Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”),
the nation’s largest lodging real estate investment trust (“REIT”),
today announced results for second quarter 2021.
OPERATING RESULTS (unaudited, in
millions, except per share and hotel statistics)
|
Quarter ended June 30, |
|
|
Percent Change |
|
Percent Change |
|
|
Year-to-date ended June 30, |
|
|
Percent Change |
|
Percent Change |
|
|
2021 |
|
|
2020 |
|
|
vs. Q2 2020 |
|
vs. Q2 2019(2) |
|
|
2021 |
|
|
2020 |
|
|
vs. Q2 2020 |
|
vs. Q2 2019(2) |
|
Revenues |
$ |
649 |
|
|
$ |
103 |
|
|
|
530.1 |
% |
|
(56.2 |
)% |
|
$ |
1,048 |
|
|
$ |
1,155 |
|
|
|
(9.3 |
)% |
|
(63.5 |
)% |
All owned hotel
revenues (pro forma) (1) |
|
659 |
|
|
|
104 |
|
|
|
533.7 |
% |
|
(54.2 |
)% |
|
|
1,088 |
|
|
|
1,196 |
|
|
|
(9.0 |
)% |
|
(61.1 |
)% |
All owned hotel (pro
forma) Total RevPAR - Constant US$ |
|
152.84 |
|
|
|
23.86 |
|
|
|
540.7 |
% |
|
(54.4 |
)% |
|
|
126.83 |
|
|
|
139.05 |
|
|
|
(8.8 |
)% |
|
(61.3 |
)% |
All owned hotel (pro
forma) RevPAR - Constant US$ |
|
99.86 |
|
|
|
14.12 |
|
|
|
607.0 |
% |
|
(52.0 |
)% |
|
|
82.28 |
|
|
|
82.57 |
|
|
|
(0.3 |
)% |
|
(59.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended June 30, |
|
|
Percent |
|
|
|
|
|
Year-to-date ended June 30, |
|
|
Percent |
|
|
|
|
|
2021 |
|
|
2020 |
|
|
Change |
|
|
|
|
|
2021 |
|
|
2020 |
|
|
Change |
|
|
|
|
Net loss |
|
(61 |
) |
|
|
(356 |
) |
|
|
82.9 |
% |
|
|
|
|
$ |
(214 |
) |
|
$ |
(359 |
) |
|
|
40.4 |
% |
|
|
|
EBITDAre (1) |
|
111 |
|
|
|
(190 |
) |
|
N/M |
|
|
|
|
|
|
116 |
|
|
|
(26 |
) |
|
N/M |
|
|
|
|
Adjusted EBITDAre
(1) |
|
110 |
|
|
|
(189 |
) |
|
N/M |
|
|
|
|
|
|
113 |
|
|
|
(25 |
) |
|
N/M |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per common
share |
|
(0.09 |
) |
|
|
(0.50 |
) |
|
|
82.0 |
% |
|
|
|
|
|
(0.30 |
) |
|
|
(0.50 |
) |
|
|
40.0 |
% |
|
|
|
NAREIT FFO per
diluted share (1) |
|
0.12 |
|
|
|
(0.26 |
) |
|
N/M |
|
|
|
|
|
|
0.13 |
|
|
|
(0.03 |
) |
|
N/M |
|
|
|
|
Adjusted FFO per
diluted share (1) |
|
0.12 |
|
|
|
(0.26 |
) |
|
N/M |
|
|
|
|
|
|
0.13 |
|
|
|
(0.03 |
) |
|
N/M |
|
|
|
|
* Additional detail on the Company’s results,
including data for 21 domestic markets, is available in the Second
Quarter 2021 Supplemental Financial Information available on the
Company’s website at www.hosthotels.com.
James F. Risoleo, President and Chief Executive
Officer, said, “During the second quarter, we were extremely
encouraged to see positive trends across the lodging industry and
our portfolio, as our hotel operations continued to exceed our
expectations. RevPAR reached nearly $100 for the quarter, which
dramatically outperformed consensus RevPAR, with average room rates
only 8.4% below our 2019 second quarter rates. These RevPAR gains
have translated into significant sequential improvements in our
bottom line as expense saving initiatives have been implemented by
our managers, supplemented in part by the challenging labor
environment.”
Risoleo continued, “Subsequent to quarter end,
we completed two additional opportunistic acquisitions – Baker’s
Cay Resort in Key Largo and a luxury hotel in downtown Houston. We
believe these assets will provide meaningful opportunities for
EBITDA growth and continue to improve the quality of our portfolio.
Thus far in 2021, we have invested $1.1 billion in new assets.
Additionally, we opportunistically issued 7.8 million shares
of common stock through our “at-the-market” program at an average
price of approximately $18 per share for total net proceeds of $138
million, which further strengthened our balance sheet. We remain
encouraged by the continued improvement in lodging fundamentals and
we believe our strong capital allocation decisions over the past
few years will drive stockholder value through the upcoming lodging
cycle.”
_____________________________
(1) NAREIT Funds From Operations (“FFO”)
per diluted share, Adjusted FFO per diluted share, EBITDAre,
Adjusted EBITDAre and all owned hotel results (pro forma) 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.
(2) Presentation includes comparisons to
2019 operating results so investors can better understand the
trajectory and timing of any recovery from the COVID-19 impacts on
hotel operations.
N/M = Not Meaningful
HIGHLIGHTS:
Results for Second Quarter 2021
- Improved GAAP net loss by $92 million to $61 million in the
second quarter compared to the first quarter of 2021, reflecting
sequential improvement in operations.
- Achieved positive cash provided by operating activities in the
second quarter of 2021, fueled by All Owned Hotel Pro Forma EBITDA
of $126 million, due to sequential improvement in RevPAR and
operations. This included break-even or positive hotel-level
operating profit at 52 of the Company’s hotels, representing 56% of
rooms, an increase from 31 hotels, representing 31% of rooms,
achieved in the first quarter of 2021.
- Acquired the fee simple interest in the 444-room Four Seasons
Resort Orlando at Walt Disney World® Resort for $610 million and
acquired the Royal Ka’anapali and Ka’anapali Kai Golf Courses for
$28 million.
- Completed the development of a new waterpark at The
Ritz-Carlton Golf Resort, Naples and additional villas at the Andaz
Maui at Wailea Resort. The 19 two-bedroom luxury villas achieved
occupancy of 73% in the first full month of operations at an
average rate of $1,626.
- Ended the quarter with total available liquidity of
approximately $1.6 billion, including FF&E escrow reserves of
$139 million. Following the property transactions completed
subsequent to quarter end noted below, the Company’s total
available liquidity was approximately $1.3 billion, including the
FF&E escrow reserves.
Subsequent Events
- Acquired the 200-room Baker’s Cay Resort Key Largo, Curio
Collection by Hilton for $200 million.
- Acquired a 223-room luxury downtown Houston hotel, formerly
operated as the Hotel Alessandra, for $65 million.
- Preliminary forecast July RevPAR is expected to be $134.
SOURCES AND USES OF CASH
Significant components of cash generated (burn)
in the quarter included (in millions):
|
|
Quarter ended June 30, 2021 |
|
|
|
Quarter ended March 31, 2021 |
|
Net loss |
$ |
(61 |
) |
|
$ |
(153 |
) |
GAAP net cash provided by
(used in) operating activities |
|
9 |
|
|
|
(49 |
) |
Cash generated (burn) before
capital expenditures |
|
61 |
|
|
|
(45 |
) |
Cash burn (3) |
|
(26 |
) |
|
|
(138 |
) |
|
|
|
|
|
|
|
|
Components of cash generated
(burn): |
|
|
|
|
|
|
|
All Owned Hotel Pro Forma EBITDA (3) |
|
126 |
|
|
|
25 |
|
Benefits for furloughed employees adjustment |
|
(1 |
) |
|
|
(12 |
) |
Interest payments |
|
(48 |
) |
|
|
(35 |
) |
Cash corporate and other expenses |
|
(20 |
) |
|
|
(19 |
) |
Net proceeds from (payments to) unconsolidated operations |
|
4 |
|
|
|
(2 |
) |
Severance (expense) reversal at hotel properties |
|
1 |
|
|
|
2 |
|
Pro forma adjustment |
|
(1 |
) |
|
|
(4 |
) |
Cash generated (burn) before capital expenditures |
|
61 |
|
|
|
(45 |
) |
Capital expenditures: |
|
|
|
|
|
|
|
Renewals and replacements |
|
(31 |
) |
|
|
(32 |
) |
ROI - Marriott transformational capital program |
|
(22 |
) |
|
|
(28 |
) |
ROI - All other ROI projects |
|
(34 |
) |
|
|
(33 |
) |
For the quarter, the Company had positive
operating cash flow at both the hotel and corporate level. Sourav
Ghosh, Executive Vice President, Chief Financial Officer, stated,
“The second quarter represents a significant milestone in our
recovery. After taking into consideration our corporate overhead
and interest expense, our operations generated $61 million of cash
in the quarter. If you take into account our robust capital
expenditures program, including ROI projects, renewal and
replacement expenditures, and the Marriott transformational capital
program, our cash outflows were only $26 million. As a result,
we maintained our strong liquidity position, even as we continued
to invest in our portfolio through hotel acquisitions and other
capital projects.”
OPERATING RESULTS
As of August 3, 2021, all of the 35 hotels that
had suspended operations during the pandemic have been re-opened.
Operations remained suspended at the Sheraton Boston Hotel during
the quarter and the hotel re-opened on August 1, 2021.
The following presents the monthly pro forma
hotel operating results on a constant dollar basis for the full
portfolio owned as of June 30, 2021 compared to 2020 and 2019 for
the periods presented(4):
|
|
April2021 |
|
|
April 2020 |
|
|
Change |
|
|
May 2021 |
|
|
May 2020 |
|
|
Change |
|
|
June2021 |
|
|
June 2020 |
|
|
Change |
|
Number of hotels |
|
|
82 |
|
|
|
81 |
|
|
|
|
|
|
|
82 |
|
|
|
81 |
|
|
|
|
|
|
|
82 |
|
|
|
81 |
|
|
|
|
|
Number of rooms |
|
|
47,199 |
|
|
|
47,034 |
|
|
|
|
|
|
|
47,219 |
|
|
|
47,054 |
|
|
|
|
|
|
|
47,222 |
|
|
|
47,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Occupancy
Percentage |
|
|
38.6 |
% |
|
|
6.9 |
% |
|
|
31.7 |
pts |
|
|
42.0 |
% |
|
|
8.8 |
% |
|
|
33.2 |
pts |
|
|
48.5 |
% |
|
|
10.5 |
% |
|
|
38.0 |
pts |
Average Room Rate |
|
$ |
242.01 |
|
|
$ |
128.47 |
|
|
|
88.4 |
% |
|
$ |
226.15 |
|
|
$ |
150.31 |
|
|
|
50.5 |
% |
|
$ |
229.54 |
|
|
$ |
193.95 |
|
|
|
18.3 |
% |
RevPAR |
|
$ |
93.49 |
|
|
$ |
8.84 |
|
|
|
957.8 |
% |
|
$ |
94.99 |
|
|
$ |
13.17 |
|
|
|
621.5 |
% |
|
$ |
111.25 |
|
|
$ |
20.40 |
|
|
|
445.4 |
% |
|
|
April2021 |
|
|
April2019 |
|
|
Change |
|
|
May 2021 |
|
|
May 2019 |
|
|
Change |
|
|
June2021 |
|
|
June2019 |
|
|
Change |
|
Number of hotels |
|
|
82 |
|
|
|
81 |
|
|
|
|
|
|
|
82 |
|
|
|
81 |
|
|
|
|
|
|
|
82 |
|
|
|
81 |
|
|
|
|
|
Number of rooms |
|
|
47,199 |
|
|
|
47,034 |
|
|
|
|
|
|
|
47,219 |
|
|
|
47,054 |
|
|
|
|
|
|
|
47,222 |
|
|
|
47,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Occupancy
Percentage |
|
|
38.6 |
% |
|
|
82.7 |
% |
|
|
(44.1 |
pts) |
|
|
42.0 |
% |
|
|
81.0 |
% |
|
|
(39.0 |
pts) |
|
|
48.5 |
% |
|
|
82.4 |
% |
|
|
(33.9 |
pts) |
Average Room Rate |
|
$ |
242.01 |
|
|
$ |
262.18 |
|
|
|
(7.7 |
)% |
|
$ |
226.15 |
|
|
$ |
248.88 |
|
|
|
(9.1 |
)% |
|
$ |
229.54 |
|
|
$ |
249.30 |
|
|
|
(7.9 |
)% |
RevPAR |
|
$ |
93.49 |
|
|
$ |
216.82 |
|
|
|
(56.9 |
)% |
|
$ |
94.99 |
|
|
$ |
201.70 |
|
|
|
(52.9 |
)% |
|
$ |
111.25 |
|
|
$ |
205.50 |
|
|
|
(45.9 |
)% |
_______________________________
(3) All Owned Hotel pro forma EBITDA and
cash burn are non-GAAP financial measures within the meaning of the
rules of the 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. All
Owned Hotel Pro Forma EBITDA includes an Employee Retention Credit
in the second quarter and first quarter of 2021 of $3
million and $7 million, respectively.
(4) The AC Hotel Scottsdale North is
a new development hotel that opened in January 2021. Therefore,
there were no operations for the hotel prior to January 2021 and no
adjustments made for pro forma results of the hotel for periods
prior to its opening. Operations remained suspended at the Sheraton
Boston Hotel during the quarter and the hotel re-opened on August
1, 2021.
Second Quarter 2021 Revenue Performance
- All Owned Hotel Pro Forma RevPAR improved 55% compared to the
first quarter of 2021, although still a decline of 52% compared to
the second quarter of 2019. The sequential improvement was
primarily due to strong leisure demand for resorts and hotels
located in the Company’s Sunbelt markets and Hawaii.
- Average room rates in the second quarter were 91.6% of second
quarter 2019 rates. Rates declined by 3.9% compared to the first
quarter of 2021, representing a mix shift as urban hotels begin to
recover.
- Average occupancy declined by 39.0 percentage points compared
to the second quarter of 2019 and improved 16.3 percentage points
compared to the first quarter of 2021.
Second Quarter 2021 Hotel Operating Expense
Performance
- Portfolio-wide pro forma hotel operating costs were
approximately 46% lower compared to the second quarter of 2019,
with a 54% decrease in total revenues compared to second quarter of
2019, and costs were only 32% higher compared to the first quarter
of 2021, despite an approximately 54% increase in total revenues
quarter over quarter.
- Ramp up of staffing at several properties continues to lag the
pace of demand due to the challenging labor environment across the
industry. The Company expects hotel operating costs to increase
more in line with total revenues over time as hotels continue to
transition from their contingency level operational plans to
increased staffing levels and controllable spending.
- Benefit costs for furloughed employees had a minimal impact on
results in the second quarter as they are eligible to be reimbursed
through the American Rescue Plan Act.
- Re-introduction of marketing, maintenance and other support
costs is expected to increase other departmental and support
expenses as the recovery continues to gain momentum.
HOTEL BUSINESS MIX UPDATE
The Company’s customers fall into three broad
groups: transient, group and contract business, which accounted for
approximately 61%, 35%, and 4%, respectively, of its 2019 room
sales.
During the second quarter, demand continued to
be primarily driven by leisure at drive-to and resort destinations.
