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Host Hotels & Resorts, Inc. Reports Strong Operating Results For

Host Hotels & Resorts, Inc. Reports Strong Operating Results For The First Quarter

BETHESDA, Md., May 1, 2014 - Host Hotels & Resorts, Inc. (NYSE: HST), the nation’s largest lodging real estate investment trust (“REIT”), today announced results of operations for the first quarter of 2014.

http://photos.prnewswire.com/prnvar/20060417/HOSTLOGO

 

                                              Operating Results

                                  (in millions, except per share and hotel statistics)


                                                                Quarter ended
                                                          ———

                                                              March 31,        March 31,      Percent

                                                                        2014         2013   Change
                                                                      ——        —————

  Total revenues                                                           $1,309         $1,224         6.9%

  Comparable hotel revenues (a)                                                1,204         1,126         6.9%

  Net income                                                               185           60         208.3%

  Adjusted EBITDA (a)                                                        308           283         8.8%

  Change in comparable hotel RevPAR - Constant US                                     $6.8%

  Change in comparable hotel RevPAR - Nominal US                                       $6.2%


  Diluted earnings per share                                                   $.24         $.08         200.0%

  NAREIT FFO per diluted share (a)                                                .32           .29         10.3%

  Adjusted FFO per diluted share (a)                                              .33           .28         17.9%


  _______________

  (a)    NAREIT Funds From Operations
        (“FFO”) per diluted share,
        Adjusted FFO per diluted
        share, Adjusted EBITDA and
        comparable hotel operating
        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.
Total revenues and comparable hotel revenues increased 6.9% for the first quarter of 2014. The strong growth in operating results were driven by an increase in comparable hotel RevPAR of 6.8%, on a constant US$ basis, and an increase of 9.4% in comparable food and beverage operations. The growth in RevPAR reflects strong growth in average room rates and an occupancy increase of 1.5 percentage points to 73.9%. The growth in room revenues was primarily driven by a strong increase in group business of 11%, which provided the Company’s operators the opportunity to shift to higher-rated transient business and to decrease lower-rated discount business helping to drive profitability. Additionally, the increase in group business helped drive a 13.5% increase in comparable food and beverage banquet revenues. Overall, this resulted in strong margin growth as comparable hotel adjusted operating profit margins increased 120 basis points for the first quarter.

Capital Expenditures

The Company continues to pursue opportunities to enhance asset value through select capital improvements, while ensuring that its high standards for product quality are maintained. For first quarter 2014, the Company has completed renovations of 1,800 guestrooms, over 100,000 square feet of meeting space and approximately 42,000 square feet of public space.


  — Redevelopment and Return on Investment Expenditures (“ROI”) - These
      projects are designed to increase cash flow and to improve profitability
      by capitalizing on changing market conditions and the favorable
      locations of the Company’s properties, including projects such as the
      redevelopment of a hotel, repositioning of a hotel restaurant or the
      installation of energy efficient systems. The Company invested
      approximately $11 million in the first quarter 2014 in ROI capital
      expenditures, of which $5 million was invested in restaurant
      repositionings and energy projects. Projects completed during the first
      quarter include the expansion to the new 9,000 square foot spa at The
      Fairmont Kea Lani, Maui and the renovation of 13,000 square feet of
      restaurant and public space at The Ritz-Carlton, Marina del Rey. The
      Company expects that ROI capital expenditures for 2014 will range from
      $70 million to $80 million.
  — Capital Expenditures for Recent Acquisitions - In conjunction with the
      acquisition of a property, the Company prepares capital and operational
      improvement plans designed to maximize profitability and to enhance the
      guest experience. During the first quarter, the Company invested
      approximately $3 million on these projects, including the completion of
      the first phase of the renovation of over 100,000 square feet of meeting
      space and expansion of the fitness center at the Manchester Grand Hyatt
      San Diego. The Company expects that acquisition capital expenditures
      will total $30 million to $35 million for 2014.
  — Renewal and Replacement Expenditures - The Company invested
      approximately $76 million in renewal and replacement capital
      expenditures during the first quarter 2014. Major renewal and
      replacement projects completed include the renovation of all guest rooms
      at The Westin Indianapolis and the Newport Beach Marriott Hotel & Spa
      and almost 12,000 square feet of public space at the Sheraton San Diego
      Hotel & Marina. The Company expects that renewal and replacement
      expenditures for 2014 will total approximately $320 million to $340
      million.
Balance Sheet

During the first quarter of 2014, the Company redeemed the remaining $150 million of 6¾% Series Q senior notes at 101.125%, which reflects a $2 million call premium, and repaid $225 million borrowed under its credit facility. Additionally, the Company repaid the $300 million mortgage note on The Ritz-Carlton, Naples and Newport Beach Marriott Hotel & Spa on February 28, 2014 with available cash.

