Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the
nation’s largest lodging real estate investment trust (“REIT”),
today announced results for fourth quarter and full year 2021.
Operating Results (unaudited, in
millions, except per share and hotel statistics)
|
|
Quarter ended December 31, |
|
|
Percent Change |
|
|
Percent Change |
|
|
Year ended December 31, |
|
|
Percent Change |
|
|
Percent Change |
|
|
|
2021 |
|
|
2020 |
|
|
vs. Q4 2020 |
|
|
vs. Q4 2019⁽²⁾ |
|
|
2021 |
|
|
2020 |
|
|
vs.2020 |
|
|
vs.2019⁽²⁾ |
|
Revenues |
|
$ |
998 |
|
|
$ |
267 |
|
|
|
273.8 |
% |
|
|
(25.2 |
)% |
|
$ |
2,890 |
|
|
$ |
1,620 |
|
|
|
78.4 |
% |
|
|
(47.2 |
)% |
All owned hotel revenues (pro
forma)⁽¹⁾ |
|
|
1,000 |
|
|
|
293 |
|
|
|
241.3 |
% |
|
|
(25.0 |
)% |
|
|
2,933 |
|
|
|
1,678 |
|
|
|
74.8 |
% |
|
|
(44.6 |
)% |
All owned hotel (pro forma)
Total RevPAR |
|
|
237.98 |
|
|
|
70.31 |
|
|
|
238.5 |
% |
|
|
(25.7 |
)% |
|
|
176.59 |
|
|
|
101.12 |
|
|
|
74.6 |
% |
|
|
(44.9 |
)% |
All owned hotel (pro forma)
RevPAR |
|
|
148.46 |
|
|
|
42.52 |
|
|
|
249.2 |
% |
|
|
(24.2 |
)% |
|
|
113.40 |
|
|
|
60.44 |
|
|
|
87.6 |
% |
|
|
(43.2 |
)% |
|
|
|
|
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|
Net income (loss) |
|
$ |
323 |
|
|
$ |
(66 |
) |
|
N/M |
|
|
|
|
|
$ |
(11 |
) |
|
$ |
(741 |
) |
|
|
98.5 |
% |
|
|
|
EBITDAre⁽¹⁾ |
|
|
247 |
|
|
|
(53 |
) |
|
N/M |
|
|
|
|
|
|
542 |
|
|
|
(233 |
) |
|
N/M |
|
|
|
|
Adjusted EBITDAre⁽¹⁾ |
|
|
242 |
|
|
|
(32 |
) |
|
N/M |
|
|
|
|
|
|
532 |
|
|
|
(168 |
) |
|
N/M |
|
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|
Diluted earnings (loss)
per common share |
|
|
.45 |
|
|
|
.(09 |
) |
|
N/M |
|
|
|
|
|
|
.(02 |
) |
|
|
(1.04 |
) |
|
|
98.1 |
% |
|
|
|
NAREIT FFO per diluted
share⁽¹⁾ |
|
|
.26 |
|
|
|
.(07 |
) |
|
N/M |
|
|
|
|
|
|
.60 |
|
|
|
.(31 |
) |
|
N/M |
|
|
|
|
Adjusted FFO per diluted
share⁽¹⁾ |
|
|
.29 |
|
|
|
.(02 |
) |
|
N/M |
|
|
|
|
|
|
.61 |
|
|
|
.(17 |
) |
|
N/M |
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|
* Additional detail on the Company’s results,
including data for 22 domestic markets and top 40 hotels by Total
RevPAR, is available in the Fourth Quarter 2021 Supplemental
Financial Information available on the Company’s website at
www.hosthotels.com.
James F. Risoleo, President and Chief Executive
Officer, said, “We finished 2021 on a high note as we continued to
see strong sequential operating improvements across our portfolio.
During the fourth quarter, RevPAR was approximately $148,
representing a 13% increase over the prior quarter. While the
newest variant created additional uncertainty for the lodging
industry, it did not dampen the recovery, which continues to be
concentrated in Sunbelt markets, particularly at our resorts. Our
urban markets also saw strong sequential improvements, driven by
business transient customers, where room nights improved over last
quarter relative to 2019.”
__________________________________(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 in order to allow investors to better
understand the trajectory and timing of any recovery from the
COVID-19 impacts on hotel operations.N/M = Not Meaningful
Risoleo continued, “During the quarter, we
completed two additional acquisitions, buying The Alida, Savannah
and the Hotel Van Zandt in Austin, bringing the total value of our
acquisitions for 2021 to $1.6 billion. In addition, during the
quarter and subsequent to year end, we disposed of seven hotels for
nearly $1 billion. We also acquired a 49% interest in the
established asset management platform of Noble Investment Group
through a joint venture with Noble in January. We view the
investment as a new opportunity to elevate the EBITDA growth
profile of our portfolio by allowing for investment in select
service hotels, extended stay hotels, and new development deals. We
remain optimistic about the future of travel and we are focused on
continuing to improve the quality, revenue, and profitability
metrics of our iconic and irreplaceable portfolio."
2021 HIGHLIGHTS:
- Achieved sequential improvement in
RevPAR each quarter of 2021, from $68.04 in the first quarter to
$148.46 in the fourth quarter. Improvements were primarily driven
by leisure travel in Sunbelt markets with urban hotels showing
sequential improvements in the second half of the year.
- Invested over $1.6 billion in seven
hotels and two golf courses, the majority of which were in new
markets for the Company, including Austin, Savannah, Key Largo and
Big Sur.
- Completed the sale of six
properties during the year for a total of $748 million.
- Completed Marriott Transformational
Capital Program projects at three properties in 2021 and an
additional two properties subsequent to year end, highlighted by
multi-year guestroom, public space and meeting space renovations at
the 1,966-room New York Marriott Marquis and the 2,004-room Orlando
World Center Marriott. In addition, significant updates at The
Ritz-Carlton, Amelia Island, Houston Marriott Medical Center, and
Marina del Rey Marriott have concluded. These achievements bring
the total number of completed projects in this program to 12 of 16
properties.
- Completed significant return on
investment and development projects in 2021, including the addition
of 19 new luxury villas at the Andaz Maui at Wailea Resort and a
new waterpark at The Ritz-Carlton Golf Resort, Naples. Significant
progress was made on the extensive transformational renovation and
expansion at The Ritz-Carlton, Naples and on the redevelopment
projects at the Orlando World Center Marriott.
- Refinanced $400 million of senior
note debt, through the issuance of $450 million of Series J Senior
Notes at 2.9%, the lowest rate in Company history, and repayment of
the 3.75% Series D Senior Notes, extending the next significant
debt maturity to 2024.
- Met the required financial covenant
thresholds under the Company's credit facility agreement and exited
the covenant waiver period three quarters ahead of its scheduled
expiration.
Results for Fourth Quarter 2021
- Generated GAAP net income of $323
million in the fourth quarter, an increase of $443 million from the
third quarter of 2021, due to the gain of $302 million, primarily
related to the sale of six assets, and improved operations.
- Achieved Adjusted EBITDAre of $242
million, which, after interest expense of $40 million, excluding
costs related to refinancing, exceeded the Company's capital
expenditures, totaling $134 million for the quarter, by $68
million. The results benefited from continued positive quarterly
sequential improvements in RevPAR and operations.
- Delivered All Owned Hotel Pro Forma
EBITDA of $269 million, which included positive hotel-level
operating profit at 70 of the Company’s hotels, an increase from 61
hotels in the third quarter of 2021.
- Acquired the 173-room Alida,
Savannah in Georgia and the 319-room Hotel Van Zandt in Austin,
Texas.
- Repaid $800 million on the revolver
portion of the Company's credit facility during the quarter, and
repaid the remaining $683 million outstanding subsequent to
year-end.
Subsequent Events
- Sold the Sheraton Boston for $233
million, which includes a $163 million bridge loan provided by the
Company to the buyer, with an initial term of six months and two
potential six month extensions.
- Acquired a 49% ownership interest
in a joint venture with Noble Investment Group, a leading private
hospitality asset manager, for $35 million of cash and the issuance
of approximately $56 million of Host L.P. OP units.
- January RevPAR is estimated to be
$105 and February RevPAR is forecast to be between $150 and
$155.
BALANCE SHEET
The Company maintains a robust balance sheet,
with the following balances at December 31, 2021:
- Total assets of $12.4 billion.
- Debt balance of $4.9 billion, with
an average maturity of 5.1 years, an average interest rate of 3.1%,
and no significant maturities until 2024. Following the credit
facility revolver payment subsequent to year end, the debt balance
is $4.2 billion.
- Ended the year with total available
liquidity of approximately $1.8 billion, including FF&E escrow
reserves of $144 million and approximately $812 million available
under the revolver portion of the credit facility. Following the
additional credit facility revolver repayment, completed subsequent
to year end, the Company has $1.5 billion of availability under the
credit facility.
Sourav Ghosh, Executive Vice President, Chief
Financial Officer, stated, “We continued to deliver operational
improvements in the fourth quarter, which led to growth in positive
cash flows. In addition, we opted to pay down the outstanding
balance on our credit facility to reduce interest expense, given
our large cash balance and increased flexibility to incur debt. We
also continued to enhance our portfolio through accretive capital
recycling and reinvestment in our portfolio, and announced a
quarterly cash dividend, as we remain optimistic on the trajectory
of the lodging recovery."
DIVIDEND
On February 16, 2022, the Board of Directors announced a regular
quarterly cash dividend of $0.03 on its common stock. The dividend
will be paid on April 15, 2022 to stockholders of record on March
31, 2022. All future dividends are subject to approval by the
Company’s Board of Directors.
