UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q
10-Q

☒x         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended September 30, 2023
OR
2022

OR

☐o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

Commission File Number: 001-14625 (Host Hotels & Resorts, Inc.)

0-25087 (Host Hotels & Resorts, L.P.)

HOST HOTELS & RESORTS, INC.

HOST HOTELS & RESORTS, L.P.

(Exact name of registrant as specified in its charter)

Maryland (Host Hotels & Resorts, Inc.)53-0085950
Delaware (Host Hotels & Resorts, L.P.)52-2095412
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)

Maryland (Host Hotels & Resorts, Inc.)

Delaware (Host Hotels & Resorts, L.P.)

(State or Other Jurisdiction of

Incorporation or Organization)

53-0085950

52-2095412

(I.R.S. Employer

Identification No.)

4747 Bethesda Ave, Suite 1300
20814
Bethesda, Maryland(Zip Code)

Bethesda, Maryland

(Address of Principal Executive Offices)

20814

(Zip Code)

(240)

(240) 744-1000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of Each Exchange on Which Registered

Host Hotels & Resorts, Inc.

Common Stock, $0.01 par value

HST

The Nasdaq Stock Market LLC

Host Hotels & Resorts, L.P.

None

None

None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Host Hotels & Resorts, Inc.

Yes  ☑

þ

No

o

No ☐

Host Hotels & Resorts, L.P.

Yes  ☑

þ

No

o

No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Host Hotels & Resorts, Inc.

Yes  ☑

þ

No

o

No ☐

Host Hotels & Resorts, L.P.

Yes  ☑

þ

No

o

No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Host Hotels & Resorts, Inc.

Large accelerated filer    ☑

þ

Accelerated filer ☐

o

Non-accelerated filer ☐

o

Smaller reporting company☐o

Emerging growth company☐

o

Host Hotels & Resorts, L.P.

Large accelerated filer ☐

o

Accelerated filer ☐

o

Non-accelerated filer    ☑

þ

Smaller reporting company☐o

Emerging growth company☐

o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Host Hotels & Resorts, Inc.

Yes

Yes ☐o

No

þ

No ☑

Host Hotels & Resorts, L.P.

Yes

Yes ☐o

No

þ

No ☑

As of November 2, 2022,1, 2023, there were 715,027,761705,437,012 shares of Host Hotels & Resorts, Inc.’s common stock, $0.01 par value per share, outstanding.


EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q of Host Hotels & Resorts, Inc. and Host Hotels & Resorts, L.P. Unless stated otherwise or the context requires otherwise, references to “Host Inc.” mean Host Hotels & Resorts, Inc., a Maryland corporation, and references to “Host L.P.” mean Host Hotels & Resorts, L.P., a Delaware limited partnership, and its consolidated subsidiaries, in cases where it is important to distinguish between Host Inc. and Host L.P. We use the terms “we,” “our” or “the company” to refer to Host Inc. and Host L.P. together, unless the context indicates otherwise.

Host Inc. operates as a self-managed and self-administered real estate investment trust (“REIT”). Host Inc. owns properties and conducts operations through Host L.P., of which Host Inc. is the sole general partner and of which it holds approximately 99% of the partnership interests (“OP units”). The remaining OP units are owned by various unaffiliated limited partners. As the sole general partner of Host L.P., Host Inc. has the exclusive and complete responsibility for Host L.P.’s day-to-day management and control. Management operates Host Inc. and Host L.P. as one enterprise. The management of Host Inc. consists of the same persons who direct the management of Host L.P. As general partner with control of Host L.P., Host Inc. consolidates Host L.P. for financial reporting purposes, and Host Inc. does not have significant assets other than its investment in Host L.P. Therefore, the assets and liabilities of Host Inc. and Host L.P. are substantially the same on their respective condensed consolidated financial statements and the disclosures of Host Inc. and Host L.P. also are substantially similar. For these reasons, we believe that the combination into a single report of the quarterly reports on Form 10-Q of Host Inc. and Host L.P. results in benefits to management and investors.

The substantive difference between the filings of Host Inc. and Host L.P. is that Host Inc. is a REIT with public stock, while Host L.P. is a partnership with no publicly traded equity. In the condensed consolidated financial statements, this difference primarily is reflected in the equity (or partners’ capital for Host L.P.) section of the consolidated balance sheets and in the consolidated statements of equity (or partners’ capital for Host L.P.). Apart from the different equity treatment, the condensed consolidated financial statements of Host Inc. and Host L.P. are nearly identical.

This combined Form 10-Q for Host Inc. and Host L.P. includes, for each entity, separate interim financial statements (but combined footnotes), separate reports on disclosure controls and procedures and internal control over financial reporting and separate CEO/CFO certifications. In addition, with respect to any other financial and non-financial disclosure items required by Form 10-Q, any material differences between Host Inc. and Host L.P. are discussed separately herein. For a more detailed discussion of the substantive differences between Host Inc. and Host L.P. and why we believe the combined filing results in benefits to investors, see the discussion in the combined Annual Report on Form 10-K for the year ended December 31, 20212022 under the heading “Explanatory Note.”

i
i

HOST HOTELS & RESORTS, INC. AND HOST HOTELS & RESORTS, L.P.

INDEX

PART I. FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Page No.

Financial Statements for Host Hotels & Resorts, Inc.:

Condensed Consolidated Balance Sheets - September 30, 2022 2023 (unaudited) and December 31, 20212022

1

Condensed Consolidated Statements of Operations (unaudited)(unaudited) - Quarter and Year-to-date endedSeptember 30, 20222023 and 20212022

2

Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited)(unaudited) - Quarter and Year-to-date endedSeptember 30, 20222023 and 20212022

3

Condensed Consolidated Statements of Cash Flows (unaudited)(unaudited) - Year-to-date ended September 30, 20222023 and 20212022

4

Financial Statements for Host Hotels & Resorts, L.P.:

Condensed Consolidated Balance Sheets - September 30, 20222023 (unaudited) and December 31, 20212022

6

Condensed Consolidated Statements of Operations (unaudited)(unaudited) - Quarter and Year-to-date endedSeptember 30, 20222023 and 20212022

7

Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited)(unaudited) - Quarter and Year-to-date endedSeptember 30, 20222023 and 20212022

8

Condensed Consolidated Statements of Cash Flows (unaudited)(unaudited) - Year-to-date ended September 30, 20222023 and 20212022

9

Notes to Condensed Consolidated Financial Statements (unaudited(unaudited))

11

Management’s Discussion and Analysis of Financial Condition and Results of Operations

2123

Quantitative and Qualitative Disclosures about Market Risk

4447

Controls and Procedures

4548

PART II. OTHER INFORMATION

Unregistered Sales of Equity Securities and Use of Proceeds

4649

50

Exhibits50

47

ii

ii

HOST HOTELS & RESORTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, 20222023 and December 31, 2021

2022

(in millions, except share and per share amounts)

September 30, 2023December 31, 2022
unaudited
ASSETS
Property and equipment, net$9,679 $9,748 
Right-of-use assets553 556 
Due from managers78 94 
Advances to and investments in affiliates139 132 
Furniture, fixtures and equipment replacement fund218 200 
Notes receivable322 413 
Other387 459 
Cash and cash equivalents916 667 
Total assets$12,292 $12,269 
LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY
Debt
Senior notes$3,119 $3,115 
Credit facility, including the term loans of $997 and $998, respectively988 994 
Mortgage and other debt105 106 
Total debt4,212 4,215 
Lease liabilities565 568 
Accounts payable and accrued expenses228 372 
Due to managers72 67 
Other184 168 
Total liabilities5,261 5,390 
Redeemable non-controlling interests - Host Hotels & Resorts, L.P.157 164 
Host Hotels & Resorts, Inc. stockholders’ equity:
Common stock, par value $.01, 1,050 million shares authorized, 705.4 million shares and 713.4 million shares issued and outstanding, respectively7 7 
Additional paid-in capital7,588 7,717 
Accumulated other comprehensive loss(73)(75)
Deficit(652)(939)
Total equity of Host Hotels & Resorts, Inc. stockholders6,870 6,710 
Non-redeemable non-controlling interests—other consolidated partnerships4 5 
Total equity6,874 6,715 
Total liabilities, non-controlling interests and equity$12,292 $12,269 

 

 

September 30, 2022

 

 

December 31, 2021

 

 

 

unaudited

 

 

 

 

ASSETS

 

Property and equipment, net

 

$

9,481

 

 

$

9,994

 

Right-of-use assets

 

 

558

 

 

 

551

 

Assets held for sale

 

 

—

 

 

 

270

 

Due from managers

 

 

118

 

 

 

113

 

Advances to and investments in affiliates

 

 

138

 

 

 

42

 

Furniture, fixtures and equipment replacement fund

 

 

187

 

 

 

144

 

Notes receivable

 

 

413

 

 

 

—

 

Other

 

 

389

 

 

 

431

 

Cash and cash equivalents

 

 

883

 

 

 

807

 

Total assets

 

$

12,167

 

 

$

12,352

 

 

 

 

 

 

 

 

LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY

 

Debt

 

 

 

 

 

 

Senior notes

 

$

3,113

 

 

$

3,109

 

Credit facility, including the term loans of $998 and $997, respectively

 

 

993

 

 

 

1,673

 

Mortgage and other debt

 

 

108

 

 

 

109

 

Total debt

 

 

4,214

 

 

 

4,891

 

Lease liabilities

 

 

570

 

 

 

564

 

Accounts payable and accrued expenses

 

 

162

 

 

 

85

 

Due to managers

 

 

74

 

 

 

42

 

Other

 

 

165

 

 

 

198

 

Total liabilities

 

 

5,185

 

 

 

5,780

 

 

 

 

 

 

 

 

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

 

 

165

 

 

 

126

 

 

 

 

 

 

 

 

Host Hotels & Resorts, Inc. stockholders’ equity:

 

 

 

 

 

 

Common stock, par value $.01, 1,050 million shares authorized, 714.9 million
     shares and 714.1 million shares issued and outstanding, respectively

 

 

7

 

 

 

7

 

Additional paid-in capital

 

 

7,738

 

 

 

7,702

 

Accumulated other comprehensive loss

 

 

(77

)

 

 

(76

)

Deficit

 

 

(856

)

 

 

(1,192

)

Total equity of Host Hotels & Resorts, Inc. stockholders

 

 

6,812

 

 

 

6,441

 

Non-redeemable non-controlling interests—other consolidated partnerships

 

 

5

 

 

 

5

 

Total equity

 

 

6,817

 

 

 

6,446

 

Total liabilities, non-controlling interests and equity

 

$

12,167

 

 

$

12,352

 

 

 

 

 

 

 

 

See notes to condensed consolidated financial statements.
1

1

HOST HOTELS & RESORTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Quarter and Year-to-date ended September 30, 20222023 and 2021

2022

(unaudited, in millions, except per share amounts)
Quarter ended September 30,Year-to-date ended September 30,
2023202220232022
REVENUES
Rooms$777 $746 $2,447 $2,251 
Food and beverage328 330 1,174 1,032 
Other109 113 367 361 
Total revenues1,214 1,189 3,988 3,644 
EXPENSES
Rooms196 190 590 539 
Food and beverage241 230 773 675 
Other departmental and support expenses314 300 952 873 
Management fees51 48 185 150 
Other property-level expenses106 90 290 252 
Depreciation and amortization174 164 511 498 
Corporate and other expenses29 29 90 77 
Gain on insurance and business interruption
     settlements		(54)(10)(57)(17)
Total operating costs and expenses1,057 1,041 3,334 3,047 
OPERATING PROFIT157 148 654 597 
Interest income22 10 56 17 
Interest expense(48)(40)(142)(113)
Other gains1 5 70 19 
Equity in earnings (losses) of affiliates(4)(1)7 3 
INCOME BEFORE INCOME TAXES128 122 645 523 
Provision for income taxes(15)(6)(27)(29)
NET INCOME113 116 618 494 
Less: Net income attributable to non-controlling interests(2)(2)(10)(8)
NET INCOME ATTRIBUTABLE TO HOST HOTELS & RESORTS, INC.$111 $114 $608 $486 
Basic earnings per common share$0.16 $0.16 $0.85 $0.68 
Diluted earnings per common share$0.16 $0.16 $0.85 $0.68 

 

 

Quarter ended September 30,

 

 

Year-to-date ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

Rooms

 

$

746

 

 

$

557

 

 

$

2,251

 

 

$

1,237

 

Food and beverage

 

 

330

 

 

 

191

 

 

 

1,032

 

 

 

405

 

Other

 

 

113

 

 

 

96

 

 

 

361

 

 

 

250

 

Total revenues

 

 

1,189

 

 

 

844

 

 

 

3,644

 

 

 

1,892

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

Rooms

 

 

190

 

 

 

150

 

 

 

539

 

 

 

324

 

Food and beverage

 

 

230

 

 

 

146

 

 

 

675

 

 

 

313

 

Other departmental and support expenses

 

 

300

 

 

 

252

 

 

 

873

 

 

 

621

 

Management fees

 

 

48

 

 

 

27

 

 

 

150

 

 

 

59

 

Other property-level expenses

 

 

90

 

 

 

82

 

 

 

252

 

 

 

239

 

Depreciation and amortization

 

 

164

 

 

 

263

 

 

 

498

 

 

 

597

 

Corporate and other expenses

 

 

29

 

 

 

24

 

 

 

77

 

 

 

73

 

Gain on insurance and business interruption settlements

 

 

(10

)

 

 

(5

)

 

 

(17

)

 

 

(5

)

Total operating costs and expenses

 

 

1,041

 

 

 

939

 

 

 

3,047

 

 

 

2,221

 

OPERATING PROFIT (LOSS)

 

 

148

 

 

 

(95

)

 

 

597

 

 

 

(329

)

Interest income

 

 

10

 

 

 

1

 

 

 

17

 

 

 

2

 

Interest expense

 

 

(40

)

 

 

(43

)

 

 

(113

)

 

 

(128

)

Other gains

 

 

5

 

 

 

2

 

 

 

19

 

 

 

4

 

Equity in earnings (losses) of affiliates

 

 

(1

)

 

 

2

 

 

 

3

 

 

 

36

 

INCOME (LOSS) BEFORE INCOME TAXES

 

 

122

 

 

 

(133

)

 

 

523

 

 

 

(415

)

Benefit (provision) for income taxes

 

 

(6

)

 

 

13

 

 

 

(29

)

 

 

81

 

NET INCOME (LOSS)

 

 

116

 

 

 

(120

)

 

 

494

 

 

 

(334

)

Less: Net (income) loss attributable to non-controlling interests

 

 

(2

)

 

 

1

 

 

 

(8

)

 

 

3

 

NET INCOME (LOSS) ATTRIBUTABLE TO HOST HOTELS & RESORTS, INC.

 

$

114

 

 

$

(119

)

 

$

486

 

 

$

(331

)

Basic earnings (loss) per common share

 

$

0.16

 

 

$

(0.17

)

 

$

0.68

 

 

$

(0.47

)

Diluted earnings (loss) per common share

 

$

0.16

 

 

$

(0.17

)

 

$

0.68

 

 

$

(0.47

)

See notes to condensed consolidated financial statements.
2

2

HOST HOTELS & RESORTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Quarter and Year-to-date ended September 30, 20222023 and 2021

2022

(unaudited, in millions)
Quarter ended September 30,Year-to-date ended September 30,
2023202220232022
NET INCOME$113 $116 $618 $494 
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation and other comprehensive income of unconsolidated affiliates(4)(5)2 (4)
Change in fair value of derivative instruments1 2 — 3 
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX(3)(3)2 (1)
COMPREHENSIVE INCOME110 113 620 493 
Less: Comprehensive income attributable to non-controlling interests(2)(2)(10)(8)
COMPREHENSIVE INCOME ATTRIBUTABLE TO HOST HOTELS & RESORTS, INC.$108 $111 $610 $485 


 

 

Quarter ended September 30,

 

 

Year-to-date ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

NET INCOME (LOSS)

 

$

116

 

 

$

(120

)

 

$

494

 

 

$

(334

)

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation and other comprehensive income of unconsolidated affiliates

 

 

(5

)

 

 

(5

)

 

 

(4

)

 

 

(1

)

Change in fair value of derivative instruments

 

 

2

 

 

 

1

 

 

 

3

 

 

 

—

 

OTHER COMPREHENSIVE LOSS, NET OF TAX

 

 

(3

)

 

 

(4

)

 

 

(1

)

 

 

(1

)

COMPREHENSIVE INCOME (LOSS)

 

 

113

 

 

 

(124

)

 

 

493

 

 

 

(335

)

Less: Comprehensive (income) loss attributable to non-controlling interests

 

 

(2

)

 

 

1

 

 

 

(8

)

 

 

3

 

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO HOST HOTELS & RESORTS, INC.

 

$

111

 

 

$

(123

)

 

$

485

 

 

$

(332

)

See notes to condensed consolidated financial statements.
3

3

HOST HOTELS & RESORTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Year-to-date ended September 30, 20222023 and 2021

2022

(unaudited, in millions)
Year-to-date ended September 30,
20232022
OPERATING ACTIVITIES
Net income$618 $494 
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization511 498 
Amortization of finance costs, discounts and premiums, net7 8 
Loss on extinguishment of debt4 — 
Stock compensation expense19 19 
Other gains(70)(19)
Gain on property insurance settlement— (6)
Equity in earnings of affiliates(7)(3)
Change in due from/to managers16 32 
Distributions from investments in affiliates20 23 
Property insurance proceeds - remediation costs101 — 
Changes in other assets(13)7 
Changes in other liabilities(72)3 
Net cash provided by operating activities1,134 1,056 
INVESTING ACTIVITIES
Proceeds from sales of assets, net34 233 
Proceeds from loan receivable163 — 
Advances to and investments in affiliates(22)(59)
Capital expenditures:
Renewals and replacements(332)(117)
Return on investment(140)(240)
Property insurance proceeds34 11 
Net cash used in investing activities(263)(172)
FINANCING ACTIVITIES
Financing costs(10)— 
Repayment of credit facility— (683)
Mortgage debt and other prepayments and scheduled maturities(2)(1)
Debt extinguishment costs(3)— 
Issuance of common stock— 1 
Common stock repurchases(150)— 
Dividends on common stock(420)(65)
Distributions and payments to non-controlling interests(7)(2)
Other financing activities(14)(9)
Net cash used in financing activities(606)(759)
Effects of exchange rate changes on cash held— (4)
NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH265 121 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD874 953 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD$1,139 $1,074 

 

 

Year-to-date ended September 30,

 

 

 

2022

 

 

2021

 

OPERATING ACTIVITIES

 

 

 

 

 

 

Net income (loss)

 

$

494

 

 

$

(334

)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operations:

 

 

 

 

 

 

Depreciation and amortization

 

 

498

 

 

 

597

 

Amortization of finance costs, discounts and premiums, net

 

 

8

 

 

 

7

 

Stock compensation expense

 

 

19

 

 

 

13

 

Other gains

 

 

(19

)

 

 

(4

)

Gain on property insurance settlement

 

 

(6

)

 

 

—

 

Equity in earnings of affiliates

 

 

(3

)

 

 

(36

)

Change in due from/to managers

 

 

32

 

 

 

(78

)

Distributions from investments in affiliates

 

 

23

 

 

 

4

 

Changes in other assets

 

 

7

 

 

 

(99

)

Changes in other liabilities

 

 

3

 

 

 

8

 

Net cash provided by operating activities

 

 

1,056

 

 

 

78

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

Proceeds from sales of assets, net

 

 

233

 

 

 

8

 

Proceeds from loan receivable

 

 

—

 

 

 

9

 

Advances to and investments in affiliates

 

 

(59

)

 

 

(9

)

Acquisitions

 

 

—

 

 

 

(1,217

)

Capital expenditures:

 

 

 

 

 

 

Renewals and replacements

 

 

(117

)

 

 

(92

)

Return on investment

 

 

(240

)

 

 

(201

)

Property insurance proceeds

 

 

11

 

 

 

—

 

Net cash used in investing activities

 

 

(172

)

 

 

(1,502

)

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

Financing costs

 

 

—

 

 

 

(3

)

Repayment of credit facility

 

 

(683

)

 

 

—

 

Mortgage debt and other prepayments and scheduled maturities

 

 

(1

)

 

 

—

 

Issuance of common stock

��

 

1

 

 

 

138

 

Dividends on common stock

 

 

(65

)

 

 

—

 

Distributions and payments to non-controlling interests

 

 

(2

)

 

 

—

 

Other financing activities

 

 

(9

)

 

 

(8

)

Net cash provided by (used in) financing activities

 

 

(759

)

 

 

127

 

Effects of exchange rate changes on cash held

 

 

(4

)

 

 

—

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

 

 

121

 

 

 

(1,297

)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD

 

 

953

 

 

 

2,476

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD

 

$

1,074

 

 

$

1,179

 

See notes to condensed consolidated financial statements.
4

4

HOST HOTELS & RESORTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED

Year-to-date ended September 30, 20222023 and 2021

2022

(unaudited)

Supplemental disclosure of cash flow information (in millions):

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet to the amount shown in the statements of cash flows:

 

 

September 30, 2022

 

 

September 30, 2021

 

Cash and cash equivalents

 

$

883

 

 

$

1,038

 

Restricted cash (included in other assets)

 

 

4

 

 

 

3

 

Cash included in furniture, fixtures and equipment replacement fund

 

 

187

 

 

 

138

 

Total cash and cash equivalents and restricted cash shown in the statements of cash flows

 

$

1,074

 

 

$

1,179

 

September 30, 2023September 30, 2022
Cash and cash equivalents$916 $883 
Restricted cash (included in other assets)5 4 
Cash included in furniture, fixtures and equipment replacement fund218 187 
Total cash and cash equivalents and restricted cash shown in the statements of cash flows$1,139 $1,074 
The following table presents cash paid (received) for the following:

 

 

Year-to-date ended September 30,

 

 

 

2022

 

 

2021

 

Total interest paid

 

$

100

 

 

$

115

 

Income tax refunds received

 

$

(7

)

 

$

(3

)

 Year-to-date ended September 30,
 20232022
Total interest paid$129 $100 
Income taxes paid (refunds received)$5 $(7)

Supplemental schedule of noncash investing and financing activities:

In connection with the sales of The Camby, Autograph Collection in March 2023, the Sheraton Boston Hotel in February 2022, and the Sheraton New York Times Square Hotel in April 2022, we issued loans to the buyers for $72 million, $163 million, and $250 million, respectively. The proceeds received from the sales are net of the loans.
On January 20, 2022, we entered into definitive agreements with Noble Investment Group, LLC, and certain other entities and persons related to Noble Investment Group, LLC, pursuant to which we made an investment in a joint venture with Noble Investment Group. In connection with the investment, Host Hotels & Resorts, L.P. issued approximately 3.2 million OP units valued at approximately $$56 million.

56
 million.

In connection with the sales of the Sheraton Boston Hotel in February 2022 and the Sheraton New York Times Square Hotel in April 2022, we issued bridge loans to the buyers for $163 million and $250 million, respectively. The proceeds received from the sales are net of the loans.

In 2021, non-cash consideration for the acquisition of the Four Seasons Resort Orlando at Walt Disney World® Resort included the assumption of hotel-level liabilities of approximately $24 million, consisting primarily of advance deposits received from guests for future stays, the cash related to which was retained by the seller.

See notes to condensed consolidated financial statements.
5

5

HOST HOTELS & RESORTS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, 20222023 and December 31, 2021

2022

(in millions)
September 30, 2023December 31, 2022
unaudited
ASSETS
Property and equipment, net$9,679 $9,748 
Right-of-use assets553 556 
Due from managers78 94 
Advances to and investments in affiliates139 132 
Furniture, fixtures and equipment replacement fund218 200 
Notes receivable322 413 
Other387 459 
Cash and cash equivalents916 667 
Total assets$12,292 $12,269 
LIABILITIES, LIMITED PARTNERSHIP INTERESTS OF THIRD PARTIES AND CAPITAL
Debt
Senior notes$3,119 $3,115 
Credit facility, including the term loans of $997 and $998, respectively988 994 
Mortgage and other debt105 106 
Total debt4,212 4,215 
Lease liabilities565 568 
Accounts payable and accrued expenses228 372 
Due to managers72 67 
Other184 168 
Total liabilities5,261 5,390 
Limited partnership interests of third parties157 164 
Host Hotels & Resorts, L.P. capital:
General partner1 1 
Limited partner6,942 6,784 
Accumulated other comprehensive loss(73)(75)
Total Host Hotels & Resorts, L.P. capital6,870 6,710 
Non-controlling interests—consolidated partnerships4 5 
Total capital6,874 6,715 
Total liabilities, limited partnership interests of third parties and capital$12,292 $12,269 


 

 

September 30, 2022

 

 

December 31, 2021

 

 

 

unaudited

 

 

 

 

ASSETS

 

Property and equipment, net

 

$

9,481

 

 

$

9,994

 

Right-of-use assets

 

 

558

 

 

 

551

 

Assets held for sale

 

 

—

 

 

 

270

 

Due from managers

 

 

118

 

 

 

113

 

Advances to and investments in affiliates

 

 

138

 

 

 

42

 

Furniture, fixtures and equipment replacement fund

 

 

187

 

 

 

144

 

Notes receivable

 

 

413

 

 

 

—

 

Other

 

 

389

 

 

 

431

 

Cash and cash equivalents

 

 

883

 

 

 

807

 

Total assets

 

$

12,167

 

 

$

12,352

 

 

 

 

 

 

 

 

LIABILITIES, LIMITED PARTNERSHIP INTERESTS OF THIRD PARTIES AND CAPITAL

 

Debt

 

 

 

 

 

 

Senior notes

 

$

3,113

 

 

$

3,109

 

Credit facility, including the term loans of $998 and $997, respectively

 

 

993

 

 

 

1,673

 

Mortgage and other debt

 

 

108

 

 

 

109

 

Total debt

 

 

4,214

 

 

 

4,891

 

Lease liabilities

 

 

570

 

 

 

564

 

Accounts payable and accrued expenses

 

 

162

 

 

 

85

 

Due to managers

 

 

74

 

 

 

42

 

Other

 

 

165

 

 

 

198

 

Total liabilities

 

 

5,185

 

 

 

5,780

 

 

 

 

 

 

 

 

Limited partnership interests of third parties

 

 

165

 

 

 

126

 

 

 

 

 

 

 

 

Host Hotels & Resorts, L.P. capital:

 

 

 

 

 

 

General partner

 

 

1

 

 

 

1

 

Limited partner

 

 

6,888

 

 

 

6,516

 

Accumulated other comprehensive loss

 

 

(77

)

 

 

(76

)

Total Host Hotels & Resorts, L.P. capital

 

 

6,812

 

 

 

6,441

 

Non-controlling interests—consolidated partnerships

 

 

5

 

 

 

5

 

Total capital

 

 

6,817

 

 

 

6,446

 

Total liabilities, limited partnership interests of third parties and capital

 

$

12,167

 

 

$

12,352

 

See notes to condensed consolidated financial statementsstatements.
6

.

