SEC Filing | Host Hotels & Resorts Inc.

HOST HOTELS & RESORTS, INC.

Date: August 2, 2023

/S/ Joseph C. Ottinger

Joseph C. Ottinger

Senior Vice President and Corporate Controller

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8-K

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): August 2, 2023

HOST HOTELS & RESORTS, INC.

(Exact Name of Registrant as Specified in Charter)

Maryland (Host Hotels & Resorts, Inc.)

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. ☐

Item 2.02. Results of Operations and Financial Condition.

On August 2, 2023, Host Hotels & Resorts, Inc. issued a press release announcing its financial results for the second quarter ended June 30, 2023. 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 earning release for the second quarter 2023.
99.2	Host Hotels & Resorts, Inc. Second Quarter 2023 Supplemental Financial Information.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

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.

EX-99.1



		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 Second Quarter 2023 Results

The Ritz-Carlton, Naples Reopens

Completion of the Marriott Transformational Capital Program

BETHESDA, Md; August 2, 2023 – Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the nation’s largest lodging real estate investment trust (“REIT”), today announced results for second quarter of 2023.

Operating Results

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


	Quarter ended June 30,							Year-to-date ended June 30,
	2023		2022		Percent Change			2023		2022		Percent Change
Revenues	$	1,393	$	1,381		0.9	%	$	2,774	$	2,455		13.0	%
Comparable hotel revenues⁽¹⁾		1,375		1,324		3.9	%		2,728		2,334		16.9	%
Comparable hotel Total RevPAR⁽¹⁾		367.54		353.95		3.8	%		366.74		313.73		16.9	%
Comparable hotel RevPAR⁽¹⁾		225.12		219.23		2.7	%		221.46		192.82		14.9	%

Net income	$	214	$	260		(17.7	)%	$	505	$	378		33.6	%
EBITDAre⁽¹⁾		446		506		(11.9	)%		890		812		9.6	%
Adjusted EBITDAre⁽¹⁾		446		500		(10.8	)%		890		806		10.4	%

Diluted earnings per common share		0.29		0.36		(19.4	)%		0.70		0.52		34.6	%
NAREIT FFO per diluted share⁽¹⁾		0.53		0.58		(8.6	)%		1.07		0.97		10.3	%
Adjusted FFO per diluted share⁽¹⁾		0.53		0.58		(8.6	)%		1.08		0.97		11.3	%

* Additional detail on the Company’s results, including data for 22 domestic markets, is available in the Second Quarter 2023 Supplemental Financial Information on the Company’s website at www.hosthotels.com.

James F. Risoleo, President and Chief Executive Officer, said, “Host delivered comparable hotel RevPAR growth of 2.7% over the second quarter of 2022, which is noteworthy given the challenging comparison of the prior year. Our results were driven by improvements in the group business segment and continued rate strength across the portfolio, despite some moderation at our resort properties. Overall, transient demand was affected by headwinds in San Francisco and Seattle and elevated international outbound travel without a corresponding increase in international inbound travel, which led to RevPAR results below our second quarter guidance range. At the same time, comparable hotel Total RevPAR grew 3.8%, which is evidence of the continued strength of out-of-room spend.”

Risoleo continued, “During the second quarter, we continued to execute on our capital allocation strategy with the reopening of the transformed Ritz-Carlton, Naples and the completion of the Marriott Transformational Capital Program, further improving the quality of our iconic portfolio. In addition, we tightened our full year RevPAR growth guidance range to 7.0% to 9.0%, based on our performance for the first half of year and the macroeconomic backdrop for the second half of the year. We believe that our balance sheet, diversified portfolio, and renovated assets leave Host uniquely positioned to deliver elevated EBITDA growth in the future.”

(1)

NAREIT Funds From Operations (“FFO”) per diluted share, Adjusted FFO per diluted share, EBITDAre, Adjusted EBITDAre and comparable hotel revenues are non-GAAP (U.S. generally accepted accounting principles) financial measures within the meaning of the rules of the Securities and Exchange Commission (“SEC”). See the Notes to Financial Information on why the Company believes these supplemental measures are useful, reconciliations to the most directly comparable GAAP measure, and the limitations on the use of these supplemental measures. Additionally, comparable hotel results and statistics include adjustments for dispositions, acquisitions and non-comparable hotels. See Hotel Operating Data for RevPAR results of the portfolio based on the Company's ownership period without these adjustments.


HOST HOTELS & RESORTS, INC. NEWS RELEASE	August 2, 2023

Highlights:

•

Comparable hotel Total RevPAR was $367.54 for the second quarter and $366.74 year-to-date, representing an increase of 3.8% and 16.9%, respectively, compared to the same periods in 2022. Comparable hotel RevPAR was $225.12 in the second quarter and $221.46 year-to-date, representing an increase of 2.7% and 14.9%, respectively, compared to the same periods in 2022, primarily driven by an increase in average rate of 2.4% for the quarter and 3.5% year-to-date. Growth in city center markets led to the overall improvement, offsetting moderating rates at resorts in comparison to an exceptionally strong second quarter in 2022.

•

Generated GAAP net income of $214 million in the second quarter, a decline compared to the second quarter of 2022 and reflecting GAAP operating profit margin of 17.9% for the quarter, a decrease of 580 basis points compared to the second quarter of 2022. Year-to-date, GAAP net income of $505 million reflected an increase compared to 2022, primarily due to an increase in operating profit and gain on asset sales, while GAAP operating profit margin declined 40 basis points compared to 2022 to 17.9%.

•

Comparable hotel EBITDA was $449 million and Adjusted EBITDAre was $446 million for the second quarter, representing a decline compared to 2022 second quarter results, and reflecting a decrease in comparable hotel EBITDA margin of 440 basis points to 32.7%. Year-to-date, comparable hotel EBITDA was $888 million and Adjusted EBITDAre was $890 million.

•

As expected, in addition to higher insurance and utility expenses, second quarter margin declines were driven by stabilized staffing levels in comparison to second quarter of 2022.

•

Announced the reopening of The Ritz-Carlton, Naples on July 6, 2023, following restoration efforts as a result of Hurricane Ian in September 2022. The reopening introduced transformational renovations to all guestrooms and suites as well as the new tower expansion and a reimagined arrival experience. The final phase of reconstruction at the Hyatt Regency Coconut Point, the resort's waterpark, was also completed and reopened in June. As of August 2, 2023, the Company has received $113 million of property insurance proceeds from its related claims, of the expected potential insurance recovery of approximately $310 million for covered costs. The proceeds received to date have all been classified as property damage and no gain related to Hurricane Ian has been recognized.

•

Completed the final project of the Marriott Transformational Capital Program with the renovation of the Washington Marriott at Metro Center. The program, which began in 2018, included extensive guestroom and public area renovations at 16 assets and finished under budget.

•

Achieved a milestone in the Company's progress towards its renewable energy goal, resulting in a 2.5 basis point reduction in the interest rate on the outstanding term loans under the Company's sustainability-linked credit facility.

•

Comparable hotel RevPAR for July is estimated to be $209, a 2.5% improvement over 2022.

Balance Sheet

The Company maintains a robust balance sheet, with the following balances at June 30, 2023:

•

Total assets of $12.4 billion.

•

Debt balance of $4.2 billion, with an average maturity of 4.7 years, an average interest rate of 4.5%, and no significant maturities until April 2024.

•

Total available liquidity of approximately $2.5 billion, including furniture, fixtures and equipment escrow reserves of $213 million and $1.5 billion available under the revolver portion of the credit facility.

Dividends

The Company paid a second quarter common stock cash dividend of $0.15 per share, an increase of $0.03 or 25% over its first quarter dividend, on July 17, 2023 to stockholders of record on June 30, 2023. All future dividends, including any special dividends, are subject to approval by the Company’s Board of Directors.

Hotel Business Mix Update

The Company’s customers fall into three broad groups: transient, group and contract business, which accounted for approximately 65%, 32%, and 3% respectively, of its 2022 room sales.

PAGE 2 OF 22


HOST HOTELS & RESORTS, INC. NEWS RELEASE	August 2, 2023

The following are the results for transient, group and contract business in comparison to 2022 performance, for the Company's current portfolio:


	Quarter ended June 30, 2023									Year-to-date ended June 30, 2023
	Transient			Group			Contract			Transient			Group			Contract
Room nights (in thousands)		1,517			1,085			174			2,849			2,123			332
Percent change in room nights vs. same period in 2022		(0.8	)%		0.0	%		12.6	%		3.7	%		22.5	%		12.0	%
Rooms revenues (in millions)	$	517		$	292		$	33		$	992		$	593		$	62
Percent change in revenues vs. same period in 2022		0.8	%		4.2	%		23.8	%		6.4	%		30.7	%		30.2	%

Capital Expenditures

The following presents the Company’s capital expenditures spend through the second quarter of 2023 and the forecast for full year 2023 (in millions):


	Year-to-date ended June 30, 2023		2023 Full Year Forecast

	Actual		Low-end of range		High-end of range
ROI - Marriott Transformational Capital Program	$	18	$	25	$	30
All other return on investment ("ROI") projects		79		200		220
Total ROI Projects		97		225		250
Renewals and Replacements ("R&R")		133		275		300
R&R and ROI Capital expenditures		230		500		550
R&R - Insurable Reconstruction		93		125		175
Total Capital Expenditures	$	323	$	625	$	725

2023 Outlook

Based on performance in the first half of the year and the macroeconomic backdrop for the second half, the Company tightened its full year comparable hotel RevPAR guidance range to 7.0% to 9.0% growth over 2022, bringing the midpoint of its full year expected RevPAR growth to 8%. At the midpoint of guidance, the Company’s full year 2023 expected RevPAR is forecast to be 5.6% above 2019.

In the second half of the year, the Company expects year-over-year comparable hotel RevPAR percentage changes to be up low-single digits at the midpoint of guidance.

In comparison to 2019, which the Company believes is the most relevant comparison, operating profit margins are expected to decrease 10 basis points and comparable hotel EBITDA margins are expected to increase 40 basis points at the midpoint of guidance. However, as expected, margins declined in the second quarter in comparison to 2022, driven by closer to stable staffing levels, higher wages, insurance and utility expenses, lower attrition and cancelation fees, and occupancy below 2019 levels. The second quarter decline is expected to be the largest year-over-year decline and margins are expected to continue to moderate for the remainder of the year. In addition, the guidance range does not include any expected gains from business interruption proceeds related to Hurricane Ian at this time, as timing of any recognition is uncertain.

PAGE 3 OF 22


HOST HOTELS & RESORTS, INC. NEWS RELEASE	August 2, 2023

The Company anticipates its 2023 operating results as compared to 2022 will be in the following range:


	Current Full Year 2023 Guidance	Current Full Year 2023 Guidance Change vs. 2022	Previous Full Year 2023 Guidance Change vs. 2022	Change in Full Year 2023 Guidance to the Mid-Point
Comparable hotel Total RevPAR	$341 to $347	7.2% to 9.0%	7.7% to 10.5%	(80) bps
Comparable hotel RevPAR	$210 to $214	7.0% to 9.0%	7.5% to 10.5%	(100) bps
Total revenues under GAAP	$5,246 to $5,338	6.9% to 8.8%	7.3% to 10.1%	(80) bps
Operating profit margin under GAAP	14.1% to 14.8%	(170) bps to (100) bps	(140) bps to (30) bps	(50) bps
Comparable hotel EBITDA margin	29.7% to 30.1%	(210) bps to (170) bps	(200) bps to (130) bps	(30) bps

Based upon the above parameters, the Company estimates its 2023 guidance as follows:


	Current Full Year 2023 Guidance	Previous Full Year 2023 Guidance	Change in Full Year 2023 Guidance to the Mid-Point
Net income (in millions)	$700 to $748	$713 to $793	$	(28	)
Adjusted EBITDAre (in millions)	$1,535 to $1,585	$1,545 to $1,625	$	(25	)
Diluted earnings per common share	$0.97 to $1.03	$0.98 to $1.09	$	(0.04	)
NAREIT FFO per diluted share	$1.82 to $1.88	$1.83 to $1.94	$	(0.04	)
Adjusted FFO per diluted share	$1.82 to $1.89	$1.84 to $1.95	$	(0.04	)

See the 2023 Forecast Schedules and the Notes to Financial Information for items that may affect forecast results and the Second Quarter 2023 Supplemental Financial Information for additional detail on the mid-point of full year 2023 guidance.

About Host Hotels & Resorts

Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 72 properties in the United States and five properties internationally totaling approximately 41,900 rooms. The Company also holds non-controlling interests in seven domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The Luxury Collection®, Hyatt®, Fairmont®, Hilton®, Four Seasons®, Swissôtel®, ibis® and Novotel®, as well as independent brands. For additional information, please visit the Company’s website at www.hosthotels.com.

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements which include, but may not be limited to, our expectations regarding the impact of the COVID-19 pandemic on our business, the recovery of travel and the lodging industry, the impact of Hurricane Ian and 2023 estimates with respect to our business, including our anticipated capital expenditures and financial and operating results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to, those described in the Company’s annual report on Form 10-K and other filings with the SEC. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of August 2, 2023 and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

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

*** Tables to Follow ***

PAGE 4 OF 22


HOST HOTELS & RESORTS, INC. NEWS RELEASE	August 2, 2023

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 June 30, 2023, which are non-controlling interests in Host LP in our consolidated balance sheets and are included in net (income) loss attributable to non-controlling interests in our condensed consolidated statements of operations. Readers are encouraged to find further detail regarding our organizational structure in our annual report on Form 10-K.


2023 OPERATING RESULTS		PAGE NO.
Condensed Consolidated Balance Sheets (unaudited) June 30, 2023 and December 31, 2022		6
Condensed Consolidated Statements of Operations (unaudited) Quarter and Year-to-date ended June 30, 2023 and 2022		7
Earnings per Common Share (unaudited) Quarter and Year-to-date ended June 30, 2023 and 2022		8
Hotel Operating Data
Hotel Operating Data for Consolidated Hotels (by Location)		10

Schedule of Comparable Hotel Results		13
Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre		15
Reconciliation of Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share		16
2023 FORECAST INFORMATION
Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre and Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share for Full Year 2023 Forecasts		17
Schedule of Comparable Hotel Results for Full Year 2023 Forecasts		18
Notes to Financial Information		19

PAGE 5 OF 22

HOST HOTELS & RESORTS, INC.

Condensed Consolidated Balance Sheets

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


	June 30, 2023			December 31, 2022

ASSETS
Property and equipment, net	$	9,717		$	9,748
Right-of-use assets		555			556
Due from managers		87			94
Advances to and investments in affiliates		144			132
Furniture, fixtures and equipment replacement fund		213			200
Notes receivable		485			413
Other		362			459
Cash and cash equivalents		802			667
Total assets	$	12,365		$	12,269

LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY
Debt⁽¹⁾
Senior notes	$	3,117		$	3,115
Credit facility, including the term loans of $997 and $998, respectively		987			994
Mortgage and other debt		106			106
Total debt		4,210			4,215
Lease liabilities		567			568
Accounts payable and accrued expenses		209			372
Due to managers		67			67
Other		167			168
Total liabilities		5,220			5,390

Redeemable non-controlling interests - Host Hotels & Resorts, L.P.		168			164

Host Hotels & Resorts, Inc. stockholders’ equity:
Common stock, par value $0.01, 1,050 million shares authorized, 711.4 million shares and 713.4 million shares issued and outstanding, respectively		7			7
Additional paid-in capital		7,671			7,717
Accumulated other comprehensive loss		(70	)		(75	)
Deficit		(636	)		(939	)
Total equity of Host Hotels & Resorts, Inc. stockholders		6,972			6,710
Non-redeemable non-controlling interests—other consolidated partnerships		5			5
Total equity		6,977			6,715
Total liabilities, non-controlling interests and equity	$	12,365		$	12,269

___________

(1)

Please see our Second Quarter 2023 Supplemental Financial Information for more detail on our debt balances and financial covenant ratios under our credit facility and senior notes indentures.