The following are the sequential results of the Company’s
consolidated portfolio, including all owned hotels at June 30, 2021
on a pro forma basis, for transient, group and contract business in
comparison to 2019 performance:
|
Quarter endedJune 30, 2021 |
|
|
Quarter endedMarch 31, 2021 |
|
|
Transient |
|
|
Group |
|
|
Contract |
|
|
Transient |
|
|
Group |
|
|
Contract |
|
Room nights (in thousands) |
|
1,397 |
|
|
|
344 |
|
|
|
109 |
|
|
|
779 |
|
|
|
267 |
|
|
|
89 |
|
Percentage change in room
nights vs. same period in 2019 |
|
(30.0 |
)% |
|
|
(74.5 |
)% |
|
|
(34.3 |
)% |
|
|
(56.2 |
)% |
|
|
(79.2 |
)% |
|
|
(43.0 |
)% |
Room Revenues (in
millions) |
$ |
357 |
|
|
$ |
59 |
|
|
$ |
14 |
|
|
$ |
218 |
|
|
$ |
42 |
|
|
$ |
13 |
|
Percentage change in revenues
vs. same period in 2019 |
|
(33.0 |
)% |
|
|
(81.9 |
)% |
|
|
(58.5 |
)% |
|
|
(54.2 |
)% |
|
|
(86.8 |
)% |
|
|
(62.4 |
)% |
ACQUISITIONS
During the quarter, the Company acquired the
444-room Four Seasons Resort Orlando at Walt Disney World® Resort
for $610 million and acquired the Royal Ka’anapali and Ka’anapali
Kai Golf Courses for $28 million. Subsequent to quarter end, the
Company acquired the 200-room Baker’s Cay Resort in Key Largo for
$200 million and a 223-room luxury hotel in downtown Houston for
$65 million. The hotel completed construction in 2017 at a cost of
$90 million and is currently closed. The Company has engaged HEI to
manage the property as a luxury lifestyle hotel and the hotel is
expected to reopen in 2021.
Year-to-date, the Company has acquired four
hotels and land for a total purchase price of $1.1 billion. The
Company considers these properties to be opportunistic acquisitions
that are expected to improve the quality and EBITDA growth profile
of its portfolio.
CAPITAL EXPENDITURES
The following presents the Company’s 2021
capital expenditures spend and forecast for full year 2021 (in
millions):
|
|
Year-to-date ended June 30, 2021 |
|
|
2021 Full Year Forecast |
|
|
|
Actuals |
|
|
Low-end of range |
|
|
High-end of range |
|
ROI - Marriott transformational capital program |
|
$ |
50 |
|
|
$ |
110 |
|
|
$ |
140 |
|
ROI - All other ROI
projects |
|
|
67 |
|
|
|
165 |
|
|
|
185 |
|
Total ROI project spend |
|
|
117 |
|
|
|
275 |
|
|
|
325 |
|
Renewals and Replacements |
|
|
63 |
|
|
|
125 |
|
|
|
150 |
|
Total Capital
Expenditures |
|
$ |
180 |
|
|
$ |
400 |
|
|
$ |
475 |
|
The Company is utilizing the lower occupancy
environment to accelerate certain projects and minimize future
disruption and believes the renovations will position these hotels
to capture additional revenue during the economic recovery. The
Company is on track to complete 85% of the Marriott
transformational capital program by the end of 2021. The Company
expects to receive approximately $15 million in operating
profit guarantees in 2021 under the Marriott transformational
capital program. As of June 30, 2021 the Company has received $10
million in operating profit guarantees, with $5 million
received in each of the second and first quarters.
BALANCE SHEET
The Company maintains a robust balance sheet
with the following balances at June 30, 2021:
- Total assets of $12.8 billion.
- Debt balance of $5.5 billion, with an average maturity of
4.5 years, an average interest rate of 3.0%, and no maturities
until 2023.
The Company entered into a distribution
agreement with J. P. Morgan Securities LLC, BofA Securities, Inc.,
BTIG, LLC, Goldman Sachs & Co. LLC, Morgan
Stanley & Co. LLC, Scotia Capital (USA) Inc., Truist
Securities, Inc. and Wells Fargo Securities, LLC on May 6, 2021 by
which the Company may issue and sell, from time to time, shares of
common stock having an aggregate offering price of up to $600
million. The shares can be offered and sold through sales agents in
transactions that are deemed to be “at-the-market” offerings at
then-current market prices. The Company is not obligated to sell
any shares. During the second quarter, the Company issued 7.8
million shares at an average price of approximately $18 per share
for net proceeds of $138 million. There is $460 million of
remaining issuance capacity available under the program.
2021 OUTLOOK
Given the global economic uncertainty COVID-19
has created for the travel, airline, lodging and tourism and event
industries, among others, the Company cannot provide guidance for
its operations or fully estimate the effect of COVID-19 or its
variants and the current U.S. vaccination deployment on its
operations.
The Company believes that recovery within the
lodging industry will be driven by the strength of the economy,
increased consumer confidence that the risks associated with
travelling and contracting COVID-19 have been significantly reduced
through vaccine deployment and the return of business and group
customers.
While the Company is not providing guidance on
operations at this time, it estimates that for full year 2021,
interest expense and corporate and other expenses will be in the
following ranges (in millions):
|
|
Full Year 2021 |
|
|
|
Low-end of range |
|
|
High-end of range |
|
Interest expense |
|
$ |
171 |
|
|
$ |
177 |
|
Corporate and other
expenses |
|
|
98 |
|
|
|
100 |
|
The Company does not intend to provide further
guidance updates unless deemed appropriate.
ABOUT HOST HOTELS &
RESORTS
Host Hotels & Resorts, Inc. is an
S&P 500 company and is the largest lodging real estate
investment trust and one of the largest owners of luxury and
upper-upscale hotels. The Company currently owns 79 properties in
the United States and five properties internationally totaling
approximately 47,600 rooms. The Company also holds non-controlling
interests in six domestic and one international joint ventures.
Guided by a disciplined approach to capital allocation and
aggressive asset management, the Company partners with premium
brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®,
St. Regis®, The Luxury Collection®, Hyatt®, Fairmont®, Hilton®,
Four Seasons®, Swissôtel®, ibis® and Novotel®, as well as
independent brands. For additional information, please visit the
Company’s website at www.hosthotels.com.
Note: This press release contains
forward-looking statements within the meaning of federal securities
regulations. These forward-looking statements include forecast
results and are identified by their use of terms and phrases such
as “anticipate,” “believe,” “could,” “estimate,” “expect,”
“intend,” “may,” “should,” “plan,” “predict,” “project,” “will,”
“continue” and other similar terms and phrases, including
references to assumptions and forecasts of future results.
Forward-looking statements are not guarantees of future performance
and involve known and unknown risks, uncertainties and other
factors which may cause the actual results to differ materially
from those anticipated at the time the forward-looking statements
are made. These risks include, but are not limited to: the duration
and scope of the COVID-19 pandemic and its short and longer-term
impact on the demand for travel, transient and group business, and
levels of consumer confidence; actions governments, businesses and
individuals take in response to the pandemic, including limiting or
banning travel or the size of gatherings; the impact of the
pandemic and actions taken in response to the pandemic on global
and regional economies, travel, and economic activity, including
the duration and magnitude of its impact on unemployment rates,
business investment and consumer discretionary spending; the pace
of recovery when the COVID-19 pandemic subsides; general economic
uncertainty in U.S. markets where we own hotels and a worsening of
economic conditions or low levels of economic growth in these
markets; the effects of steps we and our hotel managers take to
reduce operating costs in response to the COVID-19 pandemic; other
changes (apart from the COVID-19 pandemic) in national and local
economic and business conditions and other factors such as natural
disasters and weather that will affect occupancy rates at our
hotels and the demand for hotel products and services; the impact
of geopolitical developments outside the U.S. on lodging demand;
volatility in global financial and credit markets; operating risks
associated with the hotel business; risks and limitations in our
operating flexibility associated with the level of our indebtedness
and our ability to meet covenants in our debt agreements; risks
associated with our relationships with property managers and joint
venture partners; our ability to maintain our properties in a
first-class manner, including meeting capital expenditure
requirements; the effects of hotel renovations on our hotel
occupancy and financial results; our ability to compete effectively
in areas such as access, location, quality of accommodations and
room rate structures; risks associated with our ability to complete
acquisitions and develop new properties and the risks that
acquisitions and new developments may not perform in accordance
with our expectations; our ability to continue to satisfy complex
rules in order for us to remain a REIT for federal income tax
purposes; risks associated with our ability to effectuate our
dividend policy, including factors such as operating results and
the economic outlook influencing our board’s decision whether to
pay further dividends at levels previously disclosed or to use
available cash to make special dividends; and other risks and
uncertainties associated with our business described in the
Company’s annual report on Form 10-K, quarterly reports on Form
10-Q and current reports on Form 8-K filed with the SEC. Although
the Company believes the expectations reflected in such
forward-looking statements are based upon reasonable assumptions,
it can give no assurance that the expectations will be attained or
that any deviation will not be material. All information in this
release is as of August 3, 2021 and the Company undertakes no
obligation to update any forward-looking statement to conform the
statement to actual results or changes in the Company’s
expectations.
* This press release contains registered
trademarks that are the exclusive property of their respective
owners. None of the owners of these trademarks has any
responsibility or liability for any information contained in this
press release.
*** Tables to Follow ***
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, 2021, which is non-controlling interests in Host LP in our
consolidated balance sheets and is included in net (income) loss
attributable to non-controlling interests in our consolidated
statements of operations. Readers are encouraged to find further
detail regarding our organizational structure in our annual report
on Form 10-K.
HOST HOTELS & RESORTS,
INC. Condensed Consolidated Balance
Sheets (unaudited, in millions, except shares and per
share amounts)
|
|
June 30, 2021 |
|
|
December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
Property and equipment, net |
|
$ |
10,071 |
|
|
$ |
9,416 |
|
Right-of-use assets |
|
|
594 |
|
|
|
597 |
|
Due from managers |
|
|
55 |
|
|
|
22 |
|
Advances to and investments in affiliates |
|
|
58 |
|
|
|
21 |
|
Furniture, fixtures and equipment replacement fund |
|
|
139 |
|
|
|
139 |
|
Other |
|
|
442 |
|
|
|
360 |
|
Cash and cash equivalents |
|
|
1,450 |
|
|
|
2,335 |
|
Total assets |
|
$ |
12,809 |
|
|
$ |
12,890 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES,
NON-CONTROLLING INTERESTS AND EQUITY |
|
Debt (1) |
|
|
|
|
|
|
|
|
Senior notes |
|
$ |
3,067 |
|
|
$ |
3,065 |
|
Credit facility, including the term loans of $996 and $997,
respectively |
|
|
2,470 |
|
|
|
2,471 |
|
Other debt |
|
|
5 |
|
|
|
5 |
|
Total debt |
|
|
5,542 |
|
|
|
5,541 |
|
Lease liabilities |
|
|
607 |
|
|
|
610 |
|
Accounts payable and accrued expenses |
|
|
80 |
|
|
|
71 |
|
Due to managers |
|
|
50 |
|
|
|
64 |
|
Other |
|
|
168 |
|
|
|
170 |
|
Total liabilities |
|
|
6,447 |
|
|
|
6,456 |
|
|
|
|
|
|
|
|
|
|
Redeemable non-controlling interests - Host Hotels &
Resorts, L.P. |
|
|
125 |
|
|
|
108 |
|
|
|
|
|
|
|
|
|
|
Host Hotels & Resorts, Inc. stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock, par value $.01, 1,050 million shares
authorized, 713.9 million shares and 705.4 million shares
issued and outstanding, respectively |
|
|
7 |
|
|
|
7 |
|
Additional paid-in capital |
|
|
7,688 |
|
|
|
7,568 |
|
Accumulated other comprehensive loss |
|
|
(71 |
) |
|
|
(74 |
) |
Deficit |
|
|
(1,392 |
) |
|
|
(1,180 |
) |
Total equity of Host Hotels & Resorts, Inc. stockholders |
|
|
6,232 |
|
|
|
6,321 |
|
Non-redeemable non-controlling interests—other consolidated
partnerships |
|
|
5 |
|
|
|
5 |
|
Total equity |
|
|
6,237 |
|
|
|
6,326 |
|
Total liabilities, non-controlling interests and equity |
|
$ |
12,809 |
|
|
$ |
12,890 |
|
___________ |
|
|
|
|
|
|
|
|
(1) Please see our Second Quarter
2021 Supplemental Financial Information for more detail on our debt
balances and financial covenant ratios under our credit facility
and senior notes indentures.
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, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms |
|
$ |
423 |
|
|
$ |
61 |
|
|
$ |
680 |
|
|
$ |
687 |
|
Food and beverage |
|
|
137 |
|
|
|
11 |
|
|
|
214 |
|
|
|
341 |
|
Other |
|
|
89 |
|
|
|
31 |
|
|
|
154 |
|
|
|
127 |
|
Total revenues |
|
|
649 |
|
|
|
103 |
|
|
|
1,048 |
|
|
|
1,155 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms |
. |
|
109 |
|
|
|
43 |
|
|
|
174 |
|
|
|
230 |
|
Food and beverage |
|
|
105 |
|
|
|
39 |
|
|
|
167 |
|
|
|
284 |
|
Other departmental and support expenses |
|
|
209 |
|
|
|
113 |
|
|
|
369 |
|
|
|
432 |
|
Management fees |
|
|
21 |
|
|
|
(2 |
) |
|
|
32 |
|
|
|
28 |
|
Other property-level expenses |
|
|
79 |
|
|
|
70 |
|
|
|
157 |
|
|
|
163 |
|
Depreciation and amortization |
|
|
169 |
|
|
|
168 |
|
|
|
334 |
|
|
|
332 |
|
Corporate and other expenses(1) |
|
|
25 |
|
|
|
25 |
|
|
|
49 |
|
|
|
50 |
|
Total operating costs and expenses |
|
|
717 |
|
|
|
456 |
|
|
|
1,282 |
|
|
|
1,519 |
|
Operating loss |
|
|
(68 |
) |
|
|
(353 |
) |
|
|
(234 |
) |
|
|
(364 |
) |
Interest income |
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
7 |
|
Interest expense |
|
|
(43 |
) |
|
|
(40 |
) |
|
|
(85 |
) |
|
|
(77 |
) |
Other gains |
|
|
3 |
|
|
|
15 |
|
|
|
2 |
|
|
|
13 |
|
Equity in earnings (losses) of affiliates(2) |
|
|
25 |
|
|
|
(25 |
) |
|
|
34 |
|
|
|
(21 |
) |
Loss before income taxes |
|
|
(83 |
) |
|
|
(402 |
) |
|
|
(282 |
) |
|
|
(442 |
) |
Benefit for income taxes(3) |
|
|
22 |
|
|
|
46 |
|
|
|
68 |
|
|
|
83 |
|
Net loss |
|
|
(61 |
) |
|
|
(356 |
) |
|
|
(214 |
) |
|
|
(359 |
) |
Less: Net loss attributable to
non-controlling interests |
|
|
1 |
|
|
|
4 |
|
|
|
2 |
|
|
|
4 |
|
Net loss attributable to Host Inc. |
|
$ |
(60 |
) |
|
$ |
(352 |
) |
|
$ |
(212 |
) |
|
$ |
(355 |
) |
Basic and diluted
loss per common share |
|
$ |
(.09 |
) |
|
$ |
(.50 |
) |
|
$ |
(.30 |
) |
|
$ |
(.50 |
) |
___________ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Corporate and other expenses
include the following items:
|
|
Quarter endedJune 30, |
|
|
Year-to-date endedJune 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
General and administrative costs |
|
$ |
20 |
|
|
$ |
21 |
|
|
$ |
40 |
|
|
$ |
43 |
|
Non-cash stock-based
compensation expense |
|
|
5 |
|
|
|
4 |
|
|
|
9 |
|
|
|
7 |
|
Total |
|
$ |
25 |
|
|
$ |
25 |
|
|
$ |
49 |
|
|
$ |
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Equity in earnings of affiliates
for the second quarter and year-to-date 2021 primarily represents
unrealized gains in our investment in Fifth Wall Ventures, L.P.
