EX-99.1 2 hst-ex991_6.htm EX-99.1 hst-ex991_6.htm

 

Exhibit 99.1

 

 

 

Michael D. Bluhm, Chief Financial Officer

240.744.5110

Gee Lingberg, Senior Vice President

240.744.5275

 

 

 

 

NEWS RELEASE

HOST HOTELS & RESORTS, INC. REPORTS RESULTS FOR THE SECOND QUARTER 2019

BETHESDA, MD; August 6, 2019 – Host Hotels & Resorts, Inc. (NYSE: HST) (“Host Hotels” or the “Company”), the nation’s largest lodging real estate investment trust (“REIT”), today announced results for the second quarter of 2019.

Operating Results 1cp

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

 

Quarter ended June 30,

 

 

Percent

 

 

Year-to-date ended June 30,

 

 

Percent

 

 

2019

 

 

2018

 

 

Change

 

 

2019

 

 

2018

 

 

Change

 

Revenues

$

1,483

 

 

$

1,518

 

 

 

(2.3

)%

 

$

2,873

 

 

$

2,864

 

 

 

0.3

%

Comparable hotel revenues (1)

 

1,273

 

 

 

1,272

 

 

 

 

 

 

2,410

 

 

 

2,407

 

 

 

0.1

%

Net income

 

290

 

 

 

211

 

 

 

37.4

%

 

 

479

 

 

 

467

 

 

 

2.6

%

EBITDAre and Adjusted EBITDAre (1)

 

460

 

 

 

476

 

 

 

(3.4

)%

 

 

867

 

 

 

846

 

 

 

2.5

%

Comparable hotel Total RevPAR -

     Constant US$

 

305.04

 

 

 

304.68

 

 

 

0.1

%

 

 

290.47

 

 

 

289.78

 

 

 

0.2

%

Comparable hotel RevPAR -

     Constant US$

 

193.37

 

 

 

196.24

 

 

 

(1.5

)%

 

 

182.33

 

 

 

184.59

 

 

 

(1.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

0.39

 

 

 

0.28

 

 

 

39.3

%

 

 

0.64

 

 

 

0.62

 

 

 

3.2

%

NAREIT FFO and Adjusted FFO per diluted share (1)

 

0.53

 

 

 

0.54

 

 

 

(1.9

)%

 

 

1.01

 

 

 

0.97

 

 

 

4.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Additional detail on the Company’s results, including data for 22 domestic markets and top 40 hotels by RevPAR, is available in the Second Quarter 2019 Supplemental Financial Information available on the Company’s website at www.hosthotels.com.

Highlights

 

Comparable hotel Total RevPAR improved 0.1% for the quarter and 0.2% year-to-date, on a constant dollar basis. Total RevPAR is a key performance metric for the Company’s luxury and upper upscale portfolio as approximately 35% of revenues are earned from food and beverage, conference and meeting space, spa and other amenities.

 

The Company repurchased 10.9 million shares of stock totaling $200 million during the quarter. On August 5, 2019, the Board of Directors authorized an increase in its share repurchase program from $500 million to $1 billion, which, after taking into account the second quarter repurchases, leaves $800 million available for repurchases.

 

The Company executed on its strategy to refine its portfolio by disposing of three non-core assets during the quarter for $118 million and has sold or expects to sell in the third quarter, subject to customary closing conditions, an additional eight assets.

 

The Company has taken advantage of current market conditions and further strengthened its balance sheet by increasing the capacity of its revolving credit and term loan facility from $2 billion to $2.5 billion. The Company extended the maturity for both the revolver and the term loans to 2025 (including extension options) and, based on current debt ratings, the initial interest rate has been reduced by 10 basis points.

 

(1)

NAREIT Funds From Operations (“FFO”) per diluted share, Adjusted FFO per diluted share, EBITDAre, Adjusted EBITDAre and comparable hotel results 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.


