DOW JONES NEWSWIRES
Host Hotels & Resorts Inc.'s (HST) fourth-quarter loss
narrowed as the lodging company saw fewer charges, as well as
improved revenue and occupancies.
For the year, the company forecast funds from operations, a key
measure of performance for real-estate investment trusts, of 87
cents to 92 cents a share. Analysts polled by Thomson Reuters most
recently expected 97 cents.
The REIT, with a portfolio leaning toward higher-priced hotels,
has seen demand improve recently amid uneven lodging sector
recovery. It has been in acquisition mode, seeking bargains from
the fallout of the battering the sector took during the
downturn.
Last month, Host Hotels confirmed it agreed to pay $313.5
million to buy the New York Helmsley hotel, a 775-room property in
midtown Manhattan.
Host Hotels owns 113 properties worldwide and hires operating
companies such as Marriott International Inc. (MAR) or Blackstone
Group LP's (BX) Hilton Worldwide to manage them.
The real-estate investment trust reported a loss of $6 million,
or a penny a share, from a year earlier loss of $73 million, or 12
cents a share, a year earlier. The latest period included a net $14
million in losses on debt extinguishments and acquisition costs.
The prior year included $41 million in potential litigation-related
costs.
Funds from operations grew to 26 cents from 18 cents. Revenue
increased 13% to $1.5 billion.
Analysts polled by Thomson Reuters forecast break-even earnings,
FFO of 27 cents a share and revenue of $1.45 billion.
Revenue per available room rose 6.2% from a year earlier, and
occupancy rates were up at 68% from 65.2%. Average room rates
increased 5.3%.
Shares of Host Hotels closed Monday at $19.66 and were inactive
premarket.
-By Tess Stynes and Jenny Roth, Dow Jones Newswires;
212-416-2481; tess.stynes@dowjones.com