The Company has approximately $392 million of cash and cash equivalents and $782 million of available capacity under its credit facility. As of March 31, 2014, the Company’s total debt was $4.1 billion, with an average maturity of 5.7 years and an average interest rate of 4.9%, including nearly 80% with a fixed rate of interest.

European Joint Venture        

The European joint venture’s comparable hotel RevPAR on a constant euro basis increased 2.8% in the first quarter 2014. The comparable RevPAR results were primarily driven by a 220 basis point increase in occupancy as a result of strong group business.

Dividend

The Company paid a regular quarterly cash dividend of $.14 per share on its common stock on April 15, 2014 to stockholders of record on March 31, 2014.. The amount of any future dividend is dependent on the Company’s taxable income and will be determined by the Company’s Board of Directors.

2014 Outlook

The Company anticipates that its 2014 operating results will increase as follows:

 

                        Full Year 2014
                   

                        Low-end         High-end

                        of range         of range
                      -        -

  Comparable hotel RevPAR
    for domestic properties             5.0%        6.0%

  Comparable hotel RevPAR
    for international
    properties -constant US             $7.0%        8.0%

  Total comparable hotel
    RevPAR -constant US               $5.0%        6.0%


  Total revenues under GAAP             3.3%        4.3%

  Total comparable hotel
    revenues                       4.7%        5.7%

  Operating profit margins
    under GAAP                   180 bps     240 bps

  Comparable hotel adjusted
    operating profit margins           70 bps     120 bps
Based upon these parameters, the Company estimates that its 2014 guidance is as follows (in millions, except per share amounts):

 

                            Full Year 2014
                     

                          Low-end             High-end

                          of range             of range
                        -            -

  Diluted earnings
    per share                         $.64           $.69

  Net income                           497           534

  NAREIT FFO per
    diluted share                       1.41           1.45

  Adjusted FFO per
    diluted share                       1.41           1.46

  Adjusted EBITDA                     1,360         1,400
See the 2014 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 and Fortune 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 99 properties in the United States and 15 properties internationally totaling approximately 60,000 rooms. The Company also holds non-controlling interests in five joint ventures, including one in Europe that owns 19 hotels with approximately 6,400 rooms and one in Asia that has interests in three hotels in Australia and India. 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(®), Le Meridien(®), The Luxury Collection(®), Hyatt(®), Fairmont(®), Four Seasons(®), Hilton(®), Swissotel(®), ibis(®), Pullman(®), and Novotel(®) in the operation of properties in over 50 major markets worldwide. For additional information, please visit the Company’s website at http://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 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; 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 May 1, 2014, 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” or “Host Inc.,” is a self-managed and self-administered real estate investment trust (“REIT”) 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 1.3% of the partnership interests in Host LP held by outside partners as of March 31, 2014, 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.

 

 

 


                                                                  HOST S & RESORTS, INC.

                                                            Condensed Consolidated Balance Sheets (a)

                                                          (in millions, except shares and per share amounts)


                                                                                            March 31,        December 31,

                                                                                                      2014             2013
                                                                                                      ——          ——

                                                                                            (unaudited)

                                                                        ASSETS
                                                                      ———


  Property and equipment, net                                                                               $10,817           $10,995

  Due from managers                                                                                         111             52

  Advances to and investments in affiliates                                                                         412             415

  Deferred financing costs, net                                                                                 39             42

  Furniture, fixtures and equipment replacement fund                                                                   149             173

  Other                                                                                                 256             244

  Restricted cash                                                                                           33             32

  Cash and cash equivalents                                                                                   392             861
                                                                                                      —-            —-