 

James F. Risoleo, President and Chief Executive Officer, said, “I am pleased with our continued successful execution of our disciplined capital allocation strategy. During the quarter, we bought back $200 million of common stock and are opportunistically taking advantage of the current market conditions to divest of low RevPAR, high capital expenditure non-core assets amid a robust transaction market. Year-to-date, we completed six asset sales for $570 million and just announced that we have an additional six assets under contract for sale. We intend to continue to focus on advancing our long-term strategic vision of owning iconic and irreplaceable properties with high RevPAR and limited near-term capex needs in key markets with strong demand generators ensuring that the Company is well positioned for continued growth.

Operating Performance

GAAP Metrics

 

Total revenues decreased 2.3% for the quarter, primarily from the net effect of acquisitions and dispositions, which led to a $30 million reduction in revenues. Year-to-date, total revenues increased 0.3%, reflecting an $8 million increase in revenues from the net effect of acquisitions and dispositions. On a comparable hotel basis, total revenues increased slightly for the quarter and year-to-date.

 

GAAP operating profit margin increased 160 basis points for the quarter and 210 basis points year-to-date due to  items that affected comparable margins discussed below, in addition to a decrease in corporate expenses and impairment expense that had been recorded in 2018.

 

Net income increased by $79 million, to $290 million, for the quarter, reflecting the improvement in operating profit and an increase in gain on sale of assets. Year-to-date, net income increased $12 million, to $479 million, primarily due to the improvement in operating profit and partially offset by a decrease in gain on sale of assets.

 

Diluted earnings per common share increased 39.3% and 3.2% for the quarter and year-to-date, respectively.

Other Metrics

 

Comparable hotel Total RevPAR on a constant dollar basis increased 0.1% and 0.2% for the quarter and year-to-date, respectively, due to increases in food and beverage and other revenues.

 

Comparable RevPAR on a constant dollar basis declined 1.5% for the quarter, driven by a 140 basis point decrease in occupancy, partially offset by a 0.3% increase in average room rate. Year-to-date, comparable RevPAR on a constant dollar basis declined 1.2% due to a 160 basis point decrease in occupancy, partially offset by a 0.8% increase in average room rate. The decline in RevPAR includes an estimated 90 basis point decrease for the quarter and 75 basis point decrease year-to-date for the comparable hotels for the renovation disruption related to the Marriott transformational capital program.

 

Comparable hotel EBITDA decreased by $3 million, or 0.6%, for the quarter and increased by $5 million, or 0.6%, year-to-date.

 

Comparable hotel EBITDA margins declined 20 basis points for the quarter and improved 15 basis points year-to-date. The relatively stable margin performance reflects the overall decline in occupancy and RevPAR, offset by several factors, including:

 

o

an increase in average room rates;

 

o

an increase in ancillary revenues;

 

o

benefits from synergies of the Marriott International merger with Starwood Hotels; and

 

o

the receipt of operating profit guarantees provided by Marriott related to transformational capital projects.

 

Adjusted EBITDAre decreased $16 million, or 3.4%, for the quarter and increased $21 million, or 2.5%, year-to-date. The change in Adjusted EBITDAre reflects the change in total revenues and the net effect of operations of properties acquired or disposed of in 2018 and 2019, which reduced Adjusted EBITDAre for the quarter by $4 million and increased it by $17 million year-to-date. The total change in Adjusted EBITDAre includes a decrease of $17 million for the quarter and $23 million year-to-date due to the sale of the Company’s interest in the European Joint Venture in December 2018.

 

Adjusted FFO per diluted share decreased 1.9% for the quarter and increased 4.1% year-to-date.

