ratio as used in the financial covenants of the credit facility: The following presents the reconciliation of debt to net debt per our credit facility definition: (2) The following presents the reconciliation of net loss to EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted EBITDA per our credit facility definition in determining leverage ratio: The following tables present the calculation of our leverage ratio using GAAP measures and used in the financial covenants of the credit facility:

Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio 28 (unaudited, in millions, except ratios) The following tables present the calculation of our unsecured interest coverage ratio using GAAP measures and as used in the financial covenants of the credit facility: (1) The following reconciles Adjusted Credit Facility EBITDA to Unencumbered Consolidated EBITDA per our credit facility definition. See Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio for calculation and reconciliation of net income to Adjusted Credit Facility EBITDA: (2) The following reconciles GAAP interest expense to interest expense per our credit facility definition:

Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Fixed Charge Coverage Ratio 29 (unaudited, in millions, except ratios) The following tables present the calculation of our GAAP Interest coverage ratio and our fixed charge coverage ratio as used in the financial covenants of the credit facility: (2) The following table calculates the fixed charges per our credit facility definition. See Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio for reconciliation of GAAP interest expense to adjusted interest expense per our credit facility definition. (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.

Financial Covenants: Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test 30 (unaudited, in millions, except ratios) The following tables present the calculation of our total indebtedness to total assets using GAAP measures and as used in the financial covenants of our senior notes indenture: (2) The following presents the reconciliation of total assets to adjusted total assets per the financial covenants of our senior notes indenture definition: (1) The following reconciles our GAAP total indebtedness to our total indebtedness per our senior notes indenture:

Financial Covenants: Reconciliation of GAAP Secured Indebtedness Test to Senior Notes Indenture Secured Indebtedness Test 31 (unaudited, in millions, except ratios) The following table presents the calculation of our secured indebtedness using GAAP measures and as used in the financial covenants of our senior notes indenture: (2) See Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test for reconciliation of GAAP Total Assets to Adjusted Total Assets per our senior notes indenture. (1) The following presents the reconciliation of mortgage debt to secured indebtedness per the financial covenants of our senior notes indenture definition:

Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Senior Notes Indenture EBITDA-to-Interest Coverage Ratio 32 (unaudited, in millions, except ratios) The following tables present the calculation of our interest coverage ratio using our GAAP measures and as used in the financial covenants of the senior notes indenture: (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 Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio for reconciliation of GAAP interest expense to adjusted interest expense per our credit facility definition. This same measure is used for our senior notes.

Financial Covenants: Reconciliation of GAAP Assets to Indebtedness Test to Senior Notes Unencumbered Assets to Unsecured Indebtedness Test 33 (unaudited, in millions, except ratios) The following tables present the calculation of our total assets to total debt using GAAP measures and unencumbered assets to unsecured debt as used in the financial covenants of our senior notes indenture: (1) The following presents the reconciliation of adjusted total assets to unencumbered assets per the financial covenants of our senior notes indenture definition: (a) See reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test for reconciliation of GAAP Total Assets to Adjusted Total Assets per our senior notes indenture. (2) The following presents the reconciliation of total debt to unsecured debt per the financial covenants of our senior notes indenture definition: (b) See reconciliation of GAAP Secured Indebtedness Test to Senior Notes Indenture Secured Indebtedness Test for the reconciliation of mortgage and other secured debt to senior notes secured indebtedness.

Overview Property level data capitalization Covid-19 data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 34