          Total assets                                                                                 $12,209           $12,814
                                                                                                    =======          =======


                                                        LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY
                                                       


  Debt

      Senior notes, including $375 million and $371 million, respectively, net of                                             $2,872           $3,018

        discount, of Exchangeable Senior Debentures

      Credit facility, including the $500 million term loan                                                             718             946

      Mortgage debt                                                                                         417             709

      Other                                                                                               86             86
                                                                                                      —-            —-

          Total debt                                                                                     4,093           4,759

  Accounts payable and accrued expenses                                                                           185             214

  Other                                                                                                 386             389
                                                                                                      —-            —-

          Total liabilities                                                                               4,664           5,362
                                                                                                    ——-          ——-


  Non-controlling interests-Host Hotels & Resorts, L.P                                                                 196             190


  Host Hotels & Resorts, Inc. stockholders’ equity:

      Common stock, par value $.01, 1,050 million shares authorized; 755.3 million                                                 8               8

        shares and 754.8 million shares issued and outstanding, respectively

      Additional paid-in capital                                                                               8,494           8,492

      Accumulated other comprehensive loss                                                                           (2)            (9)

      Deficit                                                                                           (1,189)          (1,263)
                                                                                                    ———          ———

          Total equity of Host Hotels & Resorts, Inc. stockholders                                                     7,311           7,228

  Non-controlling interests-other consolidated partnerships                                                               38             34
                                                                                                      —-            —-

          Total equity                                                                                   7,349           7,262
                                                                                                    ——-          ——-

          Total liabilities, non-controlling interests and equity                                                     $12,209           $12,814
                                                                                                    =======          =======


  ________________

  (a)    Our consolidated balance sheets as
        of March 31, 2014 have been
        prepared without audit. Certain
        information and footnote
        disclosures normally included in
        financial statements presented in
        accordance with GAAP have been
        omitted.

 

 

 


        HOST S & RESORTS, INC.

  Condensed Consolidated Statements of Operations (a)

  (unaudited, in millions, except per share amounts)


                                Quarter
                                  ended
                                  March
                                  31,
                            —

                            2014   2013
                          ——  ——

  Revenues

      Rooms                   $808   $762

      Food and beverage           405   369

      Other                     96     93
                            —-  —-

        Total revenues         1,309   1,224
                          ——-  ——-

  Expenses

      Rooms                   226   215

      Food and beverage           284   272

      Other departmental and
      support expenses           315   307

      Management fees             50     47

      Other property-level
      expenses                 97     94

      Depreciation and
      amortization               172   173

      Corporate and other expenses     34     26

      Gain on insurance
      settlements               (3)    -
                            —-  —-

        Total operating costs and
        expenses             1,175   1,134
                          ——-  ——-

  Operating profit               134     90

  Interest income                 1     1

  Interest expense (b)            (58)  (76)

  Gain on sale of other assets         -    12

  Gain on foreign currency
    transactions and
    derivatives                   -    2

  Equity in losses of
    affiliates                   (8)    (2)
                            —-  —-

  Income before income taxes         69     27

  Benefit for income taxes           7     7
                            —-  —-

  Income from continuing
    operations                   76     34

  Income from discontinued
    operations, net of tax           -    26
                            —-  —-

  Income before gain on sale
    of property (c)                76     60

  Gain on sale of property,
    net of tax                   109     -
                            —-  —-

  Net income                   185     60

  Less:  Net income
    attributable to non-
    controlling interests           (6)    (4)
                            —-  —-

  Net income attributable to
    Host Inc.                  $179   $56
                            ====    ===

  Basic and diluted earnings per common
    share:

      Continuing operations (c)      $.24   $.04

      Discontinued operations         -    .04
                            —-  —-

  Basic and diluted earnings
    per common share             $.24   $.08
                            ====  ====


  ______________

  (a)    Our consolidated statements
        of operations presented
        above have been prepared
        without audit. Certain
        information and footnote
        disclosures normally
        included in financial
        statements presented in
        accordance with GAAP have
        been omitted.