Dispositions

During the second quarter, the Company sold the Newport Beach Marriott Bayview, The Westin Mission Hills Golf Resort & Spa and the leasehold interest in the Washington Dulles Airport Marriott for $118 million. In addition, the Company sold the Courtyard Chicago Downtown/River North and Residence Inn Arlington Pentagon City subsequent to quarter end for $150 million. The Company is in active negotiations concerning the sale of additional properties, including the following six

Page 2 of 22


 

properties which the Company expects to close shortly: Scottsdale Marriott Suites Old Town, Scottsdale Marriott at McDowell Mountains, Costa Mesa Marriott, Atlanta Marriott Suites Midtown, The Westin Indianapolis and Chicago Marriott Suites O’Hare.2  

Capital Allocation

During the quarter, the Company invested approximately $130 million in capital expenditures, of which $70 million were return on investment (“ROI”) capital expenditures and $60 million were on renewal and replacement projects. Year-to-date, the Company has invested approximately $240 million in capital expenditures, of which $122 million were return on investment (“ROI”) capital expenditures and $118 million were on renewal and replacement projects.

For 2019, the Company expects capital expenditures of between $550 million and $610 million. This comprises between $315 million and $345 million in ROI projects and between $235 million and $265 million in renewal and replacement projects. The ROI projects include approximately $225 million that are part of the previously announced transformational capital program with Marriott International.

Share Repurchase Program and Dividends

During the second quarter, the Company repurchased 10.9 million shares at an average price of $18.32 per share through its common share repurchase program for a total of $200 million. Under the share repurchase program, the common stock may be purchased from time to time, depending upon market conditions. Subsequent to quarter end, the Company purchased an additional 1.8 million shares at an average price of $16.85 per share for a total of $30 million, pursuant to the Company’s trading plan designed to comply with Rule 10b5-1 under the Securities Exchange Act.

The Company paid a regular quarterly cash dividend of $0.20 per share on its common stock on July 15, 2019 to stockholders of record as of June 28, 2019. All future dividends, including any special dividends, are subject to approval by the Company’s Board of Directors.

Balance Sheet

At June 30, 2019, the Company had approximately $1,107 million of unrestricted cash, not including $203 million in the FF&E escrow reserves. Total debt was $3.9 billion, with an average maturity of 3.7 years and an average interest rate of 4.3%. Effective August 1, 2019, the Company closed on an amended and restated credit agreement. As part of the refinancing, the revolver was upsized from $1 billion to $1.5 billion and borrowing costs were reduced across the entire facility. The maturities for the revolver and $1 billion of term loans were extended to January 2025, including all extension options, which are subject to certain conditions. Taking the recast into account, the Company extended its weighted average debt maturity to 4.6 years, eliminated material debt maturities until 2021, and increased the current available capacity under the revolver from $943 to $1,443 million. The Company’s proforma debt maturity schedule will remain balanced with no more than 6.1% of its debt, as a percent of total market capitalization, maturing in any given year.

“We are very pleased to announce that we have expanded our credit facility, providing us with more dry powder and flexibility in any stage of the lodging cycle,” said Michael Bluhm, Chief Financial Officer. “The increased capacity and extended maturities, combined with our cash on hand, allow us to be opportunistic and disciplined in our capital allocation. The transaction also highlights our commitment to maintaining an excellent balance sheet by increasing liquidity, extending maturities and lowering borrowing costs.”

2019 Outlook

For 2019, the Company’s forecast has been adjusted for the sale or anticipated sale of eight properties in the third quarter, which has decreased forecast net income and Adjusted EBITDAre by approximately $11 million and $21 million, respectively, and diluted earnings per share and Adjusted FFO per diluted share by $.02 and $.03, respectively. The range provided for comparable hotel RevPAR guidance reflects an estimated 50 basis points of disruption impact from the incremental capital expenditures associated with the Marriott transformational capital program. However, the estimated effect to earnings caused by these expenditures is offset by the operating profit guarantees provided by Marriott. The Company expects to receive $23 million of operating profit guarantees in 2019, of which $10 million is included in comparable hotel EBITDA, to

 

(2)

The sales of these properties are subject to customary closing conditions. There can be no assurances that the Company will complete the transactions.