(3) We recorded an income tax
benefit in first and second quarter of 2021 and each quarter in
2020 to reflect net operating losses incurred that, as a result of
legislation enacted by the CARES Act, may be carried back up to
five years in order to procure a refund of U.S. federal corporate
income taxes previously paid. Any net operating loss not carried
back pursuant to these rules may be carried forward indefinitely,
subject to an annual limit on the use thereof of 80% of annual
taxable income. We expect to generate additional net operating
losses in 2021 and will evaluate whether to record an income tax
benefit for all or a portion of such net operating loss during and
throughout 2021.
HOST HOTELS & RESORTS,
INC.Earnings (Loss) per Common
Share (unaudited, in millions, except per share
amounts)
|
|
Quarter ended June 30, |
|
|
Year-to-date ended June 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net loss |
|
$ |
(61 |
) |
|
$ |
(356 |
) |
|
$ |
(214 |
) |
|
$ |
(359 |
) |
Less: Net loss attributable to non-controlling interests |
|
|
1 |
|
|
|
4 |
|
|
|
2 |
|
|
|
4 |
|
Net loss attributable to Host Inc. |
|
$ |
(60 |
) |
|
$ |
(352 |
) |
|
$ |
(212 |
) |
|
$ |
(355 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding |
|
|
707.6 |
|
|
|
705.1 |
|
|
|
706.6 |
|
|
|
706.7 |
|
Diluted weighted average shares outstanding (1) |
|
|
707.6 |
|
|
|
705.1 |
|
|
|
706.6 |
|
|
|
706.7 |
|
Basic and diluted loss per common share |
|
$ |
(.09 |
) |
|
$ |
(.50 |
) |
|
$ |
(.30 |
) |
|
$ |
(.50 |
) |
___________ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Dilutive securities may include
shares granted under comprehensive stock plans, preferred operating
partnership units (“OP Units”) held by minority partners and other
non-controlling interests that have the option to convert their
limited partnership interests to common OP Units. No effect is
shown for any securities that were anti-dilutive for the
period.
HOST HOTELS & RESORTS,
INC.Hotel Operating Data for Consolidated Hotels
(1)(2)
All Owned Hotels (pro forma) by Location in
Constant US$ Compared to 2020
|
|
As of June 30, 2021 |
|
|
Quarter ended June 30, 2021 |
|
|
Quarter ended June 30, 2020 |
|
|
|
|
|
|
|
|
|
Location |
|
No. ofProperties |
|
|
No. ofRooms |
|
|
AverageRoom Rate |
|
|
AverageOccupancyPercentage |
|
|
RevPAR |
|
|
Total RevPAR |
|
|
AverageRoom Rate |
|
|
AverageOccupancyPercentage |
|
|
RevPAR |
|
|
Total RevPAR |
|
|
PercentChange inRevPAR |
|
|
PercentChange inTotal RevPAR |
|
Miami |
|
|
3 |
|
|
|
1,276 |
|
|
$ |
496.88 |
|
|
|
61.3 |
% |
|
$ |
304.64 |
|
|
$ |
469.79 |
|
|
$ |
276.13 |
|
|
|
8.3 |
% |
|
$ |
22.86 |
|
|
$ |
39.35 |
|
|
|
1,232.6 |
% |
|
|
1,093.9 |
% |
Jacksonville |
|
|
1 |
|
|
|
446 |
|
|
|
559.42 |
|
|
|
68.9 |
|
|
|
385.55 |
|
|
|
730.42 |
|
|
|
469.00 |
|
|
|
28.1 |
|
|
|
131.95 |
|
|
|
219.50 |
|
|
|
192.2 |
|
|
|
232.8 |
|
Florida Gulf Coast |
|
|
5 |
|
|
|
1,842 |
|
|
|
404.15 |
|
|
|
66.5 |
|
|
|
268.58 |
|
|
|
506.14 |
|
|
|
278.24 |
|
|
|
17.7 |
|
|
|
49.11 |
|
|
|
102.21 |
|
|
|
446.9 |
|
|
|
395.2 |
|
Maui/Oahu |
|
|
4 |
|
|
|
2,006 |
|
|
|
457.70 |
|
|
|
78.5 |
|
|
|
359.35 |
|
|
|
543.98 |
|
|
|
75.47 |
|
|
|
3.7 |
|
|
|
2.77 |
|
|
|
8.23 |
|
|
|
12,890.4 |
|
|
|
6,510.8 |
|
Phoenix |
|
|
4 |
|
|
|
1,822 |
|
|
|
311.33 |
|
|
|
61.6 |
|
|
|
191.85 |
|
|
|
382.50 |
|
|
|
185.02 |
|
|
|
6.8 |
|
|
|
12.58 |
|
|
|
53.48 |
|
|
|
1,425.5 |
|
|
|
615.2 |
|
Orlando |
|
|
2 |
|
|
|
2,448 |
|
|
|
427.88 |
|
|
|
27.0 |
|
|
|
115.67 |
|
|
|
204.69 |
|
|
N/M |
|
|
|
0.0 |
|
|
|
N/M |
|
|
|
19.13 |
|
|
N/M |
|
|
|
970.1 |
|
Houston |
|
|
4 |
|
|
|
1,716 |
|
|
|
141.99 |
|
|
|
61.3 |
|
|
|
87.08 |
|
|
|
117.76 |
|
|
|
112.05 |
|
|
|
13.9 |
|
|
|
15.63 |
|
|
|
20.43 |
|
|
|
457.1 |
|
|
|
476.3 |
|
Los Angeles/ Orange
County |
|
|
5 |
|
|
|
2,119 |
|
|
|
171.25 |
|
|
|
63.5 |
|
|
|
108.66 |
|
|
|
147.12 |
|
|
|
206.66 |
|
|
|
8.1 |
|
|
|
16.84 |
|
|
|
23.12 |
|
|
|
545.4 |
|
|
|
536.3 |
|
Philadelphia |
|
|
2 |
|
|
|
810 |
|
|
|
160.86 |
|
|
|
59.6 |
|
|
|
95.82 |
|
|
|
147.30 |
|
|
|
120.32 |
|
|
|
10.6 |
|
|
|
12.75 |
|
|
|
15.74 |
|
|
|
651.3 |
|
|
|
835.7 |
|
Atlanta |
|
|
4 |
|
|
|
1,682 |
|
|
|
172.58 |
|
|
|
49.5 |
|
|
|
85.50 |
|
|
|
115.83 |
|
|
|
138.09 |
|
|
|
9.6 |
|
|
|
13.23 |
|
|
|
18.55 |
|
|
|
546.4 |
|
|
|
524.5 |
|
Washington, D.C. (CBD) |
|
|
5 |
|
|
|
3,238 |
|
|
|
152.55 |
|
|
|
40.4 |
|
|
|
61.69 |
|
|
|
68.15 |
|
|
|
221.94 |
|
|
|
4.6 |
|
|
|
10.14 |
|
|
|
10.76 |
|
|
|
508.2 |
|
|
|
533.1 |
|
San Diego |
|
|
3 |
|
|
|
3,288 |
|
|
|
194.88 |
|
|
|
46.0 |
|
|
|
89.63 |
|
|
|
134.93 |
|
|
|
181.47 |
|
|
|
2.5 |
|
|
|
4.57 |
|
|
|
17.07 |
|
|
|
1,859.2 |
|
|
|
690.6 |
|
Northern Virginia |
|
|
3 |
|
|
|
1,252 |
|
|
|
157.97 |
|
|
|
42.4 |
|
|
|
67.01 |
|
|
|
101.80 |
|
|
|
129.21 |
|
|
|
7.9 |
|
|
|
10.20 |
|
|
|
15.45 |
|
|
|
557.1 |
|
|
|
558.8 |
|
San Antonio/Austin |
|
|
3 |
|
|
|
1,960 |
|
|
|
162.93 |
|
|
|
43.6 |
|
|
|
70.96 |
|
|
|
101.33 |
|
|
|
135.64 |
|
|
|
6.3 |
|
|
|
8.49 |
|
|
|
12.80 |
|
|
|
736.1 |
|
|
|
691.9 |
|
New York |
|
|
3 |
|
|
|
4,261 |
|
|
|
172.42 |
|
|
|
32.6 |
|
|
|
56.16 |
|
|
|
63.98 |
|
|
|
134.19 |
|
|
|
30.2 |
|
|
|
40.47 |
|
|
|
43.18 |
|
|
|
38.8 |
|
|
|
48.2 |
|
Denver |
|
|
3 |
|
|
|
1,340 |
|
|
|
133.42 |
|
|
|
43.3 |
|
|
|
57.76 |
|
|
|
74.07 |
|
|
|
112.47 |
|
|
|
7.9 |
|
|
|
8.87 |
|
|
|
10.96 |
|
|
|
551.3 |
|
|
|
575.6 |
|
New Orleans |
|
|
1 |
|
|
|
1,333 |
|
|
|
125.59 |
|
|
|
44.8 |
|
|
|
56.27 |
|
|
|
77.37 |
|
|
N/M |
|
|
|
0.0 |
|
|
|
0.29 |
|
|
|
1.94 |
|
|
|
19,219.2 |
|
|
|
3,881.3 |
|
Chicago |
|
|
4 |
|
|
|
1,816 |
|
|
|
149.79 |
|
|
|
33.2 |
|
|
|
49.78 |
|
|
|
59.22 |
|
|
|
110.04 |
|
|
|
9.8 |
|
|
|
10.82 |
|
|
|
13.03 |
|
|
|
360.1 |
|
|
|
354.4 |
|
San Francisco/San Jose |
|
|
7 |
|
|
|
4,529 |
|
|
|
145.03 |
|
|
|
30.8 |
|
|
|
44.69 |
|
|
|
59.49 |
|
|
|
175.74 |
|
|
|
4.2 |
|
|
|
7.43 |
|
|
|
14.51 |
|
|
|
501.2 |
|
|
|
309.9 |
|
Seattle |
|
|
2 |
|
|
|
1,315 |
|
|
|
166.90 |
|
|
|
22.2 |
|
|
|
37.13 |
|
|
|
45.54 |
|
|
|
196.68 |
|
|
|
1.1 |
|
|
|
2.26 |
|
|
|
5.68 |
|
|
|
1,545.2 |
|
|
|
702.3 |
|
Boston |
|
|
3 |
|
|
|
2,715 |
|
|
|
145.54 |
|
|
|
20.4 |
|
|
|
29.70 |
|
|
|
38.73 |
|
|
N/M |
|
|
|
0.2 |
|
|
|
0.28 |
|
|
|
2.05 |
|
|
|
10,627.5 |
|
|
|
1,791.4 |
|
Other |
|
|
6 |
|
|
|
2,509 |
|
|
|
145.72 |
|
|
|
40.7 |
|
|
|
59.29 |
|
|
|
78.10 |
|
|
|
109.28 |
|
|
|
13.5 |
|
|
|
14.77 |
|
|
|
18.40 |
|
|
|
301.3 |
|
|
|
324.5 |
|
Domestic |
|
|
77 |
|
|
|
45,723 |
|
|
|
234.48 |
|
|
|
43.8 |
|
|
|
102.71 |
|
|
|
157.19 |
|
|
|
165.12 |
|
|
|
8.7 |
|
|
|
14.41 |
|
|
|
24.20 |
|
|
|
612.6 |
|
|
|
549.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
5 |
|
|
|
1,499 |
|
|
|
66.34 |
|
|
|
19.2 |
|
|
|
12.75 |
|
|
|
19.99 |
|
|
|
62.96 |
|
|
|
8.4 |
|
|
|
5.29 |
|
|
|
13.43 |
|
|
|
141.2 |
|
|
|
48.9 |
|
All Locations -Constant US$ |
|
|
82 |
|
|
|
47,222 |
|
|
|
232.10 |
|
|
|
43.0 |
|
|
|
99.86 |
|
|
|
152.84 |
|
|
|
161.98 |
|
|
|
8.7 |
|
|
|
14.12 |
|
|
|
23.86 |
|
|
|
607.0 |
|
|
|
540.7 |
|
All Owned Hotels (pro forma) in Nominal US$
Compared to 2020
|
|
As of June 30, 2021 |
|
|
Quarter ended June 30, 2021 |
|
|
Quarter ended June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
No. ofProperties |
|
|
No. ofRooms |
|
|
AverageRoom Rate |
|
|
AverageOccupancyPercentage |
|
|
RevPAR |
|
|
Total RevPAR |
|
|
AverageRoom Rate |
|
|
AverageOccupancyPercentage |
|
|
RevPAR |
|
|
Total RevPAR |
|
|
PercentChange inRevPAR |
|
|
PercentChange inTotal RevPAR |
|
International |
|
|
5 |
|
|
|
1,499 |
|
|
$ |
66.34 |
|
|
|
19.2 |
% |
|
$ |
12.75 |
|
|
$ |
19.99 |
|
|
$ |
59.79 |
|
|
|
8.4 |
% |
|
$ |
5.02 |
|
|
$ |
12.44 |
|
|
|
154.0 |
% |
|
|
60.7 |
% |
Domestic |
|
|
77 |
|
|
|
45,723 |
|
|
|
234.48 |
|
|
|
43.8 |
|
|
|
102.71 |
|
|
|
157.19 |
|
|
|
165.12 |
|
|
|
8.7 |
|
|
|
14.41 |
|
|
|
24.20 |
|
|
|
612.6 |
|
|
|
549.6 |
|
All Locations |
|
|
82 |
|
|
|
47,222 |
|
|
|
232.10 |
|
|
|
43.0 |
|
|
|
99.86 |
|
|
|
152.84 |
|
|
|
161.89 |
|
|
|
8.7 |
|
|
|
14.11 |
|
|
|
23.83 |
|
|
|
607.5 |
|
|
|
541.5 |
|
HOST HOTELS & RESORTS,
INC.Hotel Operating Data for Consolidated Hotels
(1)(2) (cont.)
