Host Hotels & Resorts Inc.'s (HST) first-quarter loss
widened as the lodging company continued to struggle with weak
demand, though signs of stabilization continued.
The loss was slightly narrower than Wall Street estimates,
though funds from operation, a key profitability measure for
real-estate investment trusts, fell short.
For the year, the company improved its 2010 guidance and now
expects a loss of 25 cents to 32 cents a share and FFO of 58 cents
to 65 cents. The company in February forecast a loss of 32 cents to
49 cents and FFO of 41 cents to 57 cents.
The lodging industry's prospects have shown signs of improvement
in the latest quarter, with Marriott International Inc. (MAR)
returning to the black as it reported more signs that travel and
tourism are continuing to stabilize after a prolonged downturn.
Standard & Poor's Ratings and Fitch Ratings lifted their
outlooks on several hoteliers, including Host, afterward on
expectations that yields will resume growth this year.
Host Hotels, a real-estate investment trust, owns 110 properties
world-wide and hires operating companies such as Marriott or Hilton
Worldwide to manage them.
Host reported a loss of $84 million, or 13 cents a share,
compared with a prior-year loss of $59 million, or 12 cents a
share. The latest period included 1 cent in costs related to debt
repayments and potential litigation losses. The prior year included
a net 5 cents in write-downs.
Funds from operations fell to 8 cents from 10 cents and revenue
decreased 5% to $823 million.
Analysts polled by Thomson Reuters most recently forecast a loss
of 13 cents, FFO of 10 cents and revenue of $865 million.
Revenue per available room fell 2.3% at hotels owned at least a
year, though the decline was less than what was recorded in
2009.
Shares closed Tuesday at $16.17 and were inactive premarket. The
stock is up 39% this year, more than the broader market.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com;