Page 3 of 22


 

offset the disruption to operations caused by the incremental spend on those properties. The Company estimates its 2019 operating results as compared to the prior year will change in the following range:

 

 

Previous Full Year 2019 Guidance

 

Current Full Year 2019 Guidance

 

Change in Full Year 2019 Guidance to the Mid-Point

Total comparable hotel RevPAR - Constant US$(1)

 

0.0% to 2.0%

 

(1.0)% to 0.0%

 

(150) bps

Total revenues under GAAP

 

0.1% to 2.1%

 

(1.5)% to (0.5)%

 

(210) bps

Operating profit margin under GAAP

 

460 bps to 550 bps

 

470 bps to 530 bps

 

(5) bps

Comparable hotel EBITDA margins(2)

 

(25) bps to 35 bps

 

(25) bps to 25 bps

 

(5) bps

__________

(1)

Forecast comparable hotel results include 74 hotels that are assumed will be classified as comparable as of December 31, 2019. See the 2019 Forecast Schedules for a listing of hotels excluded from the full year 2019 comparable hotel set.

(2)

At the 0.0% high end of the RevPAR guidance, the improvement in comparable hotel EBITDA margin is 50 basis points higher compared to the previous guidance.

Based upon the above parameters, the Company estimates its 2019 guidance as follows:

 

 

 

Previous Full Year 2019 Guidance

 

Current Full Year 2019 Guidance

 

Change in Full Year 2019 Guidance to the Mid-Point

Net income (in millions)

 

$619 to $683

 

$956 to $993

 

$323.5

Adjusted EBITDAre (in millions)

 

$1,535 to $1,600

 

$1,500 to $1,540

 

$(47.5)

Diluted earnings per common share

 

$.82 to $.91

 

$1.28 to $1.33

 

$.44

NAREIT FFO per diluted share

 

$1.76 to $1.84

 

$1.73 to $1.78

 

$(.05)

Adjusted FFO per diluted share

 

$1.76 to $1.84

 

$1.73 to $1.78

 

$(.05)

See the 2019 Forecast Schedules and the Notes to Financial Information for other assumptions used in the forecasts and items that may affect forecast results.

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 83 properties in the United States and five properties internationally totaling approximately 50,000 rooms. The Company also holds non-controlling interests in six domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The Luxury Collection®, Hyatt®, Fairmont®, Hilton®, Swissôtel®, ibis® and Novotel®, as well as independent brands in the operation of properties in over 50 major markets. For additional information, please visit the Company’s website at www.hosthotels.com.

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements include forecast results and are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “plan,” “predict,” “project,” “will,” “continue” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: changes in national and local economic and business conditions and other factors such as natural disasters, pandemics 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 dispositions and develop new properties and the risks that acquisitions and new developments may not perform in accordance with our expectations; our ability to continue to satisfy complex rules in order for us to remain a REIT for federal income tax purposes; risks associated with our ability to effectuate our dividend policy, including factors such as operating results and the economic outlook influencing our board’s decision whether to pay further dividends at levels previously disclosed or to use available cash to make special dividends; and other risks and uncertainties associated with our business described in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of August 6, 2019, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

*

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

*** Tables to Follow ***


Page 4 of 22


 

Host Hotels & Resorts, Inc., herein referred to as “we” or “Host Inc.,” is a self-managed and self-administered real estate investment trust that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resorts, L.P. (“Host LP”), of which we are the sole general partner. When distinguishing between Host Inc. and Host LP, the primary difference is approximately 1% of the partnership interests in Host LP held by outside partners as of June 30, 2019, which is non-controlling interests in Host LP in our consolidated balance sheets and is included in net income 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.

2019 OPERATING RESULTS

  

PAGE NO.