All Owned Hotels (pro forma) by Location in Constant US$
Compared to 2019
|
|
As of June 30, 2021 |
|
|
Quarter ended June 30, 2021 |
|
|
Quarter ended June 30, 2019 |
|
|
|
|
|
|
|
|
|
Location |
|
No. ofProperties |
|
|
No. ofRooms |
|
|
AverageRoom Rate |
|
|
AverageOccupancyPercentage |
|
|
RevPAR |
|
|
Total RevPAR |
|
|
AverageRoom Rate |
|
|
AverageOccupancyPercentage |
|
|
RevPAR |
|
|
Total RevPAR |
|
|
PercentChange inRevPAR |
|
|
PercentChange inTotal RevPAR |
|
Miami |
|
|
3 |
|
|
|
1,276 |
|
|
$ |
496.88 |
|
|
|
61.3 |
% |
|
$ |
304.64 |
|
|
$ |
469.79 |
|
|
$ |
299.54 |
|
|
|
80.6 |
% |
|
$ |
241.56 |
|
|
$ |
390.25 |
|
|
|
26.1 |
% |
|
|
20.4 |
% |
Jacksonville |
|
|
1 |
|
|
|
446 |
|
|
|
559.42 |
|
|
|
68.9 |
|
|
|
385.55 |
|
|
|
730.42 |
|
|
|
414.11 |
|
|
|
84.1 |
|
|
|
348.40 |
|
|
|
753.61 |
|
|
|
10.7 |
|
|
|
(3.1 |
) |
Florida Gulf Coast |
|
|
5 |
|
|
|
1,842 |
|
|
|
404.15 |
|
|
|
66.5 |
|
|
|
268.58 |
|
|
|
506.14 |
|
|
|
313.53 |
|
|
|
73.9 |
|
|
|
231.56 |
|
|
|
496.76 |
|
|
|
16.0 |
|
|
|
1.9 |
|
Maui/Oahu |
|
|
4 |
|
|
|
2,006 |
|
|
|
457.70 |
|
|
|
78.5 |
|
|
|
359.35 |
|
|
|
543.98 |
|
|
|
384.31 |
|
|
|
92.3 |
|
|
|
354.62 |
|
|
|
577.55 |
|
|
|
1.3 |
|
|
|
(5.8 |
) |
Phoenix |
|
|
4 |
|
|
|
1,822 |
|
|
|
311.33 |
|
|
|
61.6 |
|
|
|
191.85 |
|
|
|
382.50 |
|
|
|
277.88 |
|
|
|
74.6 |
|
|
|
207.40 |
|
|
|
488.38 |
|
|
|
(7.5 |
) |
|
|
(21.7 |
) |
Orlando |
|
|
2 |
|
|
|
2,448 |
|
|
|
427.88 |
|
|
|
27.0 |
|
|
|
115.67 |
|
|
|
204.69 |
|
|
|
280.14 |
|
|
|
72.2 |
|
|
|
202.14 |
|
|
|
411.47 |
|
|
|
(42.8 |
) |
|
|
(50.3 |
) |
Houston |
|
|
4 |
|
|
|
1,716 |
|
|
|
141.99 |
|
|
|
61.3 |
|
|
|
87.08 |
|
|
|
117.76 |
|
|
|
181.69 |
|
|
|
74.6 |
|
|
|
135.49 |
|
|
|
193.31 |
|
|
|
(35.7 |
) |
|
|
(39.1 |
) |
Los Angeles/ Orange
County |
|
|
5 |
|
|
|
2,119 |
|
|
|
171.25 |
|
|
|
63.5 |
|
|
|
108.66 |
|
|
|
147.12 |
|
|
|
220.32 |
|
|
|
87.0 |
|
|
|
191.79 |
|
|
|
286.02 |
|
|
|
(43.3 |
) |
|
|
(48.6 |
) |
Philadelphia |
|
|
2 |
|
|
|
810 |
|
|
|
160.86 |
|
|
|
59.6 |
|
|
|
95.82 |
|
|
|
147.30 |
|
|
|
247.35 |
|
|
|
89.7 |
|
|
|
221.94 |
|
|
|
366.74 |
|
|
|
(56.8 |
) |
|
|
(59.8 |
) |
Atlanta |
|
|
4 |
|
|
|
1,682 |
|
|
|
172.58 |
|
|
|
49.5 |
|
|
|
85.50 |
|
|
|
115.83 |
|
|
|
188.81 |
|
|
|
76.7 |
|
|
|
144.87 |
|
|
|
232.21 |
|
|
|
(41.0 |
) |
|
|
(50.1 |
) |
Washington, D.C. (CBD) |
|
|
5 |
|
|
|
3,238 |
|
|
|
152.55 |
|
|
|
40.4 |
|
|
|
61.69 |
|
|
|
68.15 |
|
|
|
278.76 |
|
|
|
91.5 |
|
|
|
255.04 |
|
|
|
367.23 |
|
|
|
(75.8 |
) |
|
|
(81.4 |
) |
San Diego |
|
|
3 |
|
|
|
3,288 |
|
|
|
194.88 |
|
|
|
46.0 |
|
|
|
89.63 |
|
|
|
134.93 |
|
|
|
257.34 |
|
|
|
83.0 |
|
|
|
213.66 |
|
|
|
394.65 |
|
|
|
(58.1 |
) |
|
|
(65.8 |
) |
Northern Virginia |
|
|
3 |
|
|
|
1,252 |
|
|
|
157.97 |
|
|
|
42.4 |
|
|
|
67.01 |
|
|
|
101.80 |
|
|
|
214.09 |
|
|
|
77.9 |
|
|
|
166.82 |
|
|
|
280.83 |
|
|
|
(59.8 |
) |
|
|
(63.8 |
) |
San Antonio/Austin |
|
|
3 |
|
|
|
1,960 |
|
|
|
162.93 |
|
|
|
43.6 |
|
|
|
70.96 |
|
|
|
101.33 |
|
|
|
196.21 |
|
|
|
78.9 |
|
|
|
154.89 |
|
|
|
235.22 |
|
|
|
(54.2 |
) |
|
|
(56.9 |
) |
New York |
|
|
3 |
|
|
|
4,261 |
|
|
|
172.42 |
|
|
|
32.6 |
|
|
|
56.16 |
|
|
|
63.98 |
|
|
|
292.59 |
|
|
|
84.9 |
|
|
|
248.42 |
|
|
|
378.93 |
|
|
|
(77.4 |
) |
|
|
(83.1 |
) |
Denver |
|
|
3 |
|
|
|
1,340 |
|
|
|
133.42 |
|
|
|
43.3 |
|
|
|
57.76 |
|
|
|
74.07 |
|
|
|
176.07 |
|
|
|
79.4 |
|
|
|
139.88 |
|
|
|
210.69 |
|
|
|
(58.7 |
) |
|
|
(64.8 |
) |
New Orleans |
|
|
1 |
|
|
|
1,333 |
|
|
|
125.59 |
|
|
|
44.8 |
|
|
|
56.27 |
|
|
|
77.37 |
|
|
|
196.98 |
|
|
|
81.0 |
|
|
|
159.65 |
|
|
|
233.90 |
|
|
|
(64.8 |
) |
|
|
(66.9 |
) |
Chicago |
|
|
4 |
|
|
|
1,816 |
|
|
|
149.79 |
|
|
|
33.2 |
|
|
|
49.78 |
|
|
|
59.22 |
|
|
|
237.05 |
|
|
|
82.5 |
|
|
|
195.46 |
|
|
|
278.10 |
|
|
|
(74.5 |
) |
|
|
(78.7 |
) |
San Francisco/San Jose |
|
|
7 |
|
|
|
4,529 |
|
|
|
145.03 |
|
|
|
30.8 |
|
|
|
44.69 |
|
|
|
59.49 |
|
|
|
267.87 |
|
|
|
82.7 |
|
|
|
221.55 |
|
|
|
313.95 |
|
|
|
(79.8 |
) |
|
|
(81.1 |
) |
Seattle |
|
|
2 |
|
|
|
1,315 |
|
|
|
166.90 |
|
|
|
22.2 |
|
|
|
37.13 |
|
|
|
45.54 |
|
|
|
234.35 |
|
|
|
85.1 |
|
|
|
199.47 |
|
|
|
271.52 |
|
|
|
(81.4 |
) |
|
|
(83.2 |
) |
Boston |
|
|
3 |
|
|
|
2,715 |
|
|
|
145.54 |
|
|
|
20.4 |
|
|
|
29.70 |
|
|
|
38.73 |
|
|
|
272.01 |
|
|
|
87.8 |
|
|
|
238.87 |
|
|
|
324.76 |
|
|
|
(87.6 |
) |
|
|
(88.1 |
) |
Other |
|
|
6 |
|
|
|
2,509 |
|
|
|
145.72 |
|
|
|
40.7 |
|
|
|
59.29 |
|
|
|
78.10 |
|
|
|
175.50 |
|
|
|
83.0 |
|
|
|
145.69 |
|
|
|
207.76 |
|
|
|
(59.3 |
) |
|
|
(62.4 |
) |
Domestic |
|
|
77 |
|
|
|
45,723 |
|
|
|
234.48 |
|
|
|
43.8 |
|
|
|
102.71 |
|
|
|
157.19 |
|
|
|
256.49 |
|
|
|
82.5 |
|
|
|
211.49 |
|
|
|
341.16 |
|
|
|
(51.4 |
) |
|
|
(53.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
5 |
|
|
|
1,499 |
|
|
|
66.34 |
|
|
|
19.2 |
|
|
|
12.75 |
|
|
|
19.99 |
|
|
|
143.72 |
|
|
|
69.7 |
|
|
|
100.16 |
|
|
|
154.14 |
|
|
|
(87.3 |
) |
|
|
(87.0 |
) |
All Locations - Constant US$ |
|
|
82 |
|
|
|
47,222 |
|
|
|
232.10 |
|
|
|
43.0 |
|
|
|
99.86 |
|
|
|
152.84 |
|
|
|
253.44 |
|
|
|
82.0 |
|
|
|
207.94 |
|
|
|
335.20 |
|
|
|
(52.0 |
) |
|
|
(54.4 |
) |
All Owned Hotels (pro forma) in Nominal
US$ Compared to 2019
|
|
As of June 30, 2021 |
|
|
Quarter ended June 30, 2021 |
|
|
Quarter ended June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
No. ofProperties |
|
|
No. ofRooms |
|
|
AverageRoom Rate |
|
|
AverageOccupancyPercentage |
|
|
RevPAR |
|
|
Total RevPAR |
|
|
AverageRoom Rate |
|
|
AverageOccupancyPercentage |
|
|
RevPAR |
|
|
Total RevPAR |
|
|
PercentChange inRevPAR |
|
|
PercentChange inTotal RevPAR |
|
International |
|
|
5 |
|
|
|
1,499 |
|
|
$ |
66.34 |
|
|
|
19.2 |
% |
|
$ |
12.75 |
|
|
$ |
19.99 |
|
|
$ |
158.97 |
|
|
|
69.7 |
% |
|
$ |
110.79 |
|
|
$ |
169.04 |
|
|
|
(88.5 |
)% |
|
|
(88.2 |
)% |
Domestic |
|
|
77 |
|
|
|
45,723 |
|
|
|
234.48 |
|
|
|
43.8 |
|
|
|
102.71 |
|
|
|
157.19 |
|
|
|
256.49 |
|
|
|
82.5 |
|
|
|
211.49 |
|
|
|
341.16 |
|
|
|
(51.4 |
) |
|
|
(53.9 |
) |
All Locations |
|
|
82 |
|
|
|
47,222 |
|
|
|
232.10 |
|
|
|
43.0 |
|
|
|
99.86 |
|
|
|
152.84 |
|
|
|
253.85 |
|
|
|
82.0 |
|
|
|
208.28 |
|
|
|
335.67 |
|
|
|
(52.1 |
) |
|
|
(54.5 |
) |
HOST HOTELS & RESORTS,
INC.Hotel Operating Data for Consolidated Hotels
(1)(2) (cont.)