  (b)    Interest expense includes the
        following items:


                                          Quarter
                                          ended
                                          March
                                          31,
                                  -

                                  2014 2013
                                  ————

    Non-cash interest for exchangeable debentures   $4   $4

    Debt extinguishment costs                 2   -
                                  —-  —-

            Total                     $6   $4
                                  ===  ===

 

  (c)    Effective January 1,
        2014, we adopted a new
        accounting standard for
        reporting discontinued
        operations. Under this
        standard, the disposal
        of a hotel, or group of
        hotels, is required to
        be reported in
        discontinued operations
        only if the disposal
        represents a strategic
        shift that has, or will
        have, a major effect on
        the company’s operations
        and financial results.
        However, the gain or
        loss on the sale of a
        hotel will be reported
        separately below income
        from continuing
        operations. Under the
        new standard, we are not
        permitted to restate
        prior year results, so
        the results of
        operations of hotels
        sold in 2013 will
        continue to be reported
        in discontinued
        operations. For purposes
        of the earnings per
        share calculation,
        beginning in 2014 gains
        or losses on property
        sales will be included
        in continuing
        operations, as
        prescribed under GAAP.

 

 

 


                                                      HOST S & RESORTS, INC.

                                                      Earnings per Common Share

                                              (unaudited, in millions, except per share amounts)


                                                                                    Quarter ended March 31,
                                                                                —

                                                                                    2014         2013
                                                                                  ——        ——

  Net income                                                                           $185           $60

      Less:  Net income attributable to non-controlling interests                                         (6)          (4)
                                                                                    —-          —-

  Net income attributable to Host Inc.                                                          179           56

  Assuming conversion of exchangeable senior debentures                                               7           -
                                                                                    —-          —-

  Diluted income attributable to Host Inc.                                                      $186           $56
                                                                                    ====          ===


  Basic weighted average common shares outstanding                                                 754.9         728.2

  Assuming weighted average shares for conversion of exchangeable senior                                   29.9           9.9

      debentures

  Assuming distribution of common shares granted under the comprehensive stock                               .3           .5

      plans, less shares assumed purchased at market
                                                                                                —-

  Diluted weighted average common shares outstanding (a)                                            785.1         738.6
                                                                                  =====        =====

  Basic and diluted earnings per common share                                                     $.24         $.08
                                                                                    ====          ====


  _____________

  (a)    Dilutive securities may
        include shares granted under
        comprehensive stock plans,
        preferred operating
        partnership units (“OP
        Units”) held by minority
        partners, exchangeable debt
        securities 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 S & RESORTS, INC.

                                                      Hotel Operating Data for Consolidated Hotels (a)


  Comparable Hotels by Market in Constant US$


                                As of March 31, 2014     Quarter ended March 31, 2014       Quarter ended March 31, 2013
                                ———         

                                                                                                Average                             Average                 Percent

                                      No. of               No. of                       Average         Occupancy                 Average       Occupancy               Change in

  Market (b)                          Properties               Rooms                     Room Rate         Percentage       RevPAR     Room Rate     Percentage       RevPAR       RevPAR
  —                          —-              ——-                    —        —-    ———      —    —-    ———      ———

  Boston                                         5                   3,432                     $172.94         60.9%      $105.36       $163.11         66.4%      $108.30       (2.7)%

  New York                                         9                   7,224                     246.13         77.6       190.89       232.73         78.7       183.14         4.2

  Philadelphia                                     2                   776                     192.34         78.6       151.17       198.64         63.0       125.20         20.7

  Washington, D.C                                   12                   6,016                     205.70         69.6       143.14       210.95         68.0       143.40         (0.2)

  Atlanta                                         6                   2,280                     171.62         74.8       128.36       162.00         72.2       116.95         9.8

  Florida                                         7                   3,230                     245.25         85.8       210.43       239.05         84.2       201.27         4.6

  Chicago                                         7                   2,857                     142.64         59.6         85.01       148.46         58.9         87.47         (2.8)

  Denver                                         3                   1,363                     145.62         62.0         90.33       136.61         55.4         75.72         19.3

  Houston                                         4                   1,706                     191.53         79.9       152.98       175.59         82.3       144.53         5.8

  Phoenix                                         4                   1,522                     245.17         82.6       202.58       235.30         79.1       186.12         8.8