OPERATING RESULTS
The following presents the monthly pro forma
hotel operating results for the full portfolio owned as of December
31, 2021 compared to 2020 and 2019 for the months presented(3):
|
|
October |
|
|
October |
|
|
|
|
|
November |
|
|
November |
|
|
|
|
|
December |
|
|
December |
|
|
|
|
|
Quarter ended December 31, |
|
|
|
|
|
|
2021 |
|
|
2020 |
|
|
Change |
|
|
2021 |
|
|
2020 |
|
|
Change |
|
|
2021 |
|
|
2020 |
|
|
Change |
|
|
2021 |
|
|
2020 |
|
|
Change |
|
Number of hotels |
|
|
80 |
|
|
|
79 |
|
|
|
|
|
|
81 |
|
|
|
79 |
|
|
|
|
|
|
81 |
|
|
|
79 |
|
|
|
|
|
|
81 |
|
|
|
79 |
|
|
|
|
Number of rooms |
|
|
45,349 |
|
|
|
45,184 |
|
|
|
|
|
|
45,572 |
|
|
|
45,184 |
|
|
|
|
|
|
45,572 |
|
|
|
45,184 |
|
|
|
|
|
|
45,572 |
|
|
|
45,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
Average
OccupancyPercentage |
|
|
58.9 |
% |
|
|
21.5 |
% |
|
|
37.4pts |
|
|
|
57.4 |
% |
|
|
20.0 |
% |
|
|
37.4pts |
|
|
|
55.3 |
% |
|
|
17.8 |
% |
|
|
37.5pts |
|
|
|
57.2 |
% |
|
|
19.8 |
% |
|
|
37.4pts |
|
Average Room Rate |
|
$ |
246.98 |
|
|
$ |
194.78 |
|
|
|
26.8 |
% |
|
$ |
249.07 |
|
|
$ |
208.07 |
|
|
|
19.7 |
% |
|
$ |
283.62 |
|
|
$ |
246.68 |
|
|
|
15.0 |
% |
|
$ |
259.63 |
|
|
$ |
214.94 |
|
|
|
20.8 |
% |
RevPAR |
|
$ |
145.46 |
|
|
$ |
41.82 |
|
|
|
247.8 |
% |
|
$ |
142.92 |
|
|
$ |
41.71 |
|
|
|
242.6 |
% |
|
$ |
156.79 |
|
|
$ |
43.98 |
|
|
|
256.5 |
% |
|
$ |
148.46 |
|
|
$ |
42.52 |
|
|
|
249.2 |
% |
|
|
October |
|
|
October |
|
|
|
|
|
November |
|
|
November |
|
|
|
|
|
December |
|
|
December |
|
|
|
|
|
Quarter ended December 31, |
|
|
|
|
|
|
2021 |
|
|
2019 |
|
|
Change |
|
|
2021 |
|
|
2019 |
|
|
Change |
|
|
2021 |
|
|
2019 |
|
|
Change |
|
|
2021 |
|
|
2019 |
|
|
Change |
|
Number of hotels |
|
|
80 |
|
|
|
79 |
|
|
|
|
|
|
81 |
|
|
|
79 |
|
|
|
|
|
|
81 |
|
|
|
79 |
|
|
|
|
|
|
81 |
|
|
|
79 |
|
|
|
|
Number of rooms |
|
|
45,349 |
|
|
|
45,184 |
|
|
|
|
|
|
45,572 |
|
|
|
45,184 |
|
|
|
|
|
|
45,572 |
|
|
|
45,184 |
|
|
|
|
|
|
45,572 |
|
|
|
45,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
OccupancyPercentage |
|
|
58.9 |
% |
|
|
82.3 |
% |
|
|
(23.4pts |
) |
|
|
57.4 |
% |
|
|
75.8 |
% |
|
|
(18.4pts |
) |
|
|
55.3 |
% |
|
|
70.0 |
% |
|
|
(14.7pts |
) |
|
|
57.2 |
% |
|
|
76.1 |
% |
|
|
(18.9pts |
) |
Average Room Rate |
|
$ |
246.98 |
|
|
$ |
264.75 |
|
|
|
(6.7 |
)% |
|
$ |
249.07 |
|
|
$ |
249.38 |
|
|
|
(0.1 |
)% |
|
$ |
283.62 |
|
|
$ |
257.00 |
|
|
|
10.4 |
% |
|
$ |
259.63 |
|
|
$ |
257.35 |
|
|
|
0.9 |
% |
RevPAR |
|
$ |
145.46 |
|
|
$ |
217.92 |
|
|
|
(33.3 |
)% |
|
$ |
142.92 |
|
|
$ |
189.08 |
|
|
|
(24.4 |
)% |
|
$ |
156.79 |
|
|
$ |
179.99 |
|
|
|
(12.9 |
)% |
|
$ |
148.46 |
|
|
$ |
195.73 |
|
|
|
(24.2 |
)% |
__________________________________(3) The AC
Hotel Scottsdale North is a new development hotel that opened in
January 2021 and The Laura Hotel in Houston re-opened under new
management in November 2021. Therefore, no adjustments were made
for results of these hotels for periods prior to their openings.
Results for the Sheraton Boston, sold subsequent to year end, are
included, as it was owned for the entirety of the periods
presented.
Fourth Quarter 2021 Revenue Performance
- All Owned Hotel Pro Forma RevPAR
improved 13% compared to the third quarter of 2021, with average
room rates exceeding fourth quarter 2019 rates. While strong
leisure demand for resorts and hotels located in the Company’s
Sunbelt markets and Hawaii continued to drive the sequential
improvement, RevPAR at the Company's downtown and non-resort hotels
also saw improvement in the fourth quarter.
- Food and beverage pro forma
revenues improved approximately $82 million, or 44%, compared to
the third quarter of 2021, fueled by continued improvement in
Banquet and Catering revenues, which increased 84% over the prior
quarter, following the doubling of Banquet and Catering revenues
from the second quarter to the third quarter. Throughout the
pandemic, food and beverage revenues mostly has been driven by
restaurants and other outlet revenue.
Fourth Quarter 2021 Hotel Operating Expense
Performance
- Portfolio-wide pro forma hotel
operating costs were approximately 24% lower compared to the fourth
quarter of 2019, with a 25% decrease in total revenues compared to
fourth quarter of 2019, and costs were only 15% higher compared to
the third quarter of 2021, despite an approximately 20% increase in
total revenues quarter over quarter.
- Staffing challenges began to ease
in the fourth quarter and 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.
- Re-introduction of marketing,
maintenance and other support costs is expected to increase other
departmental and support expenses as the recovery gains
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 fourth 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 December 31,
2021 on a pro forma basis, for transient, group and contract
business in comparison to 2019 performance:
|
|
Quarter ended December 31, 2021 |
|
|
Quarter ended September 30, 2021 |
|
|
|
Transient |
|
|
Group |
|
|
Contract |
|
|
Transient |
|
|
Group |
|
|
Contract |
|
Room nights (in
thousands) |
|
|
1,570 |
|
|
|
661 |
|
|
|
163 |
|
|
|
1,592 |
|
|
|
573 |
|
|
|
149 |
|
Percentage change in room
nights vs. same period in 2019 |
|
|
(17.7 |
)% |
|
|
(40.5 |
)% |
|
|
(13.7 |
)% |
|
|
(23.1 |
)% |
|
|
(48.2 |
)% |
|
|
(5.9 |
)% |
Room Revenues (in
millions) |
|
$ |
443 |
|
|
$ |
150 |
|
|
$ |
29 |
|
|
$ |
412 |
|
|
$ |
111 |
|
|
$ |
24 |
|
Percentage change in revenues
vs. same period in 2019 |
|
|
(12.6 |
)% |
|
|
(43.0 |
)% |
|
|
(33.9 |
)% |
|
|
(18.8 |
)% |
|
|
(54.2 |
)% |
|
|
(41.5 |
)% |
CAPITAL ALLOCATION STRATEGY
The Company continued to execute on its capital
allocation strategy by recycling capital into assets that the
Company believes will improve the quality and EBITDA growth profile
of its portfolio. During the quarter, the Company acquired the
173-room Alida, Savannah, part of the Marriott Tribute Portfolio,
for $103 million and the 319-room Hotel Van Zandt in Austin,
managed by Kimpton Hotels, for a purchase price of $246 million,
including its $4 million FF&E reserve and the assumption of a
$102 million non-recourse mortgage. In 2021, the Company acquired
seven hotels and two golf courses for a total purchase price of
$1.6 billion.
Additionally during the quarter, the Company
sold the W Hollywood for approximately $197 million, including $3
million for the FF&E replacement funds, and a five-hotel
portfolio consisting of the Westfields Marriott Washington Dulles,
San Ramon Marriott, The Westin Buckhead Atlanta, The Westin Los
Angeles Airport and The Whitley for $551 million, including
approximately $11 million for the FF&E replacement funds.
Subsequent to year end, the Company sold the
Sheraton Boston for $233 million, including a $163 million bridge
loan provided by the Company to the buyer, and expects to record a
gain of $12 million in the first quarter of 2022. Additionally, the
Company acquired a 49% ownership interest in a joint venture with
Noble Investment Group, a private hospitality asset manager with a
focus on upscale select-service and extended stay properties. The
agreement provides for the opportunity to acquire interests in
future funds and represents a new platform for potential
growth.
CAPITAL EXPENDITURES
The following presents the Company’s 2021
capital expenditures spend and the forecast for 2022 (in
millions):
|
|
Year endedDecember 31, 2021 |
|
|
2022 Full Year Forecast |
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual |
|
|
Low-end of range |
|
|
High-end of range |
|
ROI - Marriott
Transformational Capital Program |
|
$ |
126 |
|
|
$ |
90 |
|
|
$ |
115 |
|
ROI - All other ROI
projects |
|
|
167 |
|
|
|
235 |
|
|
|
260 |
|
Total ROI project spend |
|
|
293 |
|
|
|
325 |
|
|
|
375 |
|
Renewals and Replacements |
|
|
134 |
|
|
|
175 |
|
|
|
225 |
|
Total Capital
Expenditures |
|
$ |
427 |
|
|
$ |
500 |
|
|
$ |
600 |
|
The Company continues to invest heavily in
capital expenditures in the early phases of recovery in order to
minimize future disruption and believes these renovations will
position these hotels to capture additional revenue during the
economic recovery. As of year-end 2021, the Company has completed
approximately 85% of the Marriott Transformational Capital Program.
The Company received $14 million of operating profit guarantees in
2021, with $2 million received in the fourth quarter, and expects
to receive approximately $11 million in operating profit guarantees
in 2022 under the Marriott Transformational Capital Program. The
program is expected to be substantially complete by the end of 2022
and the Company also plans to commence the next phase of an
estimated $128 million extensive repositioning at the Fairmont Kea
Lani in 2022.
2022 OUTLOOK
Given the global economic uncertainty COVID-19
has created for the travel, airline, lodging and tourism and event
industries, the Company cannot provide guidance for its operations
or fully estimate the effect of COVID-19 or its variants on its
operations.
January 2022 operations declined compared to the
fourth quarter results as operations were negatively affected by
the increase in COVID-19 cases due to the Omicron variant. However,
trends thus far in February would indicate a return to the positive
trajectory of the recovery experienced in the second half of 2021.
The Company believes that continued recovery within the lodging
industry will be driven by the strength of the economy, increased
consumer confidence that the risks associated with travelling and
contracting COVID-19 have been significantly reduced, and the
return of business and group customers.
While the Company is not providing guidance on
operations at this time, it estimates that for full year 2022,
interest expense and corporate and other expenses will be in the
following ranges (in millions):
|
|
2022 Full Year Forecast |
|
|
|
|
|
|
|
|
|
|
Low-end of range |
|
|
High-end of range |
|
Interest expense |
|
$ |
146 |
|
|
$ |
149 |
|
Corporate and other
expenses |
|
|
103 |
|
|
|
106 |
|
The Company does not intend to provide further
guidance updates unless deemed appropriate.
ABOUT HOST HOTELS &
RESORTS
Host Hotels & Resorts, Inc. is an S&P
500 company and is the largest lodging real estate investment trust
and one of the largest owners of luxury and upper-upscale hotels.
The Company currently owns 75 properties in the United States and
five properties internationally totaling approximately 44,400
rooms. The Company also holds non-controlling interests in seven
domestic and one international joint ventures. Guided by a
disciplined approach to capital allocation and aggressive asset
management, the Company partners with premium brands such as
Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The
Luxury Collection®, Hyatt®, Fairmont®, Hilton®, Four Seasons®,
Swissôtel®, ibis® and Novotel®, as well as independent brands. For
additional information, please visit the Company’s website at
www.hosthotels.com.