6

HOST HOTELS & RESORTS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Quarter and Year-to-date ended September 30, 20222023 and 2021

2022

(unaudited, in millions, except per unit amounts)
Quarter ended September 30,Year-to-date ended September 30,
2023202220232022
REVENUES
Rooms$777 $746 $2,447 $2,251 
Food and beverage328 330 1,174 1,032 
Other109 113 367 361 
Total revenues1,214 1,189 3,988 3,644 
EXPENSES
Rooms196 190 590 539 
Food and beverage241 230 773 675 
Other departmental and support expenses314 300 952 873 
Management fees51 48 185 150 
Other property-level expenses106 90 290 252 
Depreciation and amortization174 164 511 498 
Corporate and other expenses29 29 90 77 
Gain on insurance and business interruption settlements(54)(10)(57)(17)
Total operating costs and expenses1,057 1,041 3,334 3,047 
OPERATING PROFIT157 148 654 597 
Interest income22 10 56 17 
Interest expense(48)(40)(142)(113)
Other gains1 5 70 19 
Equity in earnings (losses) of affiliates(4)(1)7 3 
INCOME BEFORE INCOME TAXES128 122 645 523 
Provision for income taxes(15)(6)(27)(29)
NET INCOME113 116 618 494 
Less: Net income attributable to non-controlling interests— (1)(1)(1)
NET INCOME ATTRIBUTABLE TO HOST HOTELS & RESORTS, L.P.$113 $115 $617 $493 
Basic earnings per common unit$0.16 $0.16 $0.87 $0.69 
Diluted earnings per common unit$0.16 $0.16 $0.87 $0.69 


 

 

Quarter ended September 30,

 

 

Year-to-date ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

Rooms

 

$

746

 

 

$

557

 

 

$

2,251

 

 

$

1,237

 

Food and beverage

 

 

330

 

 

 

191

 

 

 

1,032

 

 

 

405

 

Other

 

 

113

 

 

 

96

 

 

 

361

 

 

 

250

 

Total revenues

 

 

1,189

 

 

 

844

 

 

 

3,644

 

 

 

1,892

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

Rooms

 

 

190

 

 

 

150

 

 

 

539

 

 

 

324

 

Food and beverage

 

 

230

 

 

 

146

 

 

 

675

 

 

 

313

 

Other departmental and support expenses

 

 

300

 

 

 

252

 

 

 

873

 

 

 

621

 

Management fees

 

 

48

 

 

 

27

 

 

 

150

 

 

 

59

 

Other property-level expenses

 

 

90

 

 

 

82

 

 

 

252

 

 

 

239

 

Depreciation and amortization

 

 

164

 

 

 

263

 

 

 

498

 

 

 

597

 

Corporate and other expenses

 

 

29

 

 

 

24

 

 

 

77

 

 

 

73

 

Gain on insurance and business interruption settlements

 

 

(10

)

 

 

(5

)

 

 

(17

)

 

 

(5

)

Total operating costs and expenses

 

 

1,041

 

 

 

939

 

 

 

3,047

 

 

 

2,221

 

OPERATING PROFIT (LOSS)

 

 

148

 

 

 

(95

)

 

 

597

 

 

 

(329

)

Interest income

 

 

10

 

 

 

1

 

 

 

17

 

 

 

2

 

Interest expense

 

 

(40

)

 

 

(43

)

 

 

(113

)

 

 

(128

)

Other gains

 

 

5

 

 

 

2

 

 

 

19

 

 

 

4

 

Equity in earnings (losses) of affiliates

 

 

(1

)

 

 

2

 

 

 

3

 

 

 

36

 

INCOME (LOSS) BEFORE INCOME TAXES

 

 

122

 

 

 

(133

)

 

 

523

 

 

 

(415

)

Benefit (provision) for income taxes

 

 

(6

)

 

 

13

 

 

 

(29

)

 

 

81

 

NET INCOME (LOSS)

 

 

116

 

 

 

(120

)

 

 

494

 

 

 

(334

)

Less: Net income attributable to non-controlling interests

 

 

(1

)

 

 

(1

)

 

 

(1

)

 

 

(1

)

NET INCOME (LOSS) ATTRIBUTABLE TO HOST HOTELS & RESORTS, L.P.

 

$

115

 

 

$

(121

)

 

$

493

 

 

$

(335

)

Basic earnings (loss) per common unit

 

$

0.16

 

 

$

(0.17

)

 

$

0.69

 

 

$

(0.48

)

Diluted earnings (loss) per common unit

 

$

0.16

 

 

$

(0.17

)

 

$

0.69

 

 

$

(0.48

)

See notes to condensed consolidated financial statements.
7

7

HOST HOTELS & RESORTS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Quarter and Year-to-date ended September 30, 20222023 and 2021

2022

(unaudited, in millions)
Quarter ended September 30,Year-to-date ended September 30,
2023202220232022
NET INCOME$113 $116 $618 $494 
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation and other comprehensive income of unconsolidated affiliates(4)(5)2 (4)
Change in fair value of derivative instruments1 2 — 3 
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX(3)(3)2 (1)
COMPREHENSIVE INCOME110 113 620 493 
Less: Comprehensive income attributable to non-controlling interests— (1)(1)(1)
COMPREHENSIVE INCOME ATTRIBUTABLE TO HOST HOTELS & RESORTS, L.P.$110 $112 $619 $492 


 

 

Quarter ended September 30,

 

 

Year-to-date ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

NET INCOME (LOSS)

 

$

116

 

 

$

(120

)

 

$

494

 

 

$

(334

)

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation and other comprehensive income of unconsolidated affiliates

 

 

(5

)

 

 

(5

)

 

 

(4

)

 

 

(1

)

Change in fair value of derivative instruments

 

 

2

 

 

 

1

 

 

 

3

 

 

 

—

 

OTHER COMPREHENSIVE LOSS, NET OF TAX

 

 

(3

)

 

 

(4

)

 

 

(1

)

 

 

(1

)

COMPREHENSIVE INCOME (LOSS)

 

 

113

 

 

 

(124

)

 

 

493

 

 

 

(335

)

Less: Comprehensive income attributable to non-controlling interests

 

 

(1

)

 

 

(1

)

 

 

(1

)

 

 

(1

)

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO HOST HOTELS & RESORTS, L.P.

 

$

112

 

 

$

(125

)

 

$

492

 

 

$

(336

)

See notes to condensed consolidated financial statements.
8

8

HOST HOTELS & RESORTS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Year-to-date ended September 30, 20222023 and 2021

2022

(unaudited, in millions)
Year-to-date ended September 30,
20232022
OPERATING ACTIVITIES
Net income$618 $494 
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization511 498 
Amortization of finance costs, discounts and premiums, net7 8 
Loss on extinguishment of debt4 — 
Stock compensation expense19 19 
Other gains(70)(19)
Gain on property insurance settlement— (6)
Equity in earnings of affiliates(7)(3)
Change in due from/to managers16 32 
Distributions from investments in affiliates20 23 
Property insurance proceeds - remediation costs101 — 
Changes in other assets(13)7 
Changes in other liabilities(72)3 
Net cash provided by operating activities1,134 1,056 
INVESTING ACTIVITIES
Proceeds from sales of assets, net34 233 
Proceeds from loan receivable163 — 
Advances to and investments in affiliates(22)(59)
Capital expenditures:
Renewals and replacements(332)(117)
Return on investment(140)(240)
Property insurance proceeds34 11 
Net cash used in investing activities(263)(172)
FINANCING ACTIVITIES
Financing costs(10)— 
Repayment of credit facility— (683)
Mortgage debt and other prepayments and scheduled maturities(2)(1)
Debt extinguishment costs(3)— 
Issuance of common OP units— 1 
Repurchase of common OP units(150)— 
Distributions on common OP units(426)(66)
Distributions and payments to non-controlling interests(1)(1)
Other financing activities(14)(9)
Net cash used in financing activities(606)(759)
Effects of exchange rate changes on cash held— (4)
NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH265 121 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD874 953 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD$1,139 $1,074 

 

 

Year-to-date ended September 30,

 

 

 

2022

 

 

2021

 

OPERATING ACTIVITIES

 

 

 

 

 

 

Net income (loss)

 

$

494

 

 

$

(334

)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operations:

 

 

 

 

 

 

Depreciation and amortization

 

 

498

 

 

 

597

 

Amortization of finance costs, discounts and premiums, net

 

 

8

 

 

 

7

 

Stock compensation expense

 

 

19

 

 

 

13

 

Other gains

 

 

(19

)

 

 

(4

)

Gain on property insurance settlement

 

 

(6

)

 

 

—

 

Equity in earnings of affiliates

 

 

(3

)

 

 

(36

)

Change in due from/to managers

 

 

32

 

 

 

(78

)

Distributions from investments in affiliates

 

 

23

 

 

 

4

 

Changes in other assets

 

 

7

 

 

 

(99

)

Changes in other liabilities

 

 

3

 

 

 

8

 

Net cash provided by operating activities

 

 

1,056

 

 

 

78

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

Proceeds from sales of assets, net

 

 

233

 

 

 

8

 

Proceeds from loan receivable

 

 

—

 

 

 

9

 

Advances to and investments in affiliates

 

 

(59

)

 

 

(9

)

Acquisitions

 

 

—

 

 

 

(1,217

)

Capital expenditures:

 

 

 

 

 

 

Renewals and replacements

 

 

(117

)

 

 

(92

)

Return on investment

 

 

(240

)

 

 

(201

)

Property insurance proceeds

 

 

11

 

 

 

—

 

Net cash used in investing activities

 

 

(172

)

 

 

(1,502

)

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

Financing costs

 

 

—

 

 

 

(3

)

Repayment of credit facility

 

 

(683

)

 

 

—

 

Mortgage debt and other prepayments and scheduled maturities

 

 

(1

)

 

 

—

 

Issuance of common OP units

 

 

1

 

 

 

138

 

Distributions on common OP units

 

 

(66

)

 

 

—

 

Distributions and payments to non-controlling interests

 

 

(1

)

 

 

—

 

Other financing activities

 

 

(9

)

 

 

(8

)

Net cash provided by (used in) financing activities

 

 

(759

)

 

 

127

 

Effects of exchange rate changes on cash held

 

 

(4

)

 

 

—

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

 

 

121

 

 

 

(1,297

)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD

 

 

953

 

 

 

2,476

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD

 

$

1,074

 

 

$

1,179

 

See notes to condensed consolidated financial statements.
9

9

HOST HOTELS & RESORTS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED

Year-to-date ended September 30, 20222023 and 2021

2022

(unaudited)

Supplemental disclosure of cash flow information (in millions):

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet to the amount shown in the statements of cash flows:

 

 

September 30, 2022

 

 

September 30, 2021

 

Cash and cash equivalents

 

$

883

 

 

$

1,038

 

Restricted cash (included in other assets)

 

 

4

 

 

 

3

 

Cash included in furniture, fixtures and equipment replacement fund

 

 

187

 

 

 

138

 

Total cash and cash equivalents and restricted cash shown in the statements of cash flows

 

$

1,074

 

 

$

1,179

 

 September 30, 2023September 30, 2022
Cash and cash equivalents$916 $883 
Restricted cash (included in other assets)5 4 
Cash included in furniture, fixtures and equipment replacement fund218 187 
Total cash and cash equivalents and restricted cash shown in the statements of cash flows$1,139 $1,074 
The following table presents cash paid (received) for the following:

 

 

Year-to-date ended September 30,

 

 

 

2022

 

 

2021

 

Total interest paid

 

$

100

 

 

$

115

 

Income tax refunds received

 

$

(7

)

 

$

(3

)

 Year-to-date ended September 30,
 20232022
Total interest paid$129 $100 
Income taxes paid (refunds received)$5 $(7)

Supplemental schedule of noncash investing and financing activities:

In connection with the sales of The Camby, Autograph Collection in March 2023, the Sheraton Boston Hotel in February 2022, and the Sheraton New York Times Square Hotel in April 2022, we issued loans to the buyers for $72 million, $163 million, and $250 million, respectively. The proceeds received from the sales are net of the loans.
On January 20, 2022, we entered into definitive agreements with Noble Investment Group, LLC, and certain other entities and persons related to Noble Investment Group, LLC, pursuant to which we made an investment in a joint venture with Noble Investment Group. In connection with the investment, Host Hotels & Resorts, L.P. issued approximately 3.2 million OP units valued at approximately $$56 million.

56
 million.

In connection with the sales of the Sheraton Boston Hotel in February 2022 and the Sheraton New York Times Square Hotel in April 2022, we issued bridge loans to the buyers for $163 million and $250 million, respectively. The proceeds received from the sales are net of the loans.

In 2021, non-cash consideration for the acquisition of the Four Seasons Resort Orlando at Walt Disney World® Resort included the assumption of hotel-level liabilities of approximately $24 million, consisting primarily of advance deposits received from guests for future stays, the cash related to which was retained by the seller.

See notes to condensed consolidated financial statements.
10

10

HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

1.

Organization

1.    Organization
Description of Business

Host Hotels & Resorts, Inc. operates as a self-managed and self-administered real estate investment trust (“REIT”), with its operations conducted solely through Host Hotels & Resorts, L.P. and its subsidiaries. Host Hotels & Resorts, L.P., a Delaware limited partnership, operates through an umbrella partnership structure, with Host Hotels & Resorts, Inc., a Maryland corporation, as its sole general partner. In the notes to these unaudited condensed consolidated financial statements, we use the terms “we” or “our” to refer to Host Hotels & Resorts, Inc. and Host Hotels & Resorts, L.P. together, unless the context indicates otherwise. We also use the term “Host Inc.” specifically to refer to Host Hotels & Resorts, Inc., and the term “Host L.P.” specifically to refer to Host Hotels & Resorts, L.P. in cases where it is important to distinguish between Host Inc. and Host L.P. As of September 30, 2022,2023, Host Inc. holds approximately 99%99% of Host L.P.’s partnership interests.

Consolidated Portfolio

As of September 30, 2022,2023, our consolidated portfolio, primarily consisting of luxury and upper upscale hotels, is located in the following countries:

Hotels

United States

72

Brazil

3

Canada

2

Total

77

2.

Summary of Significant Accounting Policies

2.    Summary of Significant Accounting Policies

We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. generally accepted accounting principles, or GAAP, in the accompanying unaudited condensed consolidated financial statements. We believe the disclosures made herein are adequate to prevent the information presented from being misleading. However, the financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10–K for the year ended December 31, 2021.

2022.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary to present fairly our financial position as of September 30, 2022,2023, and the results of our operations for the quarter and year-to-date periods ended September 30, 20222023 and 2021,2022, respectively, and cash flows for the year-to-date periods ended September 30, 20222023 and 2021,2022, respectively. Interim results are not necessarily indicative of full year performance because of the effect of seasonal variations as well as the impact from the COVID-19 pandemic.variations.

Three

Four of the partnerships in which we own an interest are considered variable interest entities (VIEs)("VIEs"), as the general partner of these partnerships maintains control over the decisions that most significantly impact such partnerships. These VIEs include the operating partnership, Host L.P., which is consolidated by Host Inc., of which Host Inc. is the sole general partner and holds approximately 99%99% of its partnershipthe limited partner interests; the consolidated partnership that owns the Houston Airport Marriott at George Bush Intercontinental; and thetwo unconsolidated partnershippartnerships that owns the Philadelphia Marriott Downtown.own hotel properties, of which we hold limited partner interests ranging from 11% - 19%. Host Inc.’s sole significant asset is its investment in Host L.P. and, consequently, substantially all of Host Inc.’s assets and liabilities consistconsists of the assets and liabilities of Host L.P. All of Host Inc.’s debt is an obligation of Host L.P. and may be repaidsettled only with assets of Host L.P.

11

Notes Receivable

At September 30, 2022, our notes receivable consist of bridge loans issued in connection with hotel sales. In conjunction with our dispositions, we may issue a bridge loan to the purchaser to facilitate the sale. These bridge loans are collateralized by the corresponding sold hotel and in the event of a default of the loan, we would seek to enforce our rights

11

HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

against the collateral in accordance with the terms of the loan agreement. The bridge loans are recorded at amortized cost, on an individual asset basis. We recognize interest as it is earned and include accrued interest receivable in other assets on the unaudited condensed consolidated balance sheets. We individually assess our notes receivable for credit losses quarterly and estimate any credit losses based on an analysis of several factors, primarily the value of the hotel collateral, as well as current economic conditions and historical trends.

3.

Earnings (Loss) Per Common Share (Unit)

3.    Earnings Per Common Share (Unit)

Basic earnings (loss) per common share (unit) is computed by dividing net income (loss) attributable to common stockholders (unitholders) by the weighted average number of shares of Host Inc. common stock or Host L.P. common units outstanding. Diluted earnings (loss) per common share (unit) is computed by dividing net income (loss) attributable to common stockholders (unitholders), as adjusted for potentially dilutive securities, by the weighted average number of shares of Host Inc. common stock or Host L.P. common units outstanding plus other potentially dilutive securities. Dilutive securities may include shares granted under comprehensive stock plans or the Host L.P. common units distributed to Host Inc. to support such granted shares, and other non-controlling interests that have the option to convert their limited partner interests to Host L.P. common units. No effect is shown for any securities that are anti-dilutive. We have 10.1There are 9.6 million Host L.P. common units, which are convertible into 10.49.8 million Host Inc. common shares, that are not included in Host Inc.’s calculation of earnings (loss) per share as their effect is not dilutive. The calculation of Host Inc. basic and diluted earnings (loss) per common share is shown below (in millions, except per share amounts):

 

 

Quarter ended September 30,

 

 

Year-to-date ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income (loss)

 

$

116

 

 

$

(120

)

 

$

494

 

 

$

(334

)

Less: Net (income) loss attributable to non-controlling interests

 

 

(2

)

 

 

1

 

 

 

(8

)

 

 

3

 

Net income (loss) attributable to Host Inc.

 

$

114

 

 

$

(119

)

 

$

486

 

 

$

(331

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

714.9

 

 

 

713.9

 

 

 

714.7

 

 

 

709.0

 

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

 

 

2.7

 

 

 

—

 

 

 

2.7

 

 

 

—

 

Diluted weighted average shares outstanding

 

 

717.6

 

 

 

713.9

 

 

 

717.4

 

 

 

709.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per common share

 

$

0.16

 

 

$

(0.17

)

 

$

0.68

 

 

$

(0.47

)

Diluted earnings (loss) per common share

 

$

0.16

 

 

$

(0.17

)

 

$

0.68

 

 

$

(0.47

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended September 30,Year-to-date ended September 30,
2023202220232022
Net income$113 $116 $618 $494 
Less: Net income attributable to non-controlling interests(2)(2)(10)(8)
Net income attributable to Host Inc.$111 $114 $608 $486 
Basic weighted average shares outstanding709.7714.9711.4714.7
Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market2.22.72.22.7
Diluted weighted average shares outstanding711.9717.6713.6717.4
Basic earnings per common share$0.16 $0.16 $0.85 $0.68 
Diluted earnings per common share$0.16 $0.16 $0.85 $0.68 

The calculation of Host L.P. basic and diluted earnings (loss) per unit is shown below (in millions, except per unit amounts):

 

 

Quarter ended September 30,

 

 

Year-to-date ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income (loss)

 

$

116

 

 

$

(120

)

 

$

494

 

 

$

(334

)

Less: Net income attributable to non-controlling interests

 

 

(1

)

 

 

(1

)

 

 

(1

)

 

 

(1

)

Net income (loss) attributable to Host L.P.

 

$

115

 

 

$

(121

)

 

$

493

 

 

$

(335

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average units outstanding

 

 

710.0

 

 

 

706.0

 

 

 

709.6

 

 

 

701.3

 

Assuming distribution of common units granted under the comprehensive stock plans, less units assumed purchased at market

 

 

2.7

 

 

 

—

 

 

 

2.7

 

 

 

—

 

Diluted weighted average units outstanding

 

 

712.7

 

 

 

706.0

 

 

 

712.3

 

 

 

701.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per common unit

 

$

0.16

 

 

$

(0.17

)

 

$

0.69

 

 

$

(0.48

)

Diluted earnings (loss) per common unit

 

$

0.16

 

 

$

(0.17

)

 

$

0.69

 

 

$

(0.48

)

 

 

 

 

 

 

 

 

 

 

 

 

 

12


12

HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The calculation of Host L.P. basic and diluted earnings per unit is shown below (in millions, except per unit amounts):

Quarter ended September 30,Year-to-date ended September 30,
2023202220232022
Net income$113 $116 $618 $494 
Less: Net income attributable to non-controlling interests— (1)(1)(1)
Net income attributable to Host L.P.$113 $115 $617 $493 
Basic weighted average units outstanding704.4710.0706.4709.6
Assuming distribution of common units granted under the comprehensive stock plans, less units assumed purchased at market2.12.72.12.7
Diluted weighted average units outstanding706.5712.7708.5712.3
Basic earnings per common unit$0.16 $0.16 $0.87 $0.69 
Diluted earnings per common unit$0.16 $0.16 $0.87 $0.69 

4.

Revenue

4.    Revenue
Substantially all our operating results represent revenues and expenses generated by property-level operations. Payments are due from customers when services are provided to them. Due to the short-term nature of our contracts and the almost concurrent receipt of payment, we have no material unearned revenue at quarter end. We collect sales, use, occupancy and similar taxes from our customers, which we present on a net basis (excluded from revenues) on our statements of operations.

Disaggregation of Revenues.While we do not consider the following presentationdisclosure of hotel revenues by location to consist of reportable segments, we have disaggregated hotel revenues by market location. Our revenues also are presented by country in Note 108 – Geographic Information.

13

HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
By Location. The following table presents hotel revenues for each of the geographic locations in our consolidated hotel portfolio (in millions):

 

Quarter ended September 30,

 

 

Year-to-date ended September 30,

 

Quarter ended September 30,Year-to-date ended September 30,

Location

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Location2023202220232022

Maui/Oahu

 

$

119

 

 

$

118

 

 

$

361

 

 

$

260

 

San Diego

 

 

133

 

 

 

85

 

 

 

338

 

 

 

140

 

San Diego$134 $133 $389 $338 

Orlando

 

 

96

 

 

 

52

 

 

 

333

 

 

 

97

 

Orlando95 96 357 333 

Florida Gulf Coast

 

 

59

 

 

 

49

 

 

 

290

 

 

 

215

 

Maui/OahuMaui/Oahu102 119 352 361 
San Francisco/San JoseSan Francisco/San Jose92 96 280 238 

Phoenix

 

 

62

 

 

 

54

 

 

 

274

 

 

 

171

 

Phoenix52 62 273 274 

San Francisco/San Jose

 

 

96

 

 

 

44

 

 

 

238

 

 

 

80

 

New York

 

 

81

 

 

 

51

 

 

 

224

 

 

 

87

 

New York89 81 255 224 

Washington, D.C. (Central Business District)

 

 

67

 

 

 

29

 

 

 

197

 

 

 

72

 

Washington, D.C. (Central Business District)74 67 252 197 
Florida Gulf CoastFlorida Gulf Coast66 59 233 290 

Miami

 

 

42

 

 

 

40

 

 

 

194

 

 

 

152

 

Miami35 42 181 194 
BostonBoston40 31 111 79 
Los Angeles/Orange CountyLos Angeles/Orange County37 37 105 97 
HoustonHouston31 27 104 84 
ChicagoChicago40 43 102 96 

Jacksonville

 

 

29

 

 

 

29

 

 

 

97

 

 

 

72

 

Jacksonville30 29 100 97 

Los Angeles/Orange County

 

 

37

 

 

 

42

 

 

 

97

 

 

 

81

 

Chicago

 

 

43

 

 

 

25

 

 

 

96

 

 

 

38

 

Houston

 

 

27

 

 

 

21

 

 

 

84

 

 

 

53

 

San Antonio

 

 

27

 

 

 

20

 

 

 

83

 

 

 

39

 

San Antonio24 27 90 83 

Boston

 

 

31

 

 

 

29

 

 

 

79

 

 

 

42

 

Seattle

 

 

33

 

 

 

16

 

 

 

70

 

 

 

23

 

Seattle34 33 81 70 

New Orleans

 

 

19

 

 

 

11

 

 

 

68

 

 

 

24

 

New Orleans16 19 74 68 
DenverDenver29 26 66 62 

Austin

 

 

21

 

 

 

7

 

 

 

67

 

 

 

14

 

Austin17 21 65 67 

Denver

 

 

26

 

 

 

17

 

 

 

62

 

 

 

29

 

Northern VirginiaNorthern Virginia21 18 64 53 

Philadelphia

 

 

21

 

 

 

17

 

 

 

57

 

 

 

33

 

Philadelphia21 21 63 57 

Northern Virginia

 

 

18

 

 

 

18

 

 

 

53

 

 

 

37

 

Atlanta

 

 

15

 

 

 

22

 

 

 

45

 

 

 

51

 

Atlanta16 15 51 45 

Other

 

 

64

 

 

 

39

 

 

 

187

 

 

 

68

 

Other95 64 271 187 

Domestic

 

 

1,166

 

 

 

835

 

 

 

3,594

 

 

 

1,878

 

Domestic1,190 1,166 3,919 3,594 

International

 

 

23

 

 

 

9

 

 

 

50

 

 

 

14

 

International24 23 69 50 

Total

 

$

1,189

 

 

$

844

 

 

$

3,644

 

 

$

1,892

 

Total$1,214 $1,189 $3,988 $3,644 

5.

Property and Equipment

5.    Property and Equipment

Property and equipment consists of the following (in millions):

September 30, 2023December 31, 2022
Land and land improvements$2,011 $2,020 
Buildings and leasehold improvements14,073 13,849 
Furniture and equipment2,285 2,249 
Construction in progress343 313 
18,712 18,431 
Less accumulated depreciation and amortization(9,033)(8,683)
$9,679 $9,748 

 

 

September 30, 2022

 

 

December 31, 2021

 

Land and land improvements

 

$

1,961

 

 

$

2,310

 

Buildings and leasehold improvements

 

 

13,572

 

 

 

13,636

 

Furniture and equipment

 

 

2,242

 

 

 

2,225

 

Construction in progress

 

 

281

 

 

 

278

 

 

 

 

18,056

 

 

 

18,449

 

Less accumulated depreciation and amortization

 

 

(8,575

)

 

 

(8,455

)

 

 

$

9,481

 

 

$

9,994

 

14


13

HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

6.

Equity of Host Inc. and Capital of Host L.P.

Equity of Host Inc.

6.    Equity of Host Inc. and Capital of Host L.P.

Equity of Host Inc.