PAGE 6 OF 22

HOST HOTELS & RESORTS, INC.

Condensed Consolidated Statements of Operations

(unaudited, in millions, except per share amounts)


	Quarter ended June 30,						Year-to-date ended June 30,
	2023			2022			2023			2022
Revenues
Rooms	$	850		$	850		$	1,670		$	1,505
Food and beverage		415			405			846			702
Other		128			126			258			248
Total revenues		1,393			1,381			2,774			2,455
Expenses
Rooms		201			189			394			349
Food and beverage		263			245			532			445
Other departmental and support expenses		323			300			638			573
Management fees		69			62			134			102
Other property-level expenses		93			78			184			162
Depreciation and amortization		168			162			337			334
Corporate and other expenses⁽¹⁾		30			25			61			48
Gain on insurance and business interruption settlements		(3	)		(7	)		(3	)		(7	)
Total operating costs and expenses		1,144			1,054			2,277			2,006
Operating profit		249			327			497			449
Interest income		20			6			34			7
Interest expense		(45	)		(37	)		(94	)		(73	)
Other gains		—			1			69			14
Equity in earnings of affiliates		4			2			11			4
Income before income taxes		228			299			517			401
Provision for income taxes		(14	)		(39	)		(12	)		(23	)
Net income		214			260			505			378
Less: Net income attributable to non-controlling interests		(4	)		(4	)		(8	)		(6	)
Net income attributable to Host Inc.	$	210		$	256		$	497		$	372
Basic earnings per common share	$	0.30		$	0.36		$	0.70		$	0.52
Diluted earnings per common share	$	0.29		$	0.36		$	0.70		$	0.52

___________

(1)

Corporate and other expenses include the following items:


	Quarter ended June 30,				Year-to-date ended June 30,
	2023		2022		2023		2022

General and administrative costs	$	20	$	20	$	41	$	38
Non-cash stock-based compensation expense		6		5		13		10
Litigation accruals		4		—		7		—
Total	$	30	$	25	$	61	$	48

PAGE 7 OF 22

HOST HOTELS & RESORTS, INC.

Earnings per Common Share

(unaudited, in millions, except per share amounts)


	Quarter ended June 30,						Year-to-date ended June 30,
	2023			2022			2023			2022
Net income	$	214		$	260		$	505		$	378
Less: Net income attributable to non-controlling interests		(4	)		(4	)		(8	)		(6	)
Net income attributable to Host Inc.	$	210		$	256		$	497		$	372

Basic weighted average shares outstanding		711.3			714.8			712.3			714.6
Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market		1.9			2.2			1.9			2.2
Diluted weighted average shares outstanding⁽¹⁾		713.2			717.0			714.2			716.8
Basic earnings per common share	$	0.30		$	0.36		$	0.70		$	0.52
Diluted earnings per common share	$	0.29		$	0.36		$	0.70		$	0.52

___________

(1)

Dilutive securities may include shares granted under comprehensive stock plans, preferred operating partnership units (“OP Units”) held by non-controlling limited partners and other non-controlling interests that have the option to convert their limited partnership interests to common OP Units. No effect is shown for any securities that were anti-dilutive for the period.

PAGE 8 OF 22

HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels(1)

Comparable Hotel Results by Location


	As of June 30, 2023				Quarter ended June 30, 2023									Quarter ended June 30, 2022
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		2,006	$	594.07		73.7	%	$	437.96	$	678.06	$	567.20		78.0	%	$	442.56	$	690.02		(1.0	)%		(1.7	)%
Miami		2		1,033		538.70		69.6			374.98		646.85		618.60		67.4			416.89		697.72		(10.1	)		(7.3	)
Jacksonville		1		446		549.95		82.1			451.53		974.60		572.46		81.1			463.99		974.04		(2.7	)		0.1
Phoenix		3		1,545		372.81		73.6			274.51		651.73		394.21		76.0			299.63		677.94		(8.4	)		(3.9	)
Florida Gulf Coast		3		941		387.60		76.3			295.81		615.07		386.13		79.0			304.90		640.76		(3.0	)		(4.0	)
Orlando		2		2,448		363.44		73.4			266.90		542.00		402.61		73.8			297.06		580.59		(10.2	)		(6.6	)
New York		2		2,486		346.21		84.3			291.87		423.84		326.39		80.3			261.97		385.41		11.4			10.0
Los Angeles/Orange County		3		1,067		297.22		82.4			245.01		352.37		278.61		87.4			243.48		356.01		0.6			(1.0	)
San Diego		3		3,294		281.16		83.1			233.70		432.22		271.84		81.0			220.07		391.37		6.2			10.4
Washington, D.C. (CBD)		5		3,240		312.23		78.0			243.43		346.51		286.32		77.0			220.58		312.13		10.4			11.0
Boston		2		1,496		293.70		83.0			243.74		311.38		277.40		60.7			168.38		223.59		44.8			39.3
Austin		2		767		257.48		70.8			182.18		327.53		272.13		80.7			219.57		383.03		(17.0	)		(14.5	)
Philadelphia		2		810		249.51		83.5			208.44		327.91		229.82		86.6			199.08		303.95		4.7			7.9
Northern Virginia		2		916		261.74		73.7			192.88		292.30		228.38		75.8			173.05		266.99		11.5			9.5
San Francisco/San Jose		6		4,162		235.44		66.6			156.72		230.73		237.03		72.7			172.26		237.65		(9.0	)		(2.9	)
New Orleans		1		1,333		208.75		75.0			156.55		241.38		219.22		76.4			167.55		237.37		(6.6	)		1.7
Chicago		3		1,562		278.93		76.2			212.54		303.24		253.18		74.0			187.35		260.67		13.4			16.3
San Antonio		2		1,512		214.90		63.9			137.37		219.40		202.69		70.3			142.44		213.86		(3.6	)		2.6
Houston		5		1,942		208.54		72.3			150.82		207.78		184.11		67.1			123.53		175.70		22.1			18.3
Atlanta		2		810		194.10		76.0			147.44		239.70		186.06		77.5			144.28		236.30		2.2			1.4
Seattle		2		1,315		241.55		72.9			176.09		237.33		228.80		74.6			170.62		218.92		3.2			8.4
Denver		3		1,340		196.19		66.2			129.88		190.82		188.02		69.4			130.52		189.86		(0.5	)		0.5
Other		10		3,061		287.69		69.7			200.45		306.65		272.79		66.3			180.80		267.34		10.9			14.7
Domestic		70		39,532		306.78		74.7			229.05		374.40		300.38		74.6			224.05		361.94		2.2			3.4

International		5		1,499		193.42		62.7			121.31		184.99		155.80		59.0			91.91		140.79		32.0			31.4
All Locations		75		41,031		303.29		74.2			225.12		367.54		296.18		74.0			219.23		353.95		2.7			3.8

PAGE 9 OF 22

HOST HOTELS & RESORTS, INC.

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

Comparable Hotel Results by Location


	As of June 30, 2023				Year-to-date ended June 30, 2023									Year-to-date ended June 30, 2022
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		2,006	$	599.89		75.0	%	$	449.74	$	689.14	$	556.16		77.2	%	$	429.37	$	665.56		4.7	%		3.5	%
Miami		2		1,033		594.02		73.8			438.09		753.95		677.26		69.1			468.18		758.30		(6.4	)		(0.6	)
Jacksonville		1		446		532.21		74.7			397.60		872.26		555.35		70.8			393.31		846.75		1.1			3.0
Phoenix		3		1,545		455.18		78.0			355.17		764.31		442.80		74.8			331.38		709.91		7.2			7.7
Florida Gulf Coast		3		941		433.52		80.2			347.70		747.93		434.49		79.5			345.27		699.72		0.7			6.9
Orlando		2		2,448		395.90		74.7			295.85		591.62		427.24		66.0			281.89		534.73		5.0			10.6
New York		2		2,486		316.51		78.8			249.47		369.18		303.32		61.0			184.91		269.63		34.9			36.9
Los Angeles/Orange County		3		1,067		296.97		81.2			241.12		352.91		282.52		76.2			215.25		311.32		12.0			13.4
San Diego		3		3,294		282.01		80.1			225.75		427.16		265.79		71.3			189.62		343.77		19.1			24.3
Washington, D.C. (CBD)		5		3,240		293.53		71.1			208.82		304.05		269.82		57.9			156.21		222.15		33.7			36.9
Boston		2		1,496		256.23		76.1			195.06		262.66		235.57		54.2			127.70		168.31		52.8			56.1
Austin		2		767		273.23		70.4			192.43		343.15		274.92		71.3			196.03		334.68		(1.8	)		2.5
Philadelphia		2		810		229.68		78.9			181.17		283.96		206.81		76.7			158.68		244.18		14.2			16.3
Northern Virginia		2		916		245.58		69.7			171.08		259.21		216.27		64.4			139.18		208.25		22.9			24.5
San Francisco/San Jose		6		4,162		261.73		63.7			166.68		249.04		221.94		58.9			130.72		188.52		27.5			32.1
New Orleans		1		1,333		215.24		74.0			159.23		240.08		212.83		66.2			140.90		202.78		13.0			18.4
Chicago		3		1,562		238.80		64.0			152.79		219.73		220.82		57.4			126.78		174.77		20.5			25.7
San Antonio		2		1,512		227.23		67.0			152.20		242.68		195.73		68.8			134.67		205.78		13.0			17.9
Houston		5		1,942		206.36		72.8			150.32		208.68		182.12		64.0			116.60		162.56		28.9			28.4
Atlanta		2		810		195.42		75.0			146.53		241.17		180.13		72.0			129.60		207.01		13.1			16.5
Seattle		2		1,315		223.18		63.1			140.79		196.97		211.55		55.1			116.53		153.56		20.8			28.3
Denver		3		1,340		185.96		57.5			106.90		152.98		173.91		57.4			99.84		146.61		7.1			4.3
Other		10		3,061		319.34		64.0			204.29		314.22		323.74		59.1			191.24		284.58		6.8			10.4
Domestic		70		39,532		314.70		71.7			225.60		374.31		304.95		64.8			197.64		321.78		14.1			16.3

International		5		1,499		182.51		61.5			112.29		165.31		133.14		49.3			65.66		99.56		71.0			66.1
All Locations		75		41,031		310.54		71.3			221.46		366.74		300.14		64.2			192.82		313.73		14.9			16.9

___________

(1)

See the Notes to Financial Information for a discussion of comparable hotel operating statistics. CBD of a location refers to the central business district. Hotel RevPAR is calculated as room revenues divided by the available room nights. Hotel Total RevPAR is calculated by dividing the sum of rooms, food and beverage and other revenues by the available room nights.

PAGE 10 OF 22

HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels (cont.)

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


	As of June 30,
	2023		2022		Quarter ended June 30, 2023									Quarter ended June 30, 2022
Location	No. of Properties		No. of Properties		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		4	$	594.07		73.7	%	$	437.96	$	678.06	$	567.20		78.0	%	$	442.56	$	690.02		(1.0	)%		(1.7	)%
Miami		2		2		538.70		69.6			374.98		646.85		596.12		68.2			406.35		676.00		(7.7	)		(4.3	)
Jacksonville		1		1		549.95		82.1			451.53		974.60		572.46		81.1			463.99		974.04		(2.7	)		0.1
Phoenix		3		4		372.81		73.6			274.51		651.73		367.35		75.5			277.29		612.01		(1.0	)		6.5
Florida Gulf Coast		5		5		347.63		56.5			196.31		418.07		411.67		70.2			288.94		598.02		(32.1	)		(30.1	)
Orlando		2		2		363.44		73.4			266.90		542.00		402.61		73.8			297.06		580.59		(10.2	)		(6.6	)
New York		2		2		346.21		84.3			291.87		423.84		313.84		78.3			245.88		361.64		18.7			17.2
Los Angeles/Orange County		3		3		297.22		82.4			245.01		352.37		278.61		87.4			243.48		356.01		0.6			(1.0	)
San Diego		3		3		281.16		83.1			233.70		432.22		271.84		81.0			220.07		391.37		6.2			10.4
Washington, D.C. (CBD)		5		5		312.23		78.0			243.43		346.51		286.32		77.0			220.58		312.13		10.4			11.0
Boston		2		2		293.70		83.0			243.74		311.38		277.40		60.7			168.38		223.59		44.8			39.3
Austin		2		2		257.48		70.8			182.18		327.53		272.13		80.7			219.57		383.03		(17.0	)		(14.5	)
Philadelphia		2		2		249.51		83.5			208.44		327.91		229.82		86.6			199.08		303.95		4.7			7.9
Northern Virginia		2		2		261.74		73.7			192.88		292.30		228.38		75.8			173.05		266.99		11.5			9.5
San Francisco/San Jose		6		6		235.44		66.6			156.72		230.73		237.03		72.7			172.26		237.65		(9.0	)		(2.9	)
New Orleans		1		1		208.75		75.0			156.55		241.38		219.22		76.4			167.55		237.37		(6.6	)		1.7
Chicago		3		4		278.93		76.2			212.54		303.24		240.04		71.8			172.32		237.59		23.3			27.6
San Antonio		2		2		214.90		63.9			137.37		219.40		202.69		70.3			142.44		213.86		(3.6	)		2.6
Houston		5		5		208.54		72.3			150.82		207.78		184.11		67.1			123.53		175.70		22.1			18.3
Atlanta		2		2		194.10		76.0			147.44		239.70		186.06		77.5			144.28		236.30		2.2			1.4
Seattle		2		2		241.55		72.9			176.09		237.33		228.80		74.6			170.62		218.92		3.2			8.4
Denver		3		3		196.19		66.2			129.88		190.82		188.02		69.4			130.52		189.86		(0.5	)		0.5
Other		10		9		287.69		69.7			200.45		306.65		262.88		69.1			181.67		265.61		10.3			15.5
Domestic		72		73		306.27		73.8			226.00		370.80		300.15		74.3			223.13		362.34		1.3			2.3

International		5		5		193.42		62.7			121.31		184.99		155.80		59.0			91.91		140.79		32.0			31.4
All Locations		77		78		302.82		73.4			222.26		364.22		296.11		73.8			218.53		354.65		1.7			2.7

PAGE 11 OF 22

HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels (cont.)