 

Condensed Consolidated Balance Sheets (unaudited)

     June 30, 2019 and December 31, 2018

  

6

 

Condensed Consolidated Statements of Operations (unaudited)

     Quarter and Year-to-date Ended June 30, 2019 and 2018

  

7

 

Earnings per Common Share (unaudited)

     Quarter and Year-to-date Ended June 30, 2019 and 2018

  

8

 

Hotel Operating Data

  

 

     Hotel Operating Data for Consolidated Hotels (by Location)

  

9

 

 

 

Schedule of Comparable Hotel Results

 

11

 

Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre

  

13

 

Reconciliation of Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share

  

14

 

2019 FORECAST INFORMATION

  

 

 

Reconciliation of Net Income to EBITDA, EBITDAre, and Adjusted EBITDAre and Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share for 2019 Forecasts

  

15

 

Schedule of Comparable Hotel Results for 2019 Forecasts

  

16

 

Notes to Financial Information

  

18

 

 

 

 

 

 

 


Page 5 of 22


HOST HOTELS & RESORTS, INC.

Condensed Consolidated Balance Sheets

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

 

 

 

June 30, 2019

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

ASSETS

 

Property and equipment, net

 

$

10,000

 

 

$

9,760

 

Right-of-use assets(1)

 

 

590

 

 

 

 

Assets held for sale

 

 

272

 

 

 

281

 

Due from managers

 

 

163

 

 

 

71

 

Advances to and investments in affiliates

 

 

53

 

 

 

48

 

Furniture, fixtures and equipment replacement fund

 

 

203

 

 

 

213

 

Other

 

 

137

 

 

 

175

 

Cash and cash equivalents

 

 

1,107

 

 

 

1,542

 

Total assets

 

$

12,525

 

 

$

12,090

 

 

 

 

 

 

 

 

 

 

LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY

 

Debt (2)

 

 

 

 

 

 

 

 

Senior notes

 

$

2,783

 

 

$

2,782

 

Credit facility, including the term loans of $998

 

 

1,052

 

 

 

1,049

 

Other debt

 

 

29

 

 

 

6

 

Total debt

 

 

3,864

 

 

 

3,837

 

Lease liabilities(1)

 

 

599

 

 

 

 

Accounts payable and accrued expenses

 

 

248

 

 

 

293

 

Liabilities held for sale

 

 

13

 

 

 

 

Other

 

 

186

 

 

 

266

 

Total liabilities

 

 

4,910

 

 

 

4,396

 

 

 

 

 

 

 

 

 

 

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

 

 

141

 

 

 

128

 

 

 

 

 

 

 

 

 

 

Host Hotels & Resorts, Inc. stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, par value $.01, 1,050 million shares authorized,

     730.0 million shares and 740.4 million shares issued and outstanding,

     respectively

 

 

7

 

 

 

7

 

Additional paid-in capital

 

 

7,948

 

 

 

8,156

 

Accumulated other comprehensive loss

 

 

(56

)

 

 

(59

)

Deficit

 

 

(432

)

 

 

(610

)

Total equity of Host Hotels & Resorts, Inc. stockholders

 

 

7,467

 

 

 

7,494

 

Non-redeemable non-controlling interests—other consolidated partnerships

 

 

7

 

 

 

72

 

Total equity

 

 

7,474

 

 

 

7,566

 

Total liabilities, non-controlling interests and equity

 

$

12,525

 

 

$

12,090

 

___________

 

 

 

 

 

 

 

 

(1)

On January 1, 2019, we adopted Accounting Standard Update No. 2016-02, Leases (Topic 842), as amended. The new standard requires that all leases, including operating leases, be recognized as lease assets and lease liabilities on the balance sheet. As a result, we have recognized right of use assets of $590 million and lease liabilities of $599 million as of June 30, 2019. The adoption did not affect our statement of operations.

(2)

Please see our Second Quarter 2019 Supplemental Financial Information for more detail on our debt balances.                          