Note: This press release contains
forward-looking statements within the meaning of federal securities
regulations. These forward-looking statements which include, but
may not be limited to, our expectations regarding the impact of the
COVID-19 pandemic on our business, the recovery of travel and the
lodging industry and 2022 estimates with respect to our business,
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 February 16, 2022 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 December 31, 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)
|
|
December 31, 2021 |
|
|
December 31, 2020 |
|
|
|
|
|
|
|
|
ASSETS |
|
Property and equipment, net |
|
$ |
9,994 |
|
|
$ |
9,416 |
|
Right-of-use assets |
|
|
551 |
|
|
|
597 |
|
Assets held for sale |
|
|
270 |
|
|
|
— |
|
Due from managers |
|
|
113 |
|
|
|
22 |
|
Advances to and investments in
affiliates |
|
|
42 |
|
|
|
21 |
|
Furniture, fixtures and
equipment replacement fund |
|
|
144 |
|
|
|
139 |
|
Other |
|
|
431 |
|
|
|
360 |
|
Cash and cash equivalents |
|
|
807 |
|
|
|
2,335 |
|
Total assets |
|
$ |
12,352 |
|
|
$ |
12,890 |
|
|
|
|
|
|
|
|
LIABILITIES, NON-CONTROLLING INTERESTS AND
EQUITY |
|
Debt⁽¹⁾ |
|
|
|
|
|
|
Senior notes |
|
$ |
3,109 |
|
|
$ |
3,065 |
|
Credit facility, including the term loans of $997 |
|
|
1,673 |
|
|
|
2,471 |
|
Mortgage and other debt |
|
|
109 |
|
|
|
5 |
|
Total debt |
|
|
4,891 |
|
|
|
5,541 |
|
Lease liabilities |
|
|
564 |
|
|
|
610 |
|
Accounts payable and accrued
expenses |
|
|
85 |
|
|
|
71 |
|
Due to managers |
|
|
42 |
|
|
|
64 |
|
Other |
|
|
198 |
|
|
|
170 |
|
Total liabilities |
|
|
5,780 |
|
|
|
6,456 |
|
|
|
|
|
|
|
|
Redeemable non-controlling
interests - Host Hotels & Resorts, L.P. |
|
|
126 |
|
|
|
108 |
|
|
|
|
|
|
|
|
Host Hotels & Resorts,
Inc. stockholders’ equity: |
|
|
|
|
|
|
Common stock, par value $.01, 1,050 million shares
authorized, 714.1 million shares and 705.4 million
shares issued and outstanding, respectively |
|
|
7 |
|
|
|
7 |
|
Additional paid-in capital |
|
|
7,702 |
|
|
|
7,568 |
|
Accumulated other comprehensive loss |
|
|
(76 |
) |
|
|
(74 |
) |
Deficit |
|
|
(1,192 |
) |
|
|
(1,180 |
) |
Total equity of Host Hotels & Resorts, Inc. stockholders |
|
|
6,441 |
|
|
|
6,321 |
|
Non-redeemable non-controlling
interests—other consolidated partnerships |
|
|
5 |
|
|
|
5 |
|
Total equity |
|
|
6,446 |
|
|
|
6,326 |
|
Total liabilities, non-controlling interests and equity |
|
$ |
12,352 |
|
|
$ |
12,890 |
|
__________________________________(1) Please see
our Fourth 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 December 31, |
|
|
Year ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Rooms |
|
$ |
621 |
|
|
$ |
163 |
|
|
$ |
1,858 |
|
|
$ |
976 |
|
Food and beverage |
|
|
269 |
|
|
|
54 |
|
|
|
674 |
|
|
|
426 |
|
Other |
|
|
108 |
|
|
|
50 |
|
|
|
358 |
|
|
|
218 |
|
Total revenues |
|
|
998 |
|
|
|
267 |
|
|
|
2,890 |
|
|
|
1,620 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Rooms |
|
|
164 |
|
|
|
63 |
|
|
|
488 |
|
|
|
362 |
|
Food and beverage |
|
|
192 |
|
|
|
64 |
|
|
|
505 |
|
|
|
420 |
|
Other departmental and support expenses |
|
|
269 |
|
|
|
145 |
|
|
|
890 |
|
|
|
686 |
|
Management fees |
|
|
38 |
|
|
|
6 |
|
|
|
97 |
|
|
|
39 |
|
Other property-level expenses |
|
|
68 |
|
|
|
72 |
|
|
|
307 |
|
|
|
312 |
|
Depreciation and amortization |
|
|
165 |
|
|
|
167 |
|
|
|
762 |
|
|
|
665 |
|
Corporate and other expenses⁽¹⁾ |
|
|
26 |
|
|
|
21 |
|
|
|
99 |
|
|
|
89 |
|
Gain on insurance and business interruption settlements |
|
|
(3 |
) |
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
Total operating costs and expenses |
|
|
919 |
|
|
|
538 |
|
|
|
3,140 |
|
|
|
2,573 |
|
Operating profit
(loss) |
|
|
79 |
|
|
|
(271 |
) |
|
|
(250 |
) |
|
|
(953 |
) |
Interest income |
|
|
— |
|
|
|
1 |
|
|
|
2 |
|
|
|
8 |
|
Interest expense |
|
|
(63 |
) |
|
|
(51 |
) |
|
|
(191 |
) |
|
|
(194 |
) |
Other gains |
|
|
302 |
|
|
|
195 |
|
|
|
306 |
|
|
|
208 |
|
Equity in earnings (losses) of affiliates |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
31 |
|
|
|
(30 |
) |
Income (loss) before
income taxes |
|
|
313 |
|
|
|
(130 |
) |
|
|
(102 |
) |
|
|
(961 |
) |
Benefit for income taxes |
|
|
10 |
|
|
|
64 |
|
|
|
91 |
|
|
|
220 |
|
Net income
(loss) |
|
|
323 |
|
|
|
(66 |
) |
|
|
(11 |
) |
|
|
(741 |
) |
Less: Net (income) loss
attributable to non- controlling interests |
|
|
(3 |
) |
|
|
2 |
|
|
|
— |
|
|
|
9 |
|
Net income (loss)
attributable to Host Inc. |
|
$ |
320 |
|
|
$ |
(64 |
) |
|
$ |
(11 |
) |
|
$ |
(732 |
) |
Basic and diluted
earnings (loss) per common share |
|
$ |
.45 |
|
|
$ |
(.09 |
) |
|
$ |
(.02 |
) |
|
$ |
(1.04 |
) |
__________________________________(1) Corporate
and other expenses include the following items:
|
|
Quarter ended December 31, |
|
|
Year ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative costs |
|
$ |
21 |
|
|
$ |
15 |
|
|
$ |
81 |
|
|
$ |
72 |
|
Non-cash stock-based
compensation expense |
|
|
5 |
|
|
|
6 |
|
|
|
18 |
|
|
|
17 |
|
Total |
|
$ |
26 |
|
|
$ |
21 |
|
|
$ |
99 |
|
|
$ |
89 |
|
HOST HOTELS & RESORTS,
INC.Earnings (Loss) per Common
Share(unaudited, in millions, except per share
amounts)
|
|
Quarter ended December 31, |
|
|
Year ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income (loss) |
|
$ |
323 |
|
|
$ |
(66 |
) |
|
$ |
(11 |
) |
|
$ |
(741 |
) |
Less: Net (income) loss attributable to non-
controlling interests |
|
|
(3 |
) |
|
|
2 |
|
|
|
— |
|
|
|
9 |
|
Net income (loss) attributable
to Host Inc. |
|
$ |
320 |
|
|
$ |
(64 |
) |
|
$ |
(11 |
) |
|
$ |
(732 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares
outstanding |
|
|
714.0 |
|
|
|
705.3 |
|
|
|
710.3 |
|
|
|
705.9 |
|
Assuming distribution of common sharesgranted under the
comprehensive stock plans,less shares assumed purchased at
market |
|
|
2.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Diluted weighted average
shares outstanding⁽¹⁾ |
|
|
716.1 |
|
|
|
705.3 |
|
|
|
710.3 |
|
|
|
705.9 |
|
Basic and diluted
earnings (loss)per common share |
|
$ |
.45 |
|
|
$ |
(.09 |
) |
|
$ |
(.02 |
) |
|
$ |
(1.04 |
) |
__________________________________(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
Compared to 2020
|
As of December 31, 2021 |
|