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


	As of June 30,
	2023		2022		Year-to-date ended June 30, 2023									Year-to-date ended June 30, 2022
Location	No. of Properties		No. of Properties		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		4	$	599.89		75.0	%	$	449.74	$	689.14	$	556.16		77.2	%	$	429.37	$	665.56		4.7	%		3.5	%
Miami		2		2		594.02		73.8			438.09		753.95		609.44		70.9			432.20		690.16		1.4			9.2
Jacksonville		1		1		532.21		74.7			397.60		872.26		555.35		70.8			393.31		846.75		1.1			3.0
Phoenix		3		4		446.98		78.0			348.64		738.46		412.40		74.7			307.94		643.07		13.2			14.8
Florida Gulf Coast		5		5		392.96		58.6			230.46		497.50		485.09		72.1			349.66		691.06		(34.1	)		(28.0	)
Orlando		2		2		395.90		74.7			295.85		591.62		427.24		66.0			281.89		534.73		5.0			10.6
New York		2		2		316.51		78.8			249.47		369.18		276.49		56.1			155.17		222.91		60.8			65.6
Los Angeles/Orange County		3		3		296.97		81.2			241.12		352.91		282.52		76.2			215.25		311.32		12.0			13.4
San Diego		3		3		282.01		80.1			225.75		427.16		265.79		71.3			189.62		343.77		19.1			24.3
Washington, D.C. (CBD)		5		5		293.53		71.1			208.82		304.05		269.82		57.9			156.21		222.15		33.7			36.9
Boston		2		2		256.23		76.1			195.06		262.66		228.61		51.8			118.39		155.01		64.8			69.4
Austin		2		2		273.23		70.4			192.43		343.15		274.92		71.3			196.03		334.68		(1.8	)		2.5
Philadelphia		2		2		229.68		78.9			181.17		283.96		206.81		76.7			158.68		244.18		14.2			16.3
Northern Virginia		2		2		245.58		69.7			171.08		259.21		216.27		64.4			139.18		208.25		22.9			24.5
San Francisco/San Jose		6		6		261.73		63.7			166.68		249.04		221.94		58.9			130.72		188.52		27.5			32.1
New Orleans		1		1		215.24		74.0			159.23		240.08		212.83		66.2			140.90		202.78		13.0			18.4
Chicago		3		4		238.80		64.0			152.79		219.73		210.41		56.0			117.93		161.24		29.6			36.3
San Antonio		2		2		227.23		67.0			152.20		242.68		195.73		68.8			134.67		205.78		13.0			17.9
Houston		5		5		206.36		72.8			150.32		208.68		182.12		64.0			116.60		162.56		28.9			28.4
Atlanta		2		2		195.42		75.0			146.53		241.17		180.13		72.0			129.60		207.01		13.1			16.5
Seattle		2		2		223.18		63.1			140.79		196.97		211.55		55.1			116.53		153.56		20.8			28.3
Denver		3		3		185.96		57.5			106.90		152.98		173.91		57.4			99.84		146.61		7.1			4.3
Other		10		9		319.34		64.0			204.29		314.22		266.94		60.0			160.20		229.80		27.5			36.7
Domestic		72		73		314.56		70.9			223.06		371.22		302.36		64.3			194.28		317.04		14.8			17.1

International		5		5		182.51		61.5			112.29		165.31		133.14		49.3			65.66		99.56		71.0			66.1
All Locations		77		78		310.46		70.6			219.11		363.94		297.88		63.7			189.88		309.66		15.4			17.5

___________

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

PAGE 12 OF 22

HOST HOTELS & RESORTS, INC.

Schedule of Comparable Hotel Results (1)

(unaudited, in millions, except hotel statistics)


	Quarter ended June 30,						Year-to-date ended June 30,
	2023			2022			2023			2022
Number of hotels		75			75			75			75
Number of rooms		41,031			41,031			41,031			41,031
Change in comparable hotel Total RevPAR		3.8	%		—			16.9	%		—
Change in comparable hotel RevPAR		2.7	%		—			14.9	%		—
Operating profit margin⁽²⁾		17.9	%		23.7	%		17.9	%		18.3	%
Comparable hotel EBITDA margin⁽²⁾		32.7	%		37.1	%		32.6	%		34.1	%
Food and beverage profit margin⁽²⁾		36.6	%		39.5	%		37.1	%		36.6	%
Comparable hotel food and beverage profit margin⁽²⁾		36.9	%		39.8	%		37.2	%		37.2	%

Net income	$	214		$	260		$	505		$	378
Depreciation and amortization		168			162			337			334
Interest expense		45			37			94			73
Provision for income taxes		14			39			12			23
Gain on sale of property and corporate level income/expense		6			10			(53	)		17
Severance expense at hotel properties		—			—			—			2
Property transaction adjustments⁽³⁾		—			(3	)		(3	)		16
Non-comparable hotel results, net⁽⁴⁾		2			(15	)		(4	)		(48	)
Comparable hotel EBITDA⁽¹⁾	$	449		$	490		$	888		$	795

___________

(1)

See the Notes to Financial Information for a discussion of comparable hotel results, which are non-GAAP measures, and the limitations on their use. For additional information on comparable hotel EBITDA by location, see the Second Quarter 2023 Supplemental Financial Information posted on our website.

(2)

Profit margins are calculated by dividing the applicable operating profit by the related revenue amount. GAAP profit margins are calculated using amounts presented in the unaudited condensed consolidated statements of operations. Comparable hotel margins are calculated using amounts presented in the following tables, which include reconciliations to the applicable GAAP results:


	Quarter ended June 30, 2023												Quarter ended June 30, 2022
				Adjustments												Adjustments
	GAAP Results			Non-comparable hotel results, net ⁽⁴⁾			Depreciation and corporate level items			Comparable Hotel Results			GAAP Results			Property transaction adjustments ⁽³⁾			Non-comparable hotel results, net ⁽⁴⁾			Depreciation and corporate level items			Comparable Hotel Results
Revenues
Room	$	850		$	(8	)	$	—		$	842		$	850		$	(8	)	$	(22	)	$	—		$	820
Food and beverage		415			(9	)		—			406			405			(3	)		(18	)		—			384
Other		128			(1	)		—			127			126			—			(6	)		—			120
Total revenues		1,393			(18	)		—			1,375			1,381			(11	)		(46	)		—			1,324
Expenses
Room		201			(2	)		—			199			189			(3	)		(3	)		—			183
Food and beverage		263			(7	)		—			256			245			(1	)		(13	)		—			231
Other		485			(11	)		—			474			440			(4	)		(15	)		—			421
Depreciation and amortization		168			—			(168	)		—			162			—			—			(162	)		—
Corporate and other expenses		30			—			(30	)		—			25			—			—			(25	)		—
Gain on insurance and business interruption settlements		(3	)		—			—			(3	)		(7	)		—			—			6			(1	)
Total expenses		1,144			(20	)		(198	)		926			1,054			(8	)		(31	)		(181	)		834
Operating Profit - Comparable hotel EBITDA	$	249		$	2		$	198		$	449		$	327		$	(3	)	$	(15	)	$	181		$	490

PAGE 13 OF 22

HOST HOTELS & RESORTS, INC.

Schedule of Comparable Hotel Results (1) (cont.)

(unaudited, in millions, except hotel statistics)


	Year-to-date ended June 30, 2023															Year-to-date ended June 30, 2022
				Adjustments															Adjustments
	GAAP Results			Property transaction adjustments ⁽³⁾			Non-comparable hotel results, net ⁽⁴⁾			Depreciation and corporate level items			Comparable hotel Results			GAAP Results			Severance at hotel properties			Property transaction adjustments ⁽³⁾			Non-comparable hotel results, net ⁽⁴⁾			Depreciation and corporate level items			Comparable hotel Results
Revenues
Room	$	1,670		$	(5	)	$	(18	)	$	—		$	1,647		$	1,505		$	—		$	(13	)	$	(57	)	$	—		$	1,435
Food and beverage		846			(2	)		(18	)		—			826			702			—			—			(42	)		—			660
Other		258			—			(3	)		—			255			248			—			4			(13	)		—			239
Total revenues		2,774			(7	)		(39	)		—			2,728			2,455			—			(9	)		(112	)		—			2,334
Expenses
Room		394			(1	)		(4	)		—			389			349			—			(13	)		(9	)		—			327
Food and beverage		532			(1	)		(13	)		—			518			445			—			(3	)		(27	)		—			415
Other		956			(2	)		(18	)		—			936			837			(2	)		(9	)		(28	)		—			798
Depreciation and amortization		337			—			—			(337	)		—			334			—			—			—			(334	)		—
Corporate and other expenses		61			—			—			(61	)		—			48			—			—			—			(48	)		—
Gain on insurance and business interruption settlements		(3	)		—			—			—			(3	)		(7	)		—			—			—			6			(1	)
Total expenses		2,277			(4	)		(35	)		(398	)		1,840			2,006			(2	)		(25	)		(64	)		(376	)		1,539
Operating Profit - Comparable hotel EBITDA	$	497		$	(3	)	$	(4	)	$	398		$	888		$	449		$	2		$	16		$	(48	)	$	376		$	795

(3)

Property transaction adjustments represent the following items: (i) the elimination of results of operations of our hotels sold or held-for-sale as of the reporting date, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations, and (ii) the addition of results for periods prior to our ownership for hotels acquired as of the reporting date.

(4)

Non-comparable hotel results, net, includes the following items: (i) the results of operations of our non-comparable hotels, which operations are included in our consolidated statements of operations as continuing operations, and (ii) gains on business interruption proceeds relating to events that occurred while the hotels were classified as non-comparable.  

PAGE 14 OF 22

HOST HOTELS & RESORTS, INC.

Reconciliation of Net Income to

EBITDA, EBITDAre and Adjusted EBITDAre (1)

(unaudited, in millions)


	Quarter ended June 30,						Year-to-date ended June 30,
	2023			2022			2023			2022
Net income	$	214		$	260		$	505		$	378
Interest expense		45			37			94			73
Depreciation and amortization		168			162			337			334
Income taxes		14			39			12			23
EBITDA		441			498			948			808
Gain on dispositions⁽²⁾		—			(1	)		(69	)		(13	)
Equity investment adjustments:
Equity in earnings of affiliates		(4	)		(2	)		(11	)		(4	)
Pro rata EBITDAre of equity investments⁽³⁾		9			11			22			21
EBITDAre		446			506			890			812
Adjustments to EBITDAre:
Gain on property insurance settlement		—			(6	)		—			(6	)
Adjusted EBITDAre	$	446		$	500		$	890		$	806

___________

(1)

See the Notes to Financial Information for discussion of non-GAAP measures.

(2)

Reflects the sale of one hotel in 2023 and three hotels in 2022.

(3)

Unrealized gains of our unconsolidated investments are not recognized in our EBITDAre, Adjusted EBITDAre, NAREIT FFO or Adjusted FFO until they have been realized by the unconsolidated partnership.

PAGE 15 OF 22

HOST HOTELS & RESORTS, INC.

Reconciliation of Diluted Earnings per Common Share to

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

(unaudited, in millions, except per share amounts)


	Quarter ended June 30,						Year-to-date ended June 30,
	2023			2022			2023			2022
Net income	$	214		$	260		$	505		$	378
Less: Net income attributable to non-controlling interests		(4	)		(4	)		(8	)		(6	)
Net income attributable to Host Inc.		210			256			497			372
Adjustments:
Gain on dispositions⁽²⁾		—			(1	)		(69	)		(13	)
Gain on property insurance settlement		—			(6	)		—			(6	)
Depreciation and amortization		168			162			336			333
Equity investment adjustments:
Equity in earnings of affiliates		(4	)		(2	)		(11	)		(4	)
Pro rata FFO of equity investments⁽³⁾		6			8			16			17
Consolidated partnership adjustments:
FFO adjustments for non-controlling interests of Host L.P.		(3	)		(1	)		(4	)		(4	)
NAREIT FFO		377			416			765			695
Adjustments to NAREIT FFO:
Loss on debt extinguishment		—			—			4			—
Adjusted FFO	$	377		$	416		$	769		$	695

For calculation on a per share basis:⁽⁴⁾

Diluted weighted average shares outstanding - EPS, NAREIT FFO and Adjusted FFO		713.2			717.0			714.2			716.8
Diluted earnings per common share	$	0.29		$	0.36		$	0.70		$	0.52
NAREIT FFO per diluted share	$	0.53		$	0.58		$	1.07		$	0.97
Adjusted FFO per diluted share	$	0.53		$	0.58		$	1.08		$	0.97

___________

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

(4)

Diluted earnings per common share, NAREIT FFO per diluted share and Adjusted FFO per diluted share are adjusted for the effects of dilutive securities. Dilutive securities may include shares granted under comprehensive stock plans, preferred OP units held by non-controlling limited partners and other non-controlling interests that have the option to convert their limited partnership interests to common OP units. No effect is shown for securities if they are anti-dilutive.

PAGE 16 OF 22

HOST HOTELS & RESORTS, INC.

Reconciliation of Net Income to

EBITDA, EBITDAre and Adjusted EBITDAre and Diluted Earnings per Common Share to

NAREIT and Adjusted Funds From Operations per Diluted Share for Full Year 2023 Forecasts (1)

(unaudited, in millions)


	Full Year 2023
	Low-end of range			High-end of range
Net income	$	700		$	748
Interest expense		190			190
Depreciation and amortization		680			680
Income taxes		15			17
EBITDA		1,585			1,635
Gain on dispositions		(69	)		(69	)
Equity investment adjustments:
Equity in earnings of affiliates		(18	)		(19	)
Pro rata EBITDAre of equity investments		39			40
EBITDAre		1,537			1,587
Adjustments to EBITDAre:
Gain on property insurance settlement⁽²⁾		(2	)		(2	)
Adjusted EBITDAre	$	1,535		$	1,585


	Full Year 2023
	Low-end of range			High-end of range
Net income	$	700		$	748
Less: Net income attributable to non-controlling interests		(11	)		(12	)
Net income attributable to Host Inc.		689			736
Adjustments:
Gain on dispositions		(69	)		(69	)
Gain on property insurance settlement⁽²⁾		(2	)		(2	)
Depreciation and amortization		679			679
Equity investment adjustments:
Equity in earnings of affiliates		(18	)		(19	)
Pro rata FFO of equity investments		27			28
Consolidated partnership adjustments:
FFO adjustment for non-controlling partnerships		(1	)		(1	)
FFO adjustment for non-controlling interests of Host LP		(8	)		(8	)
NAREIT FFO		1,297			1,344
Adjustments to NAREIT FFO:
Loss on extinguishment of debt		4			4
Adjusted FFO	$	1,301		$	1,348

Diluted weighted average shares outstanding - EPS, NAREIT FFO and Adjusted FFO		713.9			713.9
Diluted earnings per common share	$	0.97		$	1.03
NAREIT FFO per diluted share	$	1.82		$	1.88
Adjusted FFO per diluted share	$	1.82		$	1.89

___________

(1)

The Forecasts are based on the below assumptions:

•

Comparable hotel RevPAR will increase 7.0% to 9.0% compared to 2022 for the low and high end of the forecast range.

•

Comparable hotel EBITDA margins will decrease 210 to 170 basis points compared to 2022 for the low and high ends of the forecasted comparable hotel RevPAR range, respectively.

•

We expect to spend approximately $625 million to $725 million on capital expenditures.

•

Assumes no acquisitions and no additional dispositions during the year.

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

(2)

The insurance gain relates to proceeds in 2023 related to prior year insurance claims. 2023 Forecasts do not include any gains related to Hurricane Ian at this time, as timing of any recognition is uncertain.

PAGE 17 OF 22

HOST HOTELS & RESORTS, INC.