All Owned Hotels (pro forma) by Location in Constant US$
Compared to 2020
|
|
As of June 30, 2021 |
|
|
Year-to-date ended June 30, 2021 |
|
|
Year-to-date ended June 30, 2020 |
|
|
|
|
|
|
|
|
|
Location |
|
No. ofProperties |
|
|
No. ofRooms |
|
|
AverageRoom Rate |
|
|
AverageOccupancyPercentage |
|
|
RevPAR |
|
|
Total RevPAR |
|
|
AverageRoom Rate |
|
|
AverageOccupancyPercentage |
|
|
RevPAR |
|
|
Total RevPAR |
|
|
PercentChange inRevPAR |
|
|
PercentChange inTotal RevPAR |
|
Miami |
|
|
3 |
|
|
|
1,276 |
|
|
$ |
525.00 |
|
|
|
58.5 |
% |
|
$ |
306.95 |
|
|
$ |
470.12 |
|
|
$ |
425.83 |
|
|
|
39.6 |
% |
|
$ |
168.56 |
|
|
$ |
268.97 |
|
|
|
82.1 |
% |
|
|
74.8 |
% |
Jacksonville |
|
|
1 |
|
|
|
446 |
|
|
|
534.27 |
|
|
|
52.3 |
|
|
|
279.35 |
|
|
|
539.18 |
|
|
|
398.29 |
|
|
|
42.6 |
|
|
|
169.62 |
|
|
|
342.83 |
|
|
|
64.7 |
|
|
|
57.3 |
|
Florida Gulf Coast |
|
|
5 |
|
|
|
1,842 |
|
|
|
455.98 |
|
|
|
59.7 |
|
|
|
272.11 |
|
|
|
497.88 |
|
|
|
400.35 |
|
|
|
44.2 |
|
|
|
177.03 |
|
|
|
375.72 |
|
|
|
53.7 |
|
|
|
32.5 |
|
Maui/Oahu |
|
|
4 |
|
|
|
2,006 |
|
|
|
440.07 |
|
|
|
59.4 |
|
|
|
261.61 |
|
|
|
401.86 |
|
|
|
451.32 |
|
|
|
39.1 |
|
|
|
176.41 |
|
|
|
268.10 |
|
|
|
48.3 |
|
|
|
49.9 |
|
Phoenix |
|
|
4 |
|
|
|
1,822 |
|
|
|
330.65 |
|
|
|
55.8 |
|
|
|
184.62 |
|
|
|
359.23 |
|
|
|
352.56 |
|
|
|
37.0 |
|
|
|
130.34 |
|
|
|
303.21 |
|
|
|
41.6 |
|
|
|
18.5 |
|
Orlando |
|
|
2 |
|
|
|
2,448 |
|
|
|
454.91 |
|
|
|
22.2 |
|
|
|
101.17 |
|
|
|
180.02 |
|
|
|
337.30 |
|
|
|
28.8 |
|
|
|
97.01 |
|
|
|
208.69 |
|
|
|
4.3 |
|
|
|
(13.7 |
) |
Houston |
|
|
4 |
|
|
|
1,716 |
|
|
|
134.73 |
|
|
|
56.1 |
|
|
|
75.63 |
|
|
|
102.44 |
|
|
|
163.52 |
|
|
|
37.6 |
|
|
|
61.51 |
|
|
|
91.53 |
|
|
|
23.0 |
|
|
|
11.9 |
|
Los Angeles/ Orange
County |
|
|
5 |
|
|
|
2,119 |
|
|
|
167.63 |
|
|
|
44.0 |
|
|
|
73.73 |
|
|
|
98.96 |
|
|
|
212.33 |
|
|
|
37.8 |
|
|
|
80.18 |
|
|
|
119.42 |
|
|
|
(8.0 |
) |
|
|
(17.1 |
) |
Philadelphia |
|
|
2 |
|
|
|
810 |
|
|
|
151.04 |
|
|
|
48.3 |
|
|
|
72.98 |
|
|
|
108.91 |
|
|
|
165.99 |
|
|
|
36.7 |
|
|
|
60.90 |
|
|
|
98.18 |
|
|
|
19.8 |
|
|
|
10.9 |
|
Atlanta |
|
|
4 |
|
|
|
1,682 |
|
|
|
165.27 |
|
|
|
43.6 |
|
|
|
72.11 |
|
|
|
95.56 |
|
|
|
185.37 |
|
|
|
36.3 |
|
|
|
67.36 |
|
|
|
107.33 |
|
|
|
7.1 |
|
|
|
(11.0 |
) |
Washington, D.C. (CBD) |
|
|
5 |
|
|
|
3,238 |
|
|
|
152.25 |
|
|
|
44.9 |
|
|
|
68.30 |
|
|
|
73.29 |
|
|
|
229.66 |
|
|
|
29.3 |
|
|
|
67.21 |
|
|
|
97.24 |
|
|
|
1.6 |
|
|
|
(24.6 |
) |
San Diego |
|
|
3 |
|
|
|
3,288 |
|
|
|
184.52 |
|
|
|
31.6 |
|
|
|
58.33 |
|
|
|
91.91 |
|
|
|
241.83 |
|
|
|
31.8 |
|
|
|
77.01 |
|
|
|
154.12 |
|
|
|
(24.3 |
) |
|
|
(40.4 |
) |
Northern Virginia |
|
|
3 |
|
|
|
1,252 |
|
|
|
154.95 |
|
|
|
36.0 |
|
|
|
55.79 |
|
|
|
82.65 |
|
|
|
196.57 |
|
|
|
30.3 |
|
|
|
59.55 |
|
|
|
98.07 |
|
|
|
(6.3 |
) |
|
|
(15.7 |
) |
San Antonio/Austin |
|
|
3 |
|
|
|
1,960 |
|
|
|
148.39 |
|
|
|
37.6 |
|
|
|
55.74 |
|
|
|
79.40 |
|
|
|
189.54 |
|
|
|
27.0 |
|
|
|
51.17 |
|
|
|
84.93 |
|
|
|
8.9 |
|
|
|
(6.5 |
) |
New York |
|
|
3 |
|
|
|
4,261 |
|
|
|
162.82 |
|
|
|
24.3 |
|
|
|
39.56 |
|
|
|
46.67 |
|
|
|
190.39 |
|
|
|
43.1 |
|
|
|
82.11 |
|
|
|
120.16 |
|
|
|
(51.8 |
) |
|
|
(61.2 |
) |
Denver |
|
|
3 |
|
|
|
1,340 |
|
|
|
127.52 |
|
|
|
30.3 |
|
|
|
38.66 |
|
|
|
49.03 |
|
|
|
154.85 |
|
|
|
29.0 |
|
|
|
44.89 |
|
|
|
68.03 |
|
|
|
(13.9 |
) |
|
|
(27.9 |
) |
New Orleans |
|
|
1 |
|
|
|
1,333 |
|
|
|
121.54 |
|
|
|
29.1 |
|
|
|
35.40 |
|
|
|
52.52 |
|
|
|
202.76 |
|
|
|
32.6 |
|
|
|
66.19 |
|
|
|
99.87 |
|
|
|
(46.5 |
) |
|
|
(47.4 |
) |
Chicago |
|
|
4 |
|
|
|
1,816 |
|
|
|
138.56 |
|
|
|
24.7 |
|
|
|
34.28 |
|
|
|
41.10 |
|
|
|
136.92 |
|
|
|
28.7 |
|
|
|
39.26 |
|
|
|
54.32 |
|
|
|
(12.7 |
) |
|
|
(24.3 |
) |
San Francisco/San Jose |
|
|
7 |
|
|
|
4,529 |
|
|
|
142.47 |
|
|
|
22.1 |
|
|
|
31.47 |
|
|
|
41.73 |
|
|
|
287.40 |
|
|
|
31.8 |
|
|
|
91.26 |
|
|
|
134.44 |
|
|
|
(65.5 |
) |
|
|
(69.0 |
) |
Seattle |
|
|
2 |
|
|
|
1,315 |
|
|
|
162.69 |
|
|
|
14.8 |
|
|
|
24.06 |
|
|
|
30.12 |
|
|
|
193.49 |
|
|
|
27.6 |
|
|
|
53.38 |
|
|
|
77.51 |
|
|
|
(54.9 |
) |
|
|
(61.1 |
) |
Boston |
|
|
3 |
|
|
|
2,715 |
|
|
|
137.77 |
|
|
|
14.2 |
|
|
|
19.61 |
|
|
|
25.51 |
|
|
|
176.94 |
|
|
|
26.6 |
|
|
|
47.06 |
|
|
|
71.97 |
|
|
|
(58.3 |
) |
|
|
(64.6 |
) |
Other |
|
|
6 |
|
|
|
2,509 |
|
|
|
141.77 |
|
|
|
34.0 |
|
|
|
48.19 |
|
|
|
63.11 |
|
|
|
155.53 |
|
|
|
35.4 |
|
|
|
55.07 |
|
|
|
76.39 |
|
|
|
(12.5 |
) |
|
|
(17.4 |
) |
Domestic |
|
|
77 |
|
|
|
45,723 |
|
|
|
238.03 |
|
|
|
35.5 |
|
|
|
84.58 |
|
|
|
130.40 |
|
|
|
247.59 |
|
|
|
33.9 |
|
|
|
84.03 |
|
|
|
141.69 |
|
|
|
0.7 |
|
|
|
(8.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
5 |
|
|
|
1,499 |
|
|
|
75.57 |
|
|
|
16.1 |
|
|
|
12.19 |
|
|
|
17.74 |
|
|
|
123.88 |
|
|
|
30.9 |
|
|
|
38.23 |
|
|
|
58.74 |
|
|
|
(68.1 |
) |
|
|
(69.8 |
) |
All Locations - Constant US$ |
|
|
82 |
|
|
|
47,222 |
|
|
|
235.65 |
|
|
|
34.9 |
|
|
|
82.28 |
|
|
|
126.83 |
|
|
|
244.00 |
|
|
|
33.8 |
|
|
|
82.57 |
|
|
|
139.05 |
|
|
|
(0.3 |
) |
|
|
(8.8 |
) |
All Owned Hotels (pro forma) in Nominal
US$ Compared to 2020
|
|
As of June 30, 2021 |
|
|
Year-to-date ended June 30, 2021 |
|
|
Year-to-date ended June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
No. ofProperties |
|
|
No. ofRooms |
|
|
AverageRoom Rate |
|
|
AverageOccupancyPercentage |
|
|
RevPAR |
|
|
Total RevPAR |
|
|
AverageRoom Rate |
|
|
AverageOccupancyPercentage |
|
|
RevPAR |
|
|
Total RevPAR |
|
|
PercentChange inRevPAR |
|
|
PercentChange inTotal RevPAR |
|
International |
|
|
5 |
|
|
|
1,499 |
|
|
$ |
75.57 |
|
|
|
16.1 |
% |
|
$ |
12.19 |
|
|
$ |
17.74 |
|
|
$ |
127.54 |
|
|
|
30.9 |
% |
|
$ |
39.36 |
|
|
$ |
59.43 |
|
|
|
(69.0 |
)% |
|
|
(70.2 |
)% |
Domestic |
|
|
77 |
|
|
|
45,723 |
|
|
|
238.03 |
|
|
|
35.5 |
|
|
|
84.58 |
|
|
|
130.40 |
|
|
|
247.59 |
|
|
|
33.9 |
|
|
|
84.03 |
|
|
|
141.69 |
|
|
|
0.7 |
|
|
|
(8.0 |
) |
All Locations |
|
|
82 |
|
|
|
47,222 |
|
|
|
235.65 |
|
|
|
34.9 |
|
|
|
82.28 |
|
|
|
126.83 |
|
|
|
244.10 |
|
|
|
33.8 |
|
|
|
82.61 |
|
|
|
139.07 |
|
|
|
(0.4 |
) |
|
|
(8.8 |
) |
HOST HOTELS & RESORTS,
INC.Hotel Operating Data for Consolidated Hotels
(1)(2) (cont.)
All Owned Hotels (pro forma) by Location in Constant US$
Compared to 2019
|
|
As of June 30, 2021 |
|
|
Year-to-date ended June 30, 2021 |
|
|
Year-to-date ended June 30, 2019 |
|
|
|
|
|
|
|
|
|
Location |
|
No. ofProperties |
|
|
No. ofRooms |
|
|
AverageRoom Rate |
|
|
AverageOccupancyPercentage |
|
|
RevPAR |
|
|
Total RevPAR |
|
|
AverageRoom Rate |
|
|
AverageOccupancyPercentage |
|
|
RevPAR |
|
|
Total RevPAR |
|
|
PercentChange inRevPAR |
|
|
PercentChange inTotal RevPAR |
|
Miami |
|
|
3 |
|
|
|
1,276 |
|
|
$ |
525.00 |
|
|
|
58.5 |
% |
|
$ |
306.95 |
|
|
$ |
470.12 |
|
|
$ |
355.53 |
|
|
|
83.2 |
% |
|
$ |
295.96 |
|
|
$ |
455.82 |
|
|
|
3.7 |
% |
|
|
3.1 |
% |
Jacksonville |
|
|
1 |
|
|
|
446 |
|
|
|
534.27 |
|
|
|
52.3 |
|
|
|
279.35 |
|
|
|
539.18 |
|
|
|
391.86 |
|
|
|
81.4 |
|
|
|
318.88 |
|
|
|
722.04 |
|
|
|
(12.4 |
) |
|
|
(25.3 |
) |
Florida Gulf Coast |
|
|
5 |
|
|
|
1,842 |
|
|
|
455.98 |
|
|
|
59.7 |
|
|
|
272.11 |
|
|
|
497.88 |
|
|
|
379.76 |
|
|
|
78.4 |
|
|
|
297.90 |
|
|
|
612.66 |
|
|
|
(8.7 |
) |
|
|
(18.7 |
) |
Maui/Oahu |
|
|
4 |
|
|
|
2,006 |
|
|
|
440.07 |
|
|
|
59.4 |
|
|
|
261.61 |
|
|
|
401.86 |
|
|
|
410.35 |
|
|
|
90.6 |
|
|
|
371.89 |
|
|
|
589.24 |
|
|
|
(29.7 |
) |
|
|
(31.8 |
) |
Phoenix |
|
|
4 |
|
|
|
1,822 |
|
|
|
330.65 |
|
|
|
55.8 |
|
|
|
184.62 |
|
|
|
359.23 |
|
|
|
327.86 |
|
|
|
78.6 |
|
|
|
257.82 |
|
|
|
566.03 |
|
|
|
(28.4 |
) |
|
|
(36.5 |
) |
Orlando |
|
|
2 |
|
|
|
2,448 |
|
|
|
454.91 |
|
|
|
22.2 |
|
|
|
101.17 |
|
|
|
180.02 |
|
|
|
299.99 |
|
|
|
75.6 |
|
|
|
226.78 |
|
|
|
461.20 |
|
|
|
(55.4 |
) |
|
|
(61.0 |
) |
Houston |
|
|
4 |
|
|
|
1,716 |
|
|
|
134.73 |
|
|
|
56.1 |
|
|
|
75.63 |
|
|
|
102.44 |
|
|
|
182.15 |
|
|
|
75.2 |
|
|
|
136.92 |
|
|
|
197.16 |
|
|
|
(44.8 |
) |
|
|
(48.0 |
) |
Los Angeles/ Orange
County |
|
|
5 |
|
|
|
2,119 |
|
|
|
167.63 |
|
|
|
44.0 |
|
|
|
73.73 |
|
|
|
98.96 |
|
|
|
220.13 |
|
|
|
85.8 |
|
|
|
188.88 |
|
|
|
282.74 |
|
|
|
(61.0 |
) |
|
|
(65.0 |
) |
Philadelphia |
|
|
2 |
|
|
|
810 |
|
|
|
151.04 |
|
|
|
48.3 |
|
|
|
72.98 |
|
|
|
108.91 |
|
|
|
220.90 |
|
|
|
83.9 |
|
|
|
185.41 |
|
|
|
304.83 |
|
|
|
(60.6 |
) |
|
|
(64.3 |
) |
Atlanta |
|
|
4 |
|
|
|
1,682 |
|
|
|
165.27 |
|
|
|
43.6 |
|
|
|
72.11 |
|
|
|
95.56 |
|
|
|
208.09 |
|
|
|
76.7 |
|
|
|
159.65 |
|
|
|
252.43 |
|
|
|
(54.8 |
) |
|
|
(62.1 |
) |
Washington, D.C. (CBD) |
|
|
5 |
|
|
|
3,238 |
|
|
|
152.25 |
|
|
|
44.9 |
|
|
|
68.30 |
|
|
|
73.29 |
|
|
|
265.11 |
|
|
|
82.5 |
|
|
|
218.62 |
|
|
|
312.73 |
|
|
|
(68.8 |
) |
|
|
(76.6 |
) |
San Diego |
|
|
3 |
|
|
|
3,288 |
|
|
|
184.52 |
|
|
|
31.6 |
|
|
|
58.33 |
|
|
|
91.91 |
|
|
|
255.23 |
|
|
|
80.0 |
|
|
|
204.18 |
|
|
|
372.23 |
|
|
|
(71.4 |
) |
|
|
(75.3 |
) |
Northern Virginia |
|
|
3 |
|
|
|
1,252 |
|
|
|
154.95 |
|
|
|
36.0 |
|
|
|
55.79 |
|
|
|
82.65 |
|
|
|
212.31 |
|
|
|
71.8 |
|
|
|
152.53 |
|
|
|
260.36 |
|
|
|
(63.4 |
) |
|
|
(68.3 |
) |
San Antonio/Austin |
|
|
3 |
|
|
|
1,960 |
|
|
|
148.39 |
|
|
|
37.6 |
|
|
|
55.74 |
|
|
|
79.40 |
|
|
|
202.10 |
|
|
|
79.1 |
|
|
|
159.76 |
|
|
|
247.59 |
|
|
|
(65.1 |
) |
|
|
(67.9 |
) |
New York |
|
|
3 |
|
|
|
4,261 |
|
|
|
162.82 |
|
|
|
24.3 |
|
|
|
39.56 |
|
|
|
46.67 |
|
|
|
266.94 |
|
|
|
78.5 |
|
|
|
209.56 |
|
|
|
323.62 |
|
|
|
(81.1 |
) |
|
|
(85.6 |
) |
Denver |
|
|
3 |
|
|
|
1,340 |
|
|
|
127.52 |
|
|
|
30.3 |
|
|
|
38.66 |
|
|
|
49.03 |
|
|
|
169.71 |
|
|
|
72.1 |
|
|
|
122.41 |
|
|
|
184.62 |
|
|
|
(68.4 |
) |
|
|
(73.4 |
) |
New Orleans |
|
|
1 |
|
|
|
1,333 |
|
|
|
121.54 |
|
|
|
29.1 |
|
|
|
35.40 |
|
|
|
52.52 |
|
|
|
203.37 |
|
|
|
81.3 |
|
|
|
165.38 |
|
|
|
241.84 |
|
|
|
(78.6 |
) |
|
|
(78.3 |
) |
Chicago |
|
|
4 |
|
|
|
1,816 |
|
|
|
138.56 |
|
|
|
24.7 |
|
|
|
34.28 |
|
|
|
41.10 |
|
|
|
199.76 |
|
|
|
71.5 |
|
|
|
142.77 |
|
|
|
203.93 |
|
|
|
(76.0 |
) |
|
|
(79.8 |
) |
San Francisco/San Jose |
|
|
7 |
|
|
|
4,529 |
|
|
|
142.47 |
|
|
|
22.1 |
|
|
|
31.47 |
|
|
|
41.73 |
|
|
|
286.10 |
|
|
|
80.0 |
|
|
|
228.99 |
|
|
|
322.35 |
|
|
|
(86.3 |
) |
|
|
(87.1 |
) |
Seattle |
|
|
2 |
|
|
|
1,315 |
|
|
|
162.69 |
|
|
|
14.8 |
|
|
|
24.06 |
|
|
|
30.12 |
|
|
|
215.31 |
|
|
|
81.3 |
|
|
|
174.95 |
|
|
|
237.90 |
|
|
|
(86.2 |
) |
|
|
(87.3 |
) |
Boston |
|
|
3 |
|
|
|
2,715 |
|
|
|
137.77 |
|
|
|
14.2 |
|
|
|
19.61 |
|
|
|
25.51 |
|
|
|
236.19 |
|
|
|
78.6 |
|
|
|
185.74 |
|
|
|
260.95 |
|
|
|
(89.4 |
) |
|
|
(90.2 |
) |
Other |
|
|
6 |
|
|
|
2,509 |
|
|
|
141.77 |
|
|
|
34.0 |
|
|
|
48.19 |
|
|
|
63.11 |
|
|
|
172.13 |
|
|
|
78.1 |
|
|
|
134.38 |
|
|
|
191.51 |
|
|
|
(64.1 |
) |
|
|
(67.0 |
) |
Domestic |
|
|
77 |
|
|
|
45,723 |
|
|
|
238.03 |
|
|
|
35.5 |
|
|
|
84.58 |
|
|
|
130.40 |
|
|
|
259.49 |
|
|
|
79.4 |
|
|
|
205.91 |
|
|
|
334.09 |
|
|
|
(58.9 |
) |
|
|
(61.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
5 |
|
|
|
1,499 |
|
|
|
75.57 |
|
|
|
16.1 |
|
|
|
12.19 |
|
|
|
17.74 |
|
|
|
139.27 |
|
|
|
68.7 |
|
|
|
95.64 |
|
|
|
143.57 |
|
|
|
(87.3 |
) |
|
|
(87.6 |
) |
All Locations - Constant US$ |
|
|
82 |
|
|
|
47,222 |
|
|
|
235.65 |
|
|
|
34.9 |
|
|
|
82.28 |
|
|
|
126.83 |
|
|
|
256.16 |
|
|
|
79.0 |
|
|
|
202.39 |
|
|
|
328.02 |
|
|
|
(59.3 |
) |
|
|
(61.3 |
) |
All Owned Hotels (pro forma) in Nominal
US$ Compared to 2019
|
|
As of June 30, 2021 |
|
|
Year-to-date ended June 30, 2021 |
|
|