Quarter ended December 31, 2021 |
|
Quarter ended December 31, 2020 |
|
|
|
|
|
Location |
No. of Properties |
|
No. of Rooms |
|
Average Room Rate |
|
Average Occupancy Percentage |
|
RevPAR |
|
Total RevPAR |
|
Average Room Rate |
|
Average Occupancy Percentage |
|
RevPAR |
|
Total RevPAR |
|
Percent Change in RevPAR |
|
Percent Change in Total RevPAR |
|
Maui/Oahu |
|
4 |
|
|
2,007 |
|
$ |
527.16 |
|
|
74.1 |
% |
$ |
390.37 |
|
$ |
605.32 |
|
$ |
359.56 |
|
|
25.8 |
% |
$ |
92.86 |
|
$ |
140.11 |
|
|
320.4 |
% |
|
332.0 |
% |
Jacksonville |
|
1 |
|
|
446 |
|
|
463.81 |
|
|
66.2 |
|
|
307.26 |
|
|
674.17 |
|
|
394.11 |
|
|
28.8 |
|
|
113.66 |
|
|
255.23 |
|
|
170.3 |
|
|
164.1 |
|
Miami |
|
3 |
|
|
1,276 |
|
|
532.47 |
|
|
64.2 |
|
|
342.06 |
|
|
523.37 |
|
|
403.46 |
|
|
35.0 |
|
|
141.11 |
|
|
242.05 |
|
|
142.4 |
|
|
116.2 |
|
Florida Gulf Coast |
|
5 |
|
|
1,850 |
|
|
381.12 |
|
|
59.8 |
|
|
228.07 |
|
|
472.20 |
|
|
365.11 |
|
|
37.2 |
|
|
135.74 |
|
|
273.10 |
|
|
68.0 |
|
|
72.9 |
|
Phoenix |
|
4 |
|
|
1,822 |
|
|
351.10 |
|
|
72.4 |
|
|
254.15 |
|
|
533.26 |
|
|
301.20 |
|
|
35.7 |
|
|
107.53 |
|
|
217.08 |
|
|
136.4 |
|
|
145.7 |
|
Los Angeles / Orange
County |
|
3 |
|
|
1,067 |
|
|
259.39 |
|
|
62.7 |
|
|
162.73 |
|
|
258.96 |
|
|
197.97 |
|
|
20.4 |
|
|
40.45 |
|
|
56.13 |
|
|
302.4 |
|
|
361.4 |
|
Orlando |
|
2 |
|
|
2,448 |
|
|
443.69 |
|
|
41.5 |
|
|
184.28 |
|
|
337.70 |
|
|
461.74 |
|
|
11.8 |
|
|
54.65 |
|
|
112.39 |
|
|
237.2 |
|
|
200.5 |
|
Austin |
|
2 |
|
|
767 |
|
|
269.59 |
|
|
69.4 |
|
|
186.99 |
|
|
304.02 |
|
|
139.19 |
|
|
30.0 |
|
|
41.71 |
|
|
69.59 |
|
|
348.3 |
|
|
336.8 |
|
Philadelphia |
|
2 |
|
|
810 |
|
|
193.17 |
|
|
77.1 |
|
|
148.92 |
|
|
235.12 |
|
|
136.85 |
|
|
33.9 |
|
|
46.39 |
|
|
63.16 |
|
|
221.0 |
|
|
272.3 |
|
San Diego |
|
3 |
|
|
3,288 |
|
|
233.02 |
|
|
60.4 |
|
|
140.85 |
|
|
253.78 |
|
|
152.26 |
|
|
18.6 |
|
|
28.33 |
|
|
50.72 |
|
|
397.2 |
|
|
400.3 |
|
Atlanta |
|
2 |
|
|
810 |
|
|
164.89 |
|
|
70.3 |
|
|
115.89 |
|
|
180.31 |
|
|
125.39 |
|
|
32.8 |
|
|
41.16 |
|
|
59.40 |
|
|
181.6 |
|
|
203.6 |
|
Northern Virginia |
|
2 |
|
|
916 |
|
|
194.01 |
|
|
61.4 |
|
|
119.16 |
|
|
199.80 |
|
|
161.89 |
|
|
26.7 |
|
|
43.29 |
|
|
69.46 |
|
|
175.2 |
|
|
187.6 |
|
Houston |
|
5 |
|
|
1,942 |
|
|
164.16 |
|
|
58.6 |
|
|
96.20 |
|
|
135.32 |
|
|
118.00 |
|
|
37.2 |
|
|
43.93 |
|
|
63.24 |
|
|
119.0 |
|
|
114.0 |
|
New York |
|
3 |
|
|
4,261 |
|
|
274.12 |
|
|
52.4 |
|
|
143.72 |
|
|
207.84 |
|
|
163.99 |
|
|
11.4 |
|
|
18.78 |
|
|
21.71 |
|
|
665.4 |
|
|
857.6 |
|
San Antonio |
|
2 |
|
|
1,512 |
|
|
158.61 |
|
|
63.8 |
|
|
101.24 |
|
|
144.11 |
|
|
123.70 |
|
|
14.2 |
|
|
17.55 |
|
|
27.34 |
|
|
476.8 |
|
|
427.0 |
|
Chicago |
|
4 |
|
|
1,816 |
|
|
180.45 |
|
|
59.1 |
|
|
106.70 |
|
|
143.91 |
|
|
110.71 |
|
|
13.4 |
|
|
14.87 |
|
|
18.68 |
|
|
617.7 |
|
|
670.4 |
|
Washington, D.C. (CBD) |
|
5 |
|
|
3,238 |
|
|
200.64 |
|
|
43.5 |
|
|
87.34 |
|
|
124.51 |
|
|
161.64 |
|
|
8.1 |
|
|
13.15 |
|
|
17.74 |
|
|
564.3 |
|
|
601.7 |
|
Denver |
|
3 |
|
|
1,340 |
|
|
156.62 |
|
|
49.1 |
|
|
76.97 |
|
|
106.82 |
|
|
112.46 |
|
|
16.1 |
|
|
18.16 |
|
|
23.99 |
|
|
323.9 |
|
|
345.2 |
|
Boston |
|
3 |
|
|
2,715 |
|
|
197.82 |
|
|
62.1 |
|
|
122.77 |
|
|
145.26 |
|
|
126.56 |
|
|
6.3 |
|
|
8.03 |
|
|
10.91 |
|
|
1,429.7 |
|
|
1,231.8 |
|
New Orleans |
|
1 |
|
|
1,333 |
|
|
176.86 |
|
|
54.7 |
|
|
96.81 |
|
|
141.52 |
|
|
138.80 |
|
|
41.4 |
|
|
57.42 |
|
|
73.00 |
|
|
68.6 |
|
|
93.9 |
|
San Francisco / San
Jose |
|
6 |
|
|
4,162 |
|
|
170.71 |
|
|
53.4 |
|
|
91.10 |
|
|
125.30 |
|
|
152.04 |
|
|
13.5 |
|
|
20.46 |
|
|
25.43 |
|
|
345.2 |
|
|
392.8 |
|
Seattle |
|
2 |
|
|
1,315 |
|
|
171.61 |
|
|
46.4 |
|
|
79.56 |
|
|
104.93 |
|
|
151.61 |
|
|
5.8 |
|
|
8.75 |
|
|
12.03 |
|
|
809.4 |
|
|
772.1 |
|
Other |
|
9 |
|
|
2,932 |
|
|
252.77 |
|
|
54.6 |
|
|
138.12 |
|
|
198.65 |
|
|
212.80 |
|
|
27.6 |
|
|
58.79 |
|
|
85.31 |
|
|
135.0 |
|
|
132.9 |
|
Domestic |
|
76 |
|
|
44,073 |
|
|
264.36 |
|
|
57.4 |
|
|
151.86 |
|
|
243.66 |
|
|
217.76 |
|
|
20.0 |
|
|
43.59 |
|
|
72.22 |
|
|
248.4 |
|
|
237.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
5 |
|
|
1,499 |
|
|
98.32 |
|
|
49.5 |
|
|
48.66 |
|
|
71.32 |
|
|
86.73 |
|
|
12.8 |
|
|
11.13 |
|
|
14.71 |
|
|
337.1 |
|
|
384.7 |
|
All Locations |
|
81 |
|
|
45,572 |
|
|
259.63 |
|
|
57.2 |
|
|
148.46 |
|
|
237.98 |
|
|
214.94 |
|
|
19.8 |
|
|
42.52 |
|
|
70.31 |
|
|
249.2 |
|
|
238.5 |
|
All Owned Hotels (pro forma) by Location Compared to
2019
|
As of December 31, 2021 |
|
Quarter ended December 31, 2021 |
|
Quarter ended December 31, 2019 |
|
|
|
|
|
Location |
No. of Properties |
|
No. of Rooms |
|
Average Room Rate |
|
Average Occupancy Percentage |
|
RevPAR |
|
Total RevPAR |
|
Average Room Rate |
|
Average Occupancy Percentage |
|
RevPAR |
|
Total RevPAR |
|
Percent Change in RevPAR |
|
Percent Change in Total RevPAR |
|
Maui/Oahu |
|
4 |
|
|
2,007 |
|
$ |
527.16 |
|
|
74.1 |
% |
$ |
390.37 |
|
$ |
605.32 |
|
$ |
434.72 |
|
|
79.6 |
% |
$ |
346.15 |
|
$ |
530.96 |
|
|
12.8 |
% |
|
14.0 |
% |
Jacksonville |
|
1 |
|
|
446 |
|
|
463.81 |
|
|
66.2 |
|
|
307.26 |
|
|
674.17 |
|
|
334.64 |
|
|
62.4 |
|
|
208.94 |
|
|
497.75 |
|
|
47.1 |
|
|
35.4 |
|
Miami |
|
3 |
|
|
1,276 |
|
|
532.47 |
|
|
64.2 |
|
|
342.06 |
|
|
523.37 |
|
|
345.79 |
|
|
79.0 |
|
|
273.07 |
|
|
438.79 |
|
|
25.3 |
|
|
19.3 |
|
Florida Gulf Coast |
|
5 |
|
|
1,850 |
|
|
381.12 |
|
|
59.8 |
|
|
228.07 |
|
|
472.20 |
|
|
316.16 |
|
|
69.9 |
|
|
220.85 |
|
|
480.84 |
|
|
3.3 |
|
|
(1.8 |
) |
Phoenix |
|
4 |
|
|
1,822 |
|
|
351.10 |
|
|
72.4 |
|
|
254.15 |
|
|
533.26 |
|
|
293.33 |
|
|
72.6 |
|
|
213.00 |
|
|
489.76 |
|
|
19.3 |
|
|
8.9 |
|
Los Angeles / Orange
County |
|
3 |
|
|
1,067 |
|
|
259.39 |
|
|
62.7 |
|
|
162.73 |
|
|
258.96 |
|
|
249.68 |
|
|
81.7 |
|
|
204.11 |
|
|
320.66 |
|
|
(20.3 |
) |
|
(19.2 |
) |
Orlando |
|
2 |
|
|
2,448 |
|
|
443.69 |
|
|
41.5 |
|
|
184.28 |
|
|
337.70 |
|
|
328.06 |
|
|
64.4 |
|
|
211.35 |
|
|
424.70 |
|
|
(12.8 |
) |
|
(20.5 |
) |
Austin |
|
2 |
|
|
767 |
|
|
269.59 |
|
|
69.4 |
|
|
186.99 |
|
|
304.02 |
|
|
255.26 |
|
|
80.8 |
|
|
206.16 |
|
|
342.15 |
|
|
(9.3 |
) |
|
(11.1 |
) |
Philadelphia |
|
2 |
|
|
810 |
|
|
193.17 |
|
|
77.1 |
|
|
148.92 |