The components of the equity of Host Inc. are as follows (in millions):
Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Retained Earnings / (Deficit)Non-redeemable, non-controlling interestsTotal equityRedeemable, non-controlling interests
Balance, December 31, 2022$7 $7,717 $(75)$(939)$5 $6,715 $164 
Net income— — — 608 1 609 9 
Issuance of common stock for comprehensive stock plans, net— 9 — — — 9 — 
Repurchase of common stock— (150)— — — (150)— 
Dividends declared on common stock— — — (321)— (321)— 
Distributions to non-controlling interests— — — — (1)(1)(4)
Changes in ownership and other— 12 — — (1)11 (12)
Other comprehensive income— — 2 — — 2 — 
Balance, September 30, 2023$7 $7,588 $(73)$(652)$4 $6,874 $157 

15

 

Common Stock

 

Additional Paid-in Capital

 

Accumulated Other Comprehensive Income (Loss)

 

Retained Earnings / (Deficit)

 

Non-redeemable, non-controlling interests

 

Total equity

 

Redeemable, non-controlling interests

 

Balance, December 31, 2021

$

7

 

$

7,702

 

$

(76

)

$

(1,192

)

$

5

 

$

6,446

 

$

126

 

Net income

 

—

 

 

—

 

 

—

 

 

486

 

 

1

 

 

487

 

 

7

 

Issuance of common stock for comprehensive stock plans, net

 

—

 

 

13

 

 

—

 

 

—

 

 

—

 

 

13

 

 

—

 

Dividends declared on common stock

 

—

 

 

—

 

 

—

 

 

(150

)

 

—

 

 

(150

)

 

—

 

Issuance of common OP units

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

56

 

Distributions to non-controlling interests

 

—

 

 

—

 

 

—

 

 

—

 

 

(1

)

 

(1

)

 

(2

)

Changes in ownership and other

 

—

 

 

23

 

 

—

 

 

—

 

 

—

 

 

23

 

 

(22

)

Other comprehensive loss

 

—

 

 

—

 

 

(1

)

 

—

 

 

—

 

 

(1

)

 

—

 

Balance, September 30, 2022

$

7

 

$

7,738

 

$

(77

)

$

(856

)

$

5

 

$

6,817

 

$

165

 

 

Common Stock

 

Additional Paid-in Capital

 

Accumulated Other Comprehensive Income (Loss)

 

Retained Earnings / (Deficit)

 

Non-redeemable, non-controlling interests

 

Total equity

 

Redeemable, non-controlling interests

 

Balance, June 30, 2022

$

7

 

$

7,729

 

$

(74

)

$

(885

)

$

5

 

$

6,782

 

$

163

 

Net income

 

—

 

 

—

 

 

—

 

 

114

 

 

1

 

 

115

 

 

1

 

Issuance of common stock for comprehensive stock plans, net

 

—

 

 

10

 

 

—

 

 

—

 

 

—

 

 

10

 

 

—

 

Dividends declared on common stock

 

—

 

 

—

 

 

—

 

 

(85

)

 

—

 

 

(85

)

 

—

 

Distributions to non-controlling interests

 

—

 

 

—

 

 

—

 

 

—

 

 

(1

)

 

(1

)

 

(1

)

Changes in ownership and other

 

—

 

 

(1

)

 

—

 

 

—

 

 

—

 

 

(1

)

 

2

 

Other comprehensive loss

 

—

 

 

—

 

 

(3

)

 

—

 

 

—

 

 

(3

)

 

—

 

Balance, September 30, 2022

$

7

 

$

7,738

 

$

(77

)

$

(856

)

$

5

 

$

6,817

 

$

165

 

14

HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Retained Earnings / (Deficit)Non-redeemable, non-controlling interestsTotal equityRedeemable, non-controlling interests
Balance, June 30, 2023$7 $7,671 $(70)$(636)$5 $6,977 $168 
Net income— — — 111 — 111 2 
Issuance of common stock for comprehensive stock plans, net— 5 — — — 5 — 
Repurchase of common stock— (100)— — — (100)— 
Dividends declared on common stock— — — (127)— (127)— 
Distributions to non-controlling interests— — — — — — (1)
Changes in ownership and other— 12 — — (1)11 (12)
Other comprehensive loss— — (3)— — (3)— 
Balance, September 30, 2023$7 $7,588 $(73)$(652)$4 $6,874 $157 
 Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Retained Earnings / (Deficit)Non-redeemable, non-controlling interestsTotal equityRedeemable, non-controlling interests
Balance, December 31, 2021$7 $7,702 $(76)$(1,192)$5 $6,446 $126 
Net income— — — 486 1 487 7 
Issuance of common stock for comprehensive stock plans, net— 13 — — — 13 — 
Dividends declared on common stock— — — (150)— (150)— 
Issuance of common OP units— — — — — — 56 
Distributions to non-controlling interests— — — — (1)(1)(2)
Changes in ownership and other— 23 — — — 23 (22)
Other comprehensive loss— — (1)— — (1)— 
Balance, September 30, 2022$7 $7,738 $(77)$(856)$5 $6,817 $165 

16

HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

 

Common Stock

 

Additional Paid-in Capital

 

Accumulated Other Comprehensive Income (Loss)

 

Retained Earnings / (Deficit)

 

Non-redeemable, non-controlling interests

 

Total equity

 

Redeemable, non-controlling interests

 

Balance, December 31, 2020

$

7

 

$

7,568

 

$

(74

)

$

(1,180

)

$

5

 

$

6,326

 

$

108

 

Net loss

 

—

 

 

—

 

 

—

 

 

(331

)

 

—

 

 

(331

)

 

(3

)

Issuance of common stock for comprehensive stock plans, net

 

—

 

 

8

 

 

—

 

 

—

 

 

—

 

 

8

 

 

—

 

Common stock issuances

 

—

 

 

138

 

 

—

 

 

—

 

 

—

 

 

138

 

 

—

 

Changes in ownership and other

 

—

 

 

(14

)

 

—

 

 

—

 

 

—

 

 

(14

)

 

14

 

Other comprehensive loss

 

—

 

 

—

 

 

(1

)

 

—

 

 

—

 

 

(1

)

 

—

 

Balance, September 30, 2021

$

7

 

$

7,700

 

$

(75

)

$

(1,511

)

$

5

 

$

6,126

 

$

119

 

 

Common Stock

 

Additional Paid-in Capital

 

Accumulated Other Comprehensive Income (Loss)

 

Retained Earnings / (Deficit)

 

Non-redeemable, non-controlling interests

 

Total equity

 

Redeemable, non-controlling interests

 

Balance, June 30, 2021

$

7

 

$

7,688

 

$

(71

)

$

(1,392

)

$

5

 

$

6,237

 

$

125

 

Net loss

 

—

 

 

—

 

 

—

 

 

(119

)

 

—

 

 

(119

)

 

(1

)

Issuance of common stock for comprehensive stock plans, net

 

—

 

 

6

 

 

—

 

 

—

 

 

—

 

 

6

 

 

—

 

Changes in ownership and other

 

—

 

 

6

 

 

—

 

 

—

 

 

—

 

 

6

 

 

(5

)

Other comprehensive loss

 

—

 

 

—

 

 

(4

)

 

—

 

 

—

 

 

(4

)

 

—

 

Balance, September 30, 2021

$

7

 

$

7,700

 

$

(75

)

$

(1,511

)

$

5

 

$

6,126

 

$

119

 

Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Retained Earnings / (Deficit)Non-redeemable, non-controlling interestsTotal equityRedeemable, non-controlling interests
Balance, June 30, 2022$7 $7,729 $(74)$(885)$5 $6,782 $163 
Net income— — — 114 1 115 1 
Issuance of common stock for comprehensive stock plans, net— 10 — — — 10 — 
Dividends declared on common stock— — — (85)— (85)— 
Distributions to non-controlling interests— — — — (1)(1)(1)
Changes in ownership and other— (1)— — — (1)2 
Other comprehensive loss— — (3)— — (3)— 
Balance, September 30, 2022$7 $7,738 $(77)$(856)$5 $6,817 $165 
Capital of Host L.P.

As of September 30, 2022,2023, Host Inc. is the owner of approximately 99%99% of Host L.P.’s common OP units. The remaining common OP units are owned by unaffiliated limited partners. Each common OP unit may be redeemed for cash or, at the election of Host Inc., Host Inc. common stock, based on the conversion ratio of 1.021494 shares of Host Inc. common stock for each common OP unit. Under the credit facility, all redemptions must be made with Host Inc. common stock if Host L.P.’s leverage ratio (as calculated under the credit facility) exceeds 7.25x.

In exchange for any shares issued by Host Inc., Host L.P. will issue common OP units to Host Inc. based on the applicable conversion ratio. Additionally, funds used by Host Inc. to pay dividends on its common stock are provided by distributions from Host L.P.

17

15

HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The components of the Capital of Host L.P. are as follows (in millions):

General PartnerLimited PartnerAccumulated Other Comprehensive Income (Loss)Non-controlling interestsTotal capital
Limited partnership interests of third parties
Balance, December 31, 2022$1 $6,784 $(75)$5 $6,715 $164 
Net income— 608 — 1 609 9 
Issuance of common OP units to Host Inc. for comprehensive stock plans, net— 9 — — 9 — 
Repurchase of common OP units— (150)— — (150)— 
Distributions declared on common OP units— (321)— — (321)(4)
Distributions to non-controlling interests— — — (1)(1)— 
Changes in ownership and other— 12 — (1)11 (12)
Other comprehensive income— — 2 — 2 — 
Balance, September 30, 2023$1 $6,942 $(73)$4 $6,874 $157 
General Partner Limited PartnerAccumulated Other Comprehensive Income (Loss)Non-controlling interestsTotal capital
Limited partnership interests of third parties
Balance, June 30, 2023$1 $7,041 $(70)$5 $6,977 $168 
Net income— 111 — — 111 2 
Issuance of common OP units to Host Inc. for comprehensive stock plans, net— 5 — — 5 — 
Repurchase of common OP units— (100)— — (100)— 
Distributions declared on common OP units— (127)— — (127)(1)
Changes in ownership and other— 12 — (1)11 (12)
Other comprehensive loss— — (3)— (3)— 
Balance, September 30, 2023$1 $6,942 $(73)$4 $6,874 $157 

18

 

General Partner

 

Limited Partner

 

Accumulated Other Comprehensive Income (Loss)

 

Non-controlling interests

 

Total capital

 

Limited partnership interests of third parties

 

Balance, December 31, 2021

$

1

 

$

6,516

 

$

(76

)

$

5

 

$

6,446

 

$

126

 

Net income

 

—

 

 

486

 

 

—

 

 

1

 

 

487

 

 

7

 

Issuance of common OP units to Host Inc. for comprehensive stock plans, net

 

—

 

 

13

 

 

—

 

 

—

 

 

13

 

 

—

 

Distributions declared on common OP units

 

—

 

 

(150

)

 

—

 

 

—

 

 

(150

)

 

(2

)

Issuance of common OP units

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

56

 

Distributions to non-controlling interests

 

—

 

 

—

 

 

—

 

 

(1

)

 

(1

)

 

—

 

Changes in ownership and other

 

—

 

 

23

 

 

—

 

 

—

 

 

23

 

 

(22

)

Other comprehensive loss

 

—

 

 

—

 

 

(1

)

 

—

 

 

(1

)

 

—

 

Balance, September 30, 2022

$

1

 

$

6,888

 

$

(77

)

$

5

 

$

6,817

 

$

165

 

 

General Partner

 

Limited Partner

 

Accumulated Other Comprehensive Income (Loss)

 

Non-controlling interests

 

Total capital

 

Limited partnership interests of third parties

 

Balance, June 30, 2022

$

1

 

$

6,850

 

$

(74

)

$

5

 

$

6,782

 

$

163

 

Net income

 

—

 

 

114

 

 

—

 

 

1

 

 

115

 

 

1

 

Issuance of common OP units to Host Inc. for comprehensive stock plans, net

 

—

 

 

10

 

 

—

 

 

—

 

 

10

 

 

—

 

Distributions declared on common OP units

 

—

 

 

(85

)

 

—

 

 

—

 

 

(85

)

 

(1

)

Distributions to non-controlling interests

 

—

 

 

—

 

 

—

 

 

(1

)

 

(1

)

 

—

 

Changes in ownership and other

 

—

 

 

(1

)

 

—

 

 

—

 

 

(1

)

 

2

 

Other comprehensive loss

 

—

 

 

—

 

 

(3

)

 

—

 

 

(3

)

 

—

 

Balance, September 30, 2022

$

1

 

$

6,888

 

$

(77

)

$

5

 

$

6,817

 

$

165

 

16

HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

 

General Partner

 

Limited Partner

 

Accumulated Other Comprehensive Income (Loss)

 

Non-controlling interests

 

Total capital

 

Limited partnership interests of third parties

 

Balance, December 31, 2020

$

1

 

$

6,394

 

$

(74

)

$

5

 

$

6,326

 

$

108

 

Net loss

 

—

 

 

(331

)

 

—

 

 

—

 

 

(331

)

 

(3

)

Issuance of common OP units to Host Inc. for comprehensive stock plans, net

 

—

 

 

8

 

 

—

 

 

—

 

 

8

 

 

—

 

Common OP unit issuances

 

—

 

 

138

 

 

—

 

 

—

 

 

138

 

 

—

 

Changes in ownership and other

 

—

 

 

(14

)

 

—

 

 

—

 

 

(14

)

 

14

 

Other comprehensive loss

 

—

 

 

—

 

 

(1

)

 

—

 

 

(1

)

 

—

 

Balance, September 30, 2021

$

1

 

$

6,195

 

$

(75

)

$

5

 

$

6,126

 

$

119

 

 

General Partner

 

Limited Partner

 

Accumulated Other Comprehensive Income (Loss)

 

Non-controlling interests

 

Total capital

 

Limited partnership interests of third parties

 

Balance, June 30, 2021

$

1

 

$

6,302

 

$

(71

)

$

5

 

$

6,237

 

$

125

 

Net loss

 

—

 

 

(119

)

 

—

 

 

—

 

 

(119

)

 

(1

)

Issuance of common OP units to Host Inc. for comprehensive stock plans, net

 

—

 

 

6

 

 

—

 

 

—

 

 

6

 

 

—

 

Changes in ownership and other

 

—

 

 

6

 

 

—

 

 

—

 

 

6

 

 

(5

)

Other comprehensive loss

 

—

 

 

—

 

 

(4

)

 

—

 

 

(4

)

 

—

 

Balance, September 30, 2021

$

1

 

$

6,195

 

$

(75

)

$

5

 

$

6,126

 

$

119

 

General PartnerLimited PartnerAccumulated Other Comprehensive Income (Loss)Non-controlling interestsTotal capital
Limited partnership interests of third parties
Balance, December 31, 2021$1 $6,516 $(76)$5 $6,446 $126 
Net income— 486 — 1 487 7 
Issuance of common OP units to Host Inc. for comprehensive stock plans, net— 13 — — 13 — 
Distributions declared on common OP units— (150)— — (150)(2)
Issuance of common OP units— — — — — 56 
Distributions to non-controlling
     interests		— — — (1)(1)— 
Changes in ownership and other— 23 — — 23 (22)
Other comprehensive loss— — (1)— (1)— 
Balance, September 30, 2022$1 $6,888 $(77)$5 $6,817 $165 
General PartnerLimited PartnerAccumulated Other Comprehensive Income (Loss)Non-controlling interestsTotal capital
Limited partnership interests of third parties
Balance, June 30, 2022$1 $6,850 $(74)$5 $6,782 $163 
Net income— 114 — 1 115 1 
Issuance of common OP units to Host Inc. for comprehensive stock plans, net— 10 — — 10 — 
Distributions declared on common OP units— (85)— — (85)(1)
Distributions to non-controlling
     interests		— — — (1)(1)— 
Changes in ownership and other— (1)— — (1)2 
Other comprehensive loss— — (3)— (3)— 
Balance, September 30, 2022$1 $6,888 $(77)$5 $6,817 $165 
Share Repurchases

On August 3, 2022, Host Inc.'s Board

During the third quarter of Directors authorized2023, we repurchased 6.3 million shares at an increase inaverage price of $15.90 per share, exclusive of commissions, through our common share repurchase program from the existing $371for a total of $100 million. As of year-to-date September 30, 2023, we have repurchased 9.5 million remaining under the prior Board authorization to $1 billion. There have been no share repurchases year-to-date in 2022.shares at an average price of $15.82 for a total of $150 million. As such, as of September 30, 2022, we have $1 billion2023, there was $823 million available for repurchase under our common share repurchase program.

Issuance of Common Stock

As of September 30, 2022, there was $460 million of remaining capacity under the distribution agreement

On May 31, 2023, we entered into a distribution agreement with J. P. Morgan Securities LLC, BofA Securities, Inc., Goldman Sachs & Co. LLC, Jefferies LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC, as sales agents pursuant to which Host Inc. may offer and sell, from time to time, shares of Host Inc. common stock having an aggregate offering price of up to $600 million. The sales will be made in 2021 with various investment bankstransactions that are deemed to be “at the market” offerings under the SEC rules. We may sell shares of Host Inc. common stock under this program from time to time based on market conditions, although we are not under an obligation to sell any shares. The agreement also contemplates that, in

19

HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
addition to the offering and sale of shares to or through the sales agents, we may enter into separate forward sale agreements with each of the forward purchasers named in "at-the-market" offerings.the agreement. There have been no shares issued year-to-date in 2022.

2023. As of September 30, 2023, there was $600 million of remaining capacity under the agreement.

Dividends/Distributions

On August 3, 2022,September 14, 2023, Host Inc.'s Board of Directors announced a regular quarterly cash dividend of $0.12$0.18 per share on Host Inc.'sits common stock. The dividend was paid on October 17, 202216, 2023 to stockholders of record as of September 30, 2022.2023. Accordingly, Host L.P. made a distribution of $0.12257928$0.18386892 per unit on its common OP units based on the current conversion ratio.

17

HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

7.

Dispositions

During the third quarter, we sold the Chicago Marriott Suites Downers Grove for $16 million, including $2 million of furniture fixtures & equipment ("FF&E") funds retained by us. We recorded a gain on sale of $4 million during the third quarter. The gain on sale is included in other gains on the unaudited condensed consolidated statement of operations.

8.

Acquisitions

Subsequent to quarter end, we acquired the 125-room Four Seasons Resort and Residences Jackson Hole for a total purchase price of $315 million.

9.

Fair Value Measurements

7.    Fair Value Measurements

We did not elect the fair value measurement option for any of our financial assets or liabilities. The fair values of notes receivable, secured debt and our credit facility are determined based on the expected future payments discounted at risk-adjusted rates. Our senior notes are valued based on quoted market prices. The fair values of financial instruments not included in this table are estimated to be equal to their carrying amounts.

The fair value of certain financial assets and financial liabilities is shown below (in millions):

 

 

September 30, 2022

 

 

December 31, 2021

 

 

 

Carrying
Amount

 

 

Fair Value

 

 

Carrying
Amount

 

 

Fair Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Notes receivable (Level 2)

 

$

413

 

 

$

399

 

 

$

—

 

 

$

—

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Senior notes (Level 1)

 

 

3,113

 

 

 

2,703

 

 

 

3,109

 

 

 

3,255

 

Credit facility (Level 2)

 

 

993

 

 

 

1,000

 

 

 

1,673

 

 

 

1,683

 

Mortgage debt (Level 2)

 

 

102

 

 

 

96

 

 

 

104

 

 

 

105

 

September 30, 2023December 31, 2022
Carrying 
Amount		Fair ValueCarrying 
Amount		Fair Value
Financial assets
Notes receivable (Level 2)$322 $323 $413 $404 
Financial liabilities
Senior notes (Level 1)3,119 2,776 3,115 2,768 
Credit facility (Level 2)988 1,000 994 1,000 
Mortgage debt (Level 2)100 86 102 95 

E

10.

Geographic Information

As of September 30, 2023, notes receivable consists of two loans issued to the buyers in connection with the sales of The Camby, Autograph Collection and the Sheraton New York Times Square Hotel. During the third quarter of 2023, the loan to the buyer of the Sheraton Boston Hotel was repaid in full. Subsequent to quarter end, on October 18, 2023, the loan to the buyer of the Sheraton New York Times Square Hotel matured. We entered into a forbearance agreement with the buyer on October 18, 2023, by which we will forbear exercising our remedies until November 8, 2023.

8.    Geographic Information
We consider each one of our hotels to be an operating segment, as we allocate resources and assess operating performance based on individual hotels. All of our hotels meet the aggregation criteria for segment reporting and our other real estate investment activities (primarily our retail spaces and office buildings) are immaterial. As such, we report one segment: hotel ownership. Our consolidated foreign operations consist of hotels in two countries as of September 30, 2022.2023. There were no intersegment sales during the periods presented.

20


HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The following table presents total revenues and property and equipment, net, for each of the geographical areas in which we operate (in millions):

 

 

Total Revenues

 

 

Property and Equipment, net

 

 

 

Quarter ended September 30,

 

 

Year-to-date ended September 30,

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

United States

 

$

1,166

 

 

$

835

 

 

$

3,594

 

 

$

1,878

 

 

$

9,412

 

 

$

9,919

 

Brazil

 

 

5

 

 

 

3

 

 

 

12

 

 

 

5

 

 

 

31

 

 

 

30

 

Canada

 

 

18

 

 

 

6

 

 

 

38

 

 

 

9

 

 

 

38

 

 

 

45

 

Total

 

$

1,189

 

 

$

844

 

 

$

3,644

 

 

$

1,892

 

 

$

9,481

 

 

$

9,994

 

Total RevenuesProperty and Equipment, net
Quarter ended September 30,Year-to-date ended September 30,September 30,
2023		December 31,
2022
2023202220232022
United States$1,190 $1,166 $3,919 $3,594 $9,611 $9,678 
Brazil5 5 16 12 35 33 
Canada19 18 53 38 33 37 
Total$1,214 $1,189 $3,988 $3,644 $9,679 $9,748 

18

HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

11.

Non-controlling Interests

9.    Non-controlling Interests
Host Inc.’s treatment of the non-controlling interests of Host L.P.: Host Inc. adjusts the amount of the non-controlling interests of Host L.P. each period so that the amount presented equals the greater of its carrying amount based on accumulated historical cost or its redemption value. The historical cost is based on the proportional relationship between the historical cost of equity held by our common stockholders relative to that of the common unitholders of Host L.P. The redemption value is based on the amount of cash or Host Inc. common stock, at our option, that would be paid to the non-controlling interests of Host L.P. if it were terminated. Therefore,We have estimated that the redemption value of the common OP units is equivalent to the number of common shares that would be issuedissuable upon conversion of the common OP units held by third parties valued at the market price of Host Inc. common stock at the balance sheet date. One common OP unit may be exchanged for 1.021494 shares of Host Inc. common stock. Redeemable non-controlling interests of Host L.P. are classified in the mezzanine section of our balance sheets as they do not meet the requirements for equity classification because the redemption feature requires the delivery of registered shares.

The table below details the historical cost and redemption values for the non-controlling interests of Host L.P.:

 

 

September 30, 2022

 

 

December 31, 2021

 

Common OP units outstanding (millions)

 

 

10.1

 

 

 

7.1

 

Market price per Host Inc. common share

 

$

15.88

 

 

$

17.39

 

Shares issuable upon conversion of one common OP unit

 

 

1.021494

 

 

 

1.021494

 

Redemption value (millions)

 

$

165

 

 

$

126

 

Historical cost (millions)

 

 

100

 

 

 

66

 

Book value (millions) ⁽¹⁾

 

 

165

 

 

 

126

 

 September 30, 2023December 31, 2022
Common OP units outstanding (millions)9.6 10.0 
Market price per Host Inc. common share$16.07 $16.05 
Shares issuable upon conversion of one common OP unit1.0214941.021494
Redemption value (millions)$157 $164 
Historical cost (millions)96 97 
Book value (millions) ⁽¹⁾157 164 
___________

(1)The book value recorded is equal to the greater of redemption value or historical cost.

Other Consolidated Partnerships. As of September 30, 2022,2023, we consolidate two majority-owned partnerships that have third-party, non-controlling ownership interests. The third-party limited partner interests are included in non-redeemable non-controlling interests — other consolidated partnerships on the balance sheets and totaled $5$4 million and $5 million as of both September 30, 20222023 and December 31, 2021.2022, respectively.

12.

Contingencies

10.    Contingencies
While the majority of our hotels in Florida were affected by Hurricane Ian, which made landfall on September 28, 2022, the most significant damage sustained during the storm occurred at The Ritz-Carlton, Naples and Hyatt Regency Coconut Point Resort and Spa. Due to evacuation mandates and/or loss of commercial power, five of our properties in Florida were temporarily closed, three of which fully reopened within days, while The Ritz-Carlton, Naples and Hyatt Regency Coconut Point Resort and Spa remain closed. The Hyatt Regency Coconut Point sustained extensive damage to the grounds, pools/waterpark, and poolside food and beverage ("F&B") outlets, including damage from flooding; but remained open to first responders. Commercial power has been restored, remediation efforts are underway, and the hotel is expected to reopenreopened to guests in mid-November, as a phased reopening,November 2022, with the final phase of reconstruction, the resort's waterpark, reopening during the second quarter ofcompleted in June 2023. On July 6, 2023, The Ritz-Carlton, Naples sustained more significant damage due to storm surge, which breachedreopened the beach duneguestrooms, suites and floodedamenities, including the lowest levelnew tower expansion.

21

HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Our current estimate of the hotel. The Ritz-Carlton, Naples is expected to remain closed for the remainderbook value of the yearproperty and intoequipment written off and remediation costs is approximately $130 million for which we recorded a corresponding insurance receivable. As of September 30, 2023, withwe have received $184 million of insurance proceeds related to these claims, of which $130 million reduced our receivable to zero and, during the third quarter, $54 million of these proceeds were recognized as a phased reopening strategy being evaluated. Limited property damage was reported at the other Florida properties within our consolidated portfolio.

We are still evaluating the scope of property damagegain on business interruption, which is included in gain on insurance and business interruption loss atsettlements on our Florida properties. Whileunaudited consolidated statements of operations. Subsequent to quarter end, we expect ourreceived an additional $24 million of business interruption proceeds. Our expected potential insurance coverage to sufficiently coverrecovery is $310 million for covered costs, including the property damage to the hotelsremediation and reconstruction costs and the near-term loss of business in excess of our $15 million insurance deductible,business; however, there could be losses that are not covered. Due to the proximity of Hurricane Ian to quarter end and on-going investigation into re-construction requirements, we are unable to estimate the total loss at this time. We will record an insurance receivable based on the anticipated insurance proceeds, not to exceed the expected loss, when the loss can be reliably estimated. We anticipate the insurance proceeds, net of the deductible, will exceed the book value of the assetsno assurances that we will be written off.

able to collect the full amount.

13.

Legal Proceedings

11.    Legal Proceedings
We are involved in various legal proceedings in the ordinary course of business regarding the operation of our hotels and companyCompany matters. To the extent not covered by insurance, these legal proceedings generally fall into the following broad categories: disputes involving hotel-level contracts, employment litigation, compliance with laws such as the Americans with Disabilities Act, tax disputes and other general matters. Under our management agreements, our

19

HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

operators have broad latitude to resolve individual hotel-level claims for amounts generally less than $150,000.$150,000. However, for matters exceeding such threshold, our operators may not settle claims without our consent.

Based on our analysis of legal proceedings with which we are involved or of which we currently are aware and our experience in resolving similar claims in the past, we have recorded immaterial accruals as of September 30, 20222023 related to such claims. We have estimated that, in the aggregate, our losses related to these proceedings will not be material. We are not aware of any matters with a reasonably possible unfavorable outcome for which disclosure of a loss contingency is required. No assurances can be given as to the outcome of any pending legal proceedings.

22

20

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements and related notes included elsewhere in this report. Host Inc. operates as a self-managed and self-administered REIT. Host Inc. is the sole general partner of Host L.P. and holds approximately 99% of its partnership interests. Host L.P. is a limited partnership operating through an umbrella partnership structure. The remaining common OP units are owned by various unaffiliated limited partners.

Forward-Looking Statements

In this quarterly report on Form 10-Q, we make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “expect,” “may,” “intend,” “predict,” “project,” “plan,” “will,” “estimate” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are based on management’s current expectations and assumptions and are not guarantees of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results to differ materially from those anticipated at the time the forward-looking statements are made.

The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements:

•
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 travel; the ability of our hotel managers to operate hotels in a way that facilitates social distancing, implement enhanced cleaning protocols and other COVID-19 pandemic mitigation practices; and general economic uncertainty in U.S. markets where we own hotels and the potential for low levels of economic growth in these markets;
•
the effect on lodging demand of (i) changes in national and local economic and business conditions, including concerns about U.S. economic growth and the potential for an economic recession in the United States or globally, the current high level of inflation, rising interest rates, global economic prospects, consumer confidence and the value of the U.S. dollar, and (ii) factors that may shape public perception of travel to a particular location, such as natural disasters, weather events (including the impact of Hurricane Ian)Maui wildfires in 2023), pandemics and outbreaks of contagious diseases,other public health crises, such as the COVID-19 pandemic, and the occurrence or potential occurrence of terrorist attacks, all of which will affect occupancy rates at our hotels and the demand for hotel products and services;
•
the impact of geopolitical developments outside the United States, such as large-scale wars or international conflicts, in Eastern Europe and the Middle East, the pace of economicslowing global growth, in Europe, the effects of the United Kingdom’s withdrawal from the European Union, or trade tensions and tariffs between the United States and its trading partners such as China, all of which could affect global travel and lodging demand within the United States;
•
volatility in global financial and credit markets, which could materially adversely affect U.S. and theglobal economic conditions, business activity, and lodging demand as well as negatively impact of budget deficitsour ability to obtain financing and increase our borrowing costs;
•pending and future U.S. governmental action to address suchbudget deficits through reductions in spending and similar austerity measures, as well as the impact of potential U.S. government shutdowns, all of which could materially adversely affect U.S. and global economic conditions, business activity, credit availability and borrowing costs, and lodging demand;
costs;
•
operating risks associated with the hotel business, including the effect of labor stoppages or strikes, increasing operating or labor costs, including increased labor costs in the current inflationary environment, the ability of our managers to adequately staff our hotels as a result of shortages in labor, severance and furlough payments to hotel employees or changes in workplace rules that affect labor costs, and risks relating to the response to the COVID-19 pandemic by our hotel managers, such as increased hotel costs for cleaning protocols and severance and furlough payments to hotel employees;
costs;
•
the effect of rating agency downgrades of our debt securities or on the cost and availability of new debt financings;
•
the reduction in our operating flexibility and the limitation on our ability to incur debt, pay dividends and make distributions resulting from restrictive covenants in our debt agreements and other risks associated with the amount of our indebtedness or related to restrictive covenants in our debt agreements, including the risk that a default could occur as a result of a decline in operations due to the COVID-19 pandemic;
occur;
•
our ability to maintain our hotels in a first-class manner, including meeting capital expenditures requirements, and the effect of renovations, including temporary closures, on our hotel occupancy and financial results;
•
the ability of our hotels to compete effectively against other lodging businesses in the highly competitive markets in which we operate in terms ofareas such as access, location, quality of accommodations and room rate structures;

21

•
our ability to acquire or develop additional hotels and the risk that potential acquisitions or developments may not perform in accordance with our expectations;

23

•
the ability to complete hotel renovations on schedule and on, or under, budget and the potential for increased costs and construction delays due to shortages of supplies as a result of supply chain disruptions;
•
relationships with property managers and joint venture partners and our ability to realize the expected benefits of our joint ventures and other strategic relationships;
•
risks associated with a single manager, Marriott International, managing a significant percentage of our hotels;
•
changes in the desirability of the geographic regions of the hotels in our portfolio or in the travel patterns of hotel customers;
•
the abilitygrowth of third-party internet and other travel intermediaries to attractin attracting and retain customers;
retaining customers which compete with our hotels;
•
our ability to recover fully under our existing insurance policies for terrorist acts and natural disasters and our ability to maintain adequate or full replacement cost “all-risk” property insurance policies on our hotels on commercially reasonable terms;
•
the effect of a data breach or significant disruption of hotel operator information technology networks as a result of cyber attacks;
cyber-attacks;
•
the effects of tax legislative action and other changes in laws and regulations, or the interpretation thereof, including the need for compliance with new environmental and safety requirements;
•
the ability of Host Inc. and each of the REITs acquired, established or to be established by Host Inc. to continue to satisfy complex rules in order to qualify as REITs for U.S. federal income tax purposes and Host Inc.’s and Host L.P.’s ability and the ability of our subsidiaries, and similar entities to be acquired or established by us, to operate effectively within the limitations imposed by these rules; and
•
risks associated with our ability to execute our dividend policy, including factors such as the need to preserve cash and financial flexibility in response to the COVID-19 pandemic, investment activity, operating results and the economic outlook, any or all of which may influence the decision of our board of directors as to whether to pay future dividends at levels previously disclosed or to use available cash to pay special dividends.