Year-to-date ended June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
No. ofProperties |
|
|
No. ofRooms |
|
|
AverageRoom Rate |
|
|
AverageOccupancyPercentage |
|
|
RevPAR |
|
|
Total RevPAR |
|
|
AverageRoom Rate |
|
|
AverageOccupancyPercentage |
|
|
RevPAR |
|
|
Total RevPAR |
|
|
PercentChange inRevPAR |
|
|
PercentChange inTotal RevPAR |
|
International |
|
|
5 |
|
|
|
1,499 |
|
|
$ |
75.57 |
|
|
|
16.1 |
% |
|
$ |
12.19 |
|
|
$ |
17.74 |
|
|
$ |
151.58 |
|
|
|
68.7 |
% |
|
$ |
104.09 |
|
|
$ |
155.00 |
|
|
|
(88.3 |
)% |
|
|
(88.6 |
)% |
Domestic |
|
|
77 |
|
|
|
45,723 |
|
|
|
238.03 |
|
|
|
35.5 |
|
|
|
84.58 |
|
|
|
130.40 |
|
|
|
259.49 |
|
|
|
79.4 |
|
|
|
205.91 |
|
|
|
334.09 |
|
|
|
(58.9 |
) |
|
|
(61.0 |
) |
All Locations |
|
|
82 |
|
|
|
47,222 |
|
|
|
235.65 |
|
|
|
34.9 |
|
|
|
82.28 |
|
|
|
126.83 |
|
|
|
256.50 |
|
|
|
79.0 |
|
|
|
202.66 |
|
|
|
328.38 |
|
|
|
(59.4 |
) |
|
|
(61.4 |
) |
___________
(1) To facilitate a quarter-to-quarter
comparison of our operations, we typically present certain
operating statistics and operating results for the periods included
in this presentation on a comparable hotel basis. However, due to
the COVID-19 pandemic and its effects on operations there is little
comparability between periods. For this reason, we temporarily are
suspending our comparable hotel presentation and instead present
hotel operating results for all consolidated hotels and, to
facilitate comparisons between periods, we are presenting results
on a pro forma basis including the following adjustments:
(1) operating results are presented for all consolidated
properties owned as of June 30, 2021 but do not include the results
of operations for properties sold through the reporting date; and
(2) operating results for acquisitions as of June 30, 2021 are
reflected for full calendar years, to include results for periods
prior to our ownership. For these hotels, since the year-over-year
comparison includes periods prior to our ownership, the changes
will not necessarily correspond to changes in our actual results.
See the Notes to Financial Information – All Owned Hotel Pro Forma
Operating Statistics and Results for further information on these
pro forma statistics and – Constant US$ and Nominal US$ for a
discussion on constant US$ presentation. Nominal US$ results
include the effect of currency fluctuations, consistent with our
financial statement presentation. The AC Hotel Scottsdale North is
a new development hotel that opened in January 2021. Therefore,
there were no operations for the hotel prior to January 2021 and no
adjustments were made for pro forma results of the hotel for
periods prior to its opening. CBD of a location refers to the
central business district.
(2) 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.
N/M = Not meaningful
HOST HOTELS & RESORTS,
INC. Schedule of All Owned Hotel
Pro Forma Results (1)(unaudited, in millions, except hotel
statistics)
|
Quarter ended June 30, |
|
|
Year-to-date ended June 30, |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Number of hotels |
|
82 |
|
|
|
81 |
|
|
|
81 |
|
|
|
82 |
|
|
|
81 |
|
|
|
81 |
|
Number of rooms |
|
47,222 |
|
|
|
47,057 |
|
|
|
47,057 |
|
|
|
47,222 |
|
|
|
47,057 |
|
|
|
47,057 |
|
Change in hotel Total RevPAR
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant US$ |
|
540.7 |
% |
|
|
— |
|
|
|
— |
|
|
|
(8.8 |
)% |
|
|
— |
|
|
|
— |
|
Nominal US$ |
|
541.5 |
% |
|
|
— |
|
|
|
— |
|
|
|
(8.8 |
)% |
|
|
— |
|
|
|
— |
|
Change in hotel RevPAR - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant US$ |
|
607.0 |
% |
|
|
— |
|
|
|
— |
|
|
|
(0.3 |
)% |
|
|
— |
|
|
|
— |
|
Nominal US$ |
|
607.5 |
% |
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
)% |
|
|
— |
|
|
|
— |
|
Operating profit (loss) margin
(2) |
|
(10.5 |
)% |
|
|
(342.7 |
)% |
|
|
18.9 |
% |
|
|
(22.3 |
)% |
|
|
(31.5 |
)% |
|
|
17.3 |
% |
All Owned Hotel Pro Forma
EBITDA margin (2) |
|
19.1 |
% |
|
|
(165.4 |
)% |
|
|
31.5 |
% |
|
|
13.9 |
% |
|
|
1.5 |
% |
|
|
30.8 |
% |
Food and beverage profit
margin (2) |
|
23.4 |
% |
|
|
(254.5 |
)% |
|
|
35.4 |
% |
|
|
22.0 |
% |
|
|
16.7 |
% |
|
|
34.8 |
% |
All Owned Hotel Pro Forma food
and beverage profit margin (2) |
|
23.0 |
% |
|
|
(263.6 |
)% |
|
|
35.4 |
% |
|
|
21.5 |
% |
|
|
17.2 |
% |
|
|
35.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(61 |
) |
|
$ |
(356 |
) |
|
$ |
290 |
|
|
$ |
(214 |
) |
|
$ |
(359 |
) |
|
$ |
479 |
|
Depreciation and amortization |
|
169 |
|
|
|
168 |
|
|
|
166 |
|
|
|
334 |
|
|
|
332 |
|
|
|
336 |
|
Interest expense |
|
43 |
|
|
|
40 |
|
|
|
43 |
|
|
|
85 |
|
|
|
77 |
|
|
|
86 |
|
Provision (benefit) for income taxes |
|
(22 |
) |
|
|
(46 |
) |
|
|
16 |
|
|
|
(68 |
) |
|
|
(83 |
) |
|
|
18 |
|
Gain on sale of property and corporate
level income/expense |
|
(3 |
) |
|
|
34 |
|
|
|
(44 |
) |
|
|
12 |
|
|
|
51 |
|
|
|
(33 |
) |
Severance expense (reversal) at hotel properties |
|
(1 |
) |
|
|
1 |
|
|
|
— |
|
|
|
(3 |
) |
|
|
1 |
|
|
|
— |
|
Pro forma adjustments (3) |
|
1 |
|
|
|
(13 |
) |
|
|
(17 |
) |
|
|
5 |
|
|
|
(1 |
) |
|
|
(25 |
) |
All Owned Hotel Pro
Forma EBITDA |
$ |
126 |
|
|
$ |
(172 |
) |
|
$ |
454 |
|
|
$ |
151 |
|
|
$ |
18 |
|
|
$ |
861 |
|
|
Quarter ended June 30, 2021 |
|
|
Quarter ended June 30, 2020 |
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
GAAP Results |
|
|
Severance at hotel properties |
|
|
Pro forma adjustments (3) |
|
|
Depreciation and corporate level items |
|
|
All Owned Hotel Pro Forma Results
(4) |
|
|
GAAP Results |
|
|
Severance at hotel properties |
|
|
Pro forma adjustments (3) |
|
|
Depreciation and corporate level items |
|
|
All Owned Hotel Pro Forma Results
(4) |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
$ |
423 |
|
|
$ |
— |
|
|
$ |
7 |
|
|
$ |
— |
|
|
$ |
430 |
|
|
$ |
61 |
|
|
$ |
— |
|
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
60 |
|
Food and beverage |
|
137 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
139 |
|
|
|
11 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11 |
|
Other |
|
89 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
90 |
|
|
|
31 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
33 |
|
Total revenues |
|
649 |
|
|
|
— |
|
|
|
10 |
|
|
|
— |
|
|
|
659 |
|
|
|
103 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
104 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
|
109 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
111 |
|
|
|
43 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
44 |
|
Food and beverage |
|
105 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
107 |
|
|
|
39 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
40 |
|
Other |
|
309 |
|
|
|
1 |
|
|
|
5 |
|
|
|
— |
|
|
|
315 |
|
|
|
181 |
|
|
|
(1 |
) |
|
|
12 |
|
|
|
— |
|
|
|
192 |
|
Depreciation and amortization |
|
169 |
|
|
|
— |
|
|
|
— |
|
|
|
(169 |
) |
|
|
— |
|
|
|
168 |
|
|
|
— |
|
|
|
— |
|
|
|
(168 |
) |
|
|
— |
|
Corporate and other expenses |
|
25 |
|
|
|
— |
|
|
|
— |
|
|
|
(25 |
) |
|
|
— |
|
|
|
25 |
|
|
|
— |
|
|
|
— |
|
|
|
(25 |
) |
|
|
— |
|
Total expenses |
|
717 |
|
|
|
1 |
|
|
|
9 |
|
|
|
(194 |
) |
|
|
533 |
|
|
|
456 |
|
|
|
(1 |
) |
|
|
14 |
|
|
|
(193 |
) |
|
|
276 |
|
Operating Profit - All
Owned Hotel Pro Forma EBITDA |
$ |
(68 |
) |
|
$ |
(1 |
) |
|
$ |
1 |
|
|
$ |
194 |
|
|
$ |
126 |
|
|
$ |
(353 |
) |
|
$ |
1 |
|
|
$ |
(13 |
) |
|
$ |
193 |
|
|
$ |
(172 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOST HOTELS & RESORTS,
INC. Schedule of All Owned Hotel Pro Forma Results
(1) (cont.)(unaudited, in millions, except hotel
statistics)
|
Quarter ended June 30, 2021 |
|
|
Quarter ended June 30, 2019 |
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
GAAP Results |
|
|
Severance at hotel properties |
|
|
Pro forma adjustments (3) |
|
|
Depreciation and corporate level items |
|
|
All Owned Hotel Pro Forma Results
(4) |
|
|
GAAP Results |
|
|
Pro forma adjustments (3) |
|
|
Depreciation and corporate level items |
|
|
All Owned Hotel Pro Forma Results
(4) |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
$ |
423 |
|
|
$ |
— |
|
|
$ |
7 |
|
|
$ |
— |
|
|
$ |
430 |
|
|
$ |
931 |
|
|
$ |
(39 |
) |
|
$ |
— |
|
|
$ |
892 |
|
|
Food and beverage |
|
137 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
139 |
|
|
|
449 |
|
|
|
(6 |
) |
|
|
— |
|
|
|
443 |
|
|
Other |
|
89 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
90 |
|
|
|
103 |
|
|
|
1 |
|
|
|
— |
|
|
|
104 |
|
|
Total revenues |
|
649 |
|
|
|
— |
|
|
|
10 |
|
|
|
— |
|
|
|
659 |
|
|
|
1,483 |
|
|
|
(44 |
) |
|
|
— |
|
|
|
1,439 |
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
|
109 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
111 |
|
|
|
226 |
|
|
|
(9 |
) |
|
|
— |
|
|
|
217 |
|
|
Food and beverage |
|
105 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
107 |
|
|
|
290 |
|
|
|
(4 |
) |
|
|
— |
|
|
|
286 |
|
|
Other |
|
309 |
|
|
|
1 |
|
|
|
5 |
|
|
|
— |
|
|
|
315 |
|
|
|
496 |
|
|
|
(14 |
) |
|
|
— |
|
|
|
482 |
|
|
Depreciation and amortization |
|
169 |
|
|
|
— |
|
|
|
— |
|
|
|
(169 |
) |
|
|
— |
|
|
|
166 |
|
|
|
— |
|
|
|
(166 |
) |
|
|
— |
|
|
Corporate and other expenses |
|
25 |
|
|
|
— |
|
|
|
— |
|
|
|
(25 |
) |
|
|
— |
|
|
|
25 |
|
|
|
— |
|
|
|
(25 |
) |
|
|
— |
|
|
Total expenses |
|
717 |
|
|
|
1 |
|
|
|
9 |
|
|
|
(194 |
) |
|
|
533 |
|
|
|
1,203 |
|
|
|
(27 |
) |
|
|
(191 |
) |
|
|
985 |
|
|
Operating Profit - All
Owned Hotel Pro Forma EBITDA(4) |
$ |
(68 |
) |
|
$ |
(1 |
) |
|
$ |
1 |
|
|
$ |
194 |
|
|
$ |
126 |
|
|
$ |
280 |
|
|
$ |
(17 |
) |
|
$ |
191 |
|
|
$ |
454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-date ended June 30, 2021 |
|
|
Year-to-date ended June 30, 2020 |
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
GAAP Results |
|
|
Severance at hotel properties |
|
|
Pro forma adjustments (3) |
|
|
Depreciation and corporate level items |
|
|
All Owned Hotel Pro Forma Results
(4) |
|
|
GAAP Results |
|
|
Severance at hotel properties |
|
|
Pro forma adjustments (3) |
|
|
Depreciation and corporate level items |
|
|
All Owned Hotel Pro Forma Results
(4) |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
$ |
680 |
|
|
$ |
— |
|
|
$ |
23 |
|
|
$ |
— |
|
|
$ |
703 |
|
|
$ |
687 |
|
|
$ |
— |
|
|
$ |
21 |
|
|
$ |
— |
|
|
$ |
708 |
|
Food and beverage |
|
214 |
|
|
|
— |
|
|
|
9 |
|
|
|
— |
|
|
|
223 |
|
|
|
341 |
|
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
354 |
|
Other |
|
154 |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
162 |
|
|
|
127 |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
|
134 |
|
Total revenues |
|
1,048 |
|
|
|
— |
|
|
|
40 |
|
|
|
— |
|
|
|
1,088 |
|
|
|
1,155 |
|
|
|
— |
|
|
|
41 |
|
|
|
— |
|
|
|
1,196 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
|
174 |
|
|
|
— |
|
|
|
5 |
|
|
|
— |
|
|
|
179 |
|
|
|
230 |
|
|
|
— |
|
|
|
5 |
|
|
|
— |
|
|
|
235 |
|
Food and beverage |
|
167 |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
175 |
|
|
|
284 |
|
|
|
— |
|
|
|
9 |
|
|
|
— |
|
|
|
293 |
|
Other |
|
558 |
|
|
|
3 |
|
|
|
22 |
|
|
|
— |
|
|
|
583 |
|
|
|
623 |
|
|
|
(1 |
) |
|
|
28 |
|
|
|
— |
|
|
|
650 |
|
Depreciation and amortization |
|
334 |
|
|
|
— |
|
|
|
— |
|
|
|
(334 |
) |
|
|
— |
|
|
|
332 |
|
|
|
— |
|
|
|
— |
|
|
|
(332 |
) |
|
|
— |
|
Corporate and other expenses |
|
49 |
|
|
|
— |
|
|
|
— |
|
|
|
(49 |
) |
|
|
— |
|
|
|
50 |
|
|
|
— |
|
|
|
— |
|
|
|
(50 |
) |
|
|
— |
|
Total expenses |
|
1,282 |
|
|
|
3 |
|
|
|
35 |
|
|
|
(383 |
) |
|
|
937 |
|
|
|
1,519 |
|
|
|
(1 |
) |
|
|