|
|
235.12 |
|
|
219.68 |
|
|
86.6 |
|
|
190.20 |
|
|
316.27 |
|
|
(21.7 |
) |
|
(25.7 |
) |
San Diego |
|
3 |
|
|
3,288 |
|
|
233.02 |
|
|
60.4 |
|
|
140.85 |
|
|
253.78 |
|
|
228.60 |
|
|
74.2 |
|
|
169.53 |
|
|
325.13 |
|
|
(16.9 |
) |
|
(21.9 |
) |
Atlanta |
|
2 |
|
|
810 |
|
|
164.89 |
|
|
70.3 |
|
|
115.89 |
|
|
180.31 |
|
|
175.95 |
|
|
78.8 |
|
|
138.71 |
|
|
231.69 |
|
|
(16.5 |
) |
|
(22.2 |
) |
Northern Virginia |
|
2 |
|
|
916 |
|
|
194.01 |
|
|
61.4 |
|
|
119.16 |
|
|
199.80 |
|
|
224.95 |
|
|
71.8 |
|
|
161.48 |
|
|
308.69 |
|
|
(26.2 |
) |
|
(35.3 |
) |
Houston |
|
5 |
|
|
1,942 |
|
|
164.16 |
|
|
58.6 |
|
|
96.20 |
|
|
135.32 |
|
|
176.32 |
|
|
70.9 |
|
|
124.95 |
|
|
188.16 |
|
|
(23.0 |
) |
|
(28.1 |
) |
New York |
|
3 |
|
|
4,261 |
|
|
274.12 |
|
|
52.4 |
|
|
143.72 |
|
|
207.84 |
|
|
335.19 |
|
|
90.2 |
|
|
302.22 |
|
|
449.65 |
|
|
(52.4 |
) |
|
(53.8 |
) |
San Antonio |
|
2 |
|
|
1,512 |
|
|
158.61 |
|
|
63.8 |
|
|
101.24 |
|
|
144.11 |
|
|
193.12 |
|
|
59.9 |
|
|
115.62 |
|
|
173.80 |
|
|
(12.4 |
) |
|
(17.1 |
) |
Chicago |
|
4 |
|
|
1,816 |
|
|
180.45 |
|
|
59.1 |
|
|
106.70 |
|
|
143.91 |
|
|
207.41 |
|
|
76.1 |
|
|
157.94 |
|
|
218.58 |
|
|
(32.4 |
) |
|
(34.2 |
) |
Washington, D.C. (CBD) |
|
5 |
|
|
3,238 |
|
|
200.64 |
|
|
43.5 |
|
|
87.34 |
|
|
124.51 |
|
|
243.16 |
|
|
76.6 |
|
|
186.27 |
|
|
274.75 |
|
|
(53.1 |
) |
|
(54.7 |
) |
Denver |
|
3 |
|
|
1,340 |
|
|
156.62 |
|
|
49.1 |
|
|
76.97 |
|
|
106.82 |
|
|
167.45 |
|
|
62.9 |
|
|
105.31 |
|
|
174.21 |
|
|
(26.9 |
) |
|
(38.7 |
) |
Boston |
|
3 |
|
|
2,715 |
|
|
197.82 |
|
|
62.1 |
|
|
122.77 |
|
|
145.26 |
|
|
232.62 |
|
|
78.4 |
|
|
182.29 |
|
|
261.40 |
|
|
(32.7 |
) |
|
(44.4 |
) |
New Orleans |
|
1 |
|
|
1,333 |
|
|
176.86 |
|
|
54.7 |
|
|
96.81 |
|
|
141.52 |
|
|
185.82 |
|
|
76.5 |
|
|
142.21 |
|
|
209.94 |
|
|
(31.9 |
) |
|
(32.6 |
) |
San Francisco / San
Jose |
|
6 |
|
|
4,162 |
|
|
170.71 |
|
|
53.4 |
|
|
91.10 |
|
|
125.30 |
|
|
264.99 |
|
|
83.1 |
|
|
220.14 |
|
|
309.64 |
|
|
(58.6 |
) |
|
(59.5 |
) |
Seattle |
|
2 |
|
|
1,315 |
|
|
171.61 |
|
|
46.4 |
|
|
79.56 |
|
|
104.93 |
|
|
204.05 |
|
|
76.8 |
|
|
156.81 |
|
|
232.64 |
|
|
(49.3 |
) |
|
(54.9 |
) |
Other |
|
9 |
|
|
2,932 |
|
|
252.77 |
|
|
54.6 |
|
|
138.12 |
|
|
198.65 |
|
|
191.18 |
|
|
73.1 |
|
|
139.69 |
|
|
217.32 |
|
|
(1.1 |
) |
|
(8.6 |
) |
Domestic |
|
76 |
|
|
44,073 |
|
|
264.36 |
|
|
57.4 |
|
|
151.86 |
|
|
243.66 |
|
|
260.76 |
|
|
76.3 |
|
|
198.86 |
|
|
325.76 |
|
|
(23.6 |
) |
|
(25.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
5 |
|
|
1,499 |
|
|
98.32 |
|
|
49.5 |
|
|
48.66 |
|
|
71.32 |
|
|
149.12 |
|
|
70.1 |
|
|
104.55 |
|
|
165.87 |
|
|
(53.5 |
) |
|
(57.0 |
) |
All Locations |
|
81 |
|
|
45,572 |
|
|
259.63 |
|
|
57.2 |
|
|
148.46 |
|
|
237.98 |
|
|
257.35 |
|
|
76.1 |
|
|
195.73 |
|
|
320.46 |
|
|
(24.2 |
) |
|
(25.7 |
) |
All Owned Hotels (pro forma) by Location in Compared to
2020
|
As of December 31, 2021 |
|
Year ended December 31, 2021 |
|
Year ended December 31, 2020 |
|
|
|
|
|
Location |
No. of Properties |
|
No. of Rooms |
|
Average Room Rate |
|
Average Occupancy Percentage |
|
RevPAR |
|
Total RevPAR |
|
Average Room Rate |
|
Average Occupancy Percentage |
|
RevPAR |
|
Total RevPAR |
|
Percent Change in RevPAR |
|
Percent Change in Total RevPAR |
|
Maui/Oahu |
|
4 |
|
|
2,007 |
|
$ |
486.22 |
|
|
69.0 |
% |
$ |
335.71 |
|
$ |
512.34 |
|
$ |
403.12 |
|
|
28.8 |
% |
$ |
115.91 |
|
$ |
174.86 |
|
|
189.6 |
% |
|
193.0 |
% |
Jacksonville |
|
1 |
|
|
446 |
|
|
494.80 |
|
|
59.9 |
|
|
296.61 |
|
|
609.54 |
|
|
403.32 |
|
|
39.3 |
|
|
158.58 |
|
|
330.97 |
|
|
87.0 |
|
|
84.2 |
|
Miami |
|
3 |
|
|
1,276 |
|
|
489.24 |
|
|
59.1 |
|
|
289.20 |
|
|
449.18 |
|
|
378.62 |
|
|
35.2 |
|
|
133.26 |
|
|
219.18 |
|
|
117.0 |
|
|
104.9 |
|
Florida Gulf Coast |
|
5 |
|
|
1,850 |
|
|
407.02 |
|
|
56.1 |
|
|
228.20 |
|
|
438.18 |
|
|
368.26 |
|
|
39.8 |
|
|
146.62 |
|
|
304.41 |
|
|
55.6 |
|
|
43.9 |
|
Phoenix |
|
4 |
|
|
1,822 |
|
|
316.35 |
|
|
60.5 |
|
|
191.42 |
|
|
393.86 |
|
|
313.05 |
|
|
32.9 |
|
|
102.99 |
|
|
233.16 |
|
|
85.9 |
|
|
68.9 |
|
Los Angeles / Orange
County |
|
3 |
|
|
1,067 |
|
|
241.56 |
|
|
53.6 |
|
|
129.52 |
|
|
187.07 |
|
|
235.28 |
|
|
28.9 |
|
|
68.04 |
|
|
100.21 |
|
|
90.4 |
|
|
86.7 |
|
Orlando |
|
2 |
|
|
2,448 |
|
|
413.95 |
|
|
30.9 |
|
|
127.96 |
|
|
231.90 |
|
|
365.64 |
|
|
19.0 |
|
|
69.62 |
|
|
147.90 |
|
|
83.8 |
|
|
56.8 |
|
Austin |
|
2 |
|
|
767 |
|
|
214.87 |
|
|
56.3 |
|
|
121.00 |
|
|
195.68 |
|
|
195.33 |
|
|
30.4 |
|
|
59.41 |
|
|
108.97 |
|
|
103.7 |
|
|
79.6 |
|
Philadelphia |
|
2 |
|
|
810 |
|
|
176.82 |
|
|
63.3 |
|
|
111.97 |
|
|
169.50 |
|
|
154.46 |
|
|
34.9 |
|
|
53.85 |
|
|
81.81 |
|
|
107.9 |
|
|
107.2 |
|
San Diego |
|
3 |
|
|
3,288 |
|
|
222.93 |
|
|
49.1 |
|
|
109.43 |
|
|
180.41 |
|
|
218.59 |
|
|
24.4 |
|
|
53.40 |
|
|
102.63 |
|
|
104.9 |
|
|
75.8 |
|
Atlanta |
|
2 |
|
|
810 |
|
|
156.30 |
|
|
58.5 |
|
|
91.40 |
|
|
129.46 |
|
|
155.63 |
|
|
31.5 |
|
|
49.06 |
|
|
76.54 |
|
|
86.3 |
|
|
69.1 |
|
Northern Virginia |
|
2 |
|
|
916 |
|
|
182.84 |
|
|
49.4 |
|
|
90.34 |
|
|
138.95 |
|
|
184.42 |
|
|
30.7 |
|
|
56.68 |
|
|
87.88 |
|
|
59.4 |
|
|
58.1 |
|
Houston |
|
5 |
|
|
1,942 |
|
|
146.57 |
|
|
59.4 |
|
|
87.04 |
|
|
118.95 |
|
|
138.61 |
|
|
36.2 |
|
|
50.19 |
|
|
73.46 |
|
|
73.4 |
|
|
61.9 |
|
New York |
|
3 |
|
|
4,261 |
|
|
220.05 |
|
|
36.9 |
|
|
81.23 |
|
|
108.52 |
|
|
187.28 |
|
|
27.1 |
|
|
50.75 |
|
|
71.03 |
|
|
60.1 |
|
|
52.8 |
|
San Antonio |
|
2 |
|
|
1,512 |
|
|
159.93 |
|
|
46.6 |
|
|
74.53 |
|
|
107.51 |
|
|
159.16 |
|
|
19.0 |
|
|
30.27 |
|
|
45.28 |
|
|
146.2 |
|
|
137.4 |
|
Chicago |
|
4 |
|
|
1,816 |
|
|
172.35 |
|
|
42.9 |
|
|
73.96 |
|
|
94.30 |
|
|
130.47 |
|
|
22.1 |
|
|
28.78 |
|
|
38.48 |
|
|
157.0 |
|
|
145.0 |
|
Washington, D.C. (CBD) |
|
5 |
|
|
3,238 |
|
|
171.93 |
|
|
42.6 |
|
|
73.18 |
|
|
92.16 |
|
|
216.26 |
|
|
18.2 |
|
|
39.30 |
|
|
55.93 |
|
|
86.2 |
|
|
64.8 |
|
Denver |
|
3 |
|
|
1,340 |
|
|
151.40 |
|
|
43.9 |
|
|
66.49 |
|
|
86.94 |
|
|
140.24 |
|
|
23.9 |
|
|
33.49 |
|
|
48.55 |
|
|
98.6 |
|
|
79.1 |
|
Boston |
|
3 |
|
|
2,715 |
|
|
188.00 |
|
|
34.8 |
|
|
65.48 |
|
|
78.90 |
|
|
168.75 |
|
|
16.0 |
|
|
27.08 |
|
|
40.90 |
|
|
141.8 |
|
|
92.9 |
|