All Owned Hotel Pro Forma Operating Statistics and Results To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in this presentation on a comparable hotel basis in order to enable our investors to better evaluate our operating performance (discussed in “Hotel Property Level Operating Results” below). However, due to the COVID-19 pandemic and its effects on operations, there is little comparability between periods. For this reason, we temporarily are suspending our comparable hotel presentation and instead present hotel operating results for all consolidated hotels and, to facilitate comparisons between periods, we are presenting results on a pro forma basis, including the following adjustments: (1) operating results are presented for all consolidated hotels owned as of September 30, 2021, but do not include the results of operations for properties sold through the reporting date; and (2) operating results for acquisitions as of September 30, 2021 are reflected for full calendar years, to include results for periods prior to our ownership. For these hotels, since the year-over-year comparison includes periods prior to our ownership, the changes will not necessarily correspond to changes in our actual results. 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) EBITDA, (ii) EBITDAre and Adjusted EBITDAre, (iii) NOI, (iv) All Owned Hotel Pro Forma Operating Statistics and Results, (v) Credit Facility Financial Performance Tests, and (vi) Senior Notes Financial Performance Tests. The following discussion defines these measures and presents why we believe they are useful supplemental measures of our performance. EBITDA and NOI Earnings before Interest Expense, Income Taxes, Depreciation and Amortization (“EBITDA”) is a commonly used measure of performance in many industries. Management believes EBITDA provides useful information to investors regarding our results of operations because it helps us and our investors evaluate the ongoing operating performance of our properties after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization). Management also believes the use of EBITDA facilitates comparisons between us and other lodging REITs, hotel owners that are not REITs and other capital-intensive companies. Management uses EBITDA to evaluate property-level results and EBITDA multiples (calculated as sales price divided by EBITDA) as one measure in determining the value of acquisitions and dispositions and, like Funds From Operations (“FFO”) and Adjusted FFO per diluted share, it is widely used by management in the annual budget process and for our compensation programs. Management also uses NOI when calculating capitalization rates (“Cap Rates”) to evaluate acquisitions and dispositions. For a specific hotel, NOI is calculated as the hotel or entity level EBITDA less an estimate for the annual contractual reserve requirements for renewal and replacement expenditures. Cap Rates are calculated as NOI divided by sales price. Management believes using Cap Rates allows for a consistent valuation method in comparing the purchase or sale value of properties. 35 Notes to supplemental financial information

Non-GAAP financial measures (continued) EBITDAre and Adjusted EBITDAre We present EBITDAre in accordance with NAREIT guidelines, as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate,” to provide an additional performance measure to facilitate the evaluation and comparison of the Company’s results with other REITs. NAREIT defines EBITDAre as net income (calculated in accordance with GAAP) excluding interest expense, income tax, depreciation and amortization, gains or losses on disposition of depreciated property (including gains or losses on change of control), impairment expense 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: 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. Severance Expense – In certain circumstances, we will add back hotel-level severance expenses when we do not believe that such expenses are reflective of the ongoing operation of our properties. Situations that would result in a severance add-back include, but are not limited to, (i) costs incurred as part of a broad-based reconfiguration of the operating model with the specific hotel operator for a portfolio of hotels and (ii) costs incurred at a specific hotel due to a broad-based and significant reconfiguration of a hotel and/or its workforce. We do not add back corporate-level severance costs or severance costs at an individual hotel that we consider to be incurred in the normal course of business. In unusual circumstances, we also may adjust EBITDAre for gains or losses that management believes are not representative of the Company’s current operating performance. The last adjustment of this nature was a 2013 exclusion of a gain from an eminent domain claim. 36 Notes to supplemental financial information

Non-GAAP financial measures (continued) Limitations on the Use of EBITDA, EBITDAre, Adjusted EBITDAre and NOI EBITDA, EBITDAre, Adjusted EBITDAre, and NOI, as presented, may not be comparable to measures calculated by other companies. We calculate EBITDAre in accordance with standards established by NAREIT, which may not be comparable to measures calculated by other companies that do not use the NAREIT definition of EBITDAre. In addition, although EBITDAre is a useful measure when comparing our results to other REITs, they may not be helpful to investors when comparing us to non-REITs. We also calculate Adjusted EBITDAre, which is not in accordance with NAREIT guidance and may not be comparable to measures calculated by other REITs or by other companies. This information should not be considered as an alternative to net income, operating profit, cash from operations or any other operating performance measure calculated in accordance with GAAP. Cash expenditures for various long-term assets (such as renewal and replacement capital expenditures, with the exception of NOI), interest expense (for EBITDA, EBITDAre, Adjusted EBITDAre and NOI purposes only) severance expense related to significant property-level reconfiguration and other items have been, and will be, made and are not reflected in the EBITDA, EBITDAre, Adjusted EBITDAre, and NOI presentations. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our consolidated statements of operations and consolidated statements of cash flows (“Statements of Cash Flows”) in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures. Additionally, EBITDA, EBITDAre, Adjusted EBITDAre and NOI 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. Similarly, EBITDAre and Adjusted EBITDAre, include adjustments for the pro rata share of our equity investments. Our equity investments consist of interests ranging from 11% to 67% in seven domestic and international partnerships that own a total of 10 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 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 equity investments may not accurately depict the legal and economic implications of our investments in these entities. 37 Notes to supplemental financial information