Schedule of Comparable Hotel Results for Full Year 2023 Forecasts (1)

(unaudited, in millions)


	Full Year 2023
	Low-end of range			High-end of range
Operating profit margin (2)		14.1	%		14.8	%
Comparable hotel EBITDA margin (2)		29.7	%		30.1	%

Net income	$	700		$	748
Depreciation and amortization		680			680
Interest expense		190			190
Provision for income taxes		15			17
Gain on sale of property and corporate level income/expense		(47	)		(48	)
Property transaction adjustments⁽³⁾		(3	)		(3	)
Non-comparable hotel results, net⁽⁴⁾		(17	)		(18	)
Comparable hotel EBITDA (1)	$	1,518		$	1,566

___________

(1)

(2)


	Low-end of range															High-end of range
				Adjustments															Adjustments
	GAAP Results			Property transaction adjustments			Non-comparable hotel results, net			Depreciation and corporate level items			Comparable hotel Results			GAAP Results			Property transaction adjustments			Non-comparable hotel results, net			Depreciation and corporate level items			Comparable hotel Results
Revenues
Rooms	$	3,211		$	(5	)	$	(62	)	$	—		$	3,144		$	3,271		$	(5	)	$	(64	)	$	—		$	3,202
Food and beverage		1,551			(2	)		(49	)		—			1,500			1,580			(2	)		(50	)		—			1,528
Other		484			—			(12	)		—			472			487			—			(12	)		—			475
Total revenues		5,246			(7	)		(123	)		—			5,116			5,338			(7	)		(126	)		—			5,205
Expenses
Hotel expenses		3,711			(4	)		(106	)		—			3,601			3,754			(4	)		(108	)		—			3,642
Depreciation and amortization		680			—			—			(680	)		—			680			—			—			(680	)		—
Corporate and other expenses		118			—			—			(118	)		—			118			—			—			(118	)		—
Gain on insurance and business interruption settlements⁽⁵⁾		(5	)		—			—			2			(3	)		(5	)		—			—			2			(3	)
Total expenses		4,504			(4	)		(106	)		(796	)		3,598			4,547			(4	)		(108	)		(796	)		3,639
Operating Profit - Comparable hotel EBITDA	$	742		$	(3	)	$	(17	)	$	796		$	1,518		$	791		$	(3	)	$	(18	)	$	796		$	1,566

(3)

Property transaction adjustments represent the following items: (i) the elimination of results of operations of our hotels sold or held-for-sale as of the reporting date, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations and (ii) the addition of results for periods prior to our ownership for hotels acquired as of the reporting date.

(4)

•

Hyatt Regency Coconut Point Resort & Spa (business disruption due to Hurricane Ian beginning in September 2022, closed until November 2022); and

•

The Ritz-Carlton, Naples (business disruption due to Hurricane Ian beginning in September 2022, closed until July 2023).

(5)

PAGE 18 OF 22

HOST HOTELS & RESORTS, INC.

Notes to Financial Information

Forecasts

Our forecast of net income, earnings per diluted share, NAREIT and Adjusted FFO per diluted share, EBITDA, EBITDAre, Adjusted EBITDAre and comparable hotel results are forward-looking statements and are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause actual results and performance to differ materially from those expressed or implied by these forecasts. Although we believe the expectations reflected in the forecasts are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that the results will not be materially different. Risks that may affect these assumptions and forecasts include the following: potential changes in overall economic outlook make it inherently difficult to forecast the level of RevPAR; the amount and timing of debt payments may change significantly based on market conditions, which will directly affect the level of interest expense and net income; the amount and timing of transactions involving shares of our common stock may change based on market conditions; and other risks and uncertainties associated with our business described herein and in our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC.

Comparable Hotel Operating Statistics and Results

Effective January 1, 2023, the Company ceased presentation of All Owned Hotel results and returned to a comparable hotel presentation for its hotel level results. Management believes this provides investors with a better understanding of underlying growth trends for the Company’s current portfolio, without impact from properties that experienced closures due to renovations or property damage sustained.

To facilitate a year-to-year comparison of our operations, we present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in our reports on a comparable hotel basis in order to enable our investors to better evaluate our operating performance. We define our comparable hotels as those that: (i) are owned or leased by us as of the reporting date and are not classified as held-for-sale; and (ii) have not sustained substantial property damage or business interruption, or undergone large-scale capital projects in each case requiring closures lasting one month or longer (as further defined below) during the reporting periods being compared.

We make adjustments to include recent acquisitions to include results for periods prior to our ownership. For these hotels, since the year-over-year comparison includes periods prior to our ownership, the changes will not necessarily correspond to changes in our actual results. Additionally, operating results of hotels that we sell are excluded from the comparable hotel set once the transaction has closed or the hotel is classified as held-for-sale.

The hotel business is capital-intensive and renovations are a regular part of the business. Generally, hotels under renovation remain comparable hotels. A large-scale capital project would cause a hotel to be excluded from our comparable hotel set if it requires the entire property to be closed to hotel guests for one month or longer.

Similarly, hotels are excluded from our comparable hotel set from the date that they sustain substantial property damage or business interruption if it requires the property to be closed to hotel guests for one month or longer. In each case, these hotels are returned to the comparable hotel set when the operations of the hotel have been included in our consolidated results for one full calendar year after the hotel has reopened. Often, related to events that cause property damage and the closure of a hotel, we will collect business interruption insurance proceeds for the near-term loss of business. These proceeds are included in gain on property insurance and business interruption settlements on our consolidated statements of operations. Business interruption insurance gains related to a hotel that was excluded from our comparable hotel set also will be excluded from the comparable hotel results.

Of the 77 hotels that we owned as of June 30, 2023, 75 have been classified as comparable hotels. The operating results of the following hotels that we owned as of June 30, 2023 are excluded from comparable hotel results for these periods, due to closure of the property:

•

Hyatt Regency Coconut Point Resort & Spa (business disruption due to Hurricane Ian beginning in September 2022, closed until November 2022); and

•

The Ritz-Carlton, Naples (business disruption due to Hurricane Ian beginning in September 2022, closed until July 2023).

Foreign Currency Translation

Operating results denominated in foreign currencies are translated using the prevailing exchange rates on the date of the transaction, or monthly based on the weighted average exchange rate for the period. Therefore, hotel statistics and results for non-U.S. properties include the effect of currency fluctuations, consistent with our financial statement presentation.

Non-GAAP Financial Measures

Included in this press release are certain “non-GAAP financial measures,” which are measures of our historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules. They are as follows: (i) FFO and FFO per diluted share (both NAREIT and Adjusted), (ii) EBITDA, (iii) EBITDAre and Adjusted EBITDAre, and (iv) Comparable Hotel Operating Statistics and Results. The following discussion defines these measures and presents why we believe they are useful supplemental measures of our performance.

PAGE 19 OF 22

HOST HOTELS & RESORTS, INC.

Notes to Financial Information (cont.)

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 certain real estate assets, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment expense of certain real estate assets and investments and adjustments for consolidated partially-owned entities and unconsolidated affiliates. Adjustments for consolidated partially-owned entities and unconsolidated affiliates are calculated to reflect our pro rata share of the FFO of those entities on the same basis.

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

Adjusted FFO per Diluted Share

We also present Adjusted FFO per diluted share when evaluating our performance because management believes that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. Management historically has made the adjustments detailed below in evaluating our performance, in our annual budget process and for our compensation programs. We believe that the presentation of Adjusted FFO per diluted share, when combined with both the primary GAAP presentation of diluted earnings per share and FFO per diluted share as defined by NAREIT, provides useful supplemental information that is beneficial to an investor’s understanding of our operating performance. We adjust NAREIT FFO per diluted share for the following items, which may occur in any period, and refer to this measure as Adjusted FFO per diluted share:

•

Gains and Losses on the Extinguishment of Debt – We exclude the effect of finance charges and premiums associated with the extinguishment of debt, including the acceleration of the write-off of deferred financing costs from the original issuance of the debt being redeemed or retired and incremental interest expense incurred during the refinancing period. We also exclude the gains on debt repurchases and the original issuance costs associated with the retirement of preferred stock. We believe that these items are not reflective of our ongoing finance costs.

•

Acquisition Costs – Under GAAP, costs associated with completed property acquisitions that are considered business combinations are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company.

•

Litigation Gains and Losses – We exclude the effect of gains or losses associated with litigation recorded under GAAP that we consider outside the ordinary course of business. We believe that including these items is not consistent with our ongoing operating performance.

•

Severance Expense –In certain circumstances, we will add back hotel-level severance expenses when we do not believe that such expenses are reflective of the ongoing operation of our properties. Situations that would result in a severance add-back include, but are not limited to, (i) costs incurred as part of a broad-based reconfiguration of the operating model with the specific hotel operator for a portfolio of hotels and (ii) costs incurred at a specific hotel due to a broad-based and significant reconfiguration of a hotel and/or its workforce. We do not add back corporate-level severance costs or severance costs at an individual hotel that we consider to be incurred in the normal course of business.

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

EBITDA

PAGE 20 OF 22

HOST HOTELS & RESORTS, INC.

Notes to Financial Information (cont.)

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

EBITDAre and Adjusted EBITDAre

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

We make additional adjustments to EBITDAre when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. We believe that the presentation of Adjusted EBITDAre, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s understanding of our operating performance. Adjusted EBITDAre also is similar to the measure used to calculate certain credit ratios for our credit facility and senior notes. We adjust EBITDAre for the following items, which may occur in any period, and refer to this measure as Adjusted EBITDAre:

•

Property Insurance Gains – We exclude the effect of property insurance gains reflected in our consolidated statements of operations because we believe that including them in Adjusted EBITDAre is not consistent with reflecting the ongoing performance of our assets. In addition, property insurance gains could be less important to investors given that the depreciated asset book value written off in connection with the calculation of the property insurance gain often does not reflect the market value of real estate assets.

•

Severance Expense – In certain circumstances, we will add back hotel-level severance expenses when we do not believe that such expenses are reflective of the ongoing operation of our properties. Situations that would result in a severance add-back include, but are not limited to, (i) costs incurred as part of a broad-based reconfiguration of the operating model with the specific hotel operator for a portfolio of hotels and (ii) costs incurred at a specific hotel due to a broad-based and significant reconfiguration of a hotel and/or its workforce. We do not add back corporate-level severance costs or severance costs at an individual hotel that we consider to be incurred in the normal course of business.

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

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

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

PAGE 21 OF 22

HOST HOTELS & RESORTS, INC.

Notes to Financial Information (cont.)

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 eight domestic and international partnerships that own a total of 33 properties and a vacation ownership development. Due to the voting rights of the outside owners, we do not control and, therefore, do not consolidate these entities. The non-controlling partners in consolidated partnerships primarily consist of the approximate 1% interest in Host LP held by outside partners, and a 15% interest held by outside partners in a partnership owning one hotel for which we do control the entity and, therefore, consolidate its operations. These pro rata results for NAREIT FFO and Adjusted FFO per diluted share, EBITDAre and Adjusted EBITDAre were calculated as set forth in the definitions above. Readers should be cautioned that the pro rata results presented in these measures for consolidated partnerships (for NAREIT FFO and Adjusted FFO per diluted share) and equity investments may not accurately depict the legal and economic implications of our investments in these entities.

Comparable Hotel Property Level Operating Results

We present certain operating results for our hotels, such as hotel revenues, expenses, food and beverage profit, and EBITDA (and the related margins), on a comparable hotel, or "same store," basis as supplemental information for our investors. Our comparable hotel results present operating results for our hotels without giving effect to dispositions or properties that experienced closures due to renovations or property damage, as discussed in “Comparable Hotel Operating Statistics and Results” above. We present comparable hotel EBITDA to help us and our investors evaluate the ongoing operating performance of our comparable hotels after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization expense). Corporate-level costs and expenses also are removed to arrive at property-level results. We believe these property-level results provide investors with supplemental information about the ongoing operating performance of our comparable hotels. Comparable hotel results are presented both by location and for the Company’s properties in the aggregate. We eliminate from our comparable hotel level operating results severance costs related to broad-based and significant property-level reconfiguration that is not considered to be within the normal course of business, as we believe this elimination provides useful supplemental information that is beneficial to an investor’s understanding of our ongoing operating performance. We also eliminate depreciation and amortization expense because, even though depreciation and amortization expense are property-level expenses, these non-cash expenses, which are based on historical cost accounting for real estate assets, implicitly assume that the value of real estate assets diminishes predictably over time. As noted earlier, because real estate values historically have risen or fallen with market conditions, many real estate industry investors have considered presentation of historical cost accounting for operating results to be insufficient.

Because of the elimination of corporate-level costs and expenses, gains or losses on disposition, certain severance expenses and depreciation and amortization expense, the comparable hotel operating results we present do not represent our total revenues, expenses, operating profit or net income and should not be used to evaluate our performance as a whole. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our consolidated statements of operations include such amounts, all of which should be considered by investors when evaluating our performance.

We present these hotel operating results on a comparable hotel basis because we believe that doing so provides investors and management with useful information for evaluating the period-to-period performance of our hotels and facilitates comparisons with other hotel REITs and hotel owners. In particular, these measures assist management and investors in distinguishing whether increases or decreases in revenues and/or expenses are due to growth or decline of operations at comparable hotels (which represent the vast majority of our portfolio) or from other factors. While management believes that presentation of comparable hotel results is a supplemental measure that provides useful information in evaluating our ongoing performance, this measure is not used to allocate resources or to assess the operating performance of each of our hotels, as these decisions are based on data for individual hotels and are not based on comparable hotel results in the aggregate. For these reasons, we believe comparable hotel operating results, when combined with the presentation of GAAP operating profit, revenues and expenses, provide useful information to investors and management.

PAGE 22 OF 22

EX-99.2

Exhibit 99.2

SUPPLEMENTAL FINANCIAL INFORMATION 
June 30, 2023
 


TABLE OF CONTENTS
3	OVERVIEW
	About Host Hotels & Resorts	4
	Analyst Coverage	5
	Forward-Looking Statements	6
	Non-GAAP Financial Measures	7
8	PROPERTY LEVEL DATA
	Comparable Hotel Results by Location	9
	Historical Comparable Hotel Results	17
	Comparable Hotel Results 2023 Forecast	18
	Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre and Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share for Full Year 2023 Forecasts	20
	Ground Lease Summary as of December 31, 2022	21
22	CAPITALIZATION
	Comparative Capitalization	23
	Consolidated Debt Summary as of June 30, 2023 and December 31, 2022	24
	Consolidated Debt Maturity as of June 30, 2023	25
26	FINANCIAL COVENANTS
	Credit Facility and Senior Notes Financial Performance Tests	27
	Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio	28
	Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio	29
	Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Fixed Charge Coverage Ratio	30
	Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test	31
	Reconciliation of GAAP Secured Indebtedness Test to Senior Notes Indenture Secured Indebtedness Test	32
	Reconciliation of GAAP Interest Coverage Ratio to Senior Notes Indenture EBITDA-to-Interest Coverage Ratio	33
	Reconciliation of GAAP Assets to Indebtedness Test to Senior Notes Unencumbered Assets to Unsecured Indebtedness Test	34
35	NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
	Forecast	36
	Comparable Hotel Operating Statistics and Results	37
	Non-GAAP Financial Measures	37

ST HOTELS & RESORTS CORPORATE HEADQUARTERS

 
 
 
OVERVIEW
PROPERTY LEVEL DATA
CAPITALIZATION
Financial Covenants
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

AN ZANDT

ABOUT HOST HOTELS & RESORTS


PREMIER U.S. LODGING REIT
S&P 500	$12.1B	$15.7B
COMPANY	MARKET CAP(1)	ENTERPRISE VALUE(1)


LUXURY & UPPER UPSCALE CONSOLIDATED HOTELS PORTFOLIO(2)
77	41,900	20
HOTELS	ROOMS	TOP U.S. MARKETS

(1)

Based on market cap as of June 30, 2023. See Comparative Capitalization for calculation.

(2)

At June 30, 2023.