New Orleans |
|
1 |
|
|
1,333 |
|
|
144.71 |
|
|
41.9 |
|
|
60.68 |
|
|
84.82 |
|
|
164.70 |
|
|
33.3 |
|
|
54.89 |
|
|
76.95 |
|
|
10.6 |
|
|
10.2 |
|
San Francisco / San
Jose |
|
6 |
|
|
4,162 |
|
|
161.21 |
|
|
36.9 |
|
|
59.55 |
|
|
78.95 |
|
|
252.95 |
|
|
22.7 |
|
|
57.38 |
|
|
82.06 |
|
|
3.8 |
|
|
(3.8 |
) |
Seattle |
|
2 |
|
|
1,315 |
|
|
182.40 |
|
|
32.5 |
|
|
59.27 |
|
|
74.16 |
|
|
187.91 |
|
|
16.7 |
|
|
31.38 |
|
|
44.67 |
|
|
88.9 |
|
|
66.0 |
|
Other |
|
9 |
|
|
2,932 |
|
|
246.03 |
|
|
47.6 |
|
|
117.20 |
|
|
167.00 |
|
|
192.50 |
|
|
31.5 |
|
|
60.71 |
|
|
88.26 |
|
|
93.0 |
|
|
89.2 |
|
Domestic |
|
76 |
|
|
44,073 |
|
|
251.39 |
|
|
46.2 |
|
|
116.25 |
|
|
181.13 |
|
|
235.07 |
|
|
26.2 |
|
|
61.66 |
|
|
103.33 |
|
|
88.5 |
|
|
75.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
5 |
|
|
1,499 |
|
|
90.03 |
|
|
33.4 |
|
|
30.10 |
|
|
43.52 |
|
|
116.26 |
|
|
21.4 |
|
|
24.91 |
|
|
36.65 |
|
|
20.8 |
|
|
18.7 |
|
All Locations |
|
81 |
|
|
45,572 |
|
|
247.50 |
|
|
45.8 |
|
|
113.40 |
|
|
176.59 |
|
|
231.83 |
|
|
26.1 |
|
|
60.44 |
|
|
101.12 |
|
|
87.6 |
|
|
74.6 |
|
All Owned Hotels (pro forma) by Location in Compared to
2019
|
As of December 31, 2021 |
|
Year ended December 31, 2021 |
|
Year ended December 31, 2019 |
|
|
|
|
|
Location |
No. of Properties |
|
No. of Rooms |
|
Average Room Rate |
|
Average Occupancy Percentage |
|
RevPAR |
|
Total RevPAR |
|
Average Room Rate |
|
Average Occupancy Percentage |
|
RevPAR |
|
Total RevPAR |
|
Percent Change in RevPAR |
|
Percent Change in Total RevPAR |
|
Maui/Oahu |
|
4 |
|
|
2,007 |
|
$ |
486.22 |
|
|
69.0 |
% |
$ |
335.71 |
|
$ |
512.34 |
|
$ |
409.40 |
|
|
88.1 |
% |
$ |
360.59 |
|
$ |
565.70 |
|
|
(6.9 |
)% |
|
(9.4 |
)% |
Jacksonville |
|
1 |
|
|
446 |
|
|
494.80 |
|
|
59.9 |
|
|
296.61 |
|
|
609.54 |
|
|
372.94 |
|
|
73.5 |
|
|
274.07 |
|
|
613.80 |
|
|
8.2 |
|
|
(0.7 |
) |
Miami |
|
3 |
|
|
1,276 |
|
|
489.24 |
|
|
59.1 |
|
|
289.20 |
|
|
449.18 |
|
|
325.16 |
|
|
79.8 |
|
|
259.54 |
|
|
410.81 |
|
|
11.4 |
|
|
9.3 |
|
Florida Gulf Coast |
|
5 |
|
|
1,850 |
|
|
407.02 |
|
|
56.1 |
|
|
228.20 |
|
|
438.18 |
|
|
334.73 |
|
|
72.0 |
|
|
241.11 |
|
|
501.15 |
|
|
(5.4 |
) |
|
(12.6 |
) |
Phoenix |
|
4 |
|
|
1,822 |
|
|
316.35 |
|
|
60.5 |
|
|
191.42 |
|
|
393.86 |
|
|
292.50 |
|
|
71.9 |
|
|
210.32 |
|
|
476.62 |
|
|
(9.0 |
) |
|
(17.4 |
) |
Los Angeles / Orange
County |
|
3 |
|
|
1,067 |
|
|
241.56 |
|
|
53.6 |
|
|
129.52 |
|
|
187.07 |
|
|
259.35 |
|
|
84.0 |
|
|
217.78 |
|
|
331.66 |
|
|
(40.5 |
) |
|
(43.6 |
) |
Orlando |
|
2 |
|
|
2,448 |
|
|
413.95 |
|
|
30.9 |
|
|
127.96 |
|
|
231.90 |
|
|
295.49 |
|
|
69.1 |
|
|
204.18 |
|
|
415.24 |
|
|
(37.3 |
) |
|
(44.2 |
) |
Austin |
|
2 |
|
|
767 |
|
|
214.87 |
|
|
56.3 |
|
|
121.00 |
|
|
195.68 |
|
|
248.70 |
|
|
85.2 |
|
|
211.79 |
|
|
356.91 |
|
|
(42.9 |
) |
|
(45.2 |
) |
Philadelphia |
|
2 |
|
|
810 |
|
|
176.82 |
|
|
63.3 |
|
|
111.97 |
|
|
169.50 |
|
|
217.01 |
|
|
85.7 |
|
|
185.91 |
|
|
305.37 |
|
|
(39.8 |
) |
|
(44.5 |
) |
San Diego |
|
3 |
|
|
3,288 |
|
|
222.93 |
|
|
49.1 |
|
|
109.43 |
|
|
180.41 |
|
|
249.41 |
|
|
79.4 |
|
|
198.02 |
|
|
360.49 |
|
|
(44.7 |
) |
|
(50.0 |
) |
Atlanta |
|
2 |
|
|
810 |
|
|
156.30 |
|
|
58.5 |
|
|
91.40 |
|
|
129.46 |
|
|
184.71 |
|
|
82.7 |
|
|
152.76 |
|
|
251.41 |
|
|
(40.2 |
) |
|
(48.5 |
) |
Northern Virginia |
|
2 |
|
|
916 |
|
|
182.84 |
|
|
49.4 |
|
|
90.34 |
|
|
138.95 |
|
|
221.33 |
|
|
75.3 |
|
|
166.61 |
|
|
276.13 |
|
|
(45.8 |
) |
|
(49.7 |
) |
Houston |
|
5 |
|
|
1,942 |
|
|
146.57 |
|
|
59.4 |
|
|
87.04 |
|
|
118.95 |
|
|
177.93 |
|
|
72.0 |
|
|
128.14 |
|
|
185.48 |
|
|
(32.1 |
) |
|
(35.9 |
) |
New York |
|
3 |
|
|
4,261 |
|
|
220.05 |
|
|
36.9 |
|
|
81.23 |
|
|
108.52 |
|
|
286.36 |
|
|
84.8 |
|
|
242.96 |
|
|
359.92 |
|
|
(66.6 |
) |
|
(69.8 |
) |
San Antonio |
|
2 |
|
|
1,512 |
|
|
159.93 |
|
|
46.6 |
|
|
74.53 |
|
|
107.51 |
|
|
185.33 |
|
|
69.7 |
|
|
129.14 |
|
|
189.71 |
|
|
(42.3 |
) |
|
(43.3 |
) |
Chicago |
|
4 |
|
|
1,816 |
|
|
172.35 |
|
|
42.9 |
|
|
73.96 |
|
|
94.30 |
|
|
207.67 |
|
|
76.2 |
|
|
158.19 |
|
|
222.83 |
|
|
(53.2 |
) |
|
(57.7 |
) |
Washington, D.C. (CBD) |
|
5 |
|
|
3,238 |
|
|
171.93 |
|
|
42.6 |
|
|
73.18 |
|
|
92.16 |
|
|
245.82 |
|
|
81.5 |
|
|
200.27 |
|
|
288.52 |
|
|
(63.5 |
) |
|
(68.1 |
) |
Denver |
|
3 |
|
|
1,340 |
|
|
151.40 |
|
|
43.9 |
|
|
66.49 |
|
|
86.94 |
|
|
173.47 |
|
|
72.9 |
|
|
126.48 |
|
|
190.45 |
|
|
(47.4 |
) |
|
(54.4 |
) |
Boston |
|
3 |
|
|
2,715 |
|
|
188.00 |
|
|
34.8 |
|
|
65.48 |
|
|
78.90 |
|
|
237.24 |
|
|
81.7 |
|
|
193.83 |
|
|
268.74 |
|
|
(66.2 |
) |
|
(70.6 |
) |
New Orleans |
|
1 |
|
|
1,333 |
|
|
144.71 |
|
|
41.9 |
|
|
60.68 |
|
|
84.82 |
|
|
187.65 |
|
|
79.0 |
|
|
148.30 |
|
|
216.97 |
|
|
(59.1 |
) |
|
(60.9 |
) |
San Francisco / San
Jose |
|
6 |
|
|
4,162 |
|
|
161.21 |
|
|
36.9 |
|
|
59.55 |
|
|
78.95 |
|
|
279.18 |
|
|
82.4 |
|
|
230.14 |
|
|
319.93 |
|
|
(74.1 |
) |
|
(75.3 |
) |
Seattle |
|
2 |
|
|
1,315 |
|
|
182.40 |
|
|
32.5 |
|
|
59.27 |
|
|
74.16 |
|
|
225.12 |
|
|
82.4 |
|
|
185.50 |
|
|
250.12 |
|
|
(68.0 |
) |
|
(70.4 |
) |
Other |
|
9 |
|
|
2,932 |
|
|
246.03 |
|
|
47.6 |
|
|
117.20 |
|
|
167.00 |
|
|
192.98 |
|
|
75.6 |
|
|
145.96 |
|
|
220.89 |
|
|
(19.7 |
) |
|
(24.4 |
) |
Domestic |
|
76 |
|
|
44,073 |
|
|
251.39 |
|
|
46.2 |
|
|
116.25 |
|
|
181.13 |
|
|
256.97 |
|
|
78.9 |
|
|
202.64 |
|
|
326.00 |
|
|
(42.6 |
) |
|
(44.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
5 |
|
|
1,499 |
|
|
90.03 |
|
|
33.4 |
|
|
30.10 |
|
|
43.52 |
|
|
153.01 |
|
|
70.9 |
|
|
108.44 |
|
|
160.74 |
|
|
(72.2 |
) |
|
(72.9 |
) |
All Locations |
|
81 |
|
|
45,572 |
|
|
247.50 |
|
|
45.8 |
|
|
113.40 |
|
|
176.59 |
|
|
253.86 |
|
|
78.6 |
|
|
199.52 |
|
|
320.52 |
|
|
(43.2 |
) |
|
(44.9 |
) |
__________________________________(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 December 31,
2021 but do not include the results of operations for properties
sold through the reporting date; and (2) operating results for
acquisitions as of December 31, 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. The AC Hotel Scottsdale North is a new
development hotel that opened in January 2021 and The Laura Hotel
in Houston re-opened under new management in November 2021.