We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events, or otherwise. Achievement of future results is subject to risks, uncertainties and potentially inaccurate assumptions, including those risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 20212022 and in other filings with the Securities and Exchange Commission (“SEC”). Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that we will attain these expectations or that any deviations will not be material.

24

22

Operating Results and Outlook

Operating Results

The following table reflects certain line items from our unaudited condensed consolidated statements of operations and significant operating statistics (in millions, except per share and hotel statistics):

Historical Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended September 30,

 

 

 

 

 

Year-to-date ended September 30,

 

 

 

 

 

 

2022

 

 

2021

 

 

Change

 

 

2022

 

 

2021

 

 

Change

 

Total revenues

 

$

1,189

 

 

$

844

 

 

 

40.9

%

 

$

3,644

 

 

$

1,892

 

 

 

92.6

%

Net income (loss)

 

 

116

 

 

 

(120

)

 

N/M

 

 

 

494

 

 

 

(334

)

 

N/M

 

Operating profit (loss)

 

 

148

 

 

 

(95

)

 

N/M

 

 

 

597

 

 

 

(329

)

 

N/M

 

Operating profit (loss) margin under GAAP

 

 

12.4

%

 

 

(11.3

)%

 

N/M

 

 

 

16.4

%

 

 

(17.4

)%

 

N/M

 

EBITDAre⁽¹⁾

 

$

328

 

 

$

179

 

 

 

83.2

%

 

$

1,140

 

 

$

295

 

 

 

286.4

%

Adjusted EBITDAre⁽¹⁾

 

 

328

 

 

 

177

 

 

 

85.3

%

 

 

1,134

 

 

 

290

 

 

 

291.0

%

Basic and diluted earnings (loss) per common share

 

 

0.16

 

 

 

(0.17

)

 

N/M

 

 

 

0.68

 

 

 

(0.47

)

 

N/M

 

NAREIT FFO per diluted share⁽¹⁾

 

 

0.38

 

 

 

0.20

 

 

 

90.0

%

 

 

1.35

 

 

 

0.33

 

 

 

309.1

%

Adjusted FFO per diluted share⁽¹⁾

 

 

0.38

 

 

 

0.20

 

 

 

90.0

%

 

 

1.35

 

 

 

0.33

 

 

 

309.1

%

All Owned Hotel Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended September 30,

 

 

 

 

 

Year-to-date ended September 30,

 

 

 

 

 

 

2022

 

 

2021

 

 

Change

 

 

2022

 

 

2021

 

 

Change

 

All Owned Hotel revenues ⁽¹⁾

 

$

1,187

 

 

$

798

 

 

 

48.7

%

 

$

3,609

 

 

$

1,884

 

 

 

91.6

%

All Owned Hotel EBITDA ⁽¹⁾

 

 

341

 

 

 

198

 

 

 

72.2

%

 

 

1,179

 

 

 

398

 

 

 

196.2

%

All Owned Hotel EBITDA margin ⁽¹⁾

 

 

28.7

%

 

 

24.9

%

 

 

380 bps

 

 

 

32.7

%

 

 

21.1

%

 

 

1,160 bps

 

Change in All Owned Hotel Total RevPAR ⁽¹⁾

 

 

48.1

%

 

 

 

 

 

 

 

 

90.5

%

 

 

 

 

 

 

Change in All Owned Hotel RevPAR ⁽¹⁾

 

 

42.0

%

 

 

 

 

 

 

 

 

81.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical Income Statement Data:
Quarter ended September 30,Year-to-date ended September 30,
20232022
Change
20232022
Change
Total revenues$1,214 $1,189 2.1 %$3,988 $3,644 9.4 %
Net income113 116 (2.6 %)618 494 25.1 %
Operating profit157 148 6.1 %654 597 9.5 %
Operating profit margin under GAAP12.9 %12.4 %50  bps16.4 %16.4 %—  bps
EBITDAre⁽¹⁾
$361 $328 10.1 %$1,251 $1,140 9.7 %
Adjusted EBITDAre⁽¹⁾
361 328 10.1 %1,251 1,134 10.3 %
Diluted earnings per common share0.16 0.16 — %0.85 0.68 25.0 %
NAREIT FFO per diluted share⁽¹⁾0.41 0.38 7.9 %1.48 1.35 9.6 %
Adjusted FFO per diluted share⁽¹⁾0.41 0.38 7.9 %1.48 1.35 9.6 %
Comparable Hotel Data:
Quarter ended September 30,Year-to-date ended September 30,
20232022
Change
20232022
Change
Comparable hotel revenues ⁽¹⁾$1,181 $1,188 (0.6 %)$3,909 $3,522 11.0 %
Comparable hotel EBITDA ⁽¹⁾314 349 (10.0 %)1,202 1,144 5.1 %
Comparable hotel EBITDA margin ⁽¹⁾26.6 %29.4 %(280) bps30.8 %32.5 %(170) bps
Comparable hotel Total RevPAR ⁽¹⁾$312.35 $314.25 (0.6 %)$348.41 $313.90 11.0 %
Comparable hotel RevPAR ⁽¹⁾201.32 197.76 1.8 %214.67 194.49 10.4 %
___________

(1)
EBITDAre, Adjusted EBITDAre, NAREIT FFO per diluted share and Adjusted FFO per diluted share and All Owned Hotelcomparable hotel operating results (including hotel revenues and hotel EBITDA and margins) are non-GAAP financial measures within the meaning of the rules of the SEC. All Owned Hotel results exclude the operations of hotels sold or held-for-sale as of September 30, 2022. See “Non-GAAP Financial Measures” and "All Owned"Comparable Hotel Operating Statistics and Results" for more information on these measures, including why we believe these supplemental measures are useful, reconciliations to the most directly comparable GAAP measure, and the limitations on the use of these supplemental measures. Additionally, All Owned Hotelcomparable hotel results and statistics are based on 75 comparable hotels as of September 30, 2023 and include adjustments for non-comparable hotels, dispositions and acquisitions. See Comparable Hotel RevPAR Overview for results of the portfolio based on our ownership period, without these adjustments.
Operations

N/M = Not meaningful.

Operations

Total revenues increased $345$25 million, or 40.9%2.1%, and $1,752$344 million, or 92.6%9.4%, as compared to the third quarter of 20212022 and year-to-date 2021,2022, respectively, due to strong leisuredriven by increased demand at our convention and downtown properties, which was partially offset by some moderation in rates at our resort hotelsproperties. The third quarter 2023 results benefited from the acquisition of the Four Seasons Resort and Residences Jackson Hole in November of 2022, as well as the continued recoveryreopening of business transient and groupThe Ritz-Carlton, Naples in July 2023, while the year-to-date results were negatively impacted by its closure during the first half of the year. Total revenues growth in the third quarter was also muted by the negative impact from the August wildfires in Maui, as well as elevated international outbound travel without a corresponding increase in international inbound travel. All Owned Hotel
Comparable hotel RevPAR andfor the third quarter increased 1.8% compared to 2022, driven by a 1.5 percentage point increase in occupancy. Comparable hotel Total RevPAR for the third quarter increased 42.0% and 48.1%, respectively,decreased 0.6% compared to the third quarter of 20212022, primarily due to both ratethe August wildfires in Maui, normalizing attrition and occupancy growth.cancelation fees and a decrease in food and beverage revenues due to lower group spend in comparison to the third quarter of 2022. Following the wildfires, our hotels in Maui were still able to fill rooms with emergency response teams and displaced residents, however, these

25

guests did not have the same level of out-of-room spend that a typical guest would have leading to a larger decline in comparable hotel Total RevPAR. Year-to-date, All Owned Hotelcomparable hotel RevPAR and comparable hotel Total RevPAR has increased 81.5%10.4% and 90.5%11.0%, respectively, compared to 2021. All Owned Hotelyear-to-date 2022. The significant improvement year-to-date was buoyed by first quarter 2023 results, as the Omicron variant of COVID-19 significantly impaired travel during January and the first part of February in 2022. In addition, the recovery at our city-center properties through the third quarter of 2023 allowed for significant improvements in several markets, such as New York, Washington, D.C. and Boston.
Comparable hotel Total RevPAR forin our Boston, Houston and Northern Virginia markets led the quarterportfolio with increases of 30.5%, 15.5% and year-to-date 2022 benefited from strong F&B growth, which exceeded 2019 levels14.1%, respectively, in the third quarter, for the first time since the onset of the pandemic.

Operations at most of our hotels in Florida were affectedprimarily due to rate growth driven by Hurricane Ian in September 2022. Due to evacuation mandatesstrong group and loss of commercial power, we estimate that RevPAR was negatively impacted by approximately 40 basis points during the third quarter.

Leisure demand continues to drive strong results at resort properties and, at the same time, the recovery at our urban properties continued in the third quarter. As a result, Total RevPAR in the quarter for all markets exceeded 2021 levels and the portfolio as a whole exceeded the third quarter 2019 pre-pandemic levels. All Owned Hotel Total RevPARleisure demand. Hotels in our Jacksonville, OrlandoWashington, D.C. and PhoenixNew York markets, increased 36.9%, 35.6% and 29.4%, respectively, compared to 2019, due to continued strength at our leisure properties. While our hotels in San Francisco/San Jose and Washington, D.C., twosome of our larger markets by room count, experienced

23

All Owned Hotelcounts, also outperformed our portfolio with comparable hotel Total RevPAR increases of 11.0% and 10.2%, respectively. These strong performances were offset by comparable hotel Total RevPAR declines at our Austin, Miami and New Orleans markets of 19.1%16.3%, 16.2% and 12.1%15.4%, respectively,respectively. The declines were driven primarily by decreases in rates due to weaker transient demand while Miami was also impacted by the ongoing renovation at the 1 Hotel South Beach. In addition, comparable hotel Total RevPAR at our Maui/Oahu market declined by 14.6% due to the Maui wildfires in August.

Our third quarter 2023 results when compared to 2022 are as follows:
•Net income decreased $3 million for the quarter and increased $124 million year-to-date;
•Diluted earnings per share remained flat for the quarter and increased $0.17 year-to-date;
•Adjusted EBITDAre increased $33 million for the quarter and $117 million year-to-date; and
•Adjusted FFO per diluted share increased $0.03 for the quarter and $0.13 year-to-date.
For the third quarter 2019, this isof 2023, operating profit margin under GAAP was 12.9%, an improvement from declinesincrease of 26.5% and 15.0%, respectively, in the second quarter compared to 2019. All Owned Hotel Total RevPAR in our San Diego market, which primarily consists of convention-type hotels, increased 18.2%50 basis points compared to the third quarter of 2019 driven by improvements in group2022, benefiting from the recognition of $54 million of business during the quarter. All Owned Hotel Total RevPAR performanceinterruption insurance gains. Comparable hotel EBITDA margin was lowest for our Boston market, with26.6%, a decrease of 280 basis points, due to closer to stable staffing levels and higher wages, insurance and utility expenses, and a decline of 26.2%in attrition and cancelation revenues compared to 2019.

Our third quarter 2022 results improved when compared to 2021 as follows:

•
Net income increased $236 million for the quarter and $828 million year-to-date;
•
Diluted earnings per share increased $0.33 for the quarter and $1.15 year-to-date;
•
Adjusted EBITDAre increased $151 million for the quarter and $844 million year-to-date; and
•
Adjusted FFO per diluted share increased $0.18 for the quarter and $1.02 year-to-date.

For the third quarter of 2022,2022. Year-to-date, operating profit margin under GAAP was 12.4%16.4%, which remained flat to 2022, and All Owned Hotelcomparable hotel EBITDA margin was 28.7%30.8%, both exceeding the third quarter 2019 pre-pandemic levels. Along with the strong improvements in rates, our hotel margins also have benefited from the implementationa decrease of portfolio-wide cost reductions, resulting in a reduction of All Owned Hotel operating costs across the portfolio by approximately 7% year-to-date 2022,170 basis points compared to year-to-date 2019. However, for the thirdsame period in 2022, reflecting similar trends to the quarter operating costs exceeded 2019 levels for the first time since the startresults.

Outlook
We have not experienced significant signs of the pandemic as hotels continue to transition to more normalized levels of operations. Specifically,a weakening in the third quarter, hotels were able to increase staffing to levels more in-line with expectations based on current hotel demand.

Outlook

We have experienced a significant improvement in revenues and earnings through the third quarter of 2022. However,overall lodging industry; however, current macroeconomic headwinds and concerns surrounding the potential for an economic slowdown are now competing with an accelerating lodging recovery.have created uncertainty around operating results for the remainder of 2023. Further improvement in operations will be dependent on the broader macroeconomic environment, which will affect our ability to maintain high-rated business in our resort markets, as well as the continued improvement of group, business transient and international inbound travel. Accordingly, we believe that operations in specific markets and asset types will continue to be uneven.

Blue Chip Economic Indicators consensus currently estimates an increase in real U.S. GDP of 1.6%2.2% for 2022, while business2023, with slower growth in the fourth quarter and into next year. Business investment is also anticipated to increase 3.7%. However, persistently high inflation, including energyslow over the coming quarters, averaging 3.9% for 2023 overall but 0.7% in the fourth quarter. The anticipation of an economic slowdown reflects potential impact from ongoing restrictive monetary policy, volatile oil prices and heightened geopolitical uncertainty have led to increased risks duringconflicts. Inflation has notably eased throughout the year and elevated concerns surroundingbut remains above the Federal Reserve's abilitytarget of 2%, and recent geopolitical conflicts have introduced additional uncertainty to execute a soft landing for economic growth.its trajectory moving forward. The range of potential outcomes on the economy and the lodging industry specifically remains exceptionally wide, reflecting varying analyst assumptions surrounding the impact of higher interest rates, inflation, supply chain disruptions,ongoing labor shortages in key industries, and escalating geopolitical conflicts, interest rate expectations and the unpredictability of new COVID-19 variants.

Hotelconflicts.

Overall, hotel supply growth is anticipated to remain below the long-term historical average in 2022, as supply2023, although a few markets where our hotels are located, including New Orleans, Miami and Austin, are seeing above-average growth. Supply chain challenges have resulted in project delays across the U.S., and a tight lending environment has created construction financing challenges for future projects. We anticipate that many of these projects will continue to be delayed or cancelled, while the new project pipeline will remain suppressed until supply chain issues and other macroeconomic concerns abate. While the pandemic had an outsized impact on our industry, particularly in luxury and upper upscale hotels in top U.S. markets where a majority of our hotels are located, leisure travel continuesthese markets have continued to outperform expectations due to pent-upimprove as demand high personal savings and waning virus fears. We also have seen a significant accelerationpatterns normalize, including steady increases in group business and a gradual recovery in business transient and international demand to date in 2022, leading to improving trends2023. However, transient demand has recovered more slowly in our urban markets.

Despite strong results through the first three quarters of the year, significant uncertainties remain related to broader macroeconomic trends, recessioncertain markets, specifically San Francisco and inflation concerns andSeattle, while room rates at resort hotels have moderated. In addition, the impact of new virus variants. We believe thatfrom the continued strength ofwildfires on the lodging industry is highly dependent


26

Maui/Oahu market will create challenges for anticipating performance levels in the coming months as the community rebuilds.
Based on the broader overall economy, consumer confidence and the continued improvement of corporate, group and international travel now that leisure demand is exceeding pre-pandemic levels in many markets. Accordingly,trends noted above, we believe that operations in specific markets and asset types will continue to be uneven.

Operations at the majority of our hotels in Florida were affected by Hurricane Ian in September 2022 with the most significant damage sustained during the storm occurring at The Ritz Carlton, Naples and Hyatt Regency Coconut Point Resort and Spa. Due to evacuation mandates and/or loss of commercial power, five of our properties were closed for a limited period of time; however, three have since fully reopened. We are still evaluating the complete property and business interruption impacts of Hurricane Ian. We expect the Hyatt Regency Coconut Point Resort and Spa to reopen to guests in mid-November, as a phased reopening, with the waterpark reopening during the second quarter of 2023, while The Ritz Carlton, Naples is expected to remain closedcomparable hotel RevPAR growth for the remainder of 2022 and into 2023. As a result, Hurricane Ian will continue to impact our fourth quarter 2022 operations as well as our 2023 operations.

24

Based on these trends, we expect full year RevPAR of2023 will be between $1937.25% and $195, representing an increase from 2021 of 63.7% to 65.4%, respectively, and a decrease from 2019 of 3.75% to 2.75%, respectively. We anticipate that the impact of Hurricane Ian will reduce full year RevPAR by 70 basis points.

8.75%.

As noted above, the current outlook for the lodging industry remains highly uncertain. Thereuncertain; therefore, there can be no assurances as to the continued recovery in lodging demand for any number of reasons, including, but not limited to, slower than anticipated return of group and business travel or deteriorating macroeconomic conditions.

Strategic Initiatives

Dispositions. Capital Projects.During Through the third quarter we sold the Chicago Marriott Suites Downers Grove for $16 million, including $2 million of FF&E funds retained by us.

Acquisitions. Subsequent to quarter end, we acquired the 125-room Four Seasons Resort and Residences Jackson Hole for $315 million. The resort also features an additional 44 private residences, the owners of which may participate in a rental program through the resort.

Capital Projects. During the first three quarters of 2022,2023, we spent approximately $240$140 million on ROIreturn on investment ("ROI") capital projects, and $117$194 million on renewal and replacement projects. For full year 2022,projects, and $138 million on hurricane restoration work. While all of our hotels have fully reopened, we expectcontinued our restoration efforts following Hurricane Ian, for which we estimate the total capital expenditures of $500property reconstruction and remediation costs, including significant enhancements, to be approximately $285 million to $575 million. This total amount consists$310 million of ROI projectswhich approximately 30%-35% relates to remediation costs. As of approximately $320September 30, 2023, we have received $184 million of insurance proceeds related to $355our Hurricane Ian claims, of which $54 million and renewal and replacement expenditures of $180 million to $220 million. ROI projects include approximately $90 million to $115 million for the Marriott transformational capital program discussed below.

In 2022, wehas been classified as business interruption proceeds. We expect to complete renovationsreceive an additional $26 million of proceeds in the fourth quarter related to 4,000 guestrooms, approximately 33,000 square feet of meeting space and approximately 81,000 square feet of public space.Hurricane Ian, with any remaining proceeds expected to be received in 2024.

We have made substantial progress oncompleted the Marriott transformational capital program, which began in 2018. We believe this program will position these hotels to be more competitive in their respective markets and will enhance long-term performance through increases in RevPAR and market yield index. We agreed to invest amounts in excess of the furniture fixture and equipment ("FF&E&E") reserves required under our management agreements and, in exchange, Marriott has provided additional priority returns on the agreed upon investments and operating profit guarantees of $83 million, before reductions for incentive management fees, to offset expected business disruption.

Approximately 94% of the total estimated costs of the

The Marriott transformational capital program have been spent as of September 30, 2022. Of theincluded projects at 16 hotels, included in the program, we havewhich were completed as follows: projects at the Coronado Island Marriott Resort & Spa, New York Marriott Downtown, San Francisco Marriott Marquis and Santa Clara Marriott in 2019; projects at the Minneapolis Marriott City Center, San Antonio Marriott Rivercenter and JW Marriott Atlanta Buckhead in 2020; and projects at The Ritz-Carlton Amelia Island, New York Marriott Marquis and Orlando World Center Marriott in 2021. In 2022, we completed projects at the Houston Marriott Medical Center and Marina del Rey Marriott. We also expect to substantially complete2021; projects at Boston Marriott Copley Place, the Houston Marriott Medical Center, JW Marriott Houston by the Galleria, and Marina del Rey Marriott in 2022; and projects at the Marriott Marquis San Diego Marina during 2022, with theand Washington Marriott at Metro Center in 2023.
Similar to the Marriott transformational capital program, we reached an agreement with Hyatt to complete transformational reinvestment capital projects at six properties in our portfolio, the Grand Hyatt Atlanta in Buckhead, Grand Hyatt Washington, Manchester Grand Hyatt San Diego, Hyatt Regency Austin, Hyatt Regency Washington on Capitol Hill, and Hyatt Regency Reston. These investments are intended to position the targeted hotels to compete better in their respective markets while seeking to enhance long-term performance. The total investment is expected to be completed inapproximately $550 million to $600 million, two-thirds of which we were planning to invest as part of our capital plan over the first halfnext few years. We expect to invest approximately $125 million to $200 million per year over the next three to four years on this program. Hyatt has agreed to provide additional priority returns on the agreed upon investments and operating profit guarantees totaling $40 million to offset expected business disruptions.
For full year 2023, we expect total capital expenditures of 2023.$615 million to $695 million, consisting of ROI projects of approximately $200 million to $230 million, renewal and replacement expenditures of $265 million to $290 million, and restoration work for the damage caused by Hurricane Ian of $150 million to $175 million. The ROI projects include approximately $25 million to $30 million for the Marriott transformational capital program discussed above.

27
25

Results of Operations

The following table reflects certain line items from our unaudited condensed consolidated statements of operations (in millions, except percentages):

 

 

Quarter ended September 30,

 

 

 

 

 

Year-to-date ended September 30,

 

 

 

 

 

 

2022

 

 

2021

 

 

Change

 

 

2022

 

 

2021

 

 

Change

 

Total revenues

 

$

1,189

 

 

$

844

 

 

 

40.9

%

 

$

3,644

 

 

$

1,892

 

 

 

92.6

%

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property-level costs ⁽¹⁾

 

 

1,022

 

 

 

920

 

 

 

11.1

 

 

 

2,987

 

 

 

2,153

 

 

 

38.7

 

Corporate and other expenses

 

 

29

 

 

 

24

 

 

 

20.8

 

 

 

77

 

 

 

73

 

 

 

5.5

 

Gain on insurance and business interruption settlements

 

 

10

 

 

 

5

 

 

 

100.0

 

 

 

17

 

 

 

5

 

 

 

240.0

 

Operating profit (loss)

 

 

148

 

 

 

(95

)

 

N/M

 

 

 

597

 

 

 

(329

)

 

N/M

 

Interest expense

 

 

40

 

 

 

43

 

 

 

(7.0

)

 

 

113

 

 

 

128

 

 

 

(11.7

)

Other gains

 

 

5

 

 

 

2

 

 

 

150.0

 

 

 

19

 

 

 

4

 

 

 

375.0

 

Benefit (provision) for income taxes

 

 

(6

)

 

 

13

 

 

N/M

 

 

 

(29

)

 

 

81

 

 

N/M

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Host Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to non-controlling interests

 

 

2

 

 

 

(1

)

 

N/M

 

 

 

8

 

 

 

(3

)

 

N/M

 

Net income (loss) attributable to Host Inc.

 

 

114

 

 

 

(119

)

 

N/M

 

 

 

486

 

 

 

(331

)

 

N/M

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Host L.P.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to non-controlling interests

 

 

1

 

 

 

1

 

 

—

 

 

 

1

 

 

 

1

 

 

—

 

Net income (loss) attributable to Host L.P.

 

 

115

 

 

 

(121

)

 

N/M

 

 

 

493

 

 

 

(335

)

 

N/M

 

Quarter ended September 30,Year-to-date ended September 30,
20232022
Change
20232022
Change
Total revenues$1,214 $1,189 2.1 %$3,988 $3,644 9.4 %
Operating costs and expenses:
Property-level costs ⁽¹⁾1,082 1,022 5.9 3,301 2,987 10.5 
Corporate and other expenses29 29 — 90 77 16.9 
Gain on insurance and business interruption settlements54 10 440.0 57 17 235.3 
Operating profit157 148 6.1 654 597 9.5 
Interest expense48 40 20.0 142 113 25.7 
Other gains1 5 (80.0)70 19 268.4 
Provision for income taxes15 6 150.0 27 29 (6.9)
Host Inc.:
Net income attributable to non-controlling interests2 2 — 10 8 25.0 
Net income attributable to Host Inc.111 114 (2.6)608 486 25.1 
Host L.P.:
Net income attributable to non-controlling interests— 1 (100.0)1 1 — 
Net income attributable to Host L.P.113 115 (1.7)617 493 25.2 
___________

(1)Amount represents total operating costs and expenses from our unaudited condensed consolidated statements of operations, less corporate and other expenses and gain on insurance and business interruption settlements.

N/M=Not meaningful.

Statement of Operations Results and Trends

Hotel Sales Overview

The following table presents total revenues in accordance with GAAP and includes all consolidated hotels (in millions, except percentages):

 

 

Quarter ended September 30,

 

 

 

 

 

Year-to-date ended September 30,

 

 

 

 

 

 

2022

 

 

2021

 

 

Change

 

 

2022

 

 

2021

 

 

Change

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms

 

$

746

 

 

$

557

 

 

 

33.9

%

 

$

2,251

 

 

$

1,237

 

 

 

82.0

%

Food and beverage

 

 

330

 

 

 

191

 

 

 

72.8

 

 

 

1,032

 

 

 

405

 

 

 

154.8

 

Other

 

 

113

 

 

 

96

 

 

 

17.7

 

 

 

361

 

 

 

250

 

 

 

44.4

 

Total revenues

 

$

1,189

 

 

$

844

 

 

 

40.9

 

 

$

3,644

 

 

$

1,892

 

 

 

92.6

 

Operations have improved significantly in

Quarter ended September 30,Year-to-date ended September 30,
20232022
Change
20232022
Change
Revenues:
Rooms$777 $746 4.2 %$2,447 $2,251 8.7 %
Food and beverage328 330 (0.6)1,174 1,032 13.8 
Other109 113 (3.5)367 361 1.7 
Total revenues$1,214 $1,189 2.1 $3,988 $3,644 9.4 
Total revenues for the third quarter of 2022and year-to-date improved 2.1% and 9.4%, respectively, compared to 2021 due to2022, reflecting an increase in occupancy, as well as the ongoing recoverynet impact of the lodging industry from the COVID-19 pandemic. However, with operations now normalizing from the effects of the pandemic,our recent acquisition and dispositions. The Four Seasons Resort and Residences Jackson Hole, which we are no longer experiencing the quarter-to-quarter sequential increasesacquired in results that we experienced in 2021 and the first two quarters of 2022. Third quarter results were impacted by typical seasonality and shifting business and market mix which has traditionally made our third quarter results the weakest quarter of the year by comparison. In addition to improved operations, acquisitions that occurred in 2021November 2022, contributed $45$25 million and $242$67 million to the growth in revenues infor the third quarter and year-to-date 2022,2023, respectively, compared to the negative impact on revenues resulting from 2022 and 2023 dispositions of $66$5 million and $87$45 million infor the third quarter and year-to-date 2023,

28

respectively. Year-to-date revenues also benefited from easier comparisons to 2022, respectively.

26

as the Omicron variant of COVID-19 significantly impaired travel during January and the first part of February in 2022. The year-to-date growth was impacted by lost revenues due to the closure of The Ritz-Carlton, Naples during the first half of 2023 as a result of Hurricane Ian.