© Host Hotels & Resorts, Inc.	4

ANALYST COVERAGE

BAIRD
Mike Bellisario
 414-298-6130
mbellisario@rwbaird.com

DEUTSCHE BANK SECURITIES
Chris Woronka 
212-250-9376
chris.woronka@db.com

OPPENHEIMER & CO. INC.
Tyler Batory 
212-667-7230
tyler.batory@opco.com

BOFA SECURITIES, INC.
Shaun Kelley 
646-855-1005
shaun.kelley@baml.com

EVERCORE ISI
Duane Pfennigwerth 
212-497-0817
duane.pfennigwerth@evercoreisi.com

RAYMOND JAMES & ASSOCIATES
Bill Crow 
727-567-2594
bill.crow@raymondjames.com

BARCLAYS CAPITAL
Anthony Powell 
212-526-8768
anthony.powell@barclays.com

GREEN STREET ADVISORS
Chris Darling 
949-640-8780
cdarling@greenst.com

STIFEL, NICOLAUS & CO.
Simon Yarmak 
443-224-1345
yarmaks@stifel.com

BMO CAPITAL MARKETS
Ari Klein 
212-885-4103
ari.klein@bmo.com

JEFFERIES
David Katz 
212-323-3355
dkatz@jefferies.com

TRUIST
C. Patrick Scholes 
212-319-3915
patrick.scholes@suntrust.com

CITI INVESTMENT RESEARCH
Smedes Rose 
212-816-6243
smedes.rose@citi.com

J .P. MORGAN SECURITIES
Joe Greff 
212-622-0548
joseph.greff@jpmorgan.com

UBS SECURITIES LLC
Robin Farley 
212-713-2060
robin.farley@ubs.com

COMPASS POINT RESEARCH & 
TRADING, LLC
Floris van Dijkum 
646-757-2621
fvandijkum@compasspointllc.com

MORGAN STANLEY & CO.
Stephen Grambling 
212-761-1010
stephen.grambling@morganstanley.com

WELLS FARGO SECURITIES LLC
Dori Kesten
617-603-4233
dori.kesten@wellsfargo.com

The Company is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding the Company’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of the Company or its management. The Company does not by its reference above imply its endorsement of or concurrence with any of such analysts’ information, conclusions or recommendations.


© Host Hotels & Resorts, Inc.	5

OVERVIEW

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 June 30, 2023, which are non-controlling interests in Host LP in our consolidated balance sheets and are included in net (income) loss attributable to non-controlling interests in our 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 which include, but may not be limited to, our expectations regarding the impact of the COVID-19 pandemic on our business, the recovery of travel and the lodging industry, the impact of Hurricane Ian and 2023 estimates with respect to our business, including our anticipated capital expenditures and financial and operating results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to those described in the Company's annual report on Form 10-K and other filings with the SEC. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this supplemental presentation is as of August 2, 2023 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.


© Host Hotels & Resorts, Inc.	6

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 (U.S. generally accepted accounting principles), within the meaning of applicable SEC rules. They are as follows: (i) Funds From Operations (“FFO”) and FFO per diluted share (both NAREIT and Adjusted), (ii) EBITDA (for both the Company and hotel level), (iii) EBITDAre and Adjusted EBITDAre, and (iv) Comparable Hotel 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.


© Host Hotels & Resorts, Inc.	7

 
 
 
OVERVIEW
PROPERTY LEVEL DATA
CAPITALIZATION
Financial Covenants
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

comparable Hotel Results by Location

(unaudited, in millions, except hotel statistics and per room basis)


	Quarter ended June 30, 2023
Location	No. of Properties		No. of Rooms		Average Room Rate		Average Occupancy Percentage			RevPAR (1)		Total revenues		Total Revenues per Available Room (2)		Hotel Net Income			Hotel EBITDA
Maui/Oahu		4		2,006	$	594.07		73.7	%	$	437.96	$	123.8	$	678.06	$	27.5		$	44.0
Miami		2		1,033		538.70		69.6			374.98		62.7		646.85		13.2			20.4
Jacksonville		1		446		549.95		82.1			451.53		39.6		974.60		13.9			17.0
Phoenix		3		1,545		372.81		73.6			274.51		91.6		651.73		25.9			35.5
Florida Gulf Coast		3		941		387.60		76.3			295.81		52.7		615.07		12.7			18.4
Orlando		2		2,448		363.44		73.4			266.90		120.7		542.00		24.6			37.6
New York		2		2,486		346.21		84.3			291.87		95.9		423.84		13.7			26.2
Los Angeles/ Orange County		3		1,067		297.22		82.4			245.01		34.2		352.37		4.6			7.7
San Diego		3		3,294		281.16		83.1			233.70		129.6		432.22		30.7			46.4
Washington, D.C. (CBD) (3)		5		3,240		312.23		78.0			243.43		102.1		346.51		30.2			38.7
Boston		2		1,496		293.70		83.0			243.74		42.4		311.38		12.4			17.0
Austin		2		767		257.48		70.8			182.18		22.9		327.53		3.1			7.5
Philadelphia		2		810		249.51		83.5			208.44		24.2		327.91		6.2			8.6
Northern Virginia		2		916		261.74		73.7			192.88		24.4		292.30		6.0			8.4
San Francisco/ San Jose		6		4,162		235.44		66.6			156.72		87.4		230.73		(2.3	)		13.6
New Orleans		1		1,333		208.75		75.0			156.55		29.3		241.38		11.2			13.3
Chicago		3		1,562		278.93		76.2			212.54		43.1		303.24		11.0			15.3
San Antonio		2		1,512		214.90		63.9			137.37		30.2		219.40		4.9			8.9
Houston		5		1,942		208.54		72.3			150.82		36.7		207.78		5.2			11.2
Atlanta		2		810		194.10		76.0			147.44		17.7		239.70		3.6			5.7
Seattle		2		1,315		241.55		72.9			176.09		28.4		237.33		3.1			6.2
Denver		3		1,340		196.19		66.2			129.88		23.3		190.82		4.7			7.9
Other		10		3,061		287.69		69.7			200.45		86.3		306.65		15.0			25.0
Other property level (4)													0.1				(0.2	)		(0.2	)
Domestic		70		39,532		306.78		74.7			229.05		1,349.3		374.40		280.9			440.3

International		5		1,499		193.42		62.7			121.31		25.2		184.99		6.2			8.4
All Locations - comparable hotels (5)		75		41,031	$	303.29		74.2	%	$	225.12	$	1,374.5	$	367.54	$	287.1		$	448.7
Non-comparable hotels		2		909									18.4				(8.9	)		(1.5	)
Gain on sale of property and corporate level income/expense (6)													—				(64.1	)		(5.8	)
Total		77		41,940		—		—			—	$	1,392.9		—	$	214.1		$	441.4

___________

(1)

RevPAR is the product of the average daily room rate charged and the average daily occupancy achieved.

(2)

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.

(3)

CBD refers to the central business district.

(4)

Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases

(5)

See the Notes to Supplemental Financial Information for a discussion of non-GAAP measures and the calculation of comparable hotel results.

(6)

Certain Items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses, and the provision for income taxes. These items are reflected in “gain on sale of property and corporate level income/expense.” Refer to the table below for reconciliation of net income to EBITDA by location.


© Host Hotels & Resorts, Inc.	9

comparable Hotel Results by Location

(unaudited, in millions, except hotel statistics and per room basis)


	Quarter ended June 30, 2023
Location	No. of Properties		No. of Rooms		Hotel Net Income			Plus: Depreciation		Plus: Interest Expense		Plus: Income Tax		Equals: Hotel EBITDA
Maui/Oahu		4		2,006	$	27.5		$	16.5	$	—	$	—	$	44.0
Miami		2		1,033		13.2			7.2		—		—		20.4
Jacksonville		1		446		13.9			3.1		—		—		17.0
Phoenix		3		1,545		25.9			9.6		—		—		35.5
Florida Gulf Coast		3		941		12.7			5.7		—		—		18.4
Orlando		2		2,448		24.6			13.0		—		—		37.6
New York		2		2,486		13.7			12.5		—		—		26.2
Los Angeles/ Orange County		3		1,067		4.6			3.1		—		—		7.7
San Diego		3		3,294		30.7			15.7		—		—		46.4
Washington, D.C. (CBD)		5		3,240		30.2			8.5		—		—		38.7
Boston		2		1,496		12.4			4.6		—		—		17.0
Austin		2		767		3.1			3.2		1.2		—		7.5
Philadelphia		2		810		6.2			2.4		—		—		8.6
Northern Virginia		2		916		6.0			2.4		—		—		8.4
San Francisco/ San Jose		6		4,162		(2.3	)		15.9		—		—		13.6
New Orleans		1		1,333		11.2			2.1		—		—		13.3
Chicago		3		1,562		11.0			4.3		—		—		15.3
San Antonio		2		1,512		4.9			4.0		—		—		8.9
Houston		5		1,942		5.2			6.0		—		—		11.2
Atlanta		2		810		3.6			2.1		—		—		5.7
Seattle		2		1,315		3.1			3.1		—		—		6.2
Denver		3		1,340		4.7			3.2		—		—		7.9
Other		10		3,061		15.0			10.0		—		—		25.0
Other property level (1)						(0.2	)		—		—		—		(0.2	)
Domestic		70		39,532		280.9			158.2		1.2		—		440.3

International		5		1,499		6.2			2.2		—		—		8.4
All Locations - comparable hotels		75		41,031	$	287.1		$	160.4	$	1.2	$	—	$	448.7
Non-comparable hotels		2		909		(8.9	)		7.4		—		—		(1.5	)
Gain on sale of property and corporate level income/expense (2)						(64.1	)		0.3		44.0		14.0		(5.8	)
Total		77		41,940	$	214.1		$	168.1	$	45.2	$	14.0	$	441.4

___________

(1)

Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases.

(2)


© Host Hotels & Resorts, Inc.	10

comparable Hotel Results by Location

(unaudited, in millions, except hotel statistics and per room basis)


	Quarter ended June 30, 2022
Location	No. of Properties		No. of Rooms		Average Room Rate		Average Occupancy Percentage			RevPAR		Total revenues		Total Revenues per Available Room		Hotel Net Income			Hotel EBITDA
Maui/Oahu		4		2,006	$	567.20		78.0	%	$	442.56	$	126.0	$	690.02	$	34.8		$	49.0
Miami		2		1,033		618.60		67.4			416.89		68.0		697.72		21.5			27.1
Jacksonville		1		446		572.46		81.1			463.99		39.5		974.04		14.3			17.4
Phoenix		3		1,545		394.21		76.0			299.63		95.3		677.94		30.4			39.0
Florida Gulf Coast		3		941		386.13		79.0			304.90		55.1		640.76		16.0			21.4
Orlando		2		2,448		402.61		73.8			297.06		129.3		580.59		37.7			50.5
New York		2		2,486		326.39		80.3			261.97		87.2		385.41		14.9			29.3
Los Angeles/ Orange County		3		1,067		278.61		87.4			243.48		34.6		356.01		5.7			9.0
San Diego		3		3,294		271.84		81.0			220.07		117.1		391.37		28.7			43.9
Washington, D.C. (CBD)		5		3,240		286.32		77.0			220.58		92.0		312.13		28.0			36.8
Boston		2		1,496		277.40		60.7			168.38		30.4		223.59		12.3			15.9
Austin		2		767		272.13		80.7			219.57		26.7		383.03		7.1			11.3
Philadelphia		2		810		229.82		86.6			199.08		22.4		303.95		5.7			8.3
Northern Virginia		2		916		228.38		75.8			173.05		22.3		266.99		5.4			7.8
San Francisco/ San Jose		6		4,162		237.03		72.7			172.26		90.0		237.65		7.9			24.4
New Orleans		1		1,333		219.22		76.4			167.55		28.8		237.37		9.6			12.0
Chicago		3		1,562		253.18		74.0			187.35		37.1		260.67		9.1			13.3
San Antonio		2		1,512		202.69		70.3			142.44		29.4		213.86		5.0			9.2
Houston		5		1,942		184.11		67.1			123.53		31.1		175.70		4.3			9.5
Atlanta		2		810		186.06		77.5			144.28		17.4		236.30		4.3			6.5
Seattle		2		1,315		228.80		74.6			170.62		26.2		218.92		4.0			7.3
Denver		3		1,340		188.02		69.4			130.52		23.2		189.86		6.6			9.3
Other		10		3,061		272.79		66.3			180.80		75.2		267.34		18.8			25.2
Other property level (1)													0.3				0.6			0.6
Domestic		70		39,532		300.38		74.6			224.05		1,304.6		361.94		332.7			484.0

International		5		1,499		155.80		59.0			91.91		19.2		140.79		4.2			6.4
All Locations - comparable hotels		75		41,031	$	296.18		74.0	%	$	219.23	$	1,323.8	$	353.95	$	336.9		$	490.4
Non-comparable hotels		2		909									45.8				8.0			15.2
Property transaction adjustments (2)													11.4				—			2.6
Gain on sale of property and corporate level income/expense (3)													—				(84.9	)		(10.1	)
Total		77		41,940		—		—			—	$	1,381.0		—	$	260.0		$	498.1

___________

(1)

Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases.

(2)

(3)


© Host Hotels & Resorts, Inc.	11

comparable Hotel Results by Location

(unaudited, in millions, except hotel statistics and per room basis)


	Quarter ended June 30, 2022
Location	No. of Properties		No. of Rooms		Hotel Net Income			Plus: Depreciation		Plus: Interest Expense		Plus: Income Tax		Plus: Property Transaction Adjustments			Equals: Hotel EBITDA
Maui/Oahu		4		2,006	$	34.8		$	14.2	$	—	$	—	$	—		$	49.0
Miami		2		1,033		21.5			5.8		—		—		(0.2	)		27.1
Jacksonville		1		446		14.3			3.1		—		—		—			17.4
Phoenix		3		1,545		30.4			10.8		—		—		(2.2	)		39.0
Florida Gulf Coast		3		941		16.0			5.4		—		—		—			21.4
Orlando		2		2,448		37.7			12.8		—		—		—			50.5
New York		2		2,486		14.9			12.9		—		—		1.5			29.3
Los Angeles/ Orange County		3		1,067		5.7			3.3		—		—		—			9.0
San Diego		3		3,294		28.7			15.2		—		—		—			43.9
Washington, D.C. (CBD)		5		3,240		28.0			8.8		—		—		—			36.8
Boston		2		1,496		12.3			3.6		—		—		—			15.9
Austin		2		767		7.1			3.1		1.1		—		—			11.3
Philadelphia		2		810		5.7			2.6		—		—		—			8.3
Northern Virginia		2		916		5.4			2.4		—		—		—			7.8
San Francisco/ San Jose		6		4,162		7.9			16.5		—		—		—			24.4
New Orleans		1		1,333		9.6			2.4		—		—		—			12.0
Chicago		3		1,562		9.1			4.9		—		—		(0.7	)		13.3
San Antonio		2		1,512		5.0			4.2		—		—		—			9.2
Houston		5		1,942		4.3			5.2		—		—		—			9.5
Atlanta		2		810		4.3			2.2		—		—		—			6.5
Seattle		2		1,315		4.0			3.3		—		—		—			7.3
Denver		3		1,340		6.6			2.7		—		—		—			9.3
Other		10		3,061		18.8			7.4		—		—		(1.0	)		25.2
Other property level (1)						0.6			—		—		—		—			0.6
Domestic		70		39,532		332.7			152.8		1.1		—		(2.6	)		484.0

International		5		1,499		4.2			2.2		—		—		—			6.4
All Locations - comparable hotels		75		41,031	$	336.9		$	155.0	$	1.1	$	—	$	(2.6	)	$	490.4
Non-comparable hotels		2		909		8.0			7.2		—		—		—			15.2
Property transaction adjustments (2)						—			—		—		—		2.6			2.6
Gain on sale of property and corporate level income/expense (3)						(84.9	)		0.2		35.5		39.1		—			(10.1	)
Total		77		41,940	$	260.0		$	162.4	$	36.6	$	39.1	$	—		$	498.1

___________

(1)

Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases.