  Seattle                                         3                   1,774                     163.37         72.1       117.75       150.31         66.1         99.38         18.5

  San Francisco                                     5                   3,701                     214.98         77.6       166.78       185.71         71.7       133.15         25.3

  Los Angeles                                       8                   3,228                     171.01         81.2       138.80       159.34         80.3       127.88         8.5

  San Diego                                       5                   4,691                     196.10         80.4       157.68       185.32         73.4       136.09         15.9

  Hawaii                                         2                   1,256                     401.96         86.4       347.40       371.82         89.4       332.31         4.5

  Other                                         13                   7,929                     166.94         68.4       114.17       165.23         68.3       112.79         1.2
                                              —-                  ——-                    ———      ——      ———      ———      ——      ———        —-

      Domestic                                   95                 52,985                     203.71         74.0       150.65       195.20         72.4       141.29         6.6
                                              —-                ———                    ———      ——      ———      ———      ——      ———        —-


  Asia-Pacific                                     7                   1,378                     $158.80         85.5%      $135.72       $150.56         83.3%      $125.49         8.2%

  Canada                                         3                   1,219                     169.91         62.0       105.37       162.74         64.3       104.64         0.7

  Latin America                                     4                   1,075                     249.10         69.1       172.04       211.53         67.3       142.38         20.8
                                              —-                  ——-                    ———      ——      ———      ———      ——      ———      ——

      International                                 14                   3,672                     186.71         73.0       136.27       170.57         72.4       123.53         10.3
                                              —-                  ——-                    ———      ——      ———      ———      ——      ———      ——

      All Markets -                                109                 56,657                     202.61         73.9       149.71       193.59         72.4       140.13         6.8

        Constant US$

 

  All Owned Hotels in Constant US$ (c)


                                As of March 31, 2014       Quarter ended March 31, 2014       Quarter ended March 31, 2013
                                ———         

                                                                                                Average                             Average                 Percent

                                    No. of                 No. of                     Average         Occupancy                 Average       Occupancy               Change in

                                    Properties               Rooms                     Room Rate         Percentage       RevPAR     Room Rate     Percentage       RevPAR       RevPAR
                                  —-              ——-                    —        —-    ———      —    —-    ———      ———

  Comparable Hotels                                 109                 56,657                     $202.61         73.9%      $149.71       $193.59         72.4%      $140.13         6.8%

  Non-comparable Hotels (Pro Forma)                        5                   3,172                     250.87         80.9       203.03       248.72         75.3       187.39         8.3
                                              —-                  ——-                    ———      ——      ———      ———      ——      ———        —-

      All Hotels                                 114                 59,829                     205.40         74.3       152.54       196.48         72.5       142.52         7.0
                                              ===                  ======


  Comparable Hotels in Nominal US$


                                As of March 31, 2014     Quarter ended March 31, 2014       Quarter ended March 31, 2013
                                ———         

                                                                                                Average                             Average                 Percent

  International                           No. of               No. of                     Average         Occupancy                 Average       Occupancy               Change in

      Market                           Properties               Rooms                     Room Rate         Percentage       RevPAR     Room Rate     Percentage       RevPAR       RevPAR
    ———                        —-              ——-                    —        —-    ———      —    —-    ———      ———

  Asia-Pacific                                     7                   1,378                     $158.80         85.5%      $135.72       $160.52         83.3%      $133.79         1.4%

  Canada                                         3                   1,219                     169.91         62.0       105.37       178.00         64.3       114.45         (7.9)

  Latin America                                     4                   1,075                     249.10         69.1       172.04       241.89         67.3       162.81         5.7
                                              —-                  ——-                    ———      ——      ———      ———      ——      ———        —-

      International                                 14                   3,672                     186.71         73.0       136.27       187.57         72.4       135.85         0.3

      Domestic                                   95                 52,985                     203.71         74.0       150.65       195.20         72.4       141.29         6.6
                                              —-                ———                    ———      ——      ———      ———      ——      ———        —-

      All Markets                                 109                 56,657                     202.61         73.9       149.71       194.70         72.4       140.93         6.2
                                              ===                  ======


  Comparable Hotels by Type in Nominal US$


                                As of March 31, 2014       Quarter ended March 31, 2014       Quarter ended March 31, 2013
                                ———         