 

 

 

 

 

Page 6 of 22


HOST HOTELS & RESORTS, INC.

Condensed Consolidated Statements of Operations

(unaudited, in millions, except per share amounts)

 

 

Quarter ended June 30,

 

 

Year-to-date ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms

 

$

931

 

 

$

973

 

 

$

1,788

 

 

$

1,817

 

Food and beverage

 

 

449

 

 

 

449

 

 

 

882

 

 

 

862

 

Other

 

 

103

 

 

 

96

 

 

 

203

 

 

 

185

 

Total revenues

 

 

1,483

 

 

 

1,518

 

 

 

2,873

 

 

 

2,864

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms

 

 

226

 

 

 

238

 

 

 

443

 

 

 

462

 

Food and beverage

 

 

290

 

 

 

290

 

 

 

575

 

 

 

568

 

Other departmental and support expenses

 

 

334

 

 

 

336

 

 

 

661

 

 

 

651

 

Management fees

 

 

71

 

 

 

73

 

 

 

125

 

 

 

127

 

Other property-level expenses

 

 

91

 

 

 

99

 

 

 

183

 

 

 

197

 

Depreciation and amortization

 

 

166

 

 

 

189

 

 

 

336

 

 

 

367

 

Corporate and other expenses(1)

 

 

25

 

 

 

30

 

 

 

54

 

 

 

58

 

Total operating costs and expenses

 

 

1,203

 

 

 

1,255

 

 

 

2,377

 

 

 

2,430

 

Operating profit

 

 

280

 

 

 

263

 

 

 

496

 

 

 

434

 

Interest income

 

 

7

 

 

 

2

 

 

 

15

 

 

 

5

 

Interest expense

 

 

(43

)

 

 

(45

)

 

 

(86

)

 

 

(89

)

Gain on sale of assets

 

 

57

 

 

 

 

 

 

62

 

 

 

120

 

Gain (loss) on foreign currency transactions and derivatives

 

 

1

 

 

 

(1

)

 

 

1

 

 

 

(1

)

Equity in earnings of affiliates

 

 

4

 

 

 

9

 

 

 

9

 

 

 

19

 

Income before income taxes

 

 

306

 

 

 

228

 

 

 

497

 

 

 

488

 

Provision for income taxes

 

 

(16

)

 

 

(17

)

 

 

(18

)

 

 

(21

)

Net income

 

 

290

 

 

 

211

 

 

 

479

 

 

 

467

 

Less: Net income attributable to non-controlling interests

 

 

(4

)

 

 

(2

)

 

 

(7

)

 

 

(5

)

Net income attributable to Host Inc.

 

$

286

 

 

$

209

 

 

$

472

 

 

$

462

 

Basic and diluted earnings per common share

 

$

.39

 

 

$

.28

 

 

$

.64

 

 

$

.62

 

___________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Corporate and other expenses include the following items:

 

 

Quarter ended June 30,

 

 

Year-to-date ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

General and administrative costs

 

$

22

 

 

$

26

 

 

$

47

 

 

$

51

 

Non-cash stock-based compensation expense

 

 

3

 

 

 

4

 

 

 

7

 

 

 

7

 

       Total

 

$

25

 

 

$

30

 

 

$

54

 

 

$

58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          


Page 7 of 22


HOST HOTELS & RESORTS, INC.

Earnings per Common Share

(unaudited, in millions, except per share amounts)

 

 

 

Quarter ended June 30,

 

 

Year-to-date ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income

 

$

290

 

 

$

211

 

 

$

479

 

 

$

467

 

Less: Net income attributable to non-controlling interests

 

 

(4

)

 

 

(2

)

 

 

(7

)

 

 

(5

)

Net income attributable to Host Inc.