(2)

(3)


© Host Hotels & Resorts, Inc.	12

comparable Hotel Results by Location

(unaudited, in millions, except hotel statistics and per room basis)


	Year-to-Date ended June 30, 2023
Location	No. of Properties		No. of Rooms		Average Room Rate		Average Occupancy Percentage			RevPAR		Total revenues		Total Revenues per Available Room		Hotel Net Income			Hotel EBITDA
Maui/Oahu		4		2,006	$	599.89		75.0	%	$	449.74	$	250.3	$	689.14	$	57.9		$	90.4
Miami		2		1,033		594.02		73.8			438.09		145.5		753.95		39.9			54.3
Jacksonville		1		446		532.21		74.7			397.60		70.4		872.26		21.8			27.9
Phoenix		3		1,545		455.18		78.0			355.17		213.6		764.31		77.8			94.9
Florida Gulf Coast		3		941		433.52		80.2			347.70		127.5		747.93		40.3			51.5
Orlando		2		2,448		395.90		74.7			295.85		262.1		591.62		65.7			91.7
New York		2		2,486		316.51		78.8			249.47		166.1		369.18		10.1			35.1
Los Angeles/ Orange County		3		1,067		296.97		81.2			241.12		68.2		352.91		8.4			14.8
San Diego		3		3,294		282.01		80.1			225.75		254.6		427.16		58.6			89.6
Washington, D.C. (CBD)		5		3,240		293.53		71.1			208.82		178.2		304.05		45.3			62.0
Boston		2		1,496		256.23		76.1			195.06		71.1		262.66		14.5			23.6
Austin		2		767		273.23		70.4			192.43		47.6		343.15		6.7			15.2
Philadelphia		2		810		229.68		78.9			181.17		41.6		283.96		7.5			12.3
Northern Virginia		2		916		245.58		69.7			171.08		43.0		259.21		7.5			12.3
San Francisco/ San Jose		6		4,162		261.73		63.7			166.68		187.6		249.04		7.1			39.1
New Orleans		1		1,333		215.24		74.0			159.23		57.9		240.08		19.8			24.2
Chicago		3		1,562		238.80		64.0			152.79		62.1		219.73		7.8			16.5
San Antonio		2		1,512		227.23		67.0			152.20		66.4		242.68		13.1			21.1
Houston		5		1,942		206.36		72.8			150.32		73.4		208.68		10.3			22.6
Atlanta		2		810		195.42		75.0			146.53		35.4		241.17		7.3			11.5
Seattle		2		1,315		223.18		63.1			140.79		46.9		196.97		0.4			6.7
Denver		3		1,340		185.96		57.5			106.90		37.1		152.98		3.7			9.7
Other		10		3,061		319.34		64.0			204.29		175.8		314.22		28.2			48.8
Other property level (1)													0.3				(1.4	)		(1.4	)
Domestic		70		39,532		314.70		71.7			225.60		2,682.7		374.31		558.3			874.4

International		5		1,499		182.51		61.5			112.29		44.9		165.31		9.4			13.7
All Locations - comparable hotels		75		41,031	$	310.54		71.3	%	$	221.46	$	2,727.6	$	366.74	$	567.7		$	888.1
Non-comparable hotels		2		909									39.2				(11.1	)		3.7
Property transaction adjustments (2)													6.8				—			2.9
Gain on sale of property and corporate level income/expense (3)													—				(51.5	)		53.4
Total		77		41,940		—		—			—	$	2,773.6		—	$	505.1		$	948.1

___________

(1)

Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases.

(2)

(3)


© Host Hotels & Resorts, Inc.	13

comparable Hotel Results by Location

(unaudited, in millions, except hotel statistics and per room basis)


	Year-to-Date ended June 30, 2023
Location	No. of Properties		No. of Rooms		Hotel Net Income			Plus: Depreciation		Plus: Interest Expense		Plus: Income Tax		Plus: Property Transaction Adjustments			Equals: Hotel EBITDA
Maui/Oahu		4		2,006	$	57.9		$	32.5	$	—	$	—	$	—		$	90.4
Miami		2		1,033		39.9			14.4		—		—		—			54.3
Jacksonville		1		446		21.8			6.1		—		—		—			27.9
Phoenix		3		1,545		77.8			20.0		—		—		(2.9	)		94.9
Florida Gulf Coast		3		941		40.3			11.2		—		—		—			51.5
Orlando		2		2,448		65.7			26.0		—		—		—			91.7
New York		2		2,486		10.1			25.0		—		—		—			35.1
Los Angeles/ Orange County		3		1,067		8.4			6.4		—		—		—			14.8
San Diego		3		3,294		58.6			31.0		—		—		—			89.6
Washington, D.C. (CBD)		5		3,240		45.3			16.7		—		—		—			62.0
Boston		2		1,496		14.5			9.1		—		—		—			23.6
Austin		2		767		6.7			6.4		2.1		—		—			15.2
Philadelphia		2		810		7.5			4.8		—		—		—			12.3
Northern Virginia		2		916		7.5			4.8		—		—		—			12.3
San Francisco/ San Jose		6		4,162		7.1			32.0		—		—		—			39.1
New Orleans		1		1,333		19.8			4.4		—		—		—			24.2
Chicago		3		1,562		7.8			8.7		—		—		—			16.5
San Antonio		2		1,512		13.1			8.0		—		—		—			21.1
Houston		5		1,942		10.3			12.3		—		—		—			22.6
Atlanta		2		810		7.3			4.2		—		—		—			11.5
Seattle		2		1,315		0.4			6.3		—		—		—			6.7
Denver		3		1,340		3.7			6.0		—		—		—			9.7
Other		10		3,061		28.2			20.6		—		—		—			48.8
Other property level (1)						(1.4	)		—		—		—		—			(1.4	)
Domestic		70		39,532		558.3			316.9		2.1		—		(2.9	)		874.4

International		5		1,499		9.4			4.3		—		—		—			13.7
All Locations - comparable hotels		75		41,031	$	567.7		$	321.2	$	2.1	$	—	$	(2.9	)	$	888.1
Non-comparable hotels		2		909		(11.1	)		14.8		—		—		—			3.7
Property transaction adjustments (2)						—			—		—		—		2.9			2.9
Gain on sale of property and corporate level income/expense (3)						(51.5	)		0.7		92.2		12.0		—			53.4
Total		77		41,940	$	505.1		$	336.7	$	94.3	$	12.0	$	—		$	948.1

___________

(1)

Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases.

(2)

(3)


© Host Hotels & Resorts, Inc.	14

comparable Hotel Results by Location

(unaudited, in millions, except hotel statistics and per room basis)


	Year-to-Date ended June 30, 2022
Location	No. of Properties		No. of Rooms		Average Room Rate		Average Occupancy Percentage			RevPAR		Total revenues		Total Revenues per Available Room		Hotel Net Income			Hotel EBITDA
Maui/Oahu		4		2,006	$	556.16		77.2	%	$	429.37	$	241.8	$	665.56	$	63.1		$	91.5
Miami		2		1,033		677.26		69.1			468.18		147.2		758.30		52.9			62.5
Jacksonville		1		446		555.35		70.8			393.31		68.4		846.75		22.5			28.8
Phoenix		3		1,545		442.80		74.8			331.38		198.6		709.91		75.6			91.8
Florida Gulf Coast		3		941		434.49		79.5			345.27		119.2		699.72		41.1			51.9
Orlando		2		2,448		427.24		66.0			281.89		236.9		534.73		66.5			91.6
New York		2		2,486		303.32		61.0			184.91		121.3		269.63		(28.1	)		20.9
Los Angeles/ Orange County		3		1,067		282.52		76.2			215.25		60.1		311.32		7.4			13.8
San Diego		3		3,294		265.79		71.3			189.62		204.6		343.77		43.1			73.5
Washington, D.C. (CBD)		5		3,240		269.82		57.9			156.21		130.2		222.15		24.8			42.4
Boston		2		1,496		235.57		54.2			127.70		45.5		168.31		8.5			16.9
Austin		2		767		274.92		71.3			196.03		46.5		334.68		10.9			19.2
Philadelphia		2		810		206.81		76.7			158.68		35.8		244.18		5.6			10.7
Northern Virginia		2		916		216.27		64.4			139.18		34.5		208.25		4.3			9.0
San Francisco/ San Jose		6		4,162		221.94		58.9			130.72		142.0		188.52		(6.8	)		26.3
New Orleans		1		1,333		212.83		66.2			140.90		48.9		202.78		14.2			19.2
Chicago		3		1,562		220.82		57.4			126.78		49.5		174.77		(1.4	)		7.9
San Antonio		2		1,512		195.73		68.8			134.67		56.3		205.78		9.9			18.4
Houston		5		1,942		182.12		64.0			116.60		57.1		162.56		6.2			16.5
Atlanta		2		810		180.13		72.0			129.60		30.4		207.01		6.3			10.7
Seattle		2		1,315		211.55		55.1			116.53		36.5		153.56		(2.7	)		4.2
Denver		3		1,340		173.91		57.4			99.84		35.6		146.61		6.7			12.2
Other		10		3,061		323.74		59.1			191.24		159.2		284.58		23.5			48.7
Other property level (1)													0.4				0.1			0.1
Domestic		70		39,532		304.95		64.8			197.64		2,306.5		321.78		454.2			788.7

International		5		1,499		133.14		49.3			65.66		27.0		99.56		2.2			6.7
All Locations - comparable hotels		75		41,031	$	300.14		64.2	%	$	192.82	$	2,333.5	$	313.73	$	456.4		$	795.4
Non-comparable hotels		2		909									112.2				33.5			47.5
Severance at hotel properties													—				—			(1.7	)
Property transaction adjustments (2)													9.2				—			(15.9	)
Gain on sale of property and corporate level income/expense (3)													—				(111.9	)		(17.1	)
Total		77		41,940		—		—			—	$	2,454.9		—	$	378.0		$	808.2

___________

(1)

Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases.

(2)

(3)


© Host Hotels & Resorts, Inc.	15

comparable Hotel Results by Location

(unaudited, in millions, except hotel statistics and per room basis)


	Year-to-Date ended June 30, 2022
Location	No. of Properties		No. of Rooms		Hotel Net Income			Plus: Depreciation		Plus: Interest Expense		Plus: Income Tax		Plus: Severance at hotel properties			Plus: Property Transaction Adjustments			Equals: Hotel EBITDA
Maui/Oahu		4		2,006	$	63.1		$	28.3	$	—	$	—	$	0.1		$	—		$	91.5
Miami		2		1,033		52.9			11.5		—		—		—			(1.9	)		62.5
Jacksonville		1		446		22.5			6.3		—		—		—			—			28.8
Phoenix		3		1,545		75.6			21.7		—		—		—			(5.5	)		91.8
Florida Gulf Coast		3		941		41.1			10.8		—		—		—			—			51.9
Orlando		2		2,448		66.5			25.1		—		—		—			—			91.6
New York		2		2,486		(28.1	)		35.2		—		—		1.6			12.2			20.9
Los Angeles/ Orange County		3		1,067		7.4			6.4		—		—		—			—			13.8
San Diego		3		3,294		43.1			30.4		—		—		—			—			73.5
Washington, D.C. (CBD)		5		3,240		24.8			17.6		—		—		—			—			42.4
Boston		2		1,496		8.5			6.6		—		—		—			1.8			16.9
Austin		2		767		10.9			6.2		2.1		—		—			—			19.2
Philadelphia		2		810		5.6			5.1		—		—		—			—			10.7
Northern Virginia		2		916		4.3			4.7		—		—		—			—			9.0
San Francisco/ San Jose		6		4,162		(6.8	)		33.1		—		—		—			—			26.3
New Orleans		1		1,333		14.2			5.0		—		—		—			—			19.2
Chicago		3		1,562		(1.4	)		10.1		—		—		—			(0.8	)		7.9
San Antonio		2		1,512		9.9			8.5		—		—		—			—			18.4
Houston		5		1,942		6.2			10.3		—		—		—			—			16.5
Atlanta		2		810		6.3			4.4		—		—		—			—			10.7
Seattle		2		1,315		(2.7	)		6.9		—		—		—			—			4.2
Denver		3		1,340		6.7			5.5		—		—		—			—			12.2
Other		10		3,061		23.5			15.1		—		—		—			10.1			48.7
Other property level (1)						0.1			—		—		—		—			—			0.1
Domestic		70		39,532		454.2			314.8		2.1		—		1.7			15.9			788.7

International		5		1,499		2.2			4.5		—		—		—			—			6.7
All Locations - comparable hotels		75		41,031	$	456.4		$	319.3	$	2.1	$	—	$	1.7		$	15.9		$	795.4
Non-comparable hotels		2		909		33.5			14.0		—		—		—			—			47.5
Severance at hotel properties						—			—		—		—		(1.7	)		—			(1.7	)
Property transaction adjustments (2)						—			—		—		—		—			(15.9	)		(15.9	)
Gain on sale of property and corporate level income/expense (3)						(111.9	)		0.6		70.8		23.4		—			—			(17.1	)
Total		77		41,940	$	378.0		$	333.9	$	72.9	$	23.4	$	—		$	—		$	808.2

___________

(1)

Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases.