                                                                                                Average                             Average                 Percent

                                    No. of               No. of                       Average         Occupancy                 Average       Occupancy               Change in

  Property Type (b)                      Properties               Rooms                     Room Rate         Percentage       RevPAR     Room Rate     Percentage       RevPAR       RevPAR
  —                    —-              ——-                    —        —-    ———      —    —-    ———      ———

  Urban                                         57                 35,243                     $208.68         73.6%      $153.60       $201.11         72.6%      $146.08         5.1%

  Suburban                                       29                 10,206                     165.46         67.2       111.24       156.73         66.2       103.76         7.2

  Resort                                         11                   5,570                     286.62         82.3       235.89       274.47         80.8       221.88         6.3

  Airport                                         12                   5,638                     138.32         79.4       109.88       130.43         73.6         96.03         14.4
                                              —-                  ——-                    ———      ——      ———      ———      ——      ——-        ——

      All Types                                   109                 56,657                     202.61         73.9       149.71       194.70         72.4       140.93         6.2
                                              ===                  ======


  __________

  (a)    See the Notes to Financial
        Information for a
        discussion of comparable
        hotel operating statistics
        and constant US$
        presentation. Nominal US$
        results include the effect
        of currency fluctuations,
        consistent with our
        financial statement
        presentation.

  (b)    See the Notes to Financial
        Information for a
        description of these
        markets and property
        types.

  (c)    Operating statistics
        presented are for all
        consolidated properties
        owned as of March 31, 2014
        and do not include the
        results of operations for
        properties sold in 2014 or
        2013. Operations for the
        two hotels acquired in
        2014 and 2013 are
        presented on a pro forma
        basis, assuming they were
        owned as of January 1,
        2013. See the Notes to
        Financial Information for
        further information on
        these pro forma statistics
        and the limitations on
        their use.

 

 

 


                                  European Joint Venture Hotels


                                                        As of March 31,
                                                            2014       Quarter ended March 31, 2014   Quarter ended March 31, 2013
                                                      —— 

                                                                                                              Average                   Average               Percent

                                                            No. of           No. of                 Average         Occupancy           Average   Occupancy             Change in

                                                        Properties             Rooms               Room Rate         Percentage   RevPAR   Room Rate   Percentage     RevPAR     RevPAR
                                                        —-          ——-                —        —- ———  —  —-    ———    ———

  Total comparable - in Constant Euros (a)                                    18                   5,962           EUR     161.56     67.8%    EUR
                                                                                                                      109.57 EUR     162.41     65.6% EUR   106.57     2.8%

  Total comparable - in Nominal Euros (a)                                    18                   5,962                 161.56     67.8   109.57       161.86     65.6       106.21     3.2

  All Hotels (Pro Forma) - in Constant Euros (b)                                19                   6,427                 160.92     67.7   108.89       161.63     65.2       105.36     3.4


  __________

  (a)    Total comparable statistics
        include the operating
        performance for the 18
        properties in the joint
        venture with comparable
        results (determined on the
        same basis as our
        consolidated comparable
        hotel portfolio). The
        total comparable
        statistics exclude the
        Sheraton Stockholm Hotel,
        which was acquired in 2013
        as the joint venture did
        not own the hotel for the
        entirety of 2013. See
        Notes to Financial
        Information for a
        discussion of the constant
        Euro and nominal Euro
        presentation.

  (b)    Operating statistics
        presented are for all
        properties owned by the
        joint venture as of March
        31, 2014 and do not
        include the results of
        operations for one
        property sold in 2013.
        Operations for the
        Sheraton Stockholm hotel
        are presented on a pro
        forma basis, assuming it
        was owned as of January 1,
        2013. See Notes to
        Financial Information for
        further information on
        these pro forma statistics
        and limitations on their
        use.

 

 

 


                                                HOST S & RESORTS, INC.