 

$

286

 

 

$

209

 

 

$

472

 

 

$

462

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

739.1

 

 

 

739.7

 

 

 

739.9

 

 

 

739.5

 

Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed

   purchased at market

 

 

.3

 

 

 

.5

 

 

 

.3

 

 

 

.4

 

Diluted weighted average shares outstanding (1)

 

 

739.4

 

 

 

740.2

 

 

 

740.2

 

 

 

739.9

 

Basic and diluted earnings per common share

 

$

.39

 

 

$

.28

 

 

$

.64

 

 

$

.62

 

___________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.  

 

 

 

 

 

  

 

 

 


Page 8 of 22


HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels (1)

Comparable Hotels by Location in Constant US$

 

 

 

As of June 30, 2019

 

 

Quarter ended June 30, 2019

 

 

Quarter ended June 30, 2018

 

 

 

 

 

 

 

 

 

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

 

 

3

 

 

 

1,682

 

 

$

354.83

 

 

 

92.6

%

 

$

328.52

 

 

$

513.83

 

 

$

342.49

 

 

 

91.7

%

 

$

313.94

 

 

$

495.50

 

 

 

4.6

%

 

 

3.7

%

Jacksonville

 

 

1

 

 

 

446

 

 

 

414.11

 

 

 

84.1

 

 

 

348.40

 

 

 

753.61

 

 

 

400.02

 

 

 

84.6

 

 

 

338.47

 

 

 

741.04

 

 

 

2.9

 

 

 

1.7

 

Florida Gulf Coast

 

 

3

 

 

 

940

 

 

 

263.12

 

 

 

75.6

 

 

 

198.83

 

 

 

368.05

 

 

 

253.36

 

 

 

72.8

 

 

 

184.54

 

 

 

342.76

 

 

 

7.7

 

 

 

7.4

 

Phoenix

 

 

5

 

 

 

2,163

 

 

 

249.43

 

 

 

76.0

 

 

 

189.69

 

 

 

415.48

 

 

 

239.04

 

 

 

74.5

 

 

 

177.97

 

 

 

387.91

 

 

 

6.6

 

 

 

7.1

 

Washington, D.C. (CBD)

 

 

5

 

 

 

3,238

 

 

 

278.76

 

 

 

91.5

 

 

 

255.04

 

 

 

367.23

 

 

 

287.52

 

 

 

89.7

 

 

 

257.90

 

 

 

364.36

 

 

 

(1.1

)

 

 

0.8

 

New York

 

 

3

 

 

 

4,259

 

 

 

292.59

 

 

 

84.9

 

 

 

248.42

 

 

 

378.93

 

 

 

302.85

 

 

 

91.0

 

 

 

275.50

 

 

 

408.48

 

 

 

(9.8

)

 

 

(7.2

)

Los Angeles

 

 

4

 

 

 

1,726

 

 

 

228.49

 

 

 

89.1

 

 

 

203.54

 

 

 

300.39

 

 

 

230.17

 

 

 

89.5

 

 

 

205.90

 

 

 

305.41

 

 

 

(1.1

)

 

 

(1.6

)

San Francisco/San Jose

 

 

5

 

 

 

2,353

 

 

 

233.63

 

 

 

81.1

 

 

 

189.45

 

 

 

257.61

 

 

 

229.61

 

 

 

85.1

 

 

 

195.50

 

 

 

272.95

 

 

 

(3.1

)

 

 

(5.6

)

San Diego

 

 

4

 

 

 

4,341

 

 

 

239.00

 

 

 

82.2

 

 

 

196.35

 

 

 

358.12

 

 

 

232.31

 

 

 

84.7

 

 

 

196.69

 

 

 

338.73

 

 

 

(0.2

)

 

 

5.7

 

Philadelphia

 

 

2

 

 

 

810

 

 

 

247.35

 

 

 

89.7

 

 

 

221.94

 

 

 

366.74

 

 

 

223.69

 

 

 

89.0

 

 

 

199.05

 

 

 

331.56

 

 

 

11.5

 

 

 

10.6

 