(2)

(3)


© Host Hotels & Resorts, Inc.	16

HISTORICAL COMPARABLE HOTEL RESULTS

(UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS)

Historical Comparable Hotel Metrics(1)


	Three Months Ended																		Full Year			Three Months Ended												Full Year
	March 31, 2023			June 30, 2023			March 31, 2022			June 30, 2022			September 30, 2022			December 31, 2022			December 31, 2022			March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			December 31, 2019
Number of hotels		75			75			75			75			75			75			75			73			73			73			73			73
Number of rooms		41,031			41,031			41,031			41,031			41,031			41,031			41,031			40,643			40,643			40,643			40,643			40,643
Comparable hotel RevPAR	$	217.77		$	225.12		$	166.12		$	219.23		$	197.76		$	199.97		$	195.87		$	202.83		$	211.88		$	192.81		$	194.32		$	200.42
Comparable hotel occupancy		68.4	%		74.2	%		54.4	%		74.0	%		70.3	%		66.5	%		66.3	%		76.3	%		81.9	%		80.0	%		75.6	%		78.5	%
Comparable hotel ADR	$	318.49		$	303.29		$	305.60		$	296.18		$	281.27		$	300.71		$	295.24		$	265.90		$	258.56		$	240.91		$	256.94		$	255.39

Historical Comparable Hotel Revenues(1)(2)


	Three Months Ended																		Full Year			Three Months Ended												Full Year
	March 31, 2023			June 30, 2023			March 31, 2022			June 30, 2022			September 30, 2022			December 31, 2022			December 31, 2022			March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			December 31, 2019
Total revenues	$	1,381		$	1,393		$	1,074		$	1,381		$	1,189		$	1,263		$	4,907		$	1,390		$	1,483		$	1,262		$	1,334		$	5,469
Add: Revenues from asset acquisitions		-			-			34			4			30			4			72			128			91			90			92			401
Less: Revenues from asset dispositions		(7	)		-			(32	)		(15	)		(6	)		(7	)		(60	)		(230	)		(251	)		(205	)		(180	)		(866	)
Less: Revenues from non-comparable hotels		(21	)		(18	)		(66	)		(46	)		(25	)		(9	)		(146	)		(74	)		(48	)		(28	)		(48	)		(198	)
Comparable hotel revenues	$	1,353		$	1,375		$	1,010		$	1,324		$	1,188		$	1,251		$	4,773		$	1,214		$	1,275		$	1,119		$	1,198		$	4,806

Historical Comparable Hotel EBITDA(1)(2)


	Three Months Ended																Full Year			Three Months Ended												Full Year
	March 31, 2023			June 30, 2023		March 31, 2022			June 30, 2022			September 30, 2022		December 31, 2022			December 31, 2022			March 31, 2019			June 30, 2019			September 30, 2019			December 31, 2019			December 31, 2019
Net income (loss)	$	291		$	214	$	118		$	260		$	116	$	149		$	643		$	189		$	290		$	372		$	81		$	932
Depreciation and amortization		169			168		172			162			164		166			664			170			166			165			175			676
Interest expense		49			45		36			37			40		43			156			43			43			46			90			222
Provision (benefit) for income taxes		(2	)		14		(16	)		39			6		(3	)		26			2			16			4			8			30
Gain on sale of property and corporate level income/expense		(59	)		6		7			10			15		18			51			11			(44	)		(263	)		13			(283	)
Severance expense at hotel properties		-			-		2			-			-		-			2			-			-			-			-			-
Property transaction adjustments		(3	)		-		19			(3	)		8		(1	)		23			(10	)		(46	)		(25	)		(15	)		(96	)
Non-comparable hotel results, net		(6	)		2		(33	)		(15	)		-		3			(45	)		(32	)		(13	)		(2	)		(15	)		(62	)
Comparable hotel EBITDA	$	439		$	449	$	305		$	490		$	349	$	375		$	1,520		$	373		$	412		$	297		$	337		$	1,419

___________

(1)

Comparable hotel results represent adjustments for the following items: (i) to remove the results of operations of our hotels sold or held-for-sale as of June 30, 2023, which operations are included in our condensed consolidated statements of operations as continuing operations, (ii) to include the results for periods prior to our ownership for hotels acquired as of June 30, 2023, and (iii) to remove the results of our non-comparable hotels. The AC Hotel Scottsdale North is a new development hotel that opened in January 2021 and The Laura Hotel in Houston re-opened under new management in November 2021. Therefore, no adjustments were made for results of these hotels for periods prior to their openings.

(2)

Comparable hotel revenues and comparable hotel EBITDA 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.


© Host Hotels & Resorts, Inc.	17

COMPARABLE HOTEL RESULTS 2023 FORECAST

(UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS)


	2023 Comparable Hotel Set
	2023 Forecast⁽¹⁾			2022			2019
Number of hotels		75			75			73
Number of rooms		41,031			41,031			40,643
Comparable hotel Total RevPAR	$	343.88		$	318.25		$	323.84
Comparable hotel RevPAR		211.59			195.87			200.42
Operating profit margin⁽⁴⁾		14.5	%		15.8	%		14.6	%
Comparable hotel EBITDA margin⁽⁴⁾		29.9	%		31.8	%		29.5	%
Food and beverage profit margin⁽⁴⁾		33.9	%		34.6	%		32.0	%
Comparable hotel food and beverage profit margin⁽⁴⁾		34.4	%		35.0	%		33.4	%

Net income	$	725		$	643		$	932
Depreciation and amortization		680			664			676
Interest expense		190			156			222
Provision for income taxes		15			26			30
Gain on sale of property and corporate level income/expense		(47	)		51			(283	)
Severance expense at hotel properties		—			2			—
Property transaction adjustments⁽²⁾		(3	)		23			(96	)
Non-comparable hotel results, net⁽³⁾		(17	)		(45	)		(62	)
Comparable hotel EBITDA	$	1,543		$	1,520		$	1,419

___________

(1)

See "Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre and Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share for Full Year 2023 Forecasts" for other forecast assumptions. Forecast presented assumes the midpoint of our comparable hotel RevPAR guidance of a 8% increase to 2022. Forecast comparable hotel results include 75 hotels (of our 77 hotels owned at June 30, 2023) that we have assumed will be classified as comparable as of December 31, 2023. See “Comparable Hotel Operating Statistics and Results” in the Notes to Supplemental Financial Information. No assurances can be made as to the hotels that will be in the comparable hotel set for 2023.

(2)

Property transaction adjustments represent the following items: (i) the elimination of results of operations of our hotels sold or held-for-sale as of June 30, 2023, 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 June 30, 2023. The AC Hotel Scottsdale North is a new development hotel that opened in January 2021 and The Laura Hotel in Houston re-opened under new management in November 2021. Therefore, no adjustments were made for results of these hotels for periods prior to their openings.

(3)

Hyatt Regency Coconut Point Resort & Spa (business disruption due to Hurricane Ian beginning in September 2022, closed until November 2022); and

The Ritz-Carlton, Naples (business disruption due to Hurricane Ian beginning in September 2022, closed until July 2023).

(4)


© Host Hotels & Resorts, Inc.	18

COMPARABLE HOTEL RESULTS 2023 FORECAST

(UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS)


	Forecast Year ended December 31, 2023															Year ended December 31, 2022																Year ended December 31, 2019
				Adjustments															Adjustments																Adjustments
	GAAP Results			Property transaction adjustments			Non-comparable hotel results, net (b)			Depreciation and corporate level items			Comparable hotel Results			GAAP Results				Property transaction adjustments			Non-comparable hotel results, net (b)			Hotel severance, Depreciation and corporate level items			Comparable hotel Results			GAAP Results			Property transaction adjustments			Non-comparable hotel results, net (b)			Depreciation and corporate level items			Comparable hotel Results
Revenues
Room	$	3,242		$	(5	)	$	(63	)	$	-		$	3,174		$	3,014			$	-		$	(76	)	$	-		$	2,938		$	3,431		$	(363	)		(94	)	$	-		$	2,974
Food and beverage		1,562			(2	)		(50	)		-			1,510			1,418				3			(54	)		-			1,367			1,647			(95	)		(82	)		-			1,470
Other		486			-			(12	)		-			474			475				9			(16	)		-			468			391			(7	)		(22	)		-			362
Total revenues		5,290			(7	)		(125	)		-			5,158			4,907				12			(146	)		-			4,773			5,469			(465	)		(198	)		-			4,806
Expenses
Room		797			(1	)		(13	)		-			783			727				(10	)		(14	)		-			703			873			(125	)		(19	)		-			729
Food and beverage		1,033			(1	)		(42	)		-			990			928				(1	)		(38	)		-			889			1,120			(84	)		(57	)		-			979
Other		1,900			(2	)		(53	)		-			1,845			1,723				-			(49	)		(2	)		1,672			1,899			(160	)		(60	)		-			1,679
Depreciation and amortization		680			-			-			(680	)		-			664				-			-			(664	)		-			676			-			-			(676	)		-
Corporate and other expenses		118			-			-			(118	)		-			107				-			-			(107	)		-			107			-			-			(107	)		-
Gain on insurance and business interruption settlements (a)		(5	)		-			-			2			(3	)		(17	)			-			-			6			(11	)		(5	)		-			-			5			-
Total expenses		4,523			(4	)		(108	)		(796	)		3,615			4,132				(11	)		(101	)		(767	)		3,253			4,670			(369	)		(136	)		(778	)		3,387
Operating Profit - Comparable hotel EBITDA	$	767		$	(3	)	$	(17	)	$	796		$	1,543		$	775			$	23		$	(45	)	$	767		$	1,520		$	799		$	(96	)	$	(62	)	$	778		$	1,419

___________

(a)

(b)

Forecast non-comparable hotel results, net includes the results of the Hyatt Regency Coconut Point Resort & Spa and The Ritz-Carlton, Naples, due to the closures caused by Hurricane Ian. The Ritz-Carlton, Naples had a development project in progress at the time the hurricane hit that was scheduled to be complete by the end of 2022. This project included an expansion of the property to include a new guest tower that would result in the addition of 24 net new keys. Due to the damage caused by the hurricane, the completion of the project was delayed and debuted when the property reopened on July 6, 2023. The following table reconciles net income (loss) to Hotel EBITDA for these non-comparable hotels based on the current forecast included in our Full Year 2023 forecast and based on the expected results of the properties had they not been affected by Hurricane Ian and the new guest tower opened as planned:


	Net Income (Loss)			Plus: Depreciation			Plus: Interest Expense		Plus: Income Tax		Equals: Hotel EBTIDA
Current Forecast	$	(14	)	$	31		$	-	$	-	$	17
Forecast without Hurricane		56			32			-		-		88
Change in Forecast	$	(70	)	$	(1	)	$	-	$	-	$	(71	)


© Host Hotels & Resorts, Inc.	19

RECONCILIATION OF NET INCOME TO EBITDA, EBITDARE AND ADJUSTED EBITDARE AND DILUTED EARNINGS PER COMMON SHARE TO NAREIT AND ADJUSTED FUNDS FROM OPERATIONS PER DILUTED SHARE FOR FULL YEAR 2023 FORECASTS (1)

(UNAUDITED, IN MILLIONS, EXCEPT PER SHARE AMOUNTS)


	Full Year 2023
	Mid-point
Net income	$	725
Interest expense		190
Depreciation and amortization		680
Income taxes		15
EBITDA		1,610
Gain on dispositions		(69	)
Equity investment adjustments:
Equity in earnings of affiliates		(19	)
Pro rata EBITDAre of equity investments		40
EBITDAre		1,562
Adjustments to EBITDAre:
Gain on property insurance settlement (2)		(2	)
Adjusted EBITDAre	$	1,560


	Full Year 2023
	Mid-point
Net income	$	725
Less: Net income attributable to non-controlling interests		(11	)
Net income attributable to Host Inc.		714
Adjustments:
Gain on dispositions		(69	)
Gain on property insurance settlement (2)		(2	)
Depreciation and amortization		679
Equity investment adjustments:
Equity in earnings of affiliates		(19	)
Pro rata FFO of equity investments		28
Consolidated partnership adjustments:
FFO adjustment for non-controlling partnerships		(1	)
FFO adjustment for non-controlling interests of Host LP		(8	)
NAREIT FFO		1,322
Adjustments to NAREIT FFO:
Loss on extinguishment of debt		4
Adjusted FFO	$	1,326

Diluted weighted average shares outstanding - EPS, NAREIT FFO and Adjusted FFO		713.9
Diluted earnings per common share	$	1.00
NAREIT FFO per diluted share	$	1.85
Adjusted FFO per diluted share	$	1.86

___________

(1) The Forecasts are based on the below assumptions:

•

Comparable hotel RevPAR will increase at the midpoint of our guidance of 8%, compared to 2022.

•

Comparable hotel EBITDA margins will decrease 190 basis points compared to 2022.

•

We expect to spend approximately $625 million to $725 million on capital expenditures.

•

Assumes no acquisitions and no additional dispositions during the year.

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

(2) The insurance gain relates to proceeds in 2023 related to prior year insurance claims. 2023 Forecasts do not include any gains related to Hurricane Ian at this time, as timing of any recognition is uncertain


© Host Hotels & Resorts, Inc.	20

GROUND LEASE SUMMARY AS OF DECEMBER 31, 2022


		As of December 31, 2022
		No. of rooms		Lessor Institution Type	Minimum rent		Current expiration	Expiration after all potential options (1)
1	Boston Marriott Copley Place		1,145	Public	N/A (2)		12/13/2077	12/13/2077
2	Coronado Island Marriott Resort & Spa	300		Public		1,378,850	10/31/2062	10/31/2078
3	Denver Marriott West	305		Private		160,000	12/28/2028	12/28/2058
4	Houston Airport Marriott at George Bush Intercontinental	573		Public		1,560,000	10/31/2053	10/31/2053
5	Houston Marriott Medical Center/Museum District	398		Non-Profit		160,000	12/28/2029	12/28/2059
6	Manchester Grand Hyatt San Diego		1,628	Public		6,600,000	5/31/2067	5/31/2083
7	Marina del Rey Marriott	370		Public		1,991,076	3/31/2043	3/31/2043
8	Marriott Downtown at CF Toronto Eaton Centre	461		Non-Profit		368,900	9/20/2082	9/20/2082
9	Marriott Marquis San Diego Marina		1,366	Public		7,650,541	11/30/2061	11/30/2083
10	Newark Liberty International Airport Marriott	591		Public		2,576,119	12/31/2055	12/31/2055
11	Philadelphia Airport Marriott	419		Public		1,411,563	6/29/2045	6/29/2045
12	San Antonio Marriott Rivercenter		1,000	Private		700,000	12/31/2033	12/31/2063
13	San Francisco Marriott Marquis		1,500	Public		1,500,000	8/25/2046	8/25/2076
14	Santa Clara Marriott		766	Private		90,932	11/30/2028	11/30/2058
15	Tampa Airport Marriott		298	Public		1,463,770	12/31/2043	12/31/2043
16	The Ritz-Carlton, Marina del Rey		304	Public		2,078,916	7/29/2067	7/29/2067
17	The Ritz-Carlton, Tysons Corner		398	Private		1,043,459	6/30/2112	6/30/2112
18	The Westin Cincinnati		456	Public		100,000	6/30/2045	6/30/2075 (3)
19	The Westin South Coast Plaza, Costa Mesa		393	Private		178,160	9/30/2025	9/30/2025
	Weighted average remaining lease term (assuming all extension options)			51 years
	Percentage of leases (based on room count) with Public/Private/Non-Profit lessors			71%/22%/7%

(1)

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.

(2)

All rental payments have been previously paid and no further rental payments are required for the remainder of the lease term.

(3)

No renewal term in the event the Lessor determines to discontinue use of building as a hotel.


© Host Hotels & Resorts, Inc.	21

 
 
 
ovERVIEW
PROPERTY LEVEL DATA
CAPITALIZATION
Financial Covenants
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

COMPARATIVE CAPITALIZATION

(in millions, except security pricing and per share amounts)


	As of			As of			As of			As of			As of
	June 30,			March 31,			December 31,			September 30,			June 30,
Shares/Units	2023			2023			2022			2022			2022
Common shares outstanding		711.4			711.2			713.4		714.9			714.9
Common shares outstanding assuming conversion of OP Units (1)	721.4			721.3			723.6			725.3			725.3
Preferred OP Units outstanding	0.01			0.01			0.01			0.01			0.01

Security pricing
Common stock at end of quarter (2)	$	16.83		$	16.49		$	16.05		$	15.88		$	15.68
High during quarter		17.83			19.23			18.94			19.55			21.24
Low during quarter		15.80			14.86			15.81			15.47			15.40

Capitalization
Market value of common equity (3)	$	12,141		$	11,894		$	11,614		$	11,518		$	11,373
Consolidated debt		4,210			4,208			4,215			4,214			4,212
Less: Cash		(802	)		(563	)		(667	)		(883	)		(699	)
Consolidated total capitalization		15,549			15,539			15,162			14,849			14,886
Plus: Share of debt in unconsolidated investments	183			199			205			156			143
Pro rata total capitalization (4)	$	15,732		$	15,738		$	15,367		$	15,005		$	15,029

	Quarter ended			Quarter ended			Quarter ended			Quarter ended			Quarter ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022
Dividends declared per common share	$	0.15		$	0.12		$	0.32		$	0.12		$	0.06

(1)

Each OP Unit is redeemable for cash or, at our option, for 1.021494 common shares of Host Inc. At June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022, there were 9.8 million, 9.9 million, 10.0 million, 10.1 million, and 10.2 million in common OP Units, respectively, held by non-controlling interests.