Non-GAAP financial measures (continued) 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 hotel-level pro forma basis as supplemental information for our investors. Our hotel results reflect the operating results of our hotels as discussed in “All Owned Hotel Pro Forma Operating Statistics and Results” above. We present all owned hotel pro forma EBITDA to help us and our investors evaluate the ongoing operating performance of our hotels after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization expense). Corporate-level costs and expenses also are removed to arrive at property-level results. We believe these property-level results provide investors with supplemental information about the ongoing operating performance of our hotels. All owned hotel pro forma results are presented both by location and for the Company’s properties in the aggregate. While severance expense is not uncommon at the individual property level in the normal course of business, we eliminate from our hotel level operating results severance costs related to broad-based and significant property-level reconfiguration that is not considered to be within the normal course of business, as we believe this elimination provides useful supplemental information that is beneficial to an investor’s understanding of our ongoing operating performance. We also eliminate depreciation and amortization expense because, even though depreciation and amortization expense are property-level expenses, these non-cash expenses, which are based on historical cost accounting for real estate assets, implicitly assume that the value of real estate assets diminishes predictably over time. As noted earlier, because real estate values historically have risen or fallen with market conditions, many real estate industry investors have considered presentation of historical cost accounting for operating results to be insufficient. Because of the elimination of corporate-level costs and expenses, gains or losses on disposition, certain severance expenses and depreciation and amortization expense, the 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. While management believes that presentation of all owned hotel results is a supplemental measure that provides useful information in evaluating our ongoing performance, this measure is not used to allocate resources or to assess the operating performance of each of our hotels, as these decisions are based on data for individual hotels and are not based on all owned hotel results in the aggregate. For these reasons, we believe all owned hotel operating results, when combined with the presentation of GAAP operating profit, revenues and expenses, provide useful information to investors and management. 38 Notes to supplemental financial information

Non-GAAP financial measures (continued) Credit Facility – Leverage, Unsecured Interest Coverage and Consolidated Fixed Charge Coverage Ratios Host’s credit facility contains certain financial covenants, including allowable leverage, unsecured interest coverage and fixed charge ratios, which are determined using EBITDA as calculated under the terms of our credit facility (“Adjusted Credit Facility EBITDA”). The leverage ratio is defined as net debt plus preferred equity to Adjusted Credit Facility EBITDA. The unsecured interest coverage ratio is defined as unencumbered Adjusted Credit Facility EBITDA to unsecured consolidated interest expense. 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. These calculations are based on pro forma results for the prior four fiscal quarters, except as noted under the amendments, giving effect to transactions such as acquisitions, dispositions and financings as if they occurred at the beginning of the period. The credit facility also incorporates by reference the ratio of unencumbered assets to unsecured indebtedness test from our senior notes indentures, calculated in the same manner, and the covenant is discussed below with the senior notes covenants. 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. Management believes these financial ratios provide useful information to investors regarding our compliance with the covenants in our credit facility and our ability to access the capital markets, in particular debt financing. Senior Notes Indenture – Indebtedness Test, Secured Indebtedness to Total Assets Test, EBITDA-to-Interest Coverage Ratio and Ratio of Unencumbered Assets to Unsecured Indebtedness Host’s senior notes indentures contains certain financial covenants, including allowable indebtedness, secured indebtedness to total assets, EBITDA-to-interest coverage and unencumbered assets to unsecured indebtedness. The indebtedness test is defined as adjusted indebtedness, which includes total debt adjusted for deferred financing costs, divided by adjusted total assets, which includes undepreciated real estate book values (“Adjusted Total Assets”). The secured indebtedness to total assets is defined as secured indebtedness, which includes mortgage debt and finance leases, divided by Adjusted Total Assets. The EBITDA-to-interest coverage ratio is defined as EBITDA as calculated under our senior notes indenture (“Adjusted Senior Notes EBITDA”) to interest expense as defined by our senior notes indenture. The ratio of unencumbered assets to unsecured indebtedness is defined as unencumbered adjusted assets, which includes Adjusted Total Assets less encumbered assets, divided by unsecured debt, which includes the aggregate principal amount of outstanding unsecured indebtedness plus contingent obligations. Under the terms of the senior notes indentures, 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. As with the credit facility covenants, management believes these financial ratios provide useful information to investors regarding our compliance with the covenants in our senior notes indentures and our ability to access the capital markets, in particular debt financing. 39 Notes to supplemental financial information

Non-GAAP financial measures (continued) 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. 40 Notes to supplemental financial information