Rooms. Total rooms revenues increased $189$31 million, or 33.9%4.2%, and $1,014$196 million, or 82.0%8.7%, for the third quarter and year-to-date, respectively, duecompared to increases2022. The results reflect the acquisition of the Four Seasons Resort and Residences Jackson Hole and improved performance at The Ritz-Carlton, Naples following its reopening in averagethe third quarter of 2023. In addition, rooms revenues at our comparable hotels increased $13 million, or 1.7%, and $226 million, or 10.4%, for the third quarter and year-to-date, respectively, driven by an increase in occupancy for the quarter and growth in both occupancy and rates year-to-date, as room rates and occupancy comparedhave continued to 2021. Average room rates for our portfolio have also exceeded pre-pandemic levels, while occupancy continues to lag 2019.moderate.

Food and beverage. Total food and beverage ("F&B&B") revenues increased $139decreased $2 million, or 72.8%, and $627 million, or 154.8%0.6%, for the quarter and increased $142 million, or 13.8%, year-to-date respectively, exceeding 2019 levelscompared to 2022. The changes reflect a decrease at our comparable hotels of $11 million, or 3.4%, for the quarter and an increase of $155 million, or 15.7% year-to-date. Similar to the changes in rooms revenues, total F&B revenues for the third quarter 2023 benefited from the acquisition of the Four Seasons Resort and Residences Jackson Hole and the reopening of The Ritz-Carlton, Naples. However, the overall decline for the first time since the onsetthird quarter was primarily due to lost business as a result of the pandemic. TheMaui wildfires and lower banquet and audio-visual revenue per group room night at resorts, as the third quarter of 2022 consisted of group business with higher than usual spend post-pandemic. Year-to-date F&B revenues benefited from improvements are due to strong outlet,in banquet and audio-visual revenues reflecting the return of group room nights.at convention hotels and continued outlet spend growth over 2022.

Other revenues. Total other revenues increased $17decreased $4 million, or 17.7%, and $111 million, or 44.4%3.5%, for the quarter and increased $6 million, or 1.7%, year-to-date respectively, which was driven by an increase incompared to 2022. The decrease for the quarter reflects the decrease at our comparable hotels of $9 million, or 7.9%, primarily due to normalizing attrition and cancellationcancelation fees as well asand the wildfires in Maui, partially offset by the acquisition of the Four Seasons Resort and Residences Jackson Hole. The year-to-date increase consists of the increase at our comparable hotels of $6 million, or 1.7%, reflecting continued strong golf and spa revenues.revenues which remain significantly ahead of pre-pandemic levels.

Property-level Operating Expenses

The following table presents property-level operating expenses in accordance with GAAP and includes all consolidated hotels (in millions, except percentages):

 

 

Quarter ended September 30,

 

 

 

 

 

Year-to-date ended September 30,

 

 

 

 

 

 

2022

 

 

2021

 

 

Change

 

 

2022

 

 

2021

 

 

Change

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms

 

$

190

 

 

$

150

 

 

 

26.7

%

 

$

539

 

 

$

324

 

 

 

66.4

%

Food and beverage

 

 

230

 

 

 

146

 

 

 

57.5

 

 

 

675

 

 

 

313

 

 

 

115.7

 

Other departmental and support expenses

 

 

300

 

 

 

252

 

 

 

19.0

 

 

 

873

 

 

 

621

 

 

 

40.6

 

Management fees

 

 

48

 

 

 

27

 

 

 

77.8

 

 

 

150

 

 

 

59

 

 

 

154.2

 

Other property-level expenses

 

 

90

 

 

 

82

 

 

 

9.8

 

 

 

252

 

 

 

239

 

 

 

5.4

 

Depreciation and amortization

 

 

164

 

 

 

263

 

 

 

(37.6

)

 

 

498

 

 

 

597

 

 

 

(16.6

)

Total property-level operating expenses

 

$

1,022

 

 

$

920

 

 

 

11.1

 

 

$

2,987

 

 

$

2,153

 

 

 

38.7

 

Quarter ended September 30,Year-to-date ended September 30,
20232022
Change
20232022
Change
Expenses:
Rooms$196 $190 3.2 %$590 $539 9.5 %
Food and beverage241 230 4.8 773 675 14.5 
Other departmental and support expenses314 300 4.7 952 873 9.0 
Management fees51 48 6.3 185 150 23.3 
Other property-level expenses106 90 17.8 290 252 15.1 
Depreciation and amortization174 164 6.1 511 498 2.6 
Total property-level operating expenses$1,082 $1,022 5.9 $3,301 $2,987 10.5 
Our operating costs and expenses, which haveconsist of both fixed and variable components, are affected by several factors. Rooms expenses are affected mainly by occupancy, which drives costs related to items such as housekeeping, reservation systems, room supplies, laundry services and front desk costs. Food and beverage expenses correlate closely with food and beverage revenues and are affected by occupancy and the mix of business between banquet, audio-visual and outlet sales. However, the most significant expense for the rooms, food and beverage, and other departmental and support expenses is wages and employee benefits, which comprise approximately 55%57% of these expenses. DuringFor the third quarter of 2022,and year-to-date 2023, these expenses increased 45%5% and 16%, respectively, compared to 2021,2022, reflecting thean increase in hiring as operations have recovered.

Earlyrecovered as well as wage and benefit inflationary pressure. In addition, early in 2022, hiring was temporarily paused in many areas due to the Omicron variant, as well as the seasonality of the industry. While hiring pace improved during the first half of the year, the significantin certain markets, followed by an acceleration in demand further challenged the ability offor which our hotel managers were unable to increase hotel staffing commensurate with the increase in


29

demand. However, during the third quarter our managers were able to continue improvements in hiringHiring pace has since improved, and managers at manythe majority of our hotels now are now operating at desired staffing levels as of the end of the third quarter. In aggregate, wagelevels. Wage and benefit rate inflation is expected to be approximately 5% in the 4% to 5% range in 2022.

2023.

Other property-level expenses consist of property taxes, the amounts and structure of which are highly dependent on local jurisdiction taxing authorities, and property and general liability insurance, all of which do not necessarily increase or decrease based on similar changes in revenues at our hotels.

The increase in expenses for the third quarter of 2022and year-to-date 2023 compared to 20212022 for rooms, food and beverage, other departmental and support, and management fees was generally due to the corresponding increase in revenues from improvements in occupancy and hotel operations,an increase in staffing, as follows:

Rooms. Rooms expenses increased $40$6 million, or 26.7%3.2%, and $215$51 million, or 66.4%9.5%, for the quarter and year-to-date, respectively, reflecting anrespectively. Our comparable hotels rooms expenses increased $3 million, or 1.6%, and $64 million, or 12.4%, for the quarter and year-to-date, respectively. These increases reflect the increase in occupancy and staffing commensurate with the improvements in occupancy, while commission costs remain below pre-pandemic levels.described above.

Food and beverage. F&B expenses increased $84$11 million, or 57.5%4.8%, and $362$98 million, or 115.7%14.5%, for the quarter and year-to-date, respectively. For our comparable hotels, F&B expenses increased $3 million, or 1.3%, and $106 million, or 16.6% for the quarter and year-to-date, respectively. Overall, F&B costs as a percentage of revenues declined, benefiting from improved banquet revenuesincreased for both the quarter and ongoing productivity improvement.year-to-date as staffing levels normalized.

27

Other departmental and support expenses. Other departmental and support expenses increased $48$14 million, or 19.0%4.7%, and $252$79 million, or 40.6%9.0%, for the quarter and year-to-date, respectively,respectively. On a comparable hotel basis, other departmental and support expenses increased $9 million, or 3.2%, and $89 million, or 10.6%, for the quarter and year-to-date, respectively. These increases were primarily due primarily to improved operations.the increase in staffing.

Management fees. Base management fees, which generally are calculated as a percentage of total revenues, increased $9$2 million, or 36.0%5.9%, and $48$10 million, or 87.3%9.7%, for the quarter and year-to-date, respectively. At our comparable hotels, base management fees were flat for the quarter, and increased $10 million, or 10.0%, year-to-date. Incentive management fees, which generally are based on the amount of operating profit at each hotel after we receive a priority return on our investment, increased $12$1 million, or 6.7%, and $43$25 million, or 51.0%, for the quarter and year-to-date, respectively, duerespectively. The increase in incentive management fees primarily toreflects the improved operations at our resort properties. At our comparable hotels, incentive management fees decreased $2 million, or 13.2%, for the quarter and increased $20 million, or 37.7%, year-to-date.

Other property-level expenses. These expenses generally do not vary significantly based on occupancy and include expenses such as property taxes and insurance. Other property level expenses increased $8$16 million, or 9.8%17.8%, and $13$38 million, or 5.4%15.1%, for the quarter and year-to-date, respectively, due to increases in sales and general excise taxes at our hotels, property insurance premiums and rent on a portion of our ground leases that are based on a percentage of sales. The increases were partially offset by a decrease in property taxes. Other property-level expenses also were partially offset by the receipt of operating profit guarantees received from Marriott under the transformational capital program in both 2022 and 2021.

Depreciation and amortization. Depreciation and amortization decreased $99at our comparable hotels increased $11 million, or 37.6%12.4%, and $38 million, or 15.3%, for the quarter and $99 million, or 16.6%, for the year-to-date, primarily due to impairment expense of $92 million recorded in the third quarter of 2021.respectively.

Other Income and Expense

Corporate and other expenses. The following table details our corporate and other expenses for the quarter and year-to-date (in millions):

Quarter ended September 30,Year-to-date ended September 30,
2023202220232022
General and administrative costs$20 $20 $61 $58 
Non-cash stock-based compensation expense6 9 19 19 
Litigation accruals3 — 10 — 
       Total$29 $29 $90 $77 

 

 

Quarter ended September 30,

 

 

Year-to-date ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative costs

 

$

20

 

 

$

20

 

 

$

58

 

 

$

60

 

Non-cash stock-based compensation expense

 

 

9

 

 

 

4

 

 

 

19

 

 

 

13

 

       Total

 

$

29

 

 

$

24

 

 

$

77

 

 

$

73

 

30

Interest expense. Interest expense decreasedincreased for the quarter and year-to-date due to the repayment of the revolver portion of the credit facility, partially offset by an increase in interest rates on our floating rate debt. The following table details our interest expense for the quarter and year-to-date (in millions):

 

 

Quarter ended September 30,

 

 

Year-to-date ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Cash interest expense ⁽¹⁾

 

$

37

 

 

$

41

 

 

$

105

 

 

$

121

 

Non-cash interest expense

 

 

3

 

 

 

2

 

 

 

8

 

 

 

7

 

Total interest expense

 

$

40

 

 

$

43

 

 

$

113

 

 

$

128

 

Quarter ended September 30,Year-to-date ended September 30,
2023202220232022
Cash interest expense ⁽¹⁾$46 $37 $131 $105 
Non-cash interest expense2 3 7 8 
Non-cash debt extinguishment costs— — 1 — 
Cash debt extinguishment costs ⁽¹⁾— — 3 — 
Total interest expense$48 $40 $142 $113 
_________

(1)
Including the change in accrued interest, total cash interest paid was $31$39 million and $32$31 million for the quarters ended September 30, 2023 and 2022, respectively, and 2021, respectively,$129 million and $100 million and $115 million for year-to-date 2023 and 2022, and 2021, respectively.

Other gains. Other gains increased $3$51 million and $15 million for the quarter and year-to-date, respectively, reflecting the sale of Chicago Marriott Suites Downers Grove in the third quarter, and the sale of the Sheraton Boston HotelThe Camby, Autograph Collection in the first quarter of 2022.2023.

Equity in earnings (losses) of affiliates. Equity in earnings (losses) of affiliates decreased $3 million for the quarter, and $33 million year-to-date, primarily due to the Maui wildfires in August which impacted sales at our timeshare joint venture, and increased $4 million year-to-date, reflecting less unrealized losses onrecorded at our investment in Fifth Wall Ventures, L.P. in 2022 compared to unrealized gains in 2021, partially offset by improved operations at our non-consolidated properties.2022.

Benefit (provision)Provision for income taxes. We lease substantially all our properties to consolidated subsidiaries designated as taxable REIT subsidiaries (“TRS”) for U.S. federal income tax purposes. Taxable income or loss generated/incurred by the TRS primarily represents hotel-level operations and the aggregate rent paid to Host L.P. by the TRS, on which we record an income tax provision or benefit. For the third quarter and year-to-date 2023, we recorded an income tax provision of $6$15 million and $29$27 million, respectively, due primarily to the profitability of hotel operations retained by the TRS.TRS including the business interruption insurance gains recorded during the third quarter of 2023.

28

Comparable Hotel RevPAR Overview

To facilitate a quarter-to-quarter comparison

Effective January 1, 2023, we have ceased presentation of our operations, we typically present certain operating statistics for the periods included in this presentation onAll Owned Hotel results, and returned to a comparable hotel basis. However,presentation for our hotel level results. Comparable hotels are those properties that we have consolidated for the entirety of the reporting periods being compared. Comparable hotels do not include the results of hotels sold or classified as held-for-sale, hotels that have sustained substantial property damage or business interruption, or hotels that have undergone large-scale capital projects, in each case requiring closures lasting one month or longer during the reporting periods being compared. We believe this will provide investors with a better understanding of underlying growth trends for our current portfolio, without impact from properties that experienced closures. We have removed Hyatt Regency Coconut Point Resort and Spa and The Ritz-Carlton, Naples from our comparable operations for 2023 due to the COVID-19 pandemic and its effects on operations, there is little comparability between periods. For this reason, we are revising our operating statistics presentation to instead present All Owned Hotel operating results.closures caused by Hurricane Ian. See “All Owned“Comparable Hotel Operating Statistics and Results” below for a complete description ofmore information on how we determine our methodology. comparable hotels.
We also include, following the All Owned Hotelscomparable hotels results by geographic location, the same operating statistics presentation on an actual basis, which includes results for our portfolio for the time period of our ownership, including the results of non-comparable properties, dispositions through their date of disposal and acquisitions beginning as of the date of acquisition. Lastly, we discuss our Hotel RevPARhotel results by geographic location and mix of business (i.e., transient, group, or contract).

31

Hotel Operating Data by Location

The following tables set forth performance information for our hotels by geographic location for the quarterquarters and year-to-date ended September 30, 2023 and 2022, compared to 2021respectively, on a comparable hotel and to 2019, respectively, to provide a comparison of hotel statistics in the current period to last year as well as to pre-pandemic levels:

All Ownedactual basis:

Comparable Hotel Results by Location Compared to 2021
As of September 30, 2023Quarter ended September 30, 2023Quarter ended September 30, 2022
LocationNo. of
Properties		No. of
Rooms		Average
Room Rate		Average
Occupancy
Percentage		RevPARTotal RevPARAverage
Room Rate		Average
Occupancy
Percentage		RevPARTotal RevPARPercent
Change in
RevPAR		Percent
Change in
Total RevPAR
Maui/Oahu42,006$565.03 69.7 %$393.67 $549.52 $565.30 73.6 %$416.12 $643.57 (5.4)%(14.6)%
Jacksonville1446479.33 69.2 331.47 726.78 487.53 67.0 326.67 707.75 1.5 2.7 
Miami21,033377.39 50.3 189.66 358.25 457.43 50.2 229.66 427.55 (17.4)(16.2)
Florida Gulf Coast3941309.76 62.7 194.17 381.17 327.19 62.2 203.68 386.66 (4.7)(1.4)
Phoenix31,545263.79 59.6 157.18 368.20 264.31 58.4 154.24 408.94 1.9 (10.0)
Orlando22,448309.53 64.9 200.78 419.73 327.78 61.4 201.23 427.58 (0.2)(1.8)
New York22,486334.84 87.0 291.33 387.71 309.77 84.3 260.99 351.90 11.6 10.2 
Los Angeles/Orange County31,067314.25 85.9 269.85 375.29 303.74 86.4 262.42 373.36 2.8 0.5 
San Diego33,294295.59 83.5 246.81 441.94 292.38 85.4 249.83 440.67 (1.2)0.3 
Boston21,496273.06 83.8 228.75 291.12 263.46 63.8 167.99 223.00 36.2 30.5 
Washington, D.C. (CBD)53,240244.50 71.5 174.94 248.36 237.56 65.7 156.01 223.72 12.1 11.0 
Philadelphia2810231.09 82.6 190.83 288.59 221.65 85.9 190.48 286.56 0.2 0.7 
Austin2767225.87 59.0 133.29 242.58 233.32 68.3 159.46 289.77 (16.4)(16.3)
Northern Virginia2916233.30 72.0 168.00 250.70 214.33 67.2 144.06 219.78 16.6 14.1 
San Francisco/San Jose64,162241.34 72.8 175.71 241.07 244.45 71.3 174.35 250.97 0.8 (3.9)
Chicago31,562253.34 79.5 201.35 280.27 263.27 79.3 208.86 286.41 (3.6)(2.1)
Seattle21,315271.12 81.0 219.56 285.88 264.88 81.9 216.97 274.62 1.2 4.1 
Atlanta2810182.03 75.0 136.49 210.62 183.46 72.8 133.57 199.97 2.2 5.3 
Houston51,942191.21 66.3 126.73 172.15 176.72 62.1 109.74 149.01 15.5 15.5 
San Antonio21,512194.04 53.5 103.87 167.34 190.72 64.5 122.96 194.39 (15.5)(13.9)
New Orleans11,333147.45 58.9 86.87 133.83 163.33 63.6 103.87 158.20 (16.4)(15.4)
Denver31,340204.48 79.9 163.34 235.48 197.50 76.5 151.18 214.65 8.0 9.7 
Other103,061326.91 68.5 223.86 333.59 347.16 64.3 223.09 332.55 0.3 0.3 
Domestic7039,532283.04 72.1 203.98 317.54 283.94 70.6 200.53 319.95 1.7 (0.8)
International51,499199.27 65.7 130.95 174.16 200.98 62.0 124.66 162.44 5.0 7.2 
All Locations7541,031280.24 71.8 201.32 312.35 281.27 70.3 197.76 314.25 1.8 (0.6)

 

As of September 30, 2022

 

Quarter ended September 30, 2022

 

Quarter ended September 30, 2021

 

 

 

 

 

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

 

$

565.30

 

 

73.6

%

$

416.12

 

$

643.06

 

$

514.34

 

 

82.8

%

$

425.86

 

$

635.28

 

 

(2.3

)%

 

1.2

%

Miami

 

2

 

 

1,033

 

 

457.43

 

 

50.2

 

 

229.66

 

 

427.55

 

 

424.80

 

 

53.9

 

 

229.17

 

 

390.19

 

 

0.2

 

 

9.6

 

Jacksonville

 

1

 

 

446

 

 

487.53

 

 

67.0

 

 

326.67

 

 

707.75

 

 

465.60

 

 

68.7

 

 

319.90

 

 

683.35

 

 

2.1

 

 

3.6

 

Florida Gulf Coast

 

5

 

 

1,850

 

 

330.56

 

 

53.9

 

 

178.01

 

 

340.62

 

 

314.16

 

 

45.2

 

 

141.93

 

 

286.62

 

 

25.4

 

 

18.8

 

Orlando

 

2

 

 

2,448

 

 

327.78

 

 

61.4

 

 

201.23

 

 

427.58

 

 

332.90

 

 

37.4

 

 

124.35

 

 

228.19

 

 

61.8

 

 

87.4

 

Phoenix

 

4

 

 

1,822

 

 

251.77

 

 

58.1

 

 

146.25

 

 

372.05

 

 

245.88

 

 

57.7

 

 

141.92

 

 

321.83

 

 

3.0

 

 

15.6

 

Los Angeles/ Orange County

 

3

 

 

1,067

 

 

303.74

 

 

86.4

 

 

262.42

 

 

372.72

 

 

263.40

 

 

72.4

 

 

190.80

 

 

263.83

 

 

37.5

 

 

41.3

 

New York

 

2

 

 

2,486

 

 

309.77

 

 

84.3

 

 

260.99

 

 

351.90

 

 

238.23

 

 

45.3

 

 

107.97

 

 

138.91

 

 

141.7

 

 

153.3

 

San Diego

 

3

 

 

3,288

 

 

292.38

 

 

85.4

 

 

249.83

 

 

440.67

 

 

247.61

 

 

72.1

 

 

178.55

 

 

281.14

 

 

39.9

 

 

56.7

 

Austin

 

2

 

 

767

 

 

233.32

 

 

68.3

 

 

159.46

 

 

289.77

 

 

210.96

 

 

58.1

 

 

122.67

 

 

207.76

 

 

30.0

 

 

39.5

 

Philadelphia

 

2

 

 

810

 

 

221.65

 

 

85.9

 

 

190.48

 

 

286.56

 

 

191.85

 

 

79.1

 

 

151.74

 

 

223.07

 

 

25.5

 

 

28.5

 

Washington, D.C. (CBD)

 

5

 

 

3,238

 

 

237.56

 

 

65.7

 

 

156.01

 

 

223.72

 

 

185.06

 

 

37.1

 

 

68.65

 

 

96.94

 

 

127.3

 

 

130.8

 

Chicago

 

3

 

 

1,562

 

 

263.27

 

 

79.3

 

 

208.86

 

 

286.41

 

 

200.33

 

 

63.2

 

 

126.61

 

 

159.82

 

 

65.0

 

 

79.2

 

Seattle

 

2

 

 

1,315

 

 

264.88

 

 

81.9

 

 

216.97

 

 

274.62

 

 

202.49

 

 

53.5

 

 

108.25

 

 

130.03

 

 

100.4

 

 

111.2

 

San Francisco/ San Jose

 

6

 

 

4,162

 

 

244.45

 

 

71.3

 

 

174.35

 

 

249.76

 

 

165.10

 

 

50.0

 

 

82.54

 

 

105.04

 

 

111.2

 

 

137.8

 

Boston

 

2

 

 

1,495

 

 

263.46

 

 

63.8

 

 

167.99

 

 

223.00

 

 

202.75

 

 

60.3

 

 

122.31

 

 

149.10

 

 

37.3

 

 

49.6

 

Northern Virginia

 

2

 

 

916

 

 

214.33

 

 

67.2

 

 

144.06

 

 

219.78

 

 

187.15

 

 

58.9

 

 

110.22

 

 

162.40

 

 

30.7

 

 

35.3

 

Atlanta

 

2

 

 

810

 

 

183.46

 

 

72.8

 

 

133.57

 

 

199.97

 

 

163.07

 

 

64.8

 

 

105.67

 

 

146.59

 

 

26.4

 

 

36.4

 

San Antonio

 

2

 

 

1,512

 

 

190.72

 

 

64.5

 

 

122.96

 

 

194.39

 

 

181.30

 

 

55.8

 

 

101.18

 

 

149.13

 

 

21.5

 

 

30.3

 

New Orleans

 

1

 

 

1,333

 

 

163.33

 

 

63.6

 

 

103.87

 

 

158.20

 

 

136.76

 

 

54.3

 

 

74.30

 

 

91.66

 

 

39.8

 

 

72.6

 

Denver

 

3

 

 

1,340

 

 

197.50

 

 

76.5

 

 

151.18

 

 

214.65

 

 

169.25

 

 

65.4

 

 

110.75

 

 

141.64

 

 

36.5

 

 

51.5

 

Houston

 

5

 

 

1,942

 

 

176.72

 

 

62.1

 

 

109.74

 

 

149.01

 

 

149.60

 

 

66.6

 

 

99.67

 

 

133.88

 

 

10.1

 

 

11.3

 

Other

 

9

 

 

2,936

 

 

261.04

 

 

63.6

 

 

166.04

 

 

240.26

 

 

250.39

 

 

55.3

 

 

138.36

 

 

193.81

 

 

20.0

 

 

24.0

 

Domestic

 

72

 

 

40,585

 

 

278.18

 

 

69.9

 

 

194.55

 

 

311.41

 

 

244.92

 

 

56.6

 

 

138.57

 

 

211.96

 

 

40.4

 

 

46.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

5

 

 

1,499

 

 

200.98

 

 

62.0

 

 

124.66

 

 

162.44

 

 

90.99

 

 

51.4

 

 

46.77

 

 

66.43

 

 

166.5

 

 

144.5

 

All Locations

 

77

 

 

42,084

 

 

275.73

 

 

69.7

 

 

192.06

 

 

306.11

 

 

239.89

 

 

56.4

 

 

135.28

 

 

206.75

 

 

42.0

 

 

48.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32

29

All Owned

Comparable Hotel Results by Location Compared to 2019
As of September 30, 2023Year-to-date ended September 30, 2023Year-to-date ended September 30, 2022
LocationNo. of
Properties		No. of
Rooms		Average
Room Rate		Average
Occupancy
Percentage		RevPARTotal RevPARAverage
Room Rate		Average
Occupancy
Percentage		RevPARTotal RevPARPercent
Change in
RevPAR		Percent
Change in
Total RevPAR
Maui/Oahu42,006$588.70 73.2 %$430.85 $642.10 $559.15 76.0 %$424.91 $658.15 1.4 %(2.4 %)
Jacksonville1446515.29 72.8 375.31 823.23 533.33 69.5 370.85 799.91 1.2 2.9 
Miami21,033538.29 65.8 354.38 620.61 618.23 62.8 388.09 647.24 (8.7)(4.1)
Florida Gulf Coast3941398.34 74.3 295.96 624.60 403.93 73.7 297.56 594.22 (0.5)5.1 
Phoenix31,545401.67 71.8 288.45 630.82 392.14 69.3 271.69 608.49 6.2 3.7 
Orlando22,448369.46 71.4 263.81 533.70 395.30 64.4 254.71 498.62 3.6 7.0 
New York22,486323.10 81.6 263.58 375.42 305.98 68.8 210.55 297.35 25.2 26.3 
Los Angeles/Orange County31,067303.01 82.8 250.80 360.45 290.28 79.6 231.14 332.23 8.5 8.5 
San Diego33,294286.71 81.2 232.85 432.14 275.85 76.1 209.91 376.43 10.9 14.8 
Boston21,496262.27 78.7 206.41 272.25 246.01 57.4 141.27 186.74 46.1 45.8 
Washington, D.C. (CBD)53,240276.94 71.3 197.40 285.28 258.02 60.5 156.14 222.68 26.4 28.1 
Philadelphia2810230.17 80.1 184.43 285.52 212.19 79.8 169.40 258.46 8.9 10.5 
Austin2767259.09 66.6 172.50 309.26 261.29 70.3 183.71 319.55 (6.1)(3.2)
Northern Virginia2916241.35 70.5 170.04 256.35 215.60 65.3 140.83 212.13 20.7 20.8 
San Francisco/San Jose64,162254.24 66.8 169.73 246.35 230.51 63.1 145.43 209.56 16.7 17.6 
Chicago31,562244.43 69.2 169.15 240.13 238.34 64.8 154.44 212.39 9.5 13.1 
Seattle21,315242.11 69.1 167.33 226.93 234.51 64.1 150.37 194.36 11.3 16.8 
Atlanta2810190.91 75.0 143.15 230.87 181.26 72.2 130.94 204.64 9.3 12.8 
Houston51,942201.57 70.6 142.37 196.37 180.33 63.4 114.29 158.00 24.6 24.3 
San Antonio21,512217.64 62.4 135.91 217.29 194.11 67.3 130.73 201.94 4.0 7.6 
New Orleans11,333195.70 68.9 134.85 204.28 196.59 65.3 128.42 187.76 5.0 8.8 
Denver31,340193.63 65.0 125.92 180.78 183.44 63.9 117.14 169.54 7.5 6.6 
Other103,061322.01 65.5 210.89 320.75 332.09 60.8 201.98 300.75 4.4 6.6 
Domestic7039,532303.99 71.8 218.31 355.19 297.46 66.8 198.61 321.16 9.9 10.6 
International51,499188.41 62.9 118.58 168.30 159.59 53.6 85.55 120.75 38.6 39.4 
All Locations7541,031300.28 71.5 214.67 348.41 293.40 66.3 194.49 313.90 10.4 11.0 

 

As of September 30, 2022

 

Quarter ended September 30, 2022

 

Quarter ended September 30, 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

 

$

565.30

 

 

73.6

%

$

416.12

 

$

643.06

 

$

385.51

 

 

91.5

%

$

352.78

 

$

554.15

 

 

18.0

%

 

16.0

%

Miami

 

2

 

 

1,033

 

 

457.43

 

 

50.2

 

 

229.66

 

 

427.55

 

 

259.69

 

 

76.2

 

 

197.80

 

 

341.68

 

 

16.1

 

 

25.1

 

Jacksonville

 

1

 

 

446

 

 

487.53

 

 

67.0

 

 

326.67

 

 

707.75

 

 

363.69

 

 

69.0

 

 

251.05

 

 

516.90

 

 

30.1

 