42 |
|
|
|
(382 |
) |
|
|
1,178 |
|
Operating Profit - All
Owned Hotel Pro Forma EBITDA(4) |
$ |
(234 |
) |
|
$ |
(3 |
) |
|
$ |
5 |
|
|
$ |
383 |
|
|
$ |
151 |
|
|
$ |
(364 |
) |
|
$ |
1 |
|
|
$ |
(1 |
) |
|
$ |
382 |
|
|
$ |
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOST HOTELS & RESORTS,
INC. Schedule of All Owned Hotel Pro Forma Results
(1) (cont.)(unaudited, in millions, except hotel
statistics)
|
Year-to-date ended June 30, 2021 |
|
|
Year-to-date ended June 30, 2019 |
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
GAAP Results |
|
|
Severance at hotel properties |
|
|
Pro forma adjustments (3) |
|
|
Depreciation and corporate level items |
|
|
All Owned Hotel Pro Forma Results
(4) |
|
|
GAAP Results |
|
|
Pro forma adjustments (3) |
|
|
Depreciation and corporate level items |
|
|
All Owned Hotel Pro Forma Results
(4) |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
$ |
680 |
|
|
$ |
— |
|
|
$ |
23 |
|
|
$ |
— |
|
|
$ |
703 |
|
|
$ |
1,788 |
|
|
$ |
(62 |
) |
|
$ |
— |
|
|
$ |
1,726 |
|
Food and beverage |
|
214 |
|
|
|
— |
|
|
|
9 |
|
|
|
— |
|
|
|
223 |
|
|
|
882 |
|
|
|
(11 |
) |
|
|
— |
|
|
|
871 |
|
Other |
|
154 |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
162 |
|
|
|
203 |
|
|
|
— |
|
|
|
— |
|
|
|
203 |
|
Total revenues |
|
1,048 |
|
|
|
— |
|
|
|
40 |
|
|
|
— |
|
|
|
1,088 |
|
|
|
2,873 |
|
|
|
(73 |
) |
|
|
— |
|
|
|
2,800 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
|
174 |
|
|
|
— |
|
|
|
5 |
|
|
|
— |
|
|
|
179 |
|
|
|
443 |
|
|
|
(17 |
) |
|
|
— |
|
|
|
426 |
|
Food and beverage |
|
167 |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
175 |
|
|
|
575 |
|
|
|
(10 |
) |
|
|
— |
|
|
|
565 |
|
Other |
|
558 |
|
|
|
3 |
|
|
|
22 |
|
|
|
— |
|
|
|
583 |
|
|
|
969 |
|
|
|
(21 |
) |
|
|
— |
|
|
|
948 |
|
Depreciation and amortization |
|
334 |
|
|
|
— |
|
|
|
— |
|
|
|
(334 |
) |
|
|
— |
|
|
|
336 |
|
|
|
— |
|
|
|
(336 |
) |
|
|
— |
|
Corporate and other expenses |
|
49 |
|
|
|
— |
|
|
|
— |
|
|
|
(49 |
) |
|
|
— |
|
|
|
54 |
|
|
|
— |
|
|
|
(54 |
) |
|
|
— |
|
Total expenses |
|
1,282 |
|
|
|
3 |
|
|
|
35 |
|
|
|
(383 |
) |
|
|
937 |
|
|
|
2,377 |
|
|
|
(48 |
) |
|
|
(390 |
) |
|
|
1,939 |
|
Operating Profit - All
Owned Hotel Pro Forma EBITDA(4) |
$ |
(234 |
) |
|
$ |
(3 |
) |
|
$ |
5 |
|
|
$ |
383 |
|
|
$ |
151 |
|
|
$ |
496 |
|
|
$ |
(25 |
) |
|
$ |
390 |
|
|
$ |
861 |
|
___________ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See the Notes to Financial Information
for a discussion of non-GAAP measures and the calculation of all
owned hotel pro forma results, including the limitations on their
use.(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. Hotel
margins are calculated using amounts presented in the above tables.
(3) Pro forma adjustments represent the following items:
(i) the elimination of results of operations of our sold
hotels, which operations are included in our unaudited condensed
consolidated statements of operations as continuing operations and
(ii) the addition of results for periods prior to our ownership for
hotels acquired as of June 30, 2021. All Owned Hotel Pro Forma
results also includes the results of our leased office buildings
and other non-hotel revenue and expense items. (4) All Owned
Hotel Pro Forma EBITDA excludes the Baker’s Cay Resort Key Largo
Curio Collection and the luxury downtown Houston hotel, as they
were acquired subsequent to quarter end. Additionally, the AC Hotel
Scottsdale North is a new development hotel that opened in January
2021. Therefore, there were no operations for the hotel prior to
January 2021 and no adjustments made for pro forma results of the
hotel for periods prior to its opening.
HOST HOTELS & RESORTS,
INC.Reconciliation of Net Income (Loss)
toEBITDA, EBITDAre and Adjusted EBITDAre
(1)(unaudited, in millions)
|
|
Quarter ended June 30, |
|
|
Year-to-date ended June 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net loss |
|
$ |
(61 |
) |
|
$ |
(356 |
) |
|
$ |
(214 |
) |
|
$ |
(359 |
) |
Interest expense |
|
|
43 |
|
|
|
40 |
|
|
|
85 |
|
|
|
77 |
|
Depreciation and amortization |
|
|
169 |
|
|
|
168 |
|
|
|
334 |
|
|
|
332 |
|
Income taxes |
|
|
(22 |
) |
|
|
(46 |
) |
|
|
(68 |
) |
|
|
(83 |
) |
EBITDA |
|
|
129 |
|
|
|
(194 |
) |
|
|
137 |
|
|
|
(33 |
) |
Gain on dispositions |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
Equity investment adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in (earnings) losses of affiliates |
|
|
(25 |
) |
|
|
25 |
|
|
|
(34 |
) |
|
|
21 |
|
Pro rata EBITDAre of equity investments(2) |
|
|
7 |
|
|
|
(20 |
) |
|
|
13 |
|
|
|
(14 |
) |
EBITDAre |
|
|
111 |
|
|
|
(190 |
) |
|
|
116 |
|
|
|
(26 |
) |
Adjustments to EBITDAre: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance expense (reversal) at hotel properties |
|
|
(1 |
) |
|
|
1 |
|
|
|
(3 |
) |
|
|
1 |
|
Adjusted
EBITDAre |
|
$ |
110 |
|
|
$ |
(189 |
) |
|
$ |
113 |
|
|
$ |
(25 |
) |
___________ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See the Notes to Financial Information
for discussion of non-GAAP measures.(2) Pro rata EBITDAre of
equity investments and pro rata FFO of equity investments for the
quarter and year-to-date ended June 30, 2021 include a realized
gain of approximately $3 million related to equity securities held
by one of our unconsolidated partnerships, Fifth Wall Ventures,
L.P. 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.
HOST HOTELS & RESORTS,
INC.Reconciliation of Diluted Earnings (Loss) per
Common Share toNAREIT 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, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net loss |
|
$ |
(61 |
) |
|
$ |
(356 |
) |
|
$ |
(214 |
) |
|
$ |
(359 |
) |
Less: Net loss attributable to non-controlling interests |
|
|
1 |
|
|
|
4 |
|
|
|
2 |
|
|
|
4 |
|
Net loss attributable
to Host Inc. |
|
|
(60 |
) |
|
|
(352 |
) |
|
|
(212 |
) |
|
|
(355 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on dispositions |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
Depreciation and amortization |
|
|
168 |
|
|
|
166 |
|
|
|
333 |
|
|
|
331 |
|
Equity investment adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in (earnings) losses of affiliates |
|
|
(25 |
) |
|
|
25 |
|
|
|
(34 |
) |
|
|
21 |
|
Pro rata FFO of equity investments(2) |
|
|
6 |
|
|
|
(20 |
) |
|
|
10 |
|
|
|
(17 |
) |
Consolidated partnership adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO adjustment for non-controlling partnership |
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
FFO adjustments for non-controlling interests of Host L.P. |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
NAREIT
FFO |
|
|
86 |
|
|
|
(184 |
) |
|
|
93 |
|
|
|
(24 |
) |
Adjustments to NAREIT
FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on debt extinguishment |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
Severance expense (reversal) at hotel properties |
|
|
(1 |
) |
|
|
1 |
|
|
|
(3 |
) |
|
|
1 |
|
Adjusted
FFO |
|
$ |
85 |
|
|
$ |
(182 |
) |
|
$ |
90 |
|
|
$ |
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For calculation on a
per share basis:(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average shares outstanding –
EPS |
|
707.6 |
|
|
|
705.1 |
|
|
|
706.6 |
|
|
|
706.7 |
|
Assuming issuance of common shares granted under the comprehensive
stock plans |
|
|
1.6 |
|
|
|
— |
|
|
|
1.6 |
|
|
|
— |
|
Diluted weighted
average shares outstanding - NAREIT FFO and Adjusted
FFO |
|
|
709.2 |
|
|
|
705.1 |
|
|
|
708.2 |
|
|
|
706.7 |
|
Diluted loss per
common share |
|
$ |
(.09 |
) |
|
$ |
(.50 |
) |
|
$ |
(.30 |
) |
|
$ |
(.50 |
) |
NAREIT FFO per diluted
share |
|
$ |
.12 |
|
|
$ |
(.26 |
) |
|
$ |
.13 |
|
|
$ |
(.03 |
) |
Adjusted FFO per
diluted share |
|
$ |
.12 |
|
|
$ |
(.26 |
) |
|
$ |
.13 |
|
|
$ |
(.03 |
) |
___________ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1-2) Refer to corresponding footnote on the
Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and
Adjusted EBITDAre. (3) Diluted loss 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 partners and
other non-controlling interests that have the option to convert
their limited partnership interests to common OP units. No effect
is shown for securities if they are anti-dilutive.
HOST HOTELS & RESORTS,
INC.Notes to Financial Information
ALL OWNED HOTEL PRO FORMA
OPERATING STATISTICS AND RESULTS
To facilitate a quarter-to-quarter comparison of
our operations, we typically present certain operating statistics
(i.e., Total RevPAR, RevPAR, average daily rate and average
occupancy) and operating results (revenues, expenses, hotel EBITDA
and associated margins) for the periods included in this
presentation on a comparable hotel basis in order to enable our
investors to better evaluate our operating performance (discussed
in “Hotel Property Level Operating Results” below). However, due to
the COVID-19 pandemic and its effects on operations, there is
little comparability between periods. For this reason, we
temporarily are suspending our comparable hotel presentation and
instead present hotel operating results for all consolidated hotels
and, to facilitate comparisons between periods, we are presenting
results on a pro forma basis, including the following adjustments:
(1) operating results are presented for all consolidated
hotels owned as of June 30, 2021, but do not include the results of
operations for properties sold through the reporting date; and
(2) operating results for acquisitions as of June 30, 2021 are
reflected for full calendar years, to include results for periods
prior to our ownership. For these hotels, since the year-over-year
comparison includes periods prior to our ownership, the changes
will not necessarily correspond to changes in our actual
results.
CONSTANT US$ AND
NOMINAL US$
Operating results denominated in foreign
currencies are translated using the prevailing exchange rates on
the date of the transaction, or monthly based on the weighted
average exchange rate for the period. For comparative purposes, we
also present the RevPAR results for the prior year assuming the
results of our foreign operations were translated using the same
exchange rates that were effective for the comparable periods in
the current year, thereby eliminating the effect of currency
fluctuation for the year-over-year comparisons. We believe this
presentation is useful to investors as it provides clarity with
respect to the change in RevPAR in the local currency of the hotel
consistent with the manner in which we would evaluate our domestic
portfolio. However, the estimated effect of changes in foreign
currency has been reflected in the results of net income (loss),
EBITDA, Adjusted EBITDAre, diluted earnings (loss) per common share
and Adjusted FFO per diluted share. Nominal US$ results include the
effect of currency fluctuations, consistent with our financial
statement presentation.
NON-GAAP FINANCIAL MEASURES
Included in this press release are certain
“non-GAAP financial measures,” which are measures of our historical
or future financial performance that are not calculated and
presented in accordance with GAAP, within the meaning of applicable
SEC rules. They are as follows: (i) FFO and FFO per diluted
share (both NAREIT and Adjusted), (ii) EBITDA,
(iii) EBITDAre and Adjusted EBITDAre, (iv) All Owned
Hotel Pro Forma Operating Statistics and Results and (v) Cash burn.
The following discussion defines these measures and presents why we
believe they are useful supplemental measures of our
performance.