                                              Comparable Hotel Operating Data

                                            Schedule of Comparable Hotel Results (a)

                                        (unaudited, in millions, except per hotel amounts)


                                                                                Quarter ended March 31,
                                                                          —

                                                                              2014       2013
                                                                              ——      ——

  Number of hotels                                                                   109         109

  Number of rooms                                                                 56,657       56,657

  Percent change in comparable hotel RevPAR - Constant US                                       $6.8%        -

  Percent change in comparable hotel RevPAR - Nominal US                                         $6.2%        -

  Operating profit margin (b)                                                          10.2%        7.4%

  Comparable hotel adjusted operating profit margin (b)                                        24.0%      22.8%

  Comparable hotel revenues

      Room                                                                       $764       $719

      Food and beverage (c)                                                            370         338

      Other                                                                       70         69
                                                                              —-        —-

          Comparable hotel revenues (d)                                                  1,204       1,126
                                                                              ——-      ——-

  Comparable hotel expenses

      Room                                                                       215         202

      Food and beverage (e)                                                            264         250

      Other                                                                       35         35

      Management fees, ground rent and other costs                                             401         382
                                                                              —-        —-

          Comparable hotel expenses (f)                                                  915         869
                                                                              —-        —-

  Comparable hotel adjusted operating profit                                                 289         257

  Non-comparable hotel results, net (g)                                                    51         32

  Depreciation and amortization                                                         (172)      (173)

  Corporate and other expenses                                                           (34)        (26)
                                                                              —-        —-

  Operating profit                                                                 $134         $90
                                                                              ====        ===


  ____________

  (a)    See the Notes to
        Financial Information
        for a discussion of non-
        GAAP measures and the
        calculation of
        comparable hotel
        results.

  (b)    Operating profit margins
        are calculated by
        dividing the applicable
        operating profit by the
        related revenue amount.
        GAAP operating profit
        margins are calculated
        using amounts presented
        in the consolidated
        statements of
        operations. Comparable
        hotel adjusted operating
        profit margins are
        calculated using amounts
        presented in the above
        table.

  (c)    The reconciliation of
        total food and beverage
        sales per the
        consolidated statements
        of operations to the
        comparable food and
        beverage sales is as
        follows:

 


                                                        Quarter ended March 31,
                                                    —

                                                        2014         2013
                                                        ——        ——

    Food and beverage sales per the consolidated statements of operations       $405         $369

    Non-comparable hotel food and beverage sales                         (46)          (41)

    Food and beverage sales for the property for which we record rental income     11           10
                                                        —-          —-

            Comparable food and beverage sales                       $370         $338
                                                        ====          ====

 

  (d)    The reconciliation of
        total revenues per the
        consolidated statements
        of operations to the
        comparable hotel
        revenues is as follows:

 


                                            Quarter ended March 31,
                                        —

                                            2014         2013
                                          ——        ——

    Revenues per the consolidated statements of operations   $1,309         $1,224

    Non-comparable hotel revenues                     (121)        (112)

    Hotel revenues for which we record rental income, net       16           14
                                            —-          —-

            Comparable hotel revenues               $1,204         $1,126
                                          ======        ======

 

  (e)    The reconciliation of
        total food and beverage
        expenses per the
        consolidated statements
        of operations to the
        comparable food and
        beverage expenses is as
        follows:

 


                                                          Quarter ended March 31,
                                                      —

                                                          2014         2013
                                                          ——        ——

    Food and beverage expenses per the consolidated statements of operations       $284         $272

    Non-comparable hotel food and beverage expenses                         (26)          (28)

    Food and beverage expenses for the property for which we record rental income       6           6
                                                          —-          —-

            Comparable food and beverage expenses                       $264         $250
                                                          ====          ====

 

  (f) The reconciliation of operating costs per the consolidated statements of operations to the comparable hotel expenses is as follows:

 


                                                        Quarter ended March 31,
                                                    —

                                                        2014         2013
                                                        ——        ——

    Operating costs and expenses per the consolidated statements of operations   $1,175         $1,134

    Non-comparable hotel expenses                                   (70)          (80)

    Hotel expenses for which we record rental income                       16           14

    Depreciation and amortization                                   (172)        (173)

    Corporate and other expenses                                   (34)          (26)
                                                        —-          —-

            Comparable hotel expenses                             $915         $869
                                                        ====          ====

 

  (g)    Non-comparable hotel
        results, net, includes
        the following items: (i)
        the results of
        operations of our non-
   


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Posted on May 01, 2014 - 11:14 AM • Print

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