Therefore, no adjustments were made for results of these hotels for
periods prior to their openings. Results for the hotel sold
subsequent to quarter end are included, as it was owned for the
entirety of the periods presented. 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 December 31, |
|
|
Year ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Number of hotels |
|
|
81 |
|
|
|
79 |
|
|
|
79 |
|
|
|
81 |
|
|
|
79 |
|
|
|
79 |
|
Number of rooms |
|
|
45,572 |
|
|
|
45,184 |
|
|
|
45,184 |
|
|
|
45,572 |
|
|
|
45,184 |
|
|
|
45,184 |
|
Change in hotel Total
RevPAR |
|
|
238.5 |
% |
|
|
— |
|
|
|
— |
|
|
|
74.6 |
% |
|
|
— |
|
|
|
— |
|
Change in hotel RevPAR |
|
|
249.2 |
% |
|
|
— |
|
|
|
— |
|
|
|
87.6 |
% |
|
|
— |
|
|
|
— |
|
Operating profit (loss)
margin⁽²⁾ |
|
|
7.9 |
% |
|
|
(101.5 |
)% |
|
|
12.4 |
% |
|
|
(8.7 |
)% |
|
|
(58.8 |
)% |
|
|
14.6 |
% |
All Owned Hotel Pro Forma
EBITDA margin⁽²⁾ |
|
|
26.9 |
% |
|
|
(18.8 |
)% |
|
|
27.7 |
% |
|
|
21.7 |
% |
|
|
(7.7 |
)% |
|
|
28.8 |
% |
Food and beverage profit
margin⁽²⁾ |
|
|
28.6 |
% |
|
|
(18.5 |
)% |
|
|
32.8 |
% |
|
|
25.1 |
% |
|
|
1.4 |
% |
|
|
32.0 |
% |
All Owned Hotel Pro Forma food
and beverage profit margin⁽²⁾ |
|
|
29.3 |
% |
|
|
(3.3 |
)% |
|
|
32.5 |
% |
|
|
25.1 |
% |
|
|
9.6 |
% |
|
|
32.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
323 |
|
|
$ |
(66 |
) |
|
$ |
81 |
|
|
$ |
(11 |
) |
|
$ |
(741 |
) |
|
$ |
932 |
|
Depreciation and
amortization |
|
|
165 |
|
|
|
167 |
|
|
|
175 |
|
|
|
762 |
|
|
|
665 |
|
|
|
676 |
|
Interest expense |
|
|
63 |
|
|
|
51 |
|
|
|
90 |
|
|
|
191 |
|
|
|
194 |
|
|
|
222 |
|
Provision (benefit) for income
taxes |
|
|
(10 |
) |
|
|
(64 |
) |
|
|
8 |
|
|
|
(91 |
) |
|
|
(220 |
) |
|
|
30 |
|
Gain on sale of property and
corporate level income/expense |
|
|
(271 |
) |
|
|
(171 |
) |
|
|
13 |
|
|
|
(240 |
) |
|
|
(97 |
) |
|
|
(283 |
) |
Severance expense (reversal)
at hotel properties |
|
|
(5 |
) |
|
|
21 |
|
|
|
— |
|
|
|
(10 |
) |
|
|
65 |
|
|
|
— |
|
Pro forma adjustments⁽³⁾ |
|
|
4 |
|
|
|
7 |
|
|
|
2 |
|
|
|
35 |
|
|
|
5 |
|
|
|
(55 |
) |
All Owned Hotel Pro
Forma EBITDA⁽⁴⁾ |
|
$ |
269 |
|
|
$ |
(55 |
) |
|
$ |
369 |
|
|
$ |
636 |
|
|
$ |
(129 |
) |
|
$ |
1,522 |
|
|
Quarter ended December 31, 2021 |
|
|
Quarter ended December 31, 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 |
$ |
621 |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
622 |
|
|
$ |
163 |
|
|
$ |
— |
|
|
$ |
14 |
|
|
$ |
— |
|
|
$ |
177 |
|
Food and beverage |
|
269 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
270 |
|
|
|
54 |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
|
61 |
|
Other |
|
108 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
108 |
|
|
|
50 |
|
|
|
— |
|
|
|
5 |
|
|
|
— |
|
|
|
55 |
|
Total revenues |
|
998 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
1,000 |
|
|
|
267 |
|
|
|
— |
|
|
|
26 |
|
|
|
— |
|
|
|
293 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
|
164 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
163 |
|
|
|
63 |
|
|
|
(2 |
) |
|
|
2 |
|
|
|
— |
|
|
|
63 |
|
Food and beverage |
|
192 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
191 |
|
|
|
64 |
|
|
|
(9 |
) |
|
|
8 |
|
|
|
— |
|
|
|
63 |
|
Other |
|
375 |
|
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
380 |
|
|
|
223 |
|
|
|
(10 |
) |
|
|
9 |
|
|
|
— |
|
|
|
222 |
|
Depreciation and amortization |
|
165 |
|
|
|
— |
|
|
|
— |
|
|
|
(165 |
) |
|
|
— |
|
|
|
167 |
|
|
|
— |
|
|
|
— |
|
|
|
(167 |
) |
|
|
— |
|
Corporate and other expenses |
|
26 |
|
|
|
— |
|
|
|
— |
|
|
|
(26 |
) |
|
|
— |
|
|
|
21 |
|
|
|
— |
|
|
|
— |
|
|
|
(21 |
) |
|
|
— |
|
Gain on insurance and business interruption settlements |
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total expenses |
|
919 |
|
|
|
5 |
|
|
|
(2 |
) |
|
|
(191 |
) |
|
|
731 |
|
|
|
538 |
|
|
|
(21 |
) |
|
|
19 |
|
|
|
(188 |
) |
|
|
348 |
|
Operating Profit
- All Owned Hotel
Pro Forma EBITDA⁽⁴⁾ |
$ |
79 |
|
|
$ |
(5 |
) |
|
$ |
4 |
|
|
$ |
191 |
|
|
$ |
269 |
|
|
$ |
(271 |
) |
|
$ |
21 |
|
|
$ |
7 |
|
|
$ |
188 |
|
|
$ |
(55 |
) |
|
|
Quarter ended December 31, 2021 |
|
|
Quarter ended December 31, 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 |
|
$ |
621 |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
622 |
|
|
$ |
813 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
814 |
|
Food and beverage |
|
|
269 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
270 |
|
|
|
424 |
|
|
|
(3 |
) |
|
|
— |
|
|
|
421 |
|
Other |
|
|
108 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
108 |
|
|
|
97 |
|
|
|
1 |
|
|
|
— |
|
|
|
98 |
|
Total revenues |
|
|
998 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
1,000 |
|
|
|
1,334 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
1,333 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
|
|
164 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
163 |
|
|
|
209 |
|
|
|
(3 |
) |
|
|
— |
|
|
|
206 |
|
Food and beverage |
|
|
192 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
191 |
|
|
|
285 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
284 |
|
Other |
|
|
375 |
|
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
380 |
|
|
|
473 |
|
|
|
1 |
|
|
|
— |
|
|
|
474 |
|
Depreciation and amortization |
|
|
165 |
|
|
|
— |
|
|
|
— |
|
|
|
(165 |
) |
|
|
— |
|
|
|
175 |
|
|
|
— |
|
|
|
(175 |
) |
|
|
— |
|
Corporate and other expenses |
|
|
26 |
|
|
|
— |
|
|
|
— |
|
|
|
(26 |
) |
|
|
— |
|
|
|
27 |
|
|
|
— |
|
|
|
(27 |
) |
|
|
— |
|
Gain on insurance and business interruption settlements |
|
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Total expenses |
|
|
919 |
|
|
|
5 |
|
|
|
(2 |
) |
|
|
(191 |
) |
|
|
731 |
|
|
|
1,168 |
|
|
|
(3 |
) |
|
|
(201 |
) |
|
|
964 |
|
Operating Profit
- All Owned Hotel
Pro Forma EBITDA⁽⁴⁾ |
|
$ |
79 |
|
|
$ |
(5 |
) |
|
$ |
4 |
|
|
$ |
191 |
|
|
$ |
269 |
|
|
$ |
166 |
|
|
$ |
2 |
|
|
$ |
201 |
|
|
$ |
369 |
|
|
|
Year ended December 31, 2021 |
|
|
Year ended December 31, 2020 |
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
GAAP Results |
|
|
Severance at hotel properties |
|
|
Pro forma adjustments⁽³⁾ |
|
|
Depreciation and corporate level items |
|
|
All Owned Hotel Pro Forma Results⁽⁴⁾ |
|
|
GAAP Results |
|
|
Severance at hotel properties |
|
|
Pro forma adjustments⁽³⁾ |
|
|
Depreciation and corporate level items |
|
|
All Owned Hotel Pro Forma Results⁽⁴⁾ |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
|
$ |
1,858 |
|
|
$ |
— |
|
|
$ |
21 |
|
|
$ |
— |
|
|
$ |
1,879 |
|
|
$ |
976 |
|
|
$ |
— |
|
|
$ |
24 |
|
|
$ |
— |
|
|
$ |
1,000 |
|
Food and beverage |
|
|
674 |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
|
|
688 |
|
|
|
426 |
|
|
|
— |
|
|
|
23 |
|
|
|
— |
|
|
|
449 |
|
Other |
|
|
358 |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
366 |
|
|
|
218 |
|
|
|
— |
|
|
|
11 |
|
|
|
— |
|
|
|
229 |
|
Total revenues |
|
|
2,890 |
|
|
|
— |
|
|
|
43 |
|
|
|
— |
|
|
|
2,933 |
|
|
|
1,620 |
|
|
|
— |
|
|
|
58 |
|
|
|
— |
|
|
|
1,678 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
|
|
488 |
|
|
|
1 |
|
|
|
(4 |
) |
|
|
— |
|
|
|
485 |
|
|
|
362 |
|
|
|
(15 |
) |
|
|
3 |
|
|
|
— |
|
|
|
350 |
|
Food and beverage |
|
|
505 |
|
|
|
— |
|
|
|
10 |
|
|
|
— |
|
|
|
515 |
|
|
|
420 |
|
|
|
(33 |
) |
|
|
19 |
|
|
|
— |
|
|
|
406 |
|
Other |
|
|
1,294 |
|
|
|
9 |
|
|
|
2 |
|
|
|
— |
|
|
|
1,305 |
|
|
|
1,037 |
|
|
|
(17 |
) |
|
|
31 |
|
|
|
— |
|
|
|
1,051 |
|
Depreciation and amortization |
|
|
762 |
|
|
|
— |
|
|
|
— |
|
|
|
(762 |
) |
|
|
— |
|
|
|
665 |
|
|
|
— |
|
|
|
— |
|
|
|
(665 |
) |
|
|
— |
|
Corporate and other expenses |
|
|
99 |
|
|
|
— |
|
|
|
— |
|
|
|
(99 |
) |
|
|
— |
|
|
|
89 |
|
|
|
— |
|
|
|
— |
|
|
|
(89 |
) |
|
|
— |
|
Gain on insurance and business interruption settlements |
|
|
(8 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total expenses |
|
|
3,140 |
|
|
|
10 |
|
|
|
8 |
|
|
|
(861 |
) |
|
|
2,297 |
|
|
|
2,573 |
|
|
|
(65 |
) |
|
|
53 |
|
|
|
(754 |
) |
|
|
1,807 |
|
Operating
Profit - All
Owned Hotel
Pro Forma EBITDA⁽⁴⁾ |
|
$ |
(250 |
) |
|
$ |
(10 |
) |
|
$ |
35 |
|
|
$ |
861 |
|
|
$ |
636 |
|
|
$ |
(953 |
) |
|
$ |
65 |
|
|
$ |
5 |
|
|
$ |
754 |
|
|
$ |
(129 |
) |
|
|
Year ended December 31, 2021 |
|
|
Year ended December 31, 2019 |
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
GAAP Results |
|
|
Severance at hotel properties |
|
|
Pro forma adjustments⁽³⁾ |
|
|
Depreciation and corporate level items |
|
|
All Owned Hotel Pro Forma Results⁽⁴⁾ |
|
|
GAAP Results |
|
|
Pro forma adjustments⁽³⁾ |
|
|
Depreciation and corporate level items |
|
|
All Owned Hotel Pro Forma Results⁽⁴⁾ |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
|
$ |
1,858 |
|
|
$ |
— |
|
|
$ |
21 |
|
|
$ |
— |
|
|
$ |
1,879 |
|
|
$ |
3,431 |
|
|
$ |
(141 |
) |
|
$ |
— |
|
|
$ |
3,290 |
|
Food and beverage |
|
|
674 |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
|
|
688 |
|
|
|
1,647 |
|
|
|
(36 |
) |
|
|
— |
|
|
|
1,611 |
|
Other |
|
|
358 |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
366 |
|
|
|
391 |
|
|
|
(2 |
) |
|
|
— |
|
|
|
389 |
|
Total revenues |
|
|
2,890 |
|
|
|
— |
|
|
|
43 |
|
|
|
— |
|
|
|
2,933 |
|
|
|
5,469 |
|
|
|
(179 |
) |
|
|
— |
|
|
|
5,290 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
|
|
488 |
|
|
|
1 |
|
|
|
(4 |
) |
|
|
— |
|
|
|
485 |
|
|
|
873 |
|
|
|
(42 |
) |
|
|
— |
|
|
|
831 |
|
Food and beverage |
|
|
505 |
|
|
|
— |
|
|
|
10 |
|
|
|
— |
|
|
|
515 |
|
|
|
1,120 |
|
|
|
(25 |
) |
|
|
— |
|
|
|
1,095 |
|
Other |
|
|
1,294 |
|
|
|
9 |
|
|
|
2 |
|
|
|
— |
|
|
|
1,305 |
|
|
|
1,899 |
|
|
|
(57 |
) |
|
|
— |
|
|
|
1,842 |
|
Depreciation and amortization |
|
|
762 |
|
|
|
— |
|
|
|
— |
|
|
|
(762 |
) |
|
|
— |
|
|
|
676 |
|
|
|
— |
|
|
|
(676 |
) |
|
|
— |
|
Corporate and other expenses |
|
|
99 |
|
|
|
— |
|
|
|
— |
|
|
|
(99 |
) |
|
|
— |
|
|
|
107 |
|
|
|
— |
|
|
|
(107 |
) |
|
|
— |
|
Gain on insurance and business interruption settlements |
|
|
(8 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
(5 |
) |
|
|
— |
|
|
|
5 |
|
|
|
— |
|
Total expenses |
|
|
3,140 |
|
|
|
10 |
|
|
|
8 |
|
|
|
(861 |
) |
|
|
2,297 |
|
|
|
4,670 |
|
|
|
(124 |
) |
|
|
(778 |
) |
|
|
3,768 |
|
Operating Profit
- All Owned Hotel
Pro Forma EBITDA⁽⁴⁾ |
|
$ |
(250 |
) |
|
$ |
(10 |
) |
|
$ |
35 |
|
|
$ |
861 |
|
|
$ |
636 |
|
|
$ |
799 |
|
|
$ |
(55 |
) |
|
$ |
778 |
|
|
$ |
1,522 |
|
__________________________________(1) See the
Notes to Financial Information for a discussion of non-GAAP
measures and 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 December 31, 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) The AC Hotel Scottsdale North is a new development hotel
that opened in January 2021 and The Laura Hotel in Houston
re-opened under new management in November 2021. Therefore, no
adjustments were made for results of these hotels for periods prior
to their openings. Results for the hotel sold subsequent to quarter
end are included, as it was owned for the entirety of the periods
presented.