 

36.9

 

Florida Gulf Coast

 

5

 

 

1,850

 

 

330.56

 

 

53.9

 

 

178.01

 

 

340.62

 

 

242.93

 

 

61.6

 

 

149.63

 

 

302.07

 

 

19.0

 

 

12.8

 

Orlando

 

2

 

 

2,448

 

 

327.78

 

 

61.4

 

 

201.23

 

 

427.58

 

 

250.13

 

 

61.0

 

 

152.55

 

 

315.38

 

 

31.9

 

 

35.6

 

Phoenix

 

4

 

 

1,822

 

 

251.77

 

 

58.1

 

 

146.25

 

 

372.05

 

 

197.07

 

 

57.9

 

 

114.19

 

 

287.59

 

 

28.1

 

 

29.4

 

Los Angeles/ Orange County

 

3

 

 

1,067

 

 

303.74

 

 

86.4

 

 

262.42

 

 

372.72

 

 

271.42

 

 

86.6

 

 

235.06

 

 

344.41

 

 

11.6

 

 

8.2

 

New York

 

2

 

 

2,486

 

 

309.77

 

 

84.3

 

 

260.99

 

 

351.90

 

 

291.70

 

 

92.3

 

 

269.15

 

 

381.03

 

 

(3.0

)

 

(7.6

)

San Diego

 

3

 

 

3,288

 

 

292.38

 

 

85.4

 

 

249.83

 

 

440.67

 

 

256.92

 

 

83.5

 

 

214.41

 

 

372.78

 

 

16.5

 

 

18.2

 

Austin

 

2

 

 

767

 

 

233.32

 

 

68.3

 

 

159.46

 

 

289.77

 

 

213.65

 

 

84.4

 

 

180.39

 

 

304.72

 

 

(11.6

)

 

(4.9

)

Philadelphia

 

2

 

 

810

 

 

221.65

 

 

85.9

 

 

190.48

 

 

286.56

 

 

207.13

 

 

88.2

 

 

182.60

 

 

295.52

 

 

4.3

 

 

(3.0

)

Washington, D.C. (CBD)

 

5

 

 

3,238

 

 

237.56

 

 

65.7

 

 

156.01

 

 

223.72

 

 

211.15

 

 

84.4

 

 

178.19

 

 

254.63

 

 

(12.4

)

 

(12.1

)

Chicago

 

3

 

 

1,562

 

 

263.27

 

 

79.3

 

 

208.86

 

 

286.41

 

 

232.68

 

 

87.4

 

 

203.30

 

 

288.11

 

 

2.7

 

 

(0.6

)

Seattle

 

2

 

 

1,315

 

 

264.88

 

 

81.9

 

 

216.97

 

 

274.62

 

 

260.45

 

 

90.2

 

 

234.96

 

 

291.64

 

 

(7.7

)

 

(5.8

)

San Francisco/ San Jose

 

6

 

 

4,162

 

 

244.45

 

 

71.3

 

 

174.35

 

 

249.76

 

 

270.46

 

 

84.9

 

 

229.73

 

 

308.58

 

 

(24.1

)

 

(19.1

)

Boston

 

2

 

 

1,495

 

 

263.46

 

 

63.8

 

 

167.99

 

 

223.00

 

 

246.21

 

 

89.9

 

 

221.40

 

 

302.19

 

 

(24.1

)

 

(26.2

)

Northern Virginia

 

2

 

 

916

 

 

214.33

 

 

67.2

 

 

144.06

 

 

219.78

 

 

213.63

 

 

76.6

 

 

163.58

 

 

237.84

 

 

(11.9

)

 

(7.6

)

Atlanta

 

2

 

 

810

 

 

183.46

 

 

72.8

 

 

133.57

 

 

199.97

 

 

165.72

 

 

83.6

 

 

138.47

 

 

222.85

 

 

(3.5

)

 

(10.3

)

San Antonio

 

2

 

 

1,512

 

 

190.72

 

 

64.5

 

 

122.96

 

 

194.39

 

 

165.01

 

 

66.6

 

 

109.84

 

 

155.81

 

 

11.9

 

 

24.8

 

New Orleans

 

1

 

 

1,333

 

 

163.33

 

 

63.6

 

 

103.87

 

 

158.20

 

 

156.82

 

 

77.0

 

 

120.78

 

 

175.05

 

 

(14.0

)

 

(9.6

)

Denver

 

3

 

 

1,340

 

 

197.50

 

 

76.5

 

 

151.18

 

 

214.65

 

 

184.28

 

 

84.5

 

 

155.64

 

 

218.16

 

 

(2.9

)

 

(1.6

)

Houston

 

5

 

 

1,942

 

 

176.72

 

 

62.1

 

 

109.74

 

 

149.01

 

 

170.32

 

 

67.0

 

 

114.07

 

 

159.84

 

 

(3.8

)

 

(6.8

)

Other

 

9

 

 

2,936

 

 

261.04

 

 

63.6

 

 

166.04

 

 

240.26

 

 

198.34

 

 

79.1

 

 

156.91

 

 

241.19

 

 

5.8

 

 

(0.4

)

Domestic

 

72

 

 

40,585

 

 

278.18

 

 

69.9

 

 

194.55

 

 

311.41

 

 

240.95

 

 

79.7

 

 

191.95

 

 

299.74

 

 

1.4

 

 

3.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

5

 

 

1,499

 

 

200.98

 

 

62.0

 

 

124.66

 

 

162.44

 

 

159.14

 

 

75.9

 

 

120.86

 

 

166.88

 

 

3.1

 

 

(2.7

)

All Locations

 

77

 

 

42,084

 

 

275.73

 

 

69.7

 

 

192.06

 

 

306.11

 

 

238.14

 

 

79.5

 

 

189.39

 

 

294.96

 

 

1.4

 

 

3.8

 

33
All Owned Hotel Results by Location Compared to 2021

 

As of September 30, 2022

 

Year-to-date ended September 30, 2022

 

Year-to-date ended September 30, 2021

 

 

 

 

 

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

 

$

559.15

 

 

76.0

%

$

424.91

 

$

657.89

 

$

470.97

 

 

67.4

%

$

317.20

 

$

480.87

 

 

34.0

%

 

36.8

%

Miami

 

2

 

 

1,033

 

 

618.23

 

 

62.8

 

 

388.09

 

 

647.24

 

 

555.80

 

 

56.4

 

 

313.58

 

 

499.04

 

 

23.8

 

 

29.7

 

Jacksonville

 

1

 

 

446

 

 

533.33

 

 

69.5

 

 

370.85

 

 

799.91

 

 

506.77

 

 

57.8

 

 

293.02

 

 

587.76

 

 

26.6

 

 

36.1

 

Florida Gulf Coast

 

5

 

 

1,850

 

 

442.56

 

 

65.9

 

 

291.82

 

 

570.66

 

 

416.57

 

 

54.8

 

 

228.24

 

 

426.68

 

 

27.9

 

 

33.7

 

Orlando

 

2

 

 

2,448

 

 

395.30

 

 

64.4

 

 

254.71

 

 

498.62

 

 

398.72

 

 

27.3

 

 

108.98

 

 

196.25

 

 

133.7

 

 

154.1

 

Phoenix

 

4

 

 

1,822

 

 

366.88

 

 

69.1

 

 

253.45

 

 

551.73

 

 

301.23

 

 

56.5

 

 

170.12

 

 

346.53

 

 

49.0

 

 

59.2

 

Los Angeles/ Orange County

 

3

 

 

1,067

 

 

290.28

 

 

79.6

 

 

231.14

 

 

331.60

 

 

234.10

 

 

50.5

 

 

118.33

 

 

162.84

 

 

95.3

 

 

103.6

 

New York

 

2

 

 

2,486

 

 

305.98

 

 

68.8

 

 

210.55

 

 

297.35

 

 

200.01

 

 

34.6

 

 

69.19

 

 

85.45

 

 

204.3

 

 

248.0

 

San Diego

 

3

 

 

3,288

 

 

275.85

 

 

76.1

 

 

209.91

 

 

376.43

 

 

218.39

 

 

45.3

 

 

98.85

 

 

155.68

 

 

112.4

 

 

141.8

 

Austin

 

2

 

 

767

 

 

261.29

 

 

70.3

 

 

183.71

 

 

319.55

 

 

190.23

 

 

51.9

 

 

98.76

 

 

159.17

 

 

86.0

 

 

100.8

 

Philadelphia

 

2

 

 

810

 

 

212.19

 

 

79.8

 

 

169.40

 

 

258.46

 

 

169.58

 

 

58.7

 

 

99.52

 

 

147.38

 

 

70.2

 

 

75.4

 

Washington, D.C. (CBD)

 

5

 

 

3,238

 

 

258.02

 

 

60.5

 

 

156.14

 

 

222.68

 

 

161.96

 

 

42.2

 

 

68.41

 

 

81.26

 

 

128.2

 

 

174.0

 

Chicago

 

3

 

 

1,562

 

 

238.34

 

 

64.8

 

 

154.44

 

 

212.39

 

 

176.19

 

 

37.4

 

 

65.84

 

 

81.71

 

 

134.6

 

 

159.9

 

Seattle

 

2

 

 

1,315

 

 

234.51

 

 

64.1

 

 

150.37

 

 

194.36

 

 

188.47

 

 

27.8

 

 

52.43

 

 

63.79

 

 

186.8

 

 

204.7

 

San Francisco/ San Jose

 

6

 

 

4,162

 

 

230.51

 

 

63.1

 

 

145.43

 

 

208.62

 

 

155.78

 

 

31.4

 

 

48.92

 

 

63.32

 

 

197.3

 

 

229.5

 

Boston

 

2

 

 

1,495

 

 

246.01

 

 

57.4

 

 

141.27

 

 

186.74

 

 

173.03

 

 

37.5

 

 

64.82

 

 

80.96

 

 

117.9

 

 

130.6

 

Northern Virginia

 

2

 

 

916

 

 

215.60

 

 

65.3

 

 

140.83

 

 

212.13

 

 

177.75

 

 

45.4

 

 

80.62

 

 

118.44

 

 

74.7

 

 

79.1

 

Atlanta

 

2

 

 

810

 

 

181.26

 

 

72.2

 

 

130.94

 

 

204.64

 

 

152.57

 

 

54.5

 

 

83.14

 

 

112.32

 

 

57.5

 

 

82.2

 

San Antonio

 

2

 

 

1,512

 

 

194.11

 

 

67.3

 

 

130.73

 

 

201.94

 

 

160.63

 

 

40.8

 

 

65.54

 

 

95.17

 

 

99.5

 

 

112.2

 

New Orleans

 

1

 

 

1,333

 

 

196.59

 

 

65.3

 

 

128.42

 

 

187.76

 

 

128.95

 

 

37.6

 

 

48.51

 

 

65.71

 

 

164.7

 

 

185.7

 

Denver

 

3

 

 

1,340

 

 

183.44

 

 

63.9

 

 

117.14

 

 

169.54

 

 

149.35

 

 

42.1

 

 

62.95

 

 

80.24

 

 

86.1

 

 

111.3

 

Houston

 

5

 

 

1,942

 

 

180.33

 

 

63.4

 

 

114.29

 

 

158.00

 

 

140.32

 

 

59.7

 

 

83.73

 

 

113.03

 

 

36.5

 

 

39.8

 

Other

 

9

 

 

2,936

 

 

264.87

 

 

61.2

 

 

162.17

 

 

233.33

 

 

243.29

 

 

45.3

 

 

110.15

 

 

156.34

 

 

47.2

 

 

49.2

 

Domestic

 

72

 

 

40,585

 

 

296.19

 

 

66.6

 

 

197.36

 

 

320.69

 

 

249.37

 

 

44.0

 

 

109.63

 

 

169.48

 

 

80.0

 

 

89.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

5

 

 

1,499

 

 

159.59

 

 

53.6

 

 

85.55

 

 

120.75

 

 

85.10

 

 

28.0

 

 

23.85

 

 

34.15

 

 

258.8

 

 

253.6

 

All Locations

 

77

 

 

42,084

 

 

292.25

 

 

66.2

 

 

193.38

 

 

313.58

 

 

245.57

 

 

43.4

 

 

106.56

 

 

164.64

 

 

81.5

 

 

90.5

 

30

All Owned Hotel Results by Location Compared to 2019

 

As of September 30, 2022

 

Year-to-date ended September 30, 2022

 

Year-to-date ended September 30, 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

 

$

559.15

 

 

76.0

%

$

424.91

 

$

657.89

 

$

401.92

 

 

90.9

%

$

365.45

 

$

577.41

 

 

16.3

%

 

13.9

%

Miami

 

2

 

 

1,033

 

 

618.23

 

 

62.8

 

 

388.09

 

 

647.24

 

 

356.95

 

 

80.6

 

 

287.82

 

 

463.01

 

 

34.8

 

 

39.8

 

Jacksonville

 

1

 

 

446

 

 

533.33

 

 

69.5

 

 

370.85

 

 

799.91

 

 

383.37

 

 

77.2

 

 

296.02

 

 

652.91

 

 

25.3

 

 

22.5

 

Florida Gulf Coast

 

5

 

 

1,850

 

 

442.56

 

 

65.9

 

 

291.82

 

 

570.66

 

 

340.73

 

 

72.8

 

 

247.94

 

 

507.99

 

 

17.7

 

 

12.3

 

Orlando

 

2

 

 

2,448

 

 

395.30

 

 

64.4

 

 

254.71

 

 

498.62

 

 

285.49

 

 

70.7

 

 

201.76

 

 

412.06

 

 

26.2

 

 

21.0

 

Phoenix

 

4

 

 

1,822

 

 

366.88

 

 

69.1

 

 

253.45

 

 

551.73

 

 

292.22

 

 

71.7

 

 

209.42

 

 

472.19

 

 

21.0

 

 

16.8

 

Los Angeles/ Orange County

 

3

 

 

1,067

 

 

290.28

 

 

79.6

 

 

231.14

 

 

331.60

 

 

262.50

 

 

84.7

 

 

222.39

 

 

335.37

 

 

3.9

 

 

(1.1

)

New York

 

2

 

 

2,486

 

 

305.98

 

 

68.8

 

 

210.55

 

 

297.35

 

 

290.81

 

 

82.3

 

 

239.46

 

 

368.99

 

 

(12.1

)

 

(19.4

)

San Diego

 

3

 

 

3,288

 

 

275.85

 

 

76.1

 

 

209.91

 

 

376.43

 

 

255.81

 

 

81.2

 

 

207.62

 

 

372.41

 

 

1.1

 

 

1.1

 

Austin

 

2

 

 

767

 

 

261.29

 

 

70.3

 

 

183.71

 

 

319.55

 

 

246.64

 

 

86.6

 

 

213.69

 

 

361.89

 

 

(14.0

)

 

(11.7

)

Philadelphia

 

2

 

 

810

 

 

212.19

 

 

79.8

 

 

169.40

 

 

258.46

 

 

216.10

 

 

85.4

 

 

184.46

 

 

301.70

 

 

(8.2

)

 

(14.3

)

Washington, D.C. (CBD)

 

5

 

 

3,238

 

 

258.02

 

 

60.5

 

 

156.14

 

 

222.68

 

 

246.65

 

 

83.1

 

 

204.99

 

 

293.15

 

 

(23.8

)

 

(24.0

)

Chicago

 

3

 

 

1,562

 

 

238.34

 

 

64.8

 

 

154.44

 

 

212.39

 

 

218.02

 

 

77.8

 

 

169.55

 

 

243.43

 

 

(8.9

)

 

(12.8

)

Seattle

 

2

 

 

1,315

 

 

234.51

 

 

64.1

 

 

150.37

 

 

194.36

 

 

231.59

 

 

84.3

 

 

195.17

 

 

256.01

 

 

(23.0

)

 

(24.1

)

San Francisco/ San Jose

 

6

 

 

4,162

 

 

230.51

 

 

63.1

 

 

145.43

 

 

208.62

 

 

284.01

 

 

82.2

 

 

233.51

 

 

323.40

 

 

(37.7

)

 

(35.5

)

Boston

 

2

 

 

1,495

 

 

246.01

 

 

57.4

 

 

141.27

 

 

186.74

 

 

242.40

 

 

83.8

 

 

203.01

 

 

289.54

 

 

(30.4

)

 

(35.5

)

Northern Virginia

 

2

 

 

916

 

 

215.60

 

 

65.3

 

 

140.83

 

 

212.13

 

 

220.18

 

 

76.5

 

 

168.33

 

 

265.16

 

 

(16.3

)

 

(20.0

)

Atlanta

 

2

 

 

810

 

 

181.26

 

 

72.2

 

 

130.94

 

 

204.64

 

 

187.48

 

 

84.0

 

 

157.49

 

 

258.05

 

 

(16.9

)

 

(20.7

)

San Antonio

 

2

 

 

1,512

 

 

194.11

 

 

67.3

 

 

130.73

 

 

201.94

 

 

183.18

 

 

73.0

 

 

133.69

 

 

195.06

 

 

(2.2

)

 

3.5

 

New Orleans

 

1

 

 

1,333

 

 

196.59

 

 

65.3

 

 

128.42

 

 

187.76

 

 

188.24

 

 

79.9

 

 

150.35

 

 

219.33

 

 

(14.6

)

 

(14.4

)

Denver

 

3

 

 

1,340

 

 

183.44

 

 

63.9

 

 

117.14

 

 

169.54

 

 

175.15

 

 

76.3

 

 

133.61

 

 

195.92

 

 

(12.3

)

 

(13.5

)

Houston

 

5

 

 

1,942

 

 

180.33

 

 

63.4

 

 

114.29

 

 

158.00

 

 

178.46

 

 

72.4

 

 

129.22

 

 

184.58

 

 

(11.6

)

 

(14.4

)

Other

 

9

 

 

2,936

 

 

264.87

 

 

61.2

 

 

162.17

 

 

233.33

 

 

193.56

 

 

76.5

 

 

148.07

 

 

222.10

 

 

9.5

 

 

5.1

 

Domestic

 

72

 

 

40,585

 

 

296.19

 

 

66.6

 

 

197.36

 

 

320.69

 

 

258.57

 

 

79.6

 

 

205.77

 

 

333.27

 

 

(4.1

)

 

(3.8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

5

 

 

1,499

 

 

159.59

 

 

53.6

 

 

85.55

 

 

120.75

 

 

154.30

 

 

71.1

 

 

109.74

 

 

159.00

 

 

(22.0

)

 

(24.1

)

All Locations

 

77

 

 

42,084

 

 

292.25

 

 

66.2

 

 

193.38

 

 

313.58

 

 

255.20

 

 

79.3

 

 

202.32

 

 

327.00

 

 

(4.4

)

 

(4.1

)

Results by Location Compared to 2021 - actual, based on ownership period(1)

 

As of September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

2021

 

Quarter ended September 30, 2022

 

Quarter ended September 30, 2021

 

 

 

 

 

Location

No. of
Properties

 

No. of
Properties

 

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

 

 

4

 

$

565.30

 

 

73.6

%

$

416.12

 

$

643.06

 

$

514.34

 

 

82.8

%

$

425.86

 

$

635.28

 

 

(2.3

)%

 

1.2

%

Miami

 

2

 

 

3

 

 

457.43

 

 

50.2

 

 

229.66

 

 

427.55

 

 

364.54

 

 

55.2

 

 

201.40

 

 

333.79

 

 

14.0

 

 

28.1

 

Jacksonville

 

1

 

 

1

 

 

487.53

 

 

67.0

 

 

326.67

 

 

707.75

 

 

465.60

 

 

68.7

 

 

319.90

 

 

683.35

 

 

2.1

 

 

3.6

 

Florida Gulf Coast

 

5

 

 

5

 

 

330.56

 

 

53.9

 

 

178.01

 

 

340.62

 

 

314.16

 

 

45.2

 

 

141.93

 

 

286.62

 

 

25.4

 

 

18.8

 

Orlando

 

2

 

 

2

 

 

327.78

 

 

61.4

 

 

201.23

 

 

427.58

 

 

332.90

 

 

37.4

 

 

124.35

 

 

228.19

 

 

61.8

 

 

87.4

 

Phoenix

 

4

 

 

4

 

 

251.77

 

 

58.1

 

 

146.25

 

 

372.05

 

 

245.88

 

 

57.7

 

 

141.92

 

 

321.83

 

 

3.0

 

 

15.6

 

Los Angeles/ Orange County

 

3

 

 

5

 

 

303.74

 

 

86.4

 

 

262.42

 

 

372.72

 

 

218.60

 

 

71.1

 

 

155.40

 

 

216.04

 

 

68.9

 

 

72.5

 

New York

 

2

 

 

3

 

 

309.77

 

 

84.3

 

 

260.99

 

 

351.90

 

 

217.90

 

 

46.2

 

 

100.72

 

 

130.88

 

 

159.1

 

 

168.9

 

San Diego

 

3

 

 

3

 

 

292.38

 

 

85.4

 

 

249.83

 

 

440.67

 

 

247.61

 

 

72.1

 

 

178.55

 

 

281.14

 

 

39.9

 

 

56.7

 

Austin

 

2

 

 

1

 

 

233.32

 

 

68.3

 

 

159.46

 

 

289.77

 

 

181.59

 

 

57.2

 

 

103.84

 

 

162.10

 

 

53.6

 

 

78.8

 

Philadelphia

 

2

 

 

2

 

 

221.65

 

 

85.9

 

 

190.48

 

 

286.56

 

 

191.85

 

 

79.1

 

 

151.74

 

 

223.07

 

 

25.5

 

 

28.5

 

Washington, D.C. (CBD)

 

5

 

 

5

 

 

237.56

 

 

65.7

 

 

156.01

 

 

223.72

 

 

185.06

 

 

37.1

 

 

68.65

 

 

96.94

 

 

127.3

 

 

130.8

 

Chicago

 

3

 

 

4

 

 

253.75

 

 

77.8

 

 

197.54

 

 

269.26

 

 

191.01

 

 

62.4

 

 

119.27

 

 

149.38

 

 

65.6

 

 

80.3

 

Seattle

 

2

 

 

2

 

 

264.88

 

 

81.9

 

 

216.97

 

 

274.62

 

 

202.49

 

 

53.5

 

 

108.25

 

 

130.03

 

 

100.4

 

 

111.2

 

San Francisco/ San Jose

 

6

 

 

7

 

 

244.45

 

 

71.3

 

 

174.35

 

 

249.76

 

 

163.42

 

 

50.0

 

 

81.72

 

 

104.30

 

 

113.4

 

 

139.5

 

Boston

 

2

 

 

3

 

 

263.46

 

 

63.8

 

 

167.99

 

 

223.00

 

 

204.56

 

 

48.1

 

 

98.46

 

 

117.58

 

 

70.6

 

 

89.7

 

Northern Virginia

 

2

 

 

3

 

 

214.33

 

 

67.2

 

 

144.06

 

 

219.78

 

 

169.41

 

 

60.6

 

 

102.70

 

 

156.44

 

 

40.3

 

 

40.5

 

Atlanta

 

2

 

 

4

 

 

183.46

 

 

72.8

 

 

133.57

 

 

199.97

 

 

178.31

 

 

56.6

 

 

100.94

 

 

142.30

 

 

32.3

 

 

40.5

 

San Antonio

 

2

 

 

2

 

 

190.72

 

 

64.5

 

 

122.96

 

 

194.39

 

 

181.30

 

 

55.8

 

 

101.18

 

 

149.13

 

 

21.5

 

 

30.3

 

New Orleans

 

1

 

 

1

 

 

163.33

 

 

63.6

 

 

103.87

 

 

158.20

 

 

136.76

 

 

54.3

 

 

74.30

 

 

91.66

 

 

39.8

 

 

72.6

 

Denver

 

3

 

 

3

 

 

197.50

 

 

76.5

 

 

151.18

 

 

214.65

 

 

169.25

 

 

65.4

 

 

110.75

 

 

141.64

 

 

36.5

 

 

51.5

 

Houston

 

5

 

 

4

 

 

176.72

 

 

62.1

 

 

109.74

 

 

149.01

 

 

149.60

 

 

66.6

 

 

99.67

 

 

133.88

 

 

10.1

 

 

11.3

 

Other

 

9

 

 

8

 

 

261.04

 

 

63.6

 

 

166.04

 

 

240.26

 

 

203.77

 

 

53.2

 

 

108.38

 

 

150.97

 

 

53.2

 

 

59.1

 

Domestic

 

72

 

 

79

 

 

277.68

 

 

69.9

 

 

194.13

 

 

310.58

 

 

233.85

 

 

55.7

 

 

130.18

 

 

196.75

 

 

49.1

 

 

57.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

5

 

 

5

 

 

200.98

 

 

62.0

 

 

124.66

 

 

162.44

 

 

90.99

 

 

51.4

 

 

46.77

 

 

66.43

 

 

166.5

 

 

144.5

 

All Locations

 

77

 

 

84

 

 

275.25

 

 

69.6

 

 

191.66

 

 

305.33

 

 

229.68

 

 

55.5

 

 

127.54

 

 

192.63

 

 

50.3

 

 

58.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30,
20232022Quarter ended September 30, 2023Quarter ended September 30, 2022
LocationNo. of
Properties		No. of
Properties		Average
Room Rate		Average
Occupancy
Percentage		RevPARTotal RevPARAverage
Room Rate		Average
Occupancy
Percentage		RevPARTotal RevPARPercent
Change in
RevPAR		Percent
Change in
Total RevPAR
Maui/Oahu44$565.03 69.7 %$393.67 $549.52 $565.30 73.6 %$416.12 $643.57 (5.4)%(14.6)%
Jacksonville11479.33 69.2 331.47 726.78 487.53 67.0 326.67 707.75 1.5 2.7 
Miami22377.39 50.3 189.66 358.25 457.43 50.2 229.66 427.55 (17.4)(16.2)
Florida Gulf Coast55328.97 58.5 192.44 384.90 330.56 53.9 178.01 344.04 8.1 11.9 
Phoenix34263.79 59.6 157.18 368.20 251.77 58.1 146.25 372.05 7.5 (1.0)
Orlando22309.53 64.9 200.78 419.73 327.78 61.4 201.23 427.58 (0.2)(1.8)
New York22334.84 87.0 291.33 387.71 309.77 84.3 260.99 351.90 11.6 10.2 
Los Angeles/Orange County33314.25 85.9 269.85 375.29 303.74 86.4 262.42 373.36 2.8 0.5 
San Diego33295.59 83.5 246.81 441.94 292.38 85.4 249.83 440.67 (1.2)0.3 
Boston22273.06 83.8 228.75 291.12 263.46 63.8 167.99 223.00 36.2 30.5 
Washington, D.C. (CBD)55244.50 71.5 174.94 248.36 237.56 65.7 156.01 223.72 12.1 11.0 
Philadelphia22231.09 82.6 190.83 288.59 221.65 85.9 190.48 286.56 0.2 0.7 
Austin22225.87 59.0 133.29 242.58 233.32 68.3 159.46 289.77 (16.4)(16.3)
Northern Virginia22233.30 72.0 168.00 250.70 214.33 67.2 144.06 219.78 16.6 14.1 
San Francisco/San Jose66241.34 72.8 175.71 241.07 244.45 71.3 174.35 250.97 0.8 (3.9)
Chicago33253.34 79.5 201.35 280.27 253.75 77.8 197.54 269.26 1.9 4.1 
Seattle22271.12 81.0 219.56 285.88 264.88 81.9 216.97 274.62 1.2 4.1 
Atlanta22182.03 75.0 136.49 210.62 183.46 72.8 133.57 199.97 2.2 5.3 
Houston55191.21 66.3 126.73 172.15 176.72 62.1 109.74 149.01 15.5 15.5 
San Antonio22194.04 53.5 103.87 167.34 190.72 64.5 122.96 194.39 (15.5)(13.9)
New Orleans11147.45 58.9 86.87 133.83 163.33 63.6 103.87 158.20 (16.4)(15.4)
Denver33204.48 79.9 163.34 235.48 197.50 76.5 151.18 214.65 8.0 9.7 
Other109326.91 68.5 223.86 333.59 261.04 63.6 166.04 240.26 34.8 38.8 
Domestic7272284.23 71.7 203.67 319.19 277.68 69.9 194.13 310.91 4.9 2.7 
International55199.27 65.7 130.95 174.16 200.98 62.0 124.66 162.44 5.0 7.2 
All Locations7777281.45 71.4 201.08 314.05 275.25 69.6 191.66 305.69 4.9 2.7 