NAREIT FFO AND NAREIT FFO PER DILUTED SHARE
We present NAREIT FFO and NAREIT FFO per diluted
share as non-GAAP measures of our performance in addition to our
earnings per share (calculated in accordance with GAAP). We
calculate NAREIT FFO per diluted share as our NAREIT FFO (defined
as set forth below) for a given operating period, as adjusted for
the effect of dilutive securities, divided by the number of fully
diluted shares outstanding during such period, in accordance with
NAREIT guidelines. Effective January 1, 2019, we adopted NAREIT’s
definition of FFO included in NAREIT’s Funds From Operations White
Paper – 2018 Restatement. NAREIT defines FFO as net income
(calculated in accordance with GAAP) excluding depreciation and
amortization related to real estate, gains and losses from the sale
of certain real estate assets, gains and losses from change in
control, impairment expense of certain real estate assets and
investments and adjustments for consolidated partially-owned
entities and unconsolidated affiliates. Adjustments for
consolidated partially-owned entities and unconsolidated affiliates
are calculated to reflect our pro rata share of the FFO of those
entities on the same basis.
We believe that NAREIT FFO per diluted share is
a useful supplemental measure of our operating performance and that
the presentation of NAREIT FFO per diluted share, when combined
with the primary GAAP presentation of earnings per share, provides
beneficial information to investors. By excluding the effect of
real estate depreciation, amortization, impairment expense and
gains and losses from sales of depreciable real estate, all of
which are based on historical cost accounting and which may be of
lesser significance in evaluating current performance, we believe
that such measures can facilitate comparisons of operating
performance between periods and with other REITs, even though
NAREIT FFO per diluted share does not represent an amount that
accrues directly to holders of our common stock. Historical cost
accounting for real estate assets implicitly assumes that the value
of real estate assets diminishes predictably over time. As noted by
NAREIT in its Funds From Operations White Paper – 2018 Restatement,
the primary purpose for including FFO as a supplemental measure of
operating performance of a REIT is to address the artificial nature
of historical cost depreciation and amortization of real estate and
real estate-related assets mandated by GAAP. For these reasons,
NAREIT adopted the FFO metric in order to promote a uniform
industry-wide measure of REIT operating performance.
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
Earnings before Interest Expense, Income Taxes,
Depreciation and Amortization (“EBITDA”) is a commonly used measure
of performance in many industries. Management believes EBITDA
provides useful information to investors regarding our results of
operations because it helps us and our investors evaluate the
ongoing operating performance of our properties after removing the
impact of the Company’s capital structure (primarily interest
expense) and its asset base (primarily depreciation and
amortization). Management also believes the use of EBITDA
facilitates comparisons between us and other lodging REITs, hotel
owners that are not REITs and other capital-intensive companies.
Management uses EBITDA to evaluate property-level results and as
one measure in determining the value of acquisitions and
dispositions and, like FFO and Adjusted FFO per diluted share, it
is widely used by management in the annual budget process and for
our compensation programs.
EBITDAre and Adjusted EBITDAre
We present EBITDAre in accordance with NAREIT
guidelines, as defined in its September 2017 white paper “Earnings
Before Interest, Taxes, Depreciation and Amortization for Real
Estate,” to provide an additional performance measure to facilitate
the evaluation and comparison of the Company’s results with other
REITs. NAREIT defines EBITDAre as net income (calculated in
accordance with GAAP) excluding interest expense, income tax,
depreciation and amortization, gains or losses on disposition of
depreciated property (including gains or losses on change of
control), impairment expense of depreciated property and of
investments in unconsolidated affiliates caused by a decrease in
value of depreciated property in the affiliate, and adjustments to
reflect the entity’s pro rata share of EBITDAre of unconsolidated
affiliates.
We make additional adjustments to EBITDAre when
evaluating our performance because we believe that the exclusion of
certain additional items described below provides useful
supplemental information to investors regarding our ongoing
operating performance. We believe that the presentation of Adjusted
EBITDAre, when combined with the primary GAAP presentation of net
income, is beneficial to an investor’s understanding of our
operating performance. Adjusted EBITDAre also is similar to the
measure used to calculate certain credit ratios for our credit
facility and senior notes. We adjust EBITDAre for the following
items, which may occur in any period, and refer to this measure as
Adjusted EBITDAre:
- Property Insurance Gains – We exclude the effect of property
insurance gains reflected in our consolidated statements of
operations because we believe that including them in Adjusted
EBITDAre is not consistent with reflecting the ongoing performance
of our assets. In addition, property insurance gains could be less
important to investors given that the depreciated asset book value
written off in connection with the calculation of the property
insurance gain often does not reflect the market value of real
estate assets.
- Acquisition Costs – Under GAAP, costs associated with completed
property acquisitions that are considered business combinations are
expensed in the year incurred. We exclude the effect of these costs
because we believe they are not reflective of the ongoing
performance of the Company.
- Litigation Gains and Losses – We exclude the effect of gains or
losses associated with litigation recorded under GAAP that we
consider outside the ordinary course of business. We believe that
including these items is not consistent with our ongoing operating
performance.
- Severance Expense – In certain circumstances, we will add back
hotel-level severance expenses when we do not believe that such
expenses are reflective of the ongoing operation of our properties.
Situations that would result in a severance add-back include, but
are not limited to, (i) costs incurred as part of a broad-based
reconfiguration of the operating model with the specific hotel
operator for a portfolio of hotels and (ii) costs incurred at a
specific hotel due to a broad-based and significant reconfiguration
of a hotel and/or its workforce. We do not add back corporate-level
severance costs or severance costs at an individual hotel that we
consider to be incurred in the normal course of business.
In unusual circumstances, we also may adjust
EBITDAre for gains or losses that management believes are not
representative of the Company’s current operating performance. The
last adjustment of this nature was a 2013 exclusion of a gain from
an eminent domain claim.
Limitations on the Use of NAREIT FFO per Diluted
Share, Adjusted FFO per Diluted Share, EBITDA, EBITDAre and
Adjusted EBITDAre
We calculate EBITDAre and NAREIT FFO per diluted
share in accordance with standards established by NAREIT, which may
not be comparable to measures calculated by other companies that do
not use the NAREIT definition of EBITDAre and FFO or do not
calculate FFO per diluted share in accordance with NAREIT guidance.
In addition, although EBITDAre and FFO per diluted share are useful
measures when comparing our results to other REITs, they may not be
helpful to investors when comparing us to non-REITs. We also
calculate Adjusted FFO per diluted share and Adjusted EBITDAre,
which are not in accordance with NAREIT guidance and may not be
comparable to measures calculated by other REITs or by other
companies. This information should not be considered as an
alternative to net income, operating profit, cash from operations
or any other operating performance measure calculated in accordance
with GAAP. Cash expenditures for various long-term assets (such as
renewal and replacement capital expenditures), interest expense
(for EBITDA, EBITDAre and Adjusted EBITDAre purposes only),
severance expense related to significant property-level
reconfiguration and other items have been, and will be, made and
are not reflected in the EBITDA, EBITDAre, Adjusted EBITDAre,
NAREIT FFO per diluted share and Adjusted FFO per diluted share
presentations. Management compensates for these limitations by
separately considering the impact of these excluded items to the
extent they are material to operating decisions or assessments of
our operating performance. Our consolidated statements of
operations and consolidated statements of cash flows (“Statements
of Cash Flows”) in the Company’s annual report on Form 10-K and
quarterly reports on Form 10-Q include interest expense, capital
expenditures, and other excluded items, all of which should be
considered when evaluating our performance, as well as the
usefulness of our non-GAAP financial measures. Additionally, NAREIT
FFO per diluted share, Adjusted FFO per diluted share, EBITDA,
EBITDAre and Adjusted EBITDAre should not be considered as a
measure of our liquidity or indicative of funds available to fund
our cash needs, including our ability to make cash distributions.
In addition, NAREIT FFO per diluted share and Adjusted FFO per
diluted share do not measure, and should not be used as a measure
of, amounts that accrue directly to stockholders’ benefit.
Similarly, EBITDAre, Adjusted EBITDAre, NAREIT
FFO and Adjusted FFO per diluted share include adjustments for the
pro rata share of our equity investments and NAREIT FFO and
Adjusted FFO per diluted share include adjustments for the pro rata
share of non-controlling partners in consolidated partnerships. Our
equity investments consist of interests ranging from 11% to 67% in
seven domestic and international partnerships that own a total of
10 properties and a vacation ownership development. Due to the
voting rights of the outside owners, we do not control and,
therefore, do not consolidate these entities. The non-controlling
partners in consolidated partnerships primarily consist of the
approximate 1% interest in Host LP held by outside partners, and a
15% interest held by outside partners in a partnership owning one
hotel for which we do control the entity and, therefore,
consolidate its operations. These pro rata results for NAREIT FFO
and Adjusted FFO per diluted share, EBITDAre and Adjusted EBITDAre
were calculated as set forth in the definitions above. Readers
should be cautioned that the pro rata results presented in these
measures for consolidated partnerships (for NAREIT FFO and Adjusted
FFO per diluted share) and equity investments may not accurately
depict the legal and economic implications of our investments in
these entities.
Hotel Property Level Operating Results
We present certain operating results for our
hotels, such as hotel revenues, expenses, food and beverage profit,
and EBITDA (and the related margins), on a hotel-level pro forma
basis as supplemental information for our investors. Our hotel
results reflect the operating results of our hotels as discussed in
“All Owned Hotel Pro Forma Operating Statistics and Results” above.
We present all owned hotel pro forma EBITDA to help us and our
investors evaluate the ongoing operating performance of our hotels
after removing the impact of the Company’s capital structure
(primarily interest expense) and its asset base (primarily
depreciation and amortization expense). Corporate-level costs and
expenses also are removed to arrive at property-level results. We
believe these property-level results provide investors with
supplemental information about the ongoing operating performance of
our hotels. All owned hotel pro forma results are presented both by
location and for the Company’s properties in the aggregate. While
severance expense is not uncommon at the individual property level
in the normal course of business, we eliminate from our hotel level
operating results severance costs related to broad-based and
significant property-level reconfiguration that is not considered
to be within the normal course of business, as we believe this
elimination provides useful supplemental information that is
beneficial to an investor’s understanding of our ongoing operating
performance. We also eliminate depreciation and amortization
expense because, even though depreciation and amortization expense
are property-level expenses, these non-cash expenses, which are
based on historical cost accounting for real estate assets,
implicitly assume that the value of real estate assets diminishes
predictably over time. As noted earlier, because real estate values
historically have risen or fallen with market conditions, many real
estate industry investors have considered presentation of
historical cost accounting for operating results to be
insufficient.
Because of the elimination of corporate-level
costs and expenses, gains or losses on disposition, certain
severance expenses and depreciation and amortization expense, the
hotel operating results we present do not represent our total
revenues, expenses, operating profit or net income and should not
be used to evaluate our performance as a whole. Management
compensates for these limitations by separately considering the
impact of these excluded items to the extent they are material to
operating decisions or assessments of our operating performance.
Our consolidated statements of operations include such amounts, all
of which should be considered by investors when evaluating our
performance.
While management believes that presentation of
all owned hotel results is a supplemental measure that provides
useful information in evaluating our ongoing performance, this
measure is not used to allocate resources or to assess the
operating performance of each of our hotels, as these decisions are
based on data for individual hotels and are not based on all owned
hotel results in the aggregate. For these reasons, we believe all
owned hotel operating results, when combined with the presentation
of GAAP operating profit, revenues and expenses, provide useful
information to investors and management.
The following presents the reconciliation of our
Net Loss to All Owned Hotels Pro Forma EBITDA (in millions) for the
quarter ended March 31, 2021 and is included as All Owned Hotels
Pro Forma EBITDA is a component of first quarter cash
burn. For additional reconciliations of All Owned Hotels Pro
Forma EBITDA for the quarter and year-to-date ended June 30, 2021
and comparable periods in prior years, see page 15:
|
|
Quarter endedMarch 31, 2021 |
|
Net loss |
|
$ |
(153 |
) |
Depreciation and
amortization |
|
|
165 |
|
Interest expense |
|
|
42 |
|
Provision for income
taxes |
|
|
(46 |
) |
Gain on sale of property and
corporate level income/expense |
|
|
15 |
|
Severance at hotel
properties |
|
|
(2 |
) |
Pro forma adjustments |
|
|
4 |
|
All Owned Hotels Pro Forma
EBITDA |
|
$ |
25 |
|
|
|
|
|
|
COVID-19 Non-GAAP Reporting Measures
Cash Burn. Management
utilizes the cash burn metric to evaluate the amounts necessary to
fund operating losses during periods where hotels have suspended
operations or are operating at very low levels of occupancy due to
the COVID-19 pandemic. Therefore, management believes this metric
is helpful to investors to evaluate the Company's ongoing ability
to continue to fund operating losses during the current periods of
operating losses. The Company defines cash burn as net cash
provided by (used in) operating activities adjusted for (i) changes
in short term assets and liabilities and (ii) contributions to
equity investments, plus capital expenditures, as further described
below. Cash burn is not intended to be, and should not be used as a
substitute for GAAP net cash provided by (used in) operating
activities as it does not reflect the issuance or repurchase
of equity, the payment of dividends, the issuance or repayment of
debt, or other investing activities such as the purchase or sale of
hotels. Adjustments include:
- Changes in short term assets and liabilities – The Company
eliminates changes in short-term assets and liabilities, including
due from managers, other assets and other liabilities, that
primarily represent timing of cash inflows and outflows. As a
result, cash burn includes income and expenses in better alignment
with how these items are reflected on the statements of operations.
These items generally represent receipts and payments that will be
settled within the year and do not reflect the cash savings or
liquidity needs of the Company on an on-going basis.
- Contributions to equity investments – The Company includes
contributions to equity investments that have been necessary due to
the depressed operations for these investments during the COVID-19
pandemic. These contributions are included as investing activities
on the Statements of Cash Flows.
- Capital Expenditures – Capital expenditures are included in the
cash burn amount as they represent a significant on-going cash
outflow of the Company. While management continually evaluates its
capital expenditures program to appropriately balance improving and
renewing its hotel portfolio with its overall cash needs;
management continues to anticipate capital expenditures to be a
significant cash outflow.
The following presents the reconciliation of our
net cash provided by (used in) operating activities from our
Statements of Cash Flows to cash burn (in millions):
|
Quarter endedJune 30, 2021 |
|
|
Quarter ended March 31, 2021 |
|
GAAP net cash provided by (used in) operating
activities |
$ |
9 |
|
|
$ |
(49 |
) |
|
|
|
|
|
|
|
|
Contributions to equity
investments |
|
— |
|
|
|
(2 |
) |
Timing adjustments |
|
|
|
|
|
|
|
Change in due from/to managers |
|
57 |
|
|
|
1 |
|
Change in other assets |
|
7 |
|
|
|
(3 |
) |
Change in other liabilities |
|
(12 |
) |
|
|
8 |
|
Cash generated (burn) before
capital expenditures |
|
61 |
|
|
|
(45 |
) |
Capital expenditures |
|
(87 |
) |
|
|
(93 |
) |
Cash
burn |
$ |
(26 |
) |
|
$ |
(138 |
) |
SOURAV GHOSHChief Financial Officer(240)
744-5267 |
JAIME MARCUS Investor Relations(240)
744-5117ir@hosthotels.com |
A PDF accompanying this announcement is available
at: http://ml.globenewswire.com/Resource/Download/6a2f90f4-06eb-4cf8-b497-2fb7a9d9fd29
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