Boston

 

 

4

 

 

 

3,185

 

 

 

269.77

 

 

 

87.9

 

 

 

237.25

 

 

 

323.53

 

 

 

262.60

 

 

 

89.1

 

 

 

233.87

 

 

 

315.58

 

 

 

1.4

 

 

 

2.5

 

Seattle

 

 

2

 

 

 

1,315

 

 

 

234.35

 

 

 

85.1

 

 

 

199.47

 

 

 

271.52

 

 

 

253.60

 

 

 

88.6

 

 

 

224.66

 

 

 

301.53

 

 

 

(11.2

)

 

 

(10.0

)

New Orleans

 

 

1

 

 

 

1,333

 

 

 

196.98

 

 

 

81.0

 

 

 

159.65

 

 

 

233.90

 

 

 

196.05

 

 

 

85.4

 

 

 

167.43

 

 

 

231.49

 

 

 

(4.7

)

 

 

1.0

 

Atlanta

 

 

5

 

 

 

1,936

 

 

 

187.76

 

 

 

76.8

 

 

 

144.13

 

 

 

224.53

 

 

 

183.48

 

 

 

80.1

 

 

 

146.93

 

 

 

226.88

 

 

 

(1.9

)

 

 

(1.0

)

Northern Virginia

 

 

4

 

 

 

1,551

 

 

 

216.65

 

 

 

79.8

 

 

 

172.97

 

 

 

268.16

 

 

 

210.02

 

 

 

82.1

 

 

 

172.47

 

 

 

275.19

 

 

 

0.3

 

 

 

(2.6

)

San Antonio

 

 

1

 

 

 

512

 

 

 

191.14

 

 

 

78.6

 

 

 

150.16

 

 

 

201.00

 

 

 

198.76

 

 

 

76.4

 

 

 

151.84

 

 

 

201.75

 

 

 

(1.1

)

 

 

(0.4

)

Miami

 

 

2

 

 

 

843

 

 

 

147.95

 

 

 

79.9

 

 

 

118.28

 

 

 

169.08

 

 

 

143.52

 

 

 

80.9

 

 

 

116.09

 

 

 

173.14

 

 

 

1.9

 

 

 

(2.3

)

Orange County

 

 

3

 

 

 

1,178

 

 

 

180.76

 

 

 

80.1

 

 

 

144.73

 

 

 

231.12

 

 

 

188.90

 

 

 

80.2

 

 

 

151.58

 

 

 

237.44

 

 

 

(4.5

)

 

 

(2.7

)

Orlando

 

 

1

 

 

 

2,004

 

 

 

177.39

 

 

 

70.7

 

 

 

125.33

 

 

 

295.11

 

 

 

186.83

 

 

 

75.0

 

 

 

140.15

 

 

 

310.02

 

 

 

(10.6

)

 

 

(4.8

)

Chicago

 

 

6

 

 

 

2,393

 

 

 

224.69

 

 

 

83.8

 

 

 

188.34

 

 

 

257.40

 

 

 

234.71

 

 

 

83.9

 

 

 

197.01

 

 

 

261.57

 

 

 

(4.4

)

 

 

(1.6

)

Houston

 

 

4

 

 

 

1,716

 

 

 

181.69

 

 

 

74.6

 

 

 

135.49

 

 

 

193.31

 

 

 

178.28

 

 

 

74.9

 

 

 

133.49

 

 

 

195.67

 

 

 

1.5

 

 

 

(1.2

)

Denver

 

 

3

 

 

 

1,340

 

 

 

176.07

 

 

 

79.4

 

 

 

139.88

 

 

 

210.69

 

 

 

169.90

 

 

 

81.3

 

 

 

138.10

 

 

 

199.97

 

 

 

1.3

 

 

 

5.4

 

Other

 

 

7

 

 

 

3,084

 

 

 

174.29

 

 

 

80.8

 

 

 

140.84