34
31

Results by Location Compared to 2019 - actual, based on ownership period(1)

 

As of September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

2019

 

Quarter ended September 30, 2022

 

Quarter ended September 30, 2019

 

 

 

 

 

Location

No. of
Properties

 

No. of
Properties

 

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

 

 

4

 

$

565.30

 

 

73.6

%

$

416.12

 

$

643.06

 

$

385.51

 

 

91.5

%

$

352.78

 

$

543.42

 

 

18.0

%

 

18.3

%

Miami

 

2

 

 

3

 

 

457.43

 

 

50.2

 

 

229.66

 

 

427.55

 

 

235.65

 

 

73.9

 

 

174.18

 

 

294.09

 

 

31.8

 

 

45.4

 

Jacksonville

 

1

 

 

1

 

 

487.53

 

 

67.0

 

 

326.67

 

 

707.75

 

 

363.69

 

 

69.0

 

 

251.05

 

 

516.90

 

 

30.1

 

 

36.9

 

Florida Gulf Coast

 

5

 

 

5

 

 

330.56

 

 

53.9

 

 

178.01

 

 

340.62

 

 

242.93

 

 

61.6

 

 

149.63

 

 

302.07

 

 

19.0

 

 

12.8

 

Orlando

 

2

 

 

1

 

 

327.78

 

 

61.4

 

 

201.23

 

 

427.58

 

 

155.29

 

 

59.2

 

 

91.97

 

 

231.78

 

 

118.8

 

 

84.5

 

Phoenix

 

4

 

 

3

 

 

251.77

 

 

58.1

 

 

146.25

 

 

372.05

 

 

187.65

 

 

58.4

 

 

109.56

 

 

266.45

 

 

33.5

 

 

39.6

 

Los Angeles/ Orange County

 

3

 

 

6

 

 

303.74

 

 

86.4

 

 

262.42

 

 

372.72

 

 

226.14

 

 

85.8

 

 

194.13

 

 

288.91

 

 

35.2

 

 

29.0

 

New York

 

2

 

 

3

 

 

309.77

 

 

84.3

 

 

260.99

 

 

351.90

 

 

271.11

 

 

92.0

 

 

249.40

 

 

341.59

 

 

4.6

 

 

3.0

 

San Diego

 

3

 

 

4

 

 

292.38

 

 

85.4

 

 

249.83

 

 

440.67

 

 

235.94

 

 

84.9

 

 

200.22

 

 

347.13

 

 

24.8

 

 

26.9

 

Austin

 

2

 

 

—

 

 

233.32

 

 

68.3

 

 

159.46

 

 

289.77

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Philadelphia

 

2

 

 

2

 

 

221.65

 

 

85.9

 

 

190.48

 

 

286.56

 

 

207.13

 

 

88.2

 

 

182.60

 

 

295.52

 

 

4.3

 

 

(3.0

)

Washington, D.C. (CBD)

 

5

 

 

5

 

 

237.56

 

 

65.7

 

 

156.01

 

 

223.72

 

 

211.15

 

 

84.4

 

 

178.19

 

 

254.63

 

 

(12.4

)

 

(12.1

)

Chicago

 

3

 

 

4

 

 

253.75

 

 

77.8

 

 

197.54

 

 

269.26

 

 

217.96

 

 

85.2

 

 

185.76

 

 

259.62

 

 

6.3

 

 

3.7

 

Seattle

 

2

 

 

2

 

 

264.88

 

 

81.9

 

 

216.97

 

 

274.62

 

 

260.45

 

 

90.2

 

 

234.96

 

 

291.64

 

 

(7.7

)

 

(5.8

)

San Francisco/ San Jose

 

6

 

 

7

 

 

244.45

 

 

71.3

 

 

174.35

 

 

249.76

 

 

266.18

 

 

84.2

 

 

224.20

 

 

301.99

 

 

(22.2

)

 

(17.3

)

Boston

 

2

 

 

4

 

 

263.46

 

 

63.8

 

 

167.99

 

 

223.00

 

 

243.62

 

 

91.4

 

 

222.58

 

 

293.17

 

 

(24.5

)

 

(23.9

)

Northern Virginia

 

2

 

 

3

 

 

214.33

 

 

67.2

 

 

144.06

 

 

219.78

 

 

199.70

 

 

72.7

 

 

145.09

 

 

217.46

 

 

(0.7

)

 

1.1

 

Atlanta

 

2

 

 

4

 

 

183.46

 

 

72.8

 

 

133.57

 

 

199.97

 

 

168.45

 

 

85.0

 

 

143.25

 

 

215.95

 

 

(6.8

)

 

(7.4

)

San Antonio

 

2

 

 

2

 

 

190.72

 

 

64.5

 

 

122.96

 

 

194.39

 

 

165.01

 

 

66.6

 

 

109.84

 

 

155.81

 

 

11.9

 

 

24.8

 

New Orleans

 

1

 

 

1

 

 

163.33

 

 

63.6

 

 

103.87

 

 

158.20

 

 

156.82

 

 

77.0

 

 

120.78

 

 

175.05

 

 

(14.0

)

 

(9.6

)

Denver

 

3

 

 

3

 

 

197.50

 

 

76.5

 

 

151.18

 

 

214.65

 

 

184.28

 

 

84.5

 

 

155.64

 

 

218.16

 

 

(2.9

)

 

(1.6

)

Houston

 

5

 

 

4

 

 

176.72

 

 

62.1

 

 

109.74

 

 

149.01

 

 

170.32

 

 

67.0

 

 

114.07

 

 

159.84

 

 

(3.8

)

 

(6.8

)

Other

 

9

 

 

6

 

 

261.04

 

 

63.6

 

 

166.04

 

 

240.26

 

 

172.44

 

 

80.7

 

 

139.19

 

 

195.48

 

 

19.3

 

 

22.9

 

Domestic

 

72

 

 

77

 

 

277.68

 

 

69.9

 

 

194.13

 

 

310.58

 

 

229.97

 

 

80.9

 

 

186.05

 

 

283.16

 

 

4.3

 

 

9.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

5

 

 

5

 

 

200.98

 

 

62.0

 

 

124.66

 

 

162.44

 

 

159.14

 

 

75.9

 

 

120.86

 

 

166.88

 

 

3.1

 

 

(2.7

)

All Locations

 

77

 

 

82

 

 

275.25

 

 

69.6

 

 

191.66

 

 

305.33

 

 

227.93

 

 

80.8

 

 

184.06

 

 

279.60

 

 

4.1

 

 

9.2

 

Results by Location Compared to 2021 - actual, based on ownership period

As of September 30,
20232022Year-to-date ended September 30, 2023Year-to-date ended September 30, 2022
LocationNo. of
Properties		No. of
Properties		Average
Room Rate		Average
Occupancy
Percentage		RevPARTotal RevPARAverage
Room Rate		Average
Occupancy
Percentage		RevPARTotal RevPARPercent
Change in
RevPAR		Percent
Change in
Total RevPAR
Maui/Oahu44$588.70 73.2 %$430.85 $642.10 $559.15 76.0 %$424.91 $658.15 1.4 %(2.4 %)
Jacksonville11515.29 72.8 375.31 823.23 533.33 69.5 370.85 799.91 1.2 2.9 
Miami22538.29 65.8 354.38 620.61 573.01 64.5 369.80 609.25 (4.2)1.9 
Florida Gulf Coast55371.22 58.6 217.52 459.32 442.56 65.9 291.82 574.12 (25.5)(20.0)
Phoenix34398.12 72.1 286.88 619.02 366.88 69.1 253.45 551.73 13.2 12.2 
Orlando22369.46 71.4 263.81 533.70 395.30 64.4 254.71 498.62 3.6 7.0 
New York22323.10 81.6 263.58 375.42 288.08 63.5 182.96 256.78 44.1 46.2 
Los Angeles/Orange County33303.01 82.8 250.80 360.45 290.28 79.6 231.14 332.23 8.5 8.5 
San Diego33286.71 81.2 232.85 432.14 275.85 76.1 209.91 376.43 10.9 14.8 
Boston22262.27 78.7 206.41 272.25 240.93 55.5 133.65 175.93 54.4 54.8 
Washington, D.C. (CBD)55276.94 71.3 197.40 285.28 258.02 60.5 156.14 222.68 26.4 28.1 
Philadelphia22230.17 80.1 184.43 285.52 212.19 79.8 169.40 258.46 8.9 10.5 
Austin22259.09 66.6 172.50 309.26 261.29 70.3 183.71 319.55 (6.1)(3.2)
Northern Virginia22241.35 70.5 170.04 256.35 215.60 65.3 140.83 212.13 20.7 20.8 
San Francisco/San Jose66254.24 66.8 169.73 246.35 230.51 63.1 145.43 209.56 16.7 17.6 
Chicago33244.43 69.2 169.15 240.13 227.82 63.1 143.86 196.43 17.6 22.2 
Seattle22242.11 69.1 167.33 226.93 234.51 64.1 150.37 194.36 11.3 16.8 
Atlanta22190.91 75.0 143.15 230.87 181.26 72.2 130.94 204.64 9.3 12.8 
Houston55201.57 70.6 142.37 196.37 180.33 63.4 114.29 158.00 24.6 24.3 
San Antonio22217.64 62.4 135.91 217.29 194.11 67.3 130.73 201.94 4.0 7.6 
New Orleans11195.70 68.9 134.85 204.28 196.59 65.3 128.42 187.76 5.0 8.8 
Denver33193.63 65.0 125.92 180.78 183.44 63.9 117.14 169.54 7.5 6.6 
Other109322.01 65.5 210.89 320.75 264.87 61.2 162.17 233.33 30.0 37.5 
Domestic7272304.28 71.2 216.53 353.71 293.77 66.1 194.23 315.02 11.5 12.3 
International55188.41 62.9 118.58 168.30 159.59 53.6 85.55 120.75 38.6 39.4 
All Locations7777300.61 70.9 213.04 347.14 289.98 65.7 190.46 308.35 11.9 12.6 
___________
(1)

 

As of September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

2021

 

Year-to-date ended September 30, 2022

 

Year-to-date ended September 30, 2021

 

 

 

 

 

Location

No. of
Properties

 

No. of
Properties

 

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

 

 

4

 

$

559.15

 

 

76.0

%

$

424.91

 

$

657.89

 

$

470.97

 

 

67.4

%

$

317.20

 

$

476.28

 

 

34.0

%

 

38.1

%

Miami

 

2

 

 

3

 

 

573.01

 

 

64.5

 

 

369.80

 

 

609.25

 

 

472.94

 

 

57.4

 

 

271.38

 

 

424.17

 

 

36.3

 

 

43.6

 

Jacksonville

 

1

 

 

1

 

 

533.33

 

 

69.5

 

 

370.85

 

 

799.91

 

 

506.77

 

 

57.8

 

 

293.02

 

 

587.76

 

 

26.6

 

 

36.1

 

Florida Gulf Coast

 

5

 

 

5

 

 

442.56

 

 

65.9

 

 

291.82

 

 

570.66

 

 

416.57

 

 

54.8

 

 

228.24

 

 

426.68

 

 

27.9

 

 

33.7

 

Orlando

 

2

 

 

2

 

 

395.30

 

 

64.4

 

 

254.71

 

 

498.62

 

 

313.90

 

 

26.5

 

 

83.14

 

 

157.35

 

 

206.4

 

 

216.9

 

Phoenix

 

4

 

 

4

 

 

366.88

 

 

69.1

 

 

253.45

 

 

551.73

 

 

301.23

 

 

56.5

 

 

170.12

 

 

346.53

 

 

49.0

 

 

59.2

 

Los Angeles/ Orange County

 

3

 

 

5

 

 

290.28

 

 

79.6

 

 

231.14

 

 

331.60

 

 

190.62

 

 

53.1

 

 

101.25

 

 

138.42

 

 

128.3

 

 

139.6

 

New York

 

2

 

 

3

 

 

288.08

 

 

63.5

 

 

182.96

 

 

256.78

 

 

189.90

 

 

31.7

 

 

60.17

 

 

75.05

 

 

204.1

 

 

242.2

 

San Diego

 

3

 

 

3

 

 

275.85

 

 

76.1

 

 

209.91

 

 

376.43

 

 

218.39

 

 

45.3

 

 

98.85

 

 

155.68

 

 

112.4

 

 

141.8

 

Austin

 

2

 

 

1

 

 

261.29

 

 

70.3

 

 

183.71

 

 

319.55

 

 

181.39

 

 

58.7

 

 

106.44

 

 

156.20

 

 

72.6

 

 

104.6

 

Philadelphia

 

2

 

 

2

 

 

212.19

 

 

79.8

 

 

169.40

 

 

258.46

 

 

169.58

 

 

58.7

 

 

99.52

 

 

147.38

 

 

70.2

 

 

75.4

 

Washington, D.C. (CBD)

 

5

 

 

5

 

 

258.02

 

 

60.5

 

 

156.14

 

 

222.68

 

 

161.96

 

 

42.2

 

 

68.41

 

 

81.26

 

 

128.2

 

 

174.0

 

Chicago

 

3

 

 

4

 

 

227.82

 

 

63.1

 

 

143.86

 

 

196.43

 

 

168.03

 

 

37.4

 

 

62.92

 

 

77.59

 

 

128.6

 

 

153.2

 

Seattle

 

2

 

 

2

 

 

234.51

 

 

64.1

 

 

150.37

 

 

194.36

 

 

188.47

 

 

27.8

 

 

52.43

 

 

63.79

 

 

186.8

 

 

204.7

 

San Francisco/ San Jose

 

6

 

 

7

 

 

230.51

 

 

63.1

 

 

145.43

 

 

208.62

 

 

153.68

 

 

31.5

 

 

48.40

 

 

62.82

 

 

200.4

 

 

232.1

 

Boston

 

2

 

 

3

 

 

240.93

 

 

55.5

 

 

133.65

 

 

175.93

 

 

180.00

 

 

25.7

 

 

46.18

 

 

56.54

 

 

189.4

 

 

211.2

 

Northern Virginia

 

2

 

 

3

 

 

215.60

 

 

65.3

 

 

140.83

 

 

212.13

 

 

161.62

 

 

44.3

 

 

71.60

 

 

107.52

 

 

96.7

 

 

97.3

 

Atlanta

 

2

 

 

4

 

 

181.26

 

 

72.2

 

 

130.94

 

 

204.64

 

 

170.45

 

 

48.0

 

 

81.83

 

 

111.31

 

 

60.0

 

 

83.8

 

San Antonio

 

2

 

 

2

 

 

194.11

 

 

67.3

 

 

130.73

 

 

201.94

 

 

160.63

 

 

40.8

 

 

65.54

 

 

95.17

 

 

99.5

 

 

112.2

 

New Orleans

 

1

 

 

1

 

 

196.59

 

 

65.3

 

 

128.42

 

 

187.76

 

 

128.95

 

 

37.6

 

 

48.51

 

 

65.71

 

 

164.7

 

 

185.7

 

Denver

 

3

 

 

3

 

 

183.44

 

 

63.9

 

 

117.14

 

 

169.54

 

 

149.35

 

 

42.1

 

 

62.95

 

 

80.24

 

 

86.1

 

 

111.3

 

Houston

 

5

 

 

4

 

 

180.33

 

 

63.4

 

 

114.29

 

 

158.00

 

 

140.32

 

 

59.7

 

 

83.73

 

 

113.03

 

 

36.5

 

 

39.8

 

Other

 

9

 

 

8

 

 

264.87

 

 

61.2

 

 

162.17

 

 

233.33

 

 

170.49

 

 

40.8

 

 

69.58

 

 

94.34

 

 

133.1

 

 

147.3

 

Domestic

 

72

 

 

79

 

 

293.77

 

 

66.1

 

 

194.23

 

 

314.75

 

 

233.25

 

 

42.4

 

 

98.82

 

 

150.74

 

 

96.5

 

 

108.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

5

 

 

5

 

 

159.59

 

 

53.6

 

 

85.55

 

 

120.75

 

 

85.10

 

 

28.0

 

 

23.85

 

 

34.15

 

 

258.8

 

 

253.6

 

All Locations

 

77

 

 

84

 

 

289.98

 

 

65.7

 

 

190.46

 

 

308.03

 

 

230.09

 

 

41.9

 

 

96.43

 

 

147.02

 

 

97.5

 

 

109.5

 

32

Results by Location Compared to 2019 - actual based on ownership period(1)

 

As of September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

2019

 

Year-to-date ended September 30, 2022

 

Year-to-date ended September 30, 2019

 

 

 

 

 

Location

No. of
Properties

 

No. of
Properties

 

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

 

 

4

 

$

559.15

 

 

76.0

%

$

424.91

 

$

657.89

 

$

401.92

 

 

90.9

%

$

365.45

 

$

563.64

 

 

16.3

%

 

16.7

%

Miami

 

2

 

 

3

 

 

573.01

 

 

64.5

 

 

369.80

 

 

609.25

 

 

293.90

 

 

79.8

 

 

234.60

 

 

367.10

 

 

57.6

 

 

66.0

 

Jacksonville

 

1

 

 

1

 

 

533.33

 

 

69.5

 

 

370.85

 

 

799.91

 

 

383.37

 

 

77.2

 

 

296.02

 

 

652.91

 

 

25.3

 

 

22.5

 

Florida Gulf Coast

 

5

 

 

5

 

 

442.56

 

 

65.9

 

 

291.82

 

 

570.66

 

 

340.73

 

 

72.8

 

 

247.94

 

 

507.99

 

 

17.7

 

 

12.3

 

Orlando

 

2

 

 

1

 

 

395.30

 

 

64.4

 

 

254.71

 

 

498.62

 

 

182.58

 

 

69.5

 

 

126.97

 

 

303.48

 

 

100.6

 

 

64.3

 

Phoenix

 

4

 

 

3

 

 

366.88

 

 

69.1

 

 

253.45

 

 

551.73

 

 

270.22

 

 

73.4

 

 

198.47

 

 

419.43

 

 

27.7

 

 

31.5

 

Los Angeles/ Orange County

 

3

 

 

6

 

 

290.28

 

 

79.6

 

 

231.14

 

 

331.60

 

 

214.91

 

 

84.4

 

 

181.37

 

 

273.04

 

 

27.4

 

 

21.5

 

New York

 

2

 

 

3

 

 

288.08

 

 

63.5

 

 

182.96

 

 

256.78

 

 

268.13

 

 

82.9

 

 

222.31

 

 

328.43

 

 

(17.7

)

 

(21.8

)

San Diego

 

3

 

 

4

 

 

275.85

 

 

76.1

 

 

209.91

 

 

376.43

 

 

236.69

 

 

81.5

 

 

192.90

 

 

345.20

 

 

8.8

 

 

9.0

 

Austin

 

2

 

 

—

 

 

261.29

 

 

70.3

 

 

183.71

 

 

319.55

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Philadelphia

 

2

 

 

2

 

 

212.19

 

 

79.8

 

 

169.40

 

 

258.46

 

 

216.10

 

 

85.4

 

 

184.46

 

 

301.70

 

 

(8.2

)

 

(14.3

)

Washington, D.C. (CBD)

 

5

 

 

5

 

 

258.02

 

 

60.5

 

 

156.14

 

 

222.68

 

 

246.65

 

 

83.1

 

 

204.99

 

 

293.15

 

 

(23.8

)

 

(24.0

)

Chicago

 

3

 

 

4

 

 

227.82

 

 

63.1

 

 

143.86

 

 

196.43

 

 

198.58

 

 

76.6

 

 

152.16

 

 

210.78

 

 

(5.5

)

 

(6.8

)

Seattle

 

2

 

 

2

 

 

234.51

 

 

64.1

 

 

150.37

 

 

194.36

 

 

231.59

 

 

84.3

 

 

195.17

 

 

256.01

 

 

(23.0

)

 

(24.1

)

San Francisco/ San Jose

 

6

 

 

7

 

 

230.51

 

 

63.1

 

 

145.43

 

 

208.62

 

 

279.15

 

 

81.5

 

 

227.38

 

 

315.49

 

 

(36.0

)

 

(33.9

)

Boston

 

2

 

 

4

 

 

240.93

 

 

55.5

 

 

133.65

 

 

175.93

 

 

237.01

 

 

82.6

 

 

195.81

 

 

268.56

 

 

(31.7

)

 

(34.5

)

Northern Virginia

 

2

 

 

3

 

 

215.60

 

 

65.3

 

 

140.83

 

 

212.13

 

 

197.94

 

 

74.8

 

 

148.13

 

 

226.05

 

 

(4.9

)

 

(6.2

)

Atlanta

 

2

 

 

4

 

 

181.26

 

 

72.2

 

 

130.94

 

 

204.64

 

 

193.39

 

 

79.8

 

 

154.29

 

 

235.46

 

 

(15.1

)

 

(13.1

)

San Antonio

 

2

 

 

2

 

 

194.11

 

 

67.3

 

 

130.73

 

 

201.94

 

 

183.18

 

 

73.0

 

 

133.69

 

 

195.06

 

 

(2.2

)

 

3.5

 

New Orleans

 

1

 

 

1

 

 

196.59

 

 

65.3

 

 

128.42

 

 

187.76

 

 

188.24

 

 

79.9

 

 

150.35

 

 

219.33

 

 

(14.6

)

 

(14.4

)

Denver

 

3

 

 

3

 

 

183.44

 

 

63.9

 

 

117.14

 

 

169.54

 

 

175.15

 

 

76.3

 

 

133.61

 

 

195.92

 

 

(12.3

)

 

(13.5

)

Houston

 

5

 

 

4

 

 

180.33

 

 

63.4

 

 

114.29

 

 

158.00

 

 

178.46

 

 

72.4

 

 

129.22

 

 

184.58

 

 

(11.6

)

 

(14.4

)

Other

 

9

 

 

6

 

 

264.87

 

 

61.2

 

 

162.17

 

 

233.33

 

 

173.68

 

 

76.9

 

 

133.48

 

 

197.30

 

 

21.5

 

 

18.3

 

Domestic

 

72

 

 

77

 

 

293.77

 

 

66.1

 

 

194.23

 

 

314.75

 

 

240.89

 

 

79.7

 

 

191.94

 

 

303.24

 

 

1.2

 

 

3.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

5

 

 

5

 

 

159.59

 

 

53.6

 

 

85.55

 

 

120.75

 

 

154.30

 

 

71.1

 

 

109.74

 

 

159.00

 

 

(22.0

)

 

(24.1

)

All Locations

 

77

 

 

82

 

 

289.98

 

 

65.7

 

 

190.46

 

 

308.03

 

 

238.59

 

 

79.4

 

 

189.51

 

 

298.97

 

 

0.5

 

 

3.0

 

___________

(1) Represents the results of the portfolio for the time period of our ownership, including the results of non-comparable properties, dispositions through their date of disposal and acquisitions beginning as of the date of acquisition.

Hotel Business Mix

Our customers fall into three broad categories: transient, group, and contract business, which accounted for approximately 61%65%, 35%32%, and 4%3%, respectively, of our full year 20192022 room sales. The information below is derived from business mix data for the 7775 comparable hotels that we owned as of September 30, 2022.2023. For additional detail on our business mix, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10‑K.
Improvements in the third quarter compared to 2022 were primarily driven by an increase in group business, through increases in occupancy and room rates. At the same time, the recovery in business transient demand continued, driven by demand from small and medium-sized businesses, which accounted for a greater share of demand as compared to large companies than prior to the COVID-19 pandemic. Overall transient revenue decreased for the quarter due to the wildfires in Maui and moderating transient rates at our resort hotels, although resort transient rates remain more than 50% above 2019.

35

The following are the results of our consolidated portfolio transient, group and contract business:

 

 

Quarter ended September 30, 2022

 

 

Quarter ended September 30, 2021

 

 

 

Transient business

 

 

Group business

 

 

Contract business

 

 

Transient business

 

 

Group business

 

 

Contract business

 

Room nights (in thousands)

 

 

1,557

 

 

 

991

 

 

 

151

 

 

 

1,521

 

 

 

530

 

 

 

122

 

Percentage change in room nights vs. same period in 2019

 

 

(18.4

)%

 

 

(2.6

)%

 

 

21.2

%

 

 

 

 

 

 

 

 

 

Rooms Revenues (in millions)

 

$

487

 

 

$

229

 

 

$

28

 

 

$

401

 

 

$

102

 

 

$

18

 

Percentage change in revenues vs. same period in 2019

 

 

1.7

%

 

 

3.3

%

 

 

9.4

%

 

 

 

 

 

 

 

 

 

 

 

Year-to-date ended September 30, 2022

 

 

Year-to-date ended September 30, 2021

 

 

 

Transient business

 

 

Group business

 

 

Contract business

 

 

Transient business

 

 

Group business

 

 

Contract business

 

Room nights (in thousands)

 

 

4,409

 

 

 

2,787

 

 

 

412

 

 

 

3,541

 

 

 

1,132

 

 

 

285

 

Percentage change in room nights vs. same period in 2019

 

 

(15.8

)%

 

 

(18.2

)%

 

 

10.6

%

 

 

 

 

 

 

 

 

 

Rooms Revenues (in millions)

 

$

1,446

 

 

$

701

 

 

$

76

 

 

$

973

 

 

$

203

 

 

$

41

 

Percentage change in revenues vs. same period in 2019

 

 

2.9

%

 

 

(14.6

)%

 

 

(0.2

)%

 

 

 

 

 

 

 

 

 

33

Quarter ended September 30, 2023Year-to-date ended September 30, 2023
Transient business
Group business
Contract business
Transient business
Group business
Contract business
Room nights (in thousands)1,526 990 201 4,375 3,112 533 
Percent change in room nights vs. same period in 20220.4 %1.8 %20.7 %2.5 %15.0 %15.1 %
Rooms revenues (in millions)$472 $252 $37 $1,465 $844 $99 
Percent change in revenues vs. same period in 2022(3.3 %)9.8 %24.9 %3.0 %23.7 %28.2 %
Liquidity and Capital Resources

Liquidity and Capital Resources of Host Inc. and Host L.P. The liquidity and capital resources of Host Inc. and Host L.P. are derived primarily from the activities of Host L.P., which generates the capital required by our business from hotel operations, the incurrence of debt, the issuance of OP units or the sale of hotels. Host Inc. is a REIT, and its only significant asset is the ownership of general and limited partner interests of Host L.P.; therefore, its financing and investing activities are conducted through Host L.P., except for the issuance of its common and preferred stock. Proceeds from common and preferred stock issuances by Host Inc. are contributed to Host L.P. in exchange for common and preferred OP units. Additionally, funds used by Host Inc. to pay dividends or to repurchase its stock are provided by Host L.P. Therefore, while we have noted those areas in which it is important to distinguish between Host Inc. and Host L.P., we have not included a separate discussion of liquidity and capital resources as the discussion below applies to both Host Inc. and Host L.P.

Overview. We look to maintain a capital structure and liquidity profile with an appropriate balance of cash, debt, and equity to provide financial flexibility given the inherent volatility of the lodging industry. We believe this strategy has resulted in a better cost of debt capital, allowing us to complete opportunistic investments and acquisitions and positioning us to manage potential declines in operations throughout the lodging cycle. We have structured our debt profile to maintain a balanced maturity schedule and to minimize the number of hotels that are encumbered by mortgage debt. Currently, only one of our consolidated hotels is encumbered by mortgage debt. Over the past several years leading up to the COVID-19 pandemic, we had decreased our leverage as measured by our net debt-to-EBITDA ratio and reduced our debt service obligations, leading to an increase in our fixed charge coverage ratio. As a result, we were well positioned at the onset of the COVID-19 pandemic with sufficient liquidity and financial flexibility to withstand the severe slowdown in U.S. economic activity and lodging demand brought on by the pandemic.

As hotel operations have returned to cash flow positive, we We believe that we have sufficient liquidity to fund corporate expenses, capital expenditures and hotel acquisitionsdividends and have reinstated our quarterly dividend. We remain well positioned to execute additional investment transactions to the extent opportunities arise.

Cash Requirements. We use cash for acquisitions, capital expenditures, debt payments, operating costs, and corporate and other expenses, as well as for dividends and distributions to stockholders and to OP unitholders, respectively, and stock and OP unit repurchases. We have noOur next significant debt maturities untilmaturity is $400 million due in April 2024. As a REIT, Host Inc. is required to distribute to its stockholders at least 90% of its taxable income, excluding net capital gain, on an annual basis.

Capital Resources. As of September 30, 2022,2023, we had $883$916 million of cash and cash equivalents, $187$218 million in our FF&E escrow reserves and $1.5 billion available under the revolver portion of our credit facility. We depend primarily on external sources of capital to finance future growth, including acquisitions. As a result, the liquidity and debt capacity provided by our credit facility and the ability to issue senior unsecured debt are key components of our capital structure. Our financial flexibility, including our ability to incur debt, pay dividends, make distributions and make investments, is contingent on our ability to maintain compliance with the financial covenants of our credit facility and senior notes indentures, which include, among other things, the allowable amounts of leverage, interest coverage and fixed charges.

We

Two programs are currently have a distribution agreement in place with various investment banks, through which Host Inc. may issue and sell, from time-to-time, sharesrelating to potential purchases or sales of itsour common stock. Under our common stock having an aggregate offering price of up to $600 million. The shares can be offered and sold through sales agents in transactions that are deemed to be “at the market” offerings at then-current market prices. We are not obligated to issue any shares and may do so when we believe conditions are advantageous and there is a compelling use of proceeds, including to fund future acquisitions. No shares have been issued during 2022 year-to-date. As of September 30, 2022, there was $460 million of remaining capacity under the agreement.

Additionally, on August 3, 2022, the Board of Directors authorized an increase in the Company’s share repurchase program, from the existing $371 million remaining under the prior Board authorization to $1 billion. The common stock may be purchased from time to time depending upon market conditions and may be purchased in the open market or through private transactions or by other means, including principal transactions with various financial institutions, like accelerated share repurchases, forwards, options, and similar transactions and through one or more trading plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The plan does not obligate us to repurchase any specific number or any specific dollar amount of


36

shares and may be suspended at any time at our discretion. There have been noDuring the third quarter of 2023, we repurchased 6.3 million shares at an average price of $15.90 per share, repurchases during 2022 year-to-date.

exclusive of commissions, through our common share repurchase program, for a total of $100 million. At September 30, 2023, we had $823 million available for repurchase under our program.

In addition, on May 31, 2023, we entered into a distribution agreement with J.P. Morgan Securities LLC, BofA Securities, Inc., Goldman Sachs & Co. LLC, Jefferies LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC, as sales agents pursuant to which Host Inc. may offer and sell, from time to time, shares of Host Inc. common stock having an aggregate offering price of up to $600 million. The sales will be made in transactions that are deemed to be “at the market” offerings under the SEC rules. We may sell shares of Host Inc. common stock under this program from time to time based on market conditions, although we are not under an obligation to sell any shares. The agreement also contemplates that, in addition to the offering and sale of shares to or through the sales agents, we may enter into separate forward sale agreements with each of the forward purchasers named in the agreement. No shares were issued year-to-date in 2023. As of September 30, 2023, there was $600 million of remaining capacity under the agreement.
Given the total amount of our debt and our maturity schedule, we may continue to redeem or repurchase senior notes from time to time, taking advantage of favorable market conditions. In February 2021,2023, Host Inc.’s Board of Directors authorized repurchases of up to $1.0 billion of senior notes other than in accordance with their respective terms, of which the entire amount remains available under this authority. We may purchase senior notes with cash through open market purchases, privately negotiated transactions, a tender offer, or, in some cases, through the early redemption of such securities pursuant to their terms. Repurchases of debt will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. Any retirement before the maturity date will

34

affect earnings and NAREIT FFO per diluted share as a result of the payment of any applicable call premiums and the accelerated expensing of previously deferred and capitalized financing costs. Accordingly, considering our priorities in managing our capital structure and liquidity profile, and given prevailing conditions and relative pricing in the capital markets, we may, at any time, subject to applicable securities laws and the requirements underof our credit facility and senior notes indentures, be considering, or be in discussions with respect to, the repurchase or issuance of exchangeable debentures and/or senior notes or the repurchase or sale of our common stock. Any such transactions may, subject to applicable securities laws, occur simultaneously.

We continue to explore potential acquisitions and dispositions. We anticipate that any such future acquisitions will be funded primarily by proceeds from sales of hotels, but also potentially from equity offerings of Host Inc., issuances of OP units by Host L.P., or available cash. Given the nature of these transactions, we can make no assurances that we will be successful in acquiring any one or more hotels that we may review, bid on or negotiate to purchase or that we will be successful in disposing of any one or more of our hotels. We may acquire additional hotels or dispose of hotels through various structures, including transactions involving single assets, portfolios, joint ventures, acquisitions of the securities or assets of other REITs or distributions of hotels to our stockholders.

Sources and Uses of Cash. Our sources of cash generally include cash from operations, proceeds from debt and equity issuances, and proceeds from hotel sales. Uses of cash include acquisitions, capital expenditures, operating costs, debt repayments, and repurchases of shares and distributions to equity holders.

Cash Provided by Operating Activities. Year-to-date in 2022,2023, net cash provided by operating activities was $1,056$1,134 million compared to $78$1,056 million for 2021. This $9782022. The $78 million increase in 20222023 was primarily driven by improved operations at our hotels compared to 2021.2022, as well as $54 million of insurance proceeds received for business interruption related to Hurricane Ian.

Cash Used in Investing Activities. Net cash used in investing activities was $172$263 million during 20222023 year-to-date compared to $1,502$172 million for 2021.2022. Cash used in investing activities during year-to-date 2023 primarily related to $472 million of capital expenditures and investment in our joint ventures. Cash used in investing activities during year-to-date 2022 primarily related to $357 million of capital expenditures and an investment in a joint venture. Cash used inprovided by investing activities during year-to-date 2021includes the sale of one hotel in 2023 and four hotels in 2022, with 2023 proceeds of $34 million primarily related to $293the sale of The Camby, Autograph Collection, which is net of a $72 million of capital expenditures andloan issued to the acquisition of five hotels and two golf courses.buyer in connection with the sale. Cash provided by investing activities in 20222023 also includes the salecollection of four hotels.

The following tables summarize significant acquisitions/investmentsthe $163 million note receivable issued in affiliates and dispositions that have been completed as of November 2, 2022:

Transaction Date

 

Description of Transaction

 

Investment

 

Acquisitions/Investments

 

 

 

November

2022

 

Acquisition of Four Seasons Resorts and Residences Jackson Hole

 

$

(315

)

January

2022

 

Investment to acquire non-controlling interest of a joint venture with Noble Investment Group⁽¹⁾

 

 

(91

)

 

 

 

Total acquisitions/investments

 

$

(406

)

___________

 

 

 

 

 

 

(1)
Investment consisted of $35 million of cash and the issuance of approximately $56 million of Host L.P. OP units.

Transaction Date

 

Description of Transaction

 

Net Proceeds⁽¹⁾

 

 

Sales Price

 

Dispositions

 

 

 

 

 

 

 

 

 

August

2022

 

Disposition of Chicago Marriott Suites Downers Grove

 

$

14

 

 

$

16

 

April

2022

 

Disposition of Sheraton New York Times Square Hotel⁽²⁾

 

 

103

 

 

 

373

 

April

2022

 

Disposition of YVE Hotel Miami

 

 

49

 

 

 

50

 

February

2022

 

Disposition of Sheraton Boston⁽³⁾

 

 

67

 

 

 

233

 

 

 

 

Total dispositions

 

$

233

 

 

$

672

 

 

 

 

 

 

 

 

 

 

 

___________

(1)
Proceeds are net of transfer taxes, other sales costs and FF&E replacement funds deposited directlyrelation to the property or hotel manager by the buyer.
(2)
In connection with the sale of the Sheraton New York Times Square Hotel, we issued a $250 million bridge loan to the buyer. The disposition proceeds are net of the bridge loan.
Boston.
(3)
In connection with the sale of the Sheraton Boston Hotel, we issued a $163 million bridge loan to the buyer. The disposition proceeds are net of the bridge loan.

Cash Used in/Provided byin Financing Activities. Year-to-date in 2022,2023, net cash used in financing activities was $759$606 million compared to net cash provided by financing activities of $127$759 million for year-to-date 2021.2022. Cash used in financing activities in 2023 primarily related to the payment of common stock dividends and common stock repurchases. In year-to-date 2022, cash used in financing activities included the repayment of the credit facility revolver and the payment of common stock dividends,dividends.


37

The following table summarizes significant equity transactions that have been completed through November 1, 2023 (in millions):
Transaction DateDescription of TransactionTransaction Amount
Equity of Host Inc.
January - October2023Dividend payments⁽¹⁾⁽²⁾$(547)
March - September2023Repurchase of 9.5 million shares of Host Inc. common stock(150)
Cash payments on equity transactions$(697)
___________
(1)In connection with the reinstatementdividend payments, Host L.P. made distributions of $555 million to its common OP unit holders.
(2)Includes the quarterly common stockfourth quarter 2022 dividend that was paid in the first quarter of 2022. Cash provided by financing activities in 2021 included proceeds from the issuance of common stock.January 2023.

35

Debt

As of September 30, 2022,2023, our total debt was $4.2 billion, with a weighted average interest rate of 4.1%4.6% and a weighted average maturity of 4.84.5 years. Additionally, 76% of our debt has a fixed rate of interest and only one of our consolidated hotels is encumbered by mortgage debt.

Financial Covenants

On January 4, 2023, we entered into the sixth amended and restated senior revolving credit and term loan facility, with Bank of America, N.A., as administrative agent, Wells Fargo Bank, N.A. and JPMorgan Chase Bank, N.A. as co-syndication agents, and certain other agents and lenders. The credit facility allows for revolving borrowings in an aggregate principal amount of up to $1.5 billion. The revolver also includes a foreign currency subfacility for Canadian dollars, Australian dollars, Euros, British pounds sterling and, if available to the lenders, Mexican pesos, of up to the foreign currency equivalent of $500 million, subject to a lower amount in the case of Mexican peso borrowings. The credit facility also provides for a term loan facility of $1 billion (which is fully utilized), a subfacility of up to $100 million for swingline borrowings in currencies other than U.S. dollars and a subfacility of up to $100 million for issuances of letters of credit. Host L.P. also has the option to add in the future $500 million of commitments which may be used for additional revolving credit facility borrowings and/or term loans, subject to obtaining additional loan commitments (which we have not currently obtained) and the satisfaction of certain conditions. The revolving credit facility has an initial scheduled maturity date of January 4, 2027, which date may be extended by up to a year, one $500 million term loan tranche has an initial maturity date of January 4, 2027, which date may be extended up to a year and the second $500 million term loan tranche has a maturity date of January 4, 2028, which date may not be extended. The exercise of any extension options is subject to certain various conditions, including the payment of an extension fee. The new credit facility also converted the underlying reference rate from LIBOR to SOFR plus a credit spread adjustment of 10 basis points. The credit facility includes a sustainability pricing adjustment that can result in a change in the interest rate applicable to borrowings. The adjustments will be determined based on our performance against targets established in the credit facility related to green building certifications and electricity used at all our consolidated properties that is generated by renewable resources. Effective June 30, 2023, we achieved a milestone in the progress towards our renewable energy goal, resulting in a 2.5 basis point reduction in the interest rate on the outstanding term loans.
Credit Facility Covenants. Our credit facility contains certain important financial covenants concerning allowable leverage, unsecured interest coverage, and required fixed charge coverage. Total debt used in the calculation of our ratio of consolidated total debt to consolidated EBITDA (our “Leverage Ratio”) is based on a “net debt” concept, pursuant to which cash and cash equivalents in excess of $100 million are deducted from our total debt balance for purposes of measuring compliance.

38
On June 26, 2020, we entered into an amendment to the credit facility and on February 9, 2021, we entered into a second amendment to the credit facility (collectively, the “Amendments”). The Amendments suspended requirements to comply with all existing financial maintenance covenants under the credit facility for the period which began on July 1, 2020 and ended when we exited the covenant waiver period after reporting results for the third quarter of 2021. Upon reinstatement, during a phase in period, the financial covenant requirements set forth in the credit facility before the Amendments apply, except that the maximum leverage ratio requirement will be amended to be (a) 8.50:1:00 as at the end of the first and second fiscal quarters ending after the covenant waiver period, (b) 8.00:1.00 as at the end of the third and fourth fiscal quarters ending after the covenant waiver period, (c) 7.50:1:00 as at the end of the fifth fiscal quarter ending after the covenant waiver period, and (d) 7.25:1.00 at all times thereafter.

At September 30, 2022,2023, we were in compliance with all of our financial covenants under the credit facility. The following table summarizes the results of the financial tests required by the credit facility, which are calculated on a trailing twelve-month basis:

Actual Ratio

Covenant Requirement
 for most recent quarterall years

Covenant Requirement
following phase in period

Leverage ratio

2.1x

2.4

x

Maximum ratio of 8.00x

Maximum ratio of 7.25x

Fixed charge coverage ratio

7.5x

10.7

x

Minimum ratio of 1.25x

Minimum ratio of 1.25x

Unsecured interest coverage ratio ⁽¹⁾

8.9x

10.3

x

Minimum ratio of 1.75x

Minimum ratio of 1.75x

___________

(1)If, at any time, our leverage ratio is above 7.0x, our minimum unsecured interest coverage ratio will decrease to 1.50x.

Senior Notes Indenture Covenants

The following table summarizes the results of the financial tests required by the indentures for our senior notes and our actual credit ratios as of September 30, 2022:

2023:

Actual Ratio

Covenant Requirement

Unencumbered assets tests

493 

479

%

Minimum ratio of 150%

Total indebtedness to total assets

20 

21

%

Maximum ratio of 65%

Secured indebtedness to total assets

<1%

1

%

Maximum ratio of 40%

EBITDA-to-interest coverage ratio

8.7x

9.6

x

Minimum ratio of 1.5x

For additional details on our credit facility and senior notes, including the terms of the Amendments, see our Annual Report on Form 10-K for the year ended December 31, 2021.

2022.

Dividend Policy

Host Inc. is required to distribute at least 90% of its annual taxable income, excluding net capital gains, to its stockholders in order to maintain its qualification as a REIT. Funds used by Host Inc. to pay dividends on its common stock are provided by distributions from Host L.P. As of September 30, 2022,2023, Host Inc. is the owner of approximately 99% of the Host L.P. common OP units. The remaining common OP units are owned by unaffiliated limited partners. Each Host L.P. common OP unit may be redeemed for cash or, at the election of Host Inc., Host Inc. common stock based on the conversion ratio. The conversion ratio is 1.021494 shares of Host Inc. common stock for each Host L.P. common OP unit. Under the credit facility, as amended, all redemptions must be made with Host Inc. common stock if Host L.P.’s leverage ratio exceeds 7.25x calculated using the prior twelve-month result.

Investors should consider the non-controlling interests in the Host L.P. common OP units when analyzing dividend payments by Host Inc. to its stockholders, as these Host L.P. common OP unitholders share in cash distributed by Host L.P. to all of its common OP unitholders, on a pro rata basis. For example, if Host Inc. paid a $1 per share dividend on its common stock, it would be based on the

36

payment of a $1.021494 per common OP unit distribution by Host L.P. to Host Inc., as well as to the other unaffiliated Host L.P. common OP unitholders.

Host Inc.’s policy on common dividends generally is to distribute, over time, 100% of its taxable income, which primarily is dependent on Host Inc.’s results of operations, as well as tax gains and losses on hotel sales. On August 3, 2022,September 14, 2023, Host Inc.'s Board of Directors announced a regular quarterly cash dividend of $0.12$0.18 per share on Host Inc.'s common stock. The dividend was paid on October 17, 202216, 2023 to stockholders as of record on September 30, 2022.2023. All future dividends are subject to Board approval.

Critical Accounting Policies

Estimates

Our unaudited condensed consolidated financial statements have been prepared in conformity with GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of our financial statements and the reported amounts of revenues and expenses during the reporting period. While we do not believe that the reported amounts would be materially different, application of these policies involves the exercise of judgment and the use of assumptions as to future uncertainties and, as a result, actual results could differ from these estimates. We evaluate our estimates and judgments on an ongoing basis. We base our estimates on experience and on various other assumptions that we believe are reasonable under the circumstances. All of our significant accounting

39

policies, including certain critical accounting policies, are disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021.

All Owned2022.

Comparable Hotel Operating Statistics and Results

Effective January 1, 2023, the Company ceased presentation of All Owned Hotel results and returned to a comparable hotel presentation for its hotel level results. Management believes this provides investors with a better understanding of underlying growth trends for our current portfolio, without impact from properties that experienced closures due to renovations or property damage sustained.
To facilitate a quarter-to-quarteryear-to-year 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 presentationour reports 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 suspendingperformance. We define our comparable hotel presentation and instead present hotel operating results for all consolidated hotels and, to facilitate comparisons between periods, weas those that: (i) are presenting results, referred to as "All Owned Hotel", which include the following adjustments: (1) operating results are presented for all consolidated hotels owned as of September 30, 2022, but do not include the results of operations for properties sold or held-for-saleleased by us as of the reporting date;date and (2) operating results forare not classified as held-for-sale; and (ii) have not sustained substantial property damage or business interruption, or undergone large-scale capital projects, in each case requiring closures lasting one month or longer (as further defined below), during the reporting periods being compared.
We make adjustments to include recent acquisitions as of September 30, 2022 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. Additionally, operating results of hotels that we sell are excluded from the comparable hotel set once the transaction has closed or the hotel is classified as held-for-sale.
The hotel business is capital-intensive and renovations are a regular part of the business. Generally, hotels under renovation remain comparable hotels. A large-scale capital project would cause a hotel to be excluded from our comparable hotel set if it requires the entire property to be closed to hotel guests for one month or longer.
Similarly, hotels are excluded from our comparable hotel set from the date that they sustain substantial property damage or business interruption if it requires the property to be closed to hotel guests for one month or longer. In each case, these hotels are returned to the comparable hotel set when the operations of the hotel have been included in our consolidated results for one full calendar year after the hotel has reopened. Often, related to events that cause property damage and the closure of a hotel, we will collect business interruption insurance proceeds for the near-term loss of business. These proceeds are included in gain on property insurance and business interruption settlements on our consolidated statements of operations. Business interruption insurance gains related to a hotel that was excluded from our comparable hotel set also will be excluded from the comparable hotel results.
Of the 77 hotels that we owned as of September 30, 2023, 75 have been classified as comparable hotels. The operating results of the following hotels that we owned as of September 30, 2023 are excluded from comparable hotel results for these periods, due to closure of the property:
•Hyatt Regency Coconut Point Resort & Spa (business disruption due to Hurricane Ian beginning in September 2022, reopened in November 2022); and

•The Ritz-Carlton, Naples (business disruption due to Hurricane Ian beginning in September 2022, reopened in July 2023).
Following the wildfires in Maui in August 2023, the Hyatt Regency Maui Resort & Spa remained in our comparable hotel set based on the overall performance of the property despite business interruption sustained by the property in August and September. There continues to be a significant level of uncertainty as to the extent of continued business interruption for the fourth quarter as the hotel reopened to guests on November 1, 2023. Therefore, we will continue to evaluate the overall impact of the wildfires on the property’s operations and its comparable status through the remainder of the year.
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.

40

Non-GAAP Financial Measures

We use 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. These measures include the following:

•
Earnings Before Interest Expense, Income Taxes, Depreciation and Amortization (“EBITDA”), Earnings Before Interest Expense, Income Taxes, Depreciation and Amortization for real estate (“EBITDAre”) and Adjusted EBITDAre, as a measure of performance for Host Inc. and Host L.P.,
•
Funds From Operations (“FFO”) and FFO per diluted share, both calculated in accordance with National Association of Real Estate Investment Trusts (“NAREIT”) guidelines and with certain adjustments from those guidelines, as a measure of performance for Host Inc., and
•
All Owned HotelComparable hotel operating results, as a measure of performance for Host Inc. and Host L.P.

The discussion below defines these measures and presents why we believe they are useful supplemental measures of our performance.

Set forth below for each such non-GAAP financial measure is a reconciliation of the measure with the financial measure calculated and presented in accordance with GAAP that we consider most directly comparable thereto. We also have included in “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures” in our

37

Annual Report on Form 10-K for the year ended December 31, 20212022 further explanations of the adjustments being made, a statement disclosing the reasons why we believe the presentation of each of the non-GAAP financial measures provide useful information to investors regarding our financial condition and results of operations, the additional purposes for which we use the non-GAAP financial measures and limitations on their use.

EBITDA, EBITDAre and Adjusted EBITDAre

EBITDA

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 our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization). Management also believes the use of EBITDA facilitates comparisons between us and other lodging REITs, hotel owners who 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 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 our 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 for 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 what isthe measure used in calculatingto 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 condensed 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

41

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 to be 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.

38

The following table provides a reconciliation of EBITDA, EBITDAre, and Adjusted EBITDAre to net income, (loss), the financial measure calculated and presented in accordance with GAAP that we consider the most directly comparable:

Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre for Host Inc. and Host L.P.

(in millions)
Quarter ended September 30,Year-to-date ended September 30,
2023202220232022
Net income$113 $116 $618 $494 
Interest expense48 40 142 113 
Depreciation and amortization174 164 511 498 
Income taxes15 6 27 29 
EBITDA350 326 1,298 1,134 
Gain on dispositions⁽¹⁾— (5)(69)(18)
Equity investment adjustments:
Equity in (earnings) losses of affiliates4 1 (7)(3)
Pro rata EBITDAre of equity investments⁽²⁾
7 6 29 27 
EBITDAre
361 328 1,251 1,140 
Adjustments to EBITDAre:
Gain on property insurance settlement— — — (6)
Adjusted EBITDAre
$361 $328 $1,251 $1,134 
___________
(1)

 

 

Quarter ended September 30,

 

 

Year-to-date ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income (loss)

 

$

116

 

 

$

(120

)

 

$

494

 

 

$

(334

)

Interest expense

 

 

40

 

 

 

43

 

 

 

113

 

 

 

128

 

Depreciation and amortization

 

 

164

 

 

 

171

 

 

 

498

 

 

 

505

 

Income taxes

 

 

6

 

 

 

(13

)

 

 

29

 

 

 

(81

)

EBITDA

 

 

326

 

 

 

81

 

 

 

1,134

 

 

 

218

 

Gain on dispositions⁽¹⁾

 

 

(5

)

 

 

—

 

 

 

(18

)

 

 

—

 

Non-cash impairment expense

 

 

—

 

 

 

92

 

 

 

—

 

 

 

92

 

Equity investment adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Equity in (earnings) losses of affiliates

 

 

1

 

 

 

(2

)

 

 

(3

)

 

 

(36

)

Pro rata EBITDAre of equity investments⁽²⁾

 

 

6

 

 

 

8

 

 

 

27

 

 

 

21

 

EBITDAre

 

 

328

 

 

 

179

 

 

 

1,140

 

 

 

295

 

Adjustments to EBITDAre:

 

 

 

 

 

 

 

 

 

 

 

 

Gain on property insurance settlement

 

 

—

 

 

 

—

 

 

 

(6

)

 

 

—

 

Severance expense (reversal) at hotel properties

 

 

—

 

 

 

(2

)

 

 

—

 

 

 

(5

)

Adjusted EBITDAre

 

$

328

 

 

$

177

 

 

$

1,134

 

 

$

290

 

___________

(1) Reflects the sale of one hotel in 2023 and four hotels in 2022.

(2) Pro rata EBITDAre of equity investments and pro rata FFO of equity investments for the year-to-date ended September 30, 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.

FFO Measures

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 certain real estate assets, gains and losses from the sale of certain real estate assets,

42

gains and losses from change in control, impairment expense of certain real estate assets and investments and adjustments for consolidated partially-ownedpartially owned entities and unconsolidated affiliates. Adjustments for consolidated partially-ownedpartially owned entities and unconsolidated affiliates are calculated to reflect our pro rata share of the FFO of those entities on the same basis.

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

39

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 to be 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 our 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-goingongoing operating performance and, therefore, we excluded this item from Adjusted FFO.

40

The following table provides a reconciliation of the differences between our non-GAAP financial measures, NAREIT FFO and Adjusted FFO (separately and on a per diluted share basis), and net income, (loss), the financial measure calculated and presented in accordance with GAAP that we consider most directly comparable:

43

Host Inc. Reconciliation of Diluted Earnings (Loss) per Common Share to

NAREIT and Adjusted Funds From Operations per Diluted Share

(in millions, except per share amount)
Quarter ended September 30,Year-to-date ended September 30,
2023202220232022
Net income$113 $116 $618 $494 
Less: Net income attributable to non-controlling interests(2)(2)(10)(8)
Net income attributable to Host Inc.111 114 608 486 
Adjustments:
Gain on dispositions⁽¹⁾— (5)(69)(18)
Gain on property insurance settlement— — — (6)
Depreciation and amortization174 164 510 497 
Equity investment adjustments:
Equity in (earnings) losses of affiliates4 1 (7)(3)
Pro rata FFO of equity investments⁽²⁾4 4 20 21 
Consolidated partnership adjustments:
FFO adjustment for non-controlling partnerships(1)(1)(1)(1)
FFO adjustments for non-controlling interests of Host L.P.(2)(2)(6)(6)
NAREIT FFO290 275 1,055 970 
Adjustments to NAREIT FFO:
Loss on debt extinguishment— — 4 — 
Adjusted FFO$290 $275 $1,059 $970 
For calculation on a per share basis:⁽³⁾
Diluted weighted average shares outstanding - EPS, NAREIT FFO and Adjusted FFO711.9717.6713.6717.4
Diluted earnings per common share$0.16 $0.16 $0.85 $0.68 
NAREIT FFO per diluted share$0.41 $0.38 $1.48 $1.35 
Adjusted FFO per diluted share$0.41 $0.38 $1.48 $1.35 
___________
(1-2)

 

 

Quarter ended September 30,

 

 

Year-to-date ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income (loss)

 

$

116

 

 

$

(120

)

 

$

494

 

 

$

(334

)

Less: Net (income) loss attributable to non-controlling interests

 

 

(2

)

 

 

1

 

 

 

(8

)

 

 

3

 

Net income (loss) attributable to Host Inc.

 

 

114

 

 

 

(119

)

 

 

486

 

 

 

(331

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Gain on dispositions⁽¹⁾

 

 

(5

)

 

 

—

 

 

 

(18

)

 

 

—

 

Gain on property insurance settlement

 

 

—

 

 

 

—

 

 

 

(6

)

 

 

—

 

Depreciation and amortization

 

 

164

 

 

 

171

 

 

 

497

 

 

 

504

 

Non-cash impairment expense

 

 

—

 

 

 

92

 

 

 

—

 

 

 

92

 

Equity investment adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Equity in (earnings) losses of affiliates

 

 

1

 

 

 

(2

)

 

 

(3

)

 

 

(36

)

Pro rata FFO of equity investments⁽²⁾

 

 

4

 

 

 

6

 

 

 

21

 

 

 

16

 

Consolidated partnership adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

FFO adjustment for non-controlling partnerships

 

 

(1

)

 

 

—

 

 

 

(1

)

 

 

(1

)

FFO adjustments for non-controlling interests of Host L.P.

 

 

(2

)

 

 

(3

)

 

 

(6

)

 

 

(6

)

NAREIT FFO

 

 

275

 

 

 

145

 

 

 

970

 

 

 

238

 

Adjustments to NAREIT FFO:

 

 

 

 

 

 

 

 

 

 

 

 

Severance expense (reversal) at hotel properties

 

 

—

 

 

 

(2

)

 

 

—

 

 

 

(5

)

Adjusted FFO

 

$

275

 

 

$

143

 

 

$

970

 

 

$

233

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For calculation on a per share basis:⁽³⁾

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding - EPS

 

717.6

 

 

 

713.9

 

 

 

717.4

 

 

 

709.0

 

Assuming issuance of common shares granted under the comprehensive stock plans

 

 

—

 

 

 

1.6

 

 

 

—

 

 

 

1.6

 

Diluted weighted average shares outstanding - NAREIT FFO and Adjusted FFO

 

 

717.6

 

 

 

715.5

 

 

 

717.4

 

 

 

710.6

 

Diluted earnings (loss) per common share

 

$

0.16

 

 

$

(0.17

)

 

$

0.68

 

 

$

(0.47

)

NAREIT FFO per diluted share

 

$

0.38

 

 

$

0.20

 

 

$

1.35

 

 

$

0.33

 

Adjusted FFO per diluted share

 

$

0.38

 

 

$

0.20

 

 

$

1.35

 

 

$

0.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

___________

(1-2) Refer to the corresponding footnote on the Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre for Host Inc. and Host L.P.

(3)Diluted earnings (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-controllingminority partners and other non-controlling interests that have the option to