HOST HOTELS & RESORTS,
INC.Reconciliation of Net Income (Loss)
toEBITDA, EBITDAre
and Adjusted EBITDAre
(1)(unaudited, in millions)
|
|
Quarter ended December 31, |
|
|
Year ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income (loss)⁽²⁾ |
|
$ |
323 |
|
|
$ |
(66 |
) |
|
$ |
(11 |
) |
|
$ |
(741 |
) |
Interest expense |
|
|
63 |
|
|
|
51 |
|
|
|
191 |
|
|
|
194 |
|
Depreciation and amortization |
|
|
165 |
|
|
|
167 |
|
|
|
670 |
|
|
|
665 |
|
Income taxes |
|
|
(10 |
) |
|
|
(64 |
) |
|
|
(91 |
) |
|
|
(220 |
) |
EBITDA⁽²⁾ |
|
|
541 |
|
|
|
88 |
|
|
|
759 |
|
|
|
(102 |
) |
Gain on dispositions⁽³⁾ |
|
|
(303 |
) |
|
|
(148 |
) |
|
|
(303 |
) |
|
|
(149 |
) |
Non-cash impairment expense |
|
|
— |
|
|
|
— |
|
|
|
92 |
|
|
|
— |
|
Equity investment adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Equity in (earnings) losses of affiliates |
|
|
5 |
|
|
|
4 |
|
|
|
(31 |
) |
|
|
30 |
|
Pro rata EBITDAre of equity investments⁽4⁾ |
|
|
4 |
|
|
|
3 |
|
|
|
25 |
|
|
|
(12 |
) |
EBITDAre⁽²⁾ |
|
|
247 |
|
|
|
(53 |
) |
|
|
542 |
|
|
|
(233 |
) |
Adjustments to EBITDAre: |
|
|
|
|
|
|
|
|
|
|
|
|
Severance expense (reversal) at hotel properties |
|
|
(5 |
) |
|
|
21 |
|
|
|
(10 |
) |
|
|
65 |
|
Adjusted
EBITDAre⁽²⁾ |
|
$ |
242 |
|
|
$ |
(32 |
) |
|
$ |
532 |
|
|
$ |
(168 |
) |
__________________________________(1) See the
Notes to Financial Information for discussion of non-GAAP
measures.(2) Net income (loss), EBITDA, EBITDAre, Adjusted
EBITDAre, NAREIT FFO and Adjusted FFO include a gain of $47 million
in the fourth quarter 2020 and $59 million for the year ended
December 31, 2020 from the sale of land adjacent to The Phoenician
hotel. The year ended December 31, 2020 also includes a loss of $14
million related to inventory impairment expense recorded by our
Maui timeshare joint venture, reflected through equity in
(earnings) losses of affiliates.(3) Reflects the sale of six hotels
in 2021 and one hotel in 2020.(4) Pro rata EBITDAre of equity
investments and pro rata FFO of equity investments for year ended
December 31, 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 December 31, |
|
|
Year ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income (loss)⁽²⁾ |
|
$ |
323 |
|
|
$ |
(66 |
) |
|
$ |
(11 |
) |
|
$ |
(741 |
) |
Less: Net (income) loss attributable to non-controlling
interests |
|
|
(3 |
) |
|
|
2 |
|
|
|
— |
|
|
|
9 |
|
Net income (loss)
attributable to Host Inc. |
|
|
320 |
|
|
|
(64 |
) |
|
|
(11 |
) |
|
|
(732 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Gain on dispositions(3) |
|
|
(303 |
) |
|
|
(148 |
) |
|
|
(303 |
) |
|
|
(149 |
) |
Tax on dispositions |
|
|
(4 |
) |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(3 |
) |
Depreciation and amortization |
|
|
165 |
|
|
|
167 |
|
|
|
669 |
|
|
|
663 |
|
Non-cash impairment expense |
|
|
— |
|
|
|
— |
|
|
|
92 |
|
|
|
— |
|
Equity investment adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Equity in (earnings) losses of affiliates |
|
|
5 |
|
|
|
4 |
|
|
|
(31 |
) |
|
|
30 |
|
Pro rata FFO of equity investments⁽⁴⁾ |
|
|
2 |
|
|
|
(1 |
) |
|
|
18 |
|
|
|
(21 |
) |
Consolidated partnership adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
FFO adjustment for non-controlling partnerships |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
FFO adjustments for non-controlling interests of Host L.P. |
|
|
1 |
|
|
|
(1 |
) |
|
|
(5 |
) |
|
|
(6 |
) |
NAREIT
FFO⁽²⁾ |
|
|
186 |
|
|
|
(46 |
) |
|
|
424 |
|
|
|
(219 |
) |
Adjustments to NAREIT
FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
Loss on debt extinguishment |
|
|
23 |
|
|
|
8 |
|
|
|
23 |
|
|
|
36 |
|
Severance expense (reversal) at hotel properties |
|
|
(5 |
) |
|
|
21 |
|
|
|
(10 |
) |
|
|
65 |
|
Loss attributable to non-controlling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Adjusted
FFO⁽²⁾ |
|
$ |
204 |
|
|
$ |
(17 |
) |
|
$ |
437 |
|
|
$ |
(119 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For calculation on a
per share basis:⁽⁵⁾ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding -
EPS |
|
|
716.1 |
|
|
|
705.3 |
|
|
|
710.3 |
|
|
|
705.9 |
|
Assuming issuance of common shares granted under the comprehensive
stock plans |
|
|
— |
|
|
|
— |
|
|
|
2.0 |
|
|
|
— |
|
Diluted weighted
average shares outstanding - NAREIT FFO and
Adjusted FFO |
|
|
716.1 |
|
|
|
705.3 |
|
|
|
712.3 |
|
|
|
705.9 |
|
Diluted
earnings (loss) per common share |
|
$ |
.45 |
|
|
$ |
(.09 |
) |
|
$ |
(.02 |
) |
|
$ |
(1.04 |
) |
NAREIT FFO per diluted
share |
|
$ |
.26 |
|
|
$ |
(.07 |
) |
|
$ |
.60 |
|
|
$ |
(.31 |
) |
Adjusted FFO per
diluted share |
|
$ |
.29 |
|
|
$ |
(.02 |
) |
|
$ |
.61 |
|
|
$ |
(.17 |
) |
__________________________________(1-4) Refer to
corresponding footnote on the Reconciliation of Net Income (Loss)
to EBITDA, EBITDAre and Adjusted EBITDAre.(5) 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 December 31, 2021, but do not include the results of
operations for properties sold through the reporting date; and (2)
operating results for acquisitions as of December 31, 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.
FOREIGN CURRENCY
TRANSLATION
Operating results denominated in foreign
currencies are translated using the prevailing exchange rates on
the date of the transaction, or monthly based on the weighted
average exchange rate for the period. Therefore, hotel statistics
and results for non-U.S. properties include the effect of currency
fluctuations, consistent with our financial statement
presentation.
NON-GAAP FINANCIAL MEASURES
Included in this press release are certain
“non-GAAP financial measures,” which are measures of our historical
or future financial performance that are not calculated and
presented in accordance with GAAP, within the meaning of applicable
SEC rules. They are as follows: (i) FFO and FFO per diluted share
(both NAREIT and Adjusted), (ii) EBITDA, (iii) EBITDAre and
Adjusted EBITDAre, and (iv) All Owned Hotel Pro Forma Operating
Statistics and Results. The following discussion defines these
measures and presents why we believe they are useful supplemental
measures of our performance.
NAREIT FFO AND NAREIT FFO PER DILUTED SHARE
We present NAREIT FFO and NAREIT FFO per diluted
share as non-GAAP measures of our performance in addition to our
earnings per share (calculated in accordance with GAAP). We
calculate NAREIT FFO per diluted share as our NAREIT FFO (defined
as set forth below) for a given operating period, as adjusted for
the effect of dilutive securities, divided by the number of fully
diluted shares outstanding during such period, in accordance with
NAREIT guidelines. Effective January 1, 2019, we adopted NAREIT’s
definition of FFO included in NAREIT’s Funds From Operations White
Paper – 2018 Restatement. NAREIT defines FFO as net income
(calculated in accordance with GAAP) excluding depreciation and
amortization related to real estate, gains and losses from the sale
of certain real estate assets, gains and losses from change in
control, impairment expense of certain real estate assets and
investments and adjustments for consolidated partially-owned
entities and unconsolidated affiliates. Adjustments for
consolidated partially-owned entities and unconsolidated affiliates
are calculated to reflect our pro rata share of the FFO of those
entities on the same basis.
We believe that NAREIT FFO per diluted share is
a useful supplemental measure of our operating performance and that
the presentation of NAREIT FFO per diluted share, when combined
with the primary GAAP presentation of earnings per share, provides
beneficial information to investors. By excluding the effect of
real estate depreciation, amortization, impairment expense and
gains and losses from sales of depreciable real estate, all of
which are based on historical cost accounting and which may be of
lesser significance in evaluating current performance, we believe
that such measures can facilitate comparisons of operating
performance between periods and with other REITs, even though
NAREIT FFO per diluted share does not represent an amount that
accrues directly to holders of our common stock. Historical cost
accounting for real estate assets implicitly assumes that the value
of real estate assets diminishes predictably over time. As noted by
NAREIT in its Funds From Operations White Paper – 2018 Restatement,
the primary purpose for including FFO as a supplemental measure of
operating performance of a REIT is to address the artificial nature
of historical cost depreciation and amortization of real estate and
real estate-related assets mandated by GAAP. For these reasons,
NAREIT adopted the FFO metric in order to promote a uniform
industry-wide measure of REIT operating performance.
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 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. 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.
SOURAV
GHOSH |
JAIME
MARCUS |
Chief Financial Officer |
Investor Relations |
(240) 744-5267 |
(240) 744-5117 |
|
ir@hosthotels.com |
A PDF accompanying this announcement is
available
at: http://ml.globenewswire.com/Resource/Download/b1bcf712-6744-4135-986b-1f624903c138
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