(2)

Share prices are the closing price as reported by the NASDAQ.

(3)

Market value of common equity is calculated as the number of common shares outstanding including assumption of conversion of OP units multiplied the closing share price on that day.

(4)

Based on pro rata total capitalization at June 30, 2023, Host’s net income multiple is 21.7x calculated based on the ratio between our pro rata total capitalization and our full year 2023 forecast net income at the midpoint. Host’s EBITDA multiple is 10.1x calculated based on the ratio between our pro rata total capitalization at June 30, 2023 and our full year 2023 forecast Adjusted EBITDAre at the midpoint. See Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre and Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share for Full Year 2023 Forecasts.


© Host Hotels & Resorts, Inc.	23

CONSOLIDATED DEBT SUMMARY

(IN MILLIONS)


Debt
Senior debt	Rate	Maturity date	June 30, 2023				December 31, 2022
Series E	4%	6/2025		$	499			$	499
Series F	4 1⁄2%	2/2026		399				399
Series G	3 7⁄8%	4/2024		399				399
Series H	3 3⁄8%	12/2029		642				642
Series I	3 1⁄2%	9/2030		737				736
Series J	2.9%	12/2031		441					440
2027 Credit facility term loan	6.4%	1/2027		499				499
2028 Credit facility term loan	6.4%	1/2028		498				499
Credit facility revolver (1)	-	1/2027			(10	)			(4	)
					4,104				4,109
Mortgage and other debt
Mortgage and other debt	4.9%	2/2024 - 11/2027		106				106
Total debt(2)(3)				$	4,210			$	4,215
Percentage of fixed rate debt					76	%			76	%
Weighted average interest rate					4.5	%			4.4	%
Weighted average debt maturity				4.7 years				5.2 years

Credit Facility
Total capacity				$	1,500
Available capacity					1,495

Assets encumbered by mortgage debt					1

(1)

There are no outstanding credit facility borrowings at June 30, 2023. Amount shown represents deferred financing costs related to the credit facility revolver.

(2)

In accordance with GAAP, total debt includes the debt of entities that we consolidate, but of which we do not own 100%, and excludes the debt of entities that we do not consolidate, but of which we have a non-controlling ownership interest and record our investment therein under the equity method of accounting. As of June 30, 2023, our share of debt in unconsolidated investments is $183 million and none of our debt is attributable to non-controlling interests.

(3)

Total debt as of June 30, 2023 and December 31, 2022, includes net discounts and deferred financing costs of $44 million and $40 million, respectively.


© Host Hotels & Resorts, Inc.	24

Consolidated Debt Maturity as of June 30, 2023

(1)

The first term loan under our credit facility that is due in 2027 has an extension option that would extend maturity of the instrument to 2028, subject to meeting certain conditions, including payment of a fee. The second term loan tranche that is due in 2028 does not have an extension option.

(2)

Mortgage and other debt excludes principal amortization of $2 million each year from 2023-2027 for the mortgage loan that matures in 2027.

1 HOTEL SOUTH BEACH


© Host Hotels & Resorts, Inc.	25

 
 
 
OVERVIEW
PROPERTY LEVEL DATA
CAPITALIZATION
Financial Covenants
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

FINANCIAL COVENANTS: CREDIT FACILITY AND SENIOR NOTES FINANCIAL PERFORMANCE TESTS

(UNAUDITED, IN MILLIONS, EXCEPT RATIOS)

On January 4, 2023, we amended our Credit Facility agreement. The covenant requirements are consistent with previous amendment covenant levels:


Leverage Ratio	Maximum 7.25x
Fixed Charge Coverage Ratio	Minimum 1.25x
Unsecured Interest Coverage Ratio	Minimum 1.75x⁽¹⁾

Covenant ratios are calculated using Host’s credit facility and senior notes definitions. See the subsequent pages for a reconciliation of the equivalent GAAP measure. The GAAP ratio is not relevant for the purpose of the financial covenants.

The following tables present the financial performance tests for our credit facility and senior notes:


		At June 30, 2023
Credit Facility Financial Performance Tests	Permitted	GAAP Ratio			Covenant Ratio
Leverage Ratio	Maximum 7.25x		5.5	x		2.2	x
Unsecured Interest Coverage Ratio	Minimum 1.75x(1)		4.4	x		9.3	x
Consolidated Fixed Charge Coverage Ratio	Minimum 1.25x		4.4	x		8.0	x


		At June 30, 2023
Bond Compliance Financial Performance Tests	Permitted	GAAP Ratio			Covenant Ratio
Indebtedness Test	Maximum 65%		34	%		20	%
Secured Indebtedness Test	Maximum 40%		1	%		1	%
EBITDA-to-interest Coverage ratio ⁽²⁾	Minimum 1.5x		4.4	x		9.1	x
Ratio of Unencumbered Assets to Unsecured Indebtedness	Minimum 150%		294	%		491	%

(1)

If the leverage ratio is greater than 7.0x, then the unsecured interest coverage ratio minimum will decrease to 1.50x.

(2)

The GAAP ratio is based on net income, while the covenant ratio is based on EBITDA. See subsequent pages for a reconciliation of net income to EBITDA.


© Host Hotels & Resorts, Inc.	27

FINANCIAL COVENANTS: RECONCILIATION OF GAAP LEVERAGE

RATIO TO CREDIT FACILITY LEVERAGE RATIO

(UNAUDITED, IN MILLIONS, EXCEPT RATIOS)

The following tables presents the calculation of our leverage ratio using GAAP measures and as used in the financial covenants of the credit facility:


	GAAP Leverage Ratio				Leverage Ratio per Credit Facility
	Trailing Twelve Months				Trailing Twelve Months
	June 30, 2023				June 30, 2023
Debt	$	4,210		Net debt (1)	$	3,509
Net income		770		Adjusted Credit Facility EBITDA (2)		1,610
GAAP Leverage Ratio		5.5	x	Leverage Ratio		2.2	x

(1) The following presents the reconciliation of debt to net debt per our credit facility definition:


	June 30, 2023
Debt	$	4,210
Less: Unrestricted cash over $100 million		(701	)
Net debt per credit facility definition	$	3,509

(2) The following presents the reconciliation of net income to EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted EBITDA per our credit facility definition in determining leverage ratio:


	Trailing Twelve Months
	June 30, 2023
Net income	$	770
Interest expense		177
Depreciation and amortization		667
Income taxes		15
EBITDA		1,629
Gain on dispositions		(72	)
Equity in earnings of affiliates		(10	)
Pro rata EBITDAre of equity investments		35
EBITDAre and Adjusted EBITDAre		1,582
Pro forma EBITDA - Acquisitions		10
Pro forma EBITDA - Dispositions		(2	)
Restricted stock expense and other non-cash items		30
Non-cash partnership adjustments		(10	)
Adjusted Credit Facility EBITDA	$	1,610


© Host Hotels & Resorts, Inc.	28

Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio

(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:


	GAAP Interest Coverage Ratio				Unsecured Interest Coverage per Credit Facility Ratio
	Trailing Twelve Months				Trailing Twelve Months
	June 30, 2023				June 30, 2023
Net income	$	770		Unencumbered consolidated EBITDA per credit facility definition (1)	$	1,600
Interest Expense		177		Adjusted Credit Facility unsecured interest expense (2)		172
GAAP Interest Coverage Ratio		4.4	x	Unsecured Interest Coverage Ratio		9.3	x

(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:


	Trailing Twelve Months
	June 30, 2023
Adjusted Credit Facility EBITDA	$	1,610
Less: Encumbered EBITDA		(11	)
Corporate overhead allocated to encumbered assets		1
Unencumbered Consolidated EBITDA per credit facility definition	$	1,600

(2) The following reconciles GAAP interest expense to unsecured interest expense per our credit facility definition:


	Trailing Twelve Months
	June 30, 2023
GAAP Interest expense	$	177
Interest on secured debt		(5	)
Debt extinguishment costs		(4	)
Deferred financing cost amortization		(7	)
Capitalized interest		12
Pro forma interest adjustments		(1	)
Adjusted Credit Facility Unsecured Interest Expense	$	172


© Host Hotels & Resorts, Inc.	29

Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Fixed Charge Coverage Ratio

(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:


	GAAP Fixed Charge Coverage Ratio				Credit Facility Fixed Charge Coverage Ratio
	Trailing Twelve Months				Trailing Twelve Months
	June 30, 2023				June 30, 2023
Net income	$	770		Credit Facility Fixed Charge Coverage Ratio EBITDA (1)	$	1,349
Interest Expense		177		Fixed charges (2)		169
GAAP Fixed Charge Coverage Ratio		4.4	x	Credit Facility Fixed Charge Coverage Ratio		8.0	x

(1) The following reconciles Adjusted Credit Facility EBITDA to Credit Facility Fixed Charge Coverage Ratio EBITDA. See Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio for calculation and reconciliation of Adjusted Credit Facility EBITDA:


	Trailing Twelve Months
	June 30, 2023
Adjusted Credit Facility EBITDA	$	1,610
Less: 5% of hotel property gross revenue		(260	)
Less: 3% of revenues from other real estate		(1	)
Credit Facility Fixed Charge Coverage Ratio EBITDA	$	1,349

(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 unsecured interest expense per our credit facility definition:


	Trailing Twelve Months
	June 30, 2023
Adjusted Credit Facility Interest Unsecured Expense	$	172
Interest on secured debt		5
Adjusted Credit Facility Interest Expense	$	177
Scheduled principal payments		2
Cash taxes on ordinary income		(10	)
Fixed Charges	$	169


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Financial Covenants: Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test

(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:


	GAAP Total Indebtedness to Total Assets
	June 30, 2023
Debt	$	4,210
Total assets		12,365
GAAP Total Indebtedness to Total Assets		34	%


	Total Indebtedness to Total Assets per Senior Notes Indenture
	June 30, 2023
Adjusted indebtedness (1)		4,236
Adjusted total assets (2)		20,682
Total Indebtedness to Total Assets		20	%

(1) The following reconciles our GAAP total indebtedness to our total indebtedness per our senior notes indenture:


	June 30, 2023
Debt	$	4,210
Add: Deferred financing costs		28
Less: Mark-to-market on assumed mortgage		(2	)
Adjusted Indebtedness per Senior Notes Indenture	$	4,236

(2) The following presents the reconciliation of total assets to adjusted total assets per the financial covenants of our senior notes indenture definition:


	June 30, 2023
Total assets	$	12,365
Add: Accumulated depreciation		8,864
Add: Prior impairment of assets held		11
Add: Prior inventory impairment at unconsolidated investment		7
Less: Intangibles		(10	)
Less: Right-of-use assets		(555	)
Adjusted Total Assets per Senior Notes Indenture	$	20,682


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Financial Covenants: Reconciliation of GAAP Secured Indebtedness Test to Senior Notes Indenture Secured Indebtedness Test

(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:


	GAAP Secured Indebtedness
	June 30, 2023
Mortgage and other secured debt	$	106
Total assets		12,365
GAAP Secured Indebtedness to Total Assets		1	%


	Secured Indebtedness per Senior Notes Indenture
	June 30, 2023
Secured indebtedness (1)	$	104
Adjusted total assets (2)	$	20,682
Secured Indebtedness to Total Assets		1	%

(1) The following presents the reconciliation of mortgage debt to secured indebtedness per the financial covenants of our senior notes indenture definition:


	June 30, 2023
Mortgage and other secured debt	$	106
Less: Mark-to-market on assumed mortgage		(2	)
Secured Indebtedness	$	104

(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.


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Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Senior Notes Indenture EBITDA-to-Interest Coverage Ratio

(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:


	GAAP Interest Coverage Ratio
	Trailing Twelve Months
	June 30, 2023
Net income	$	770
Interest expense		177
GAAP Interest Coverage Ratio		4.4	x


	EBITDA to Interest Coverage Ratio
	Trailing Twelve Months
	June 30, 2023
Adjusted Credit Facility EBITDA (1)	$	1,610
Non-controlling interest adjustment		2
Adjusted Senior Notes EBITDA	$	1,612
Adjusted Credit Facility Interest Expense (2)		177
Plus: Premium amortization on assumed mortgage		1
Adjusted Senior Notes Interest Expense (2)	$	178
EBITDA to Interest Coverage Ratio		9.1	x

(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 Fixed Charge Coverage Ratio for the calculation of Adjusted Credit Facility interest expense and reconciliation to GAAP interest expense.


© Host Hotels & Resorts, Inc.	33

Financial Covenants: Reconciliation of GAAP Assets to Indebtedness Test to Senior Notes Unencumbered Assets to Unsecured Indebtedness Test

(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:


	GAAP Assets / Debt
	June 30, 2023
Total assets	$	12,365
Total debt		4,210
GAAP Total Assets / Total Debt		294	%


	Unencumbered Assets / Unsecured Debt per Senior Notes Indenture
	June 30, 2023
Unencumbered Assets (1)	$	20,278
Unsecured Debt (2)		4,132
Unencumbered Assets / Unsecured Debt		491	%

(1) The following presents the reconciliation of adjusted total assets to unencumbered assets per the financial covenants of our senior notes indenture definition:


	June 30, 2023
Adjusted total assets (a)	$	20,682
Less: Partnership adjustments		(144	)
Less: Prior inventory impairment at unconsolidated investment		(7	)
Less: Encumbered Assets		(253	)
Unencumbered Assets	$	20,278

(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:


	June 30, 2023
Adjusted Indebtedness (b)	$	4,236
Less: Secured indebtedness (c)		(104	)
Unsecured Debt	$	4,132

(b) See reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test for reconciliation of GAAP Total Debt to Adjusted Indebtedness per our senior notes indenture.

(c) 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.


© Host Hotels & Resorts, Inc.	34

 
 
 
OVERVIEW
PROPERTY LEVEL DATA
CAPITALIZATION
Financial Covenants
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

FORECASTS

COMPARABLE HOTEL OPERATING STATISTICS AND RESULTS


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NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

COMPARABLE HOTEL OPERATING STATISTICS AND RESULTS (continued)

•

Hyatt Regency Coconut Point Resort & Spa (business disruption due to Hurricane Ian beginning in September 2022, closed until November 2022); and

•

The Ritz-Carlton, Naples (business disruption due to Hurricane Ian beginning in September 2022, closed until July 2023).

NON-GAAP FINANCIAL MEASURES

Included in this supplemental information are certain “non-GAAP financial measures,” which are measures of our historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules. They are as follows: (i) FFO and FFO per diluted share (both NAREIT and Adjusted), (ii) EBITDA, (iii) EBITDAre and Adjusted EBITDAre, (iv) Comparable Hotel 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.

NAREIT FFO AND NAREIT FFO PER DILUTED SHARE


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NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP FINANCIAL MEASURES (continued)

Adjusted FFO per Diluted Share


© Host Hotels & Resorts, Inc.	38

NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP FINANCIAL MEASURES (continued)

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.

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 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.

EBITDAre AND ADJUSTED EBITDAre


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NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP FINANCIAL MEASURES (continued)

•

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.


© Host Hotels & Resorts, Inc.	40

NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP FINANCIAL MEASURES (continued)

LIMITATIONS ON THE USE OF NAREIT FFO PER DILUTED SHARE, ADJUSTED FFO PER DILUTED SHARE, EBITDA, EBITDARE AND ADJUSTED EBITDARE

We calculate 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 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.


© Host Hotels & Resorts, Inc.	41

NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP FINANCIAL MEASURES (continued)

COMPARABLE HOTEL PROPERTY LEVEL OPERATING RESULTS


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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 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.


© Host Hotels & Resorts, Inc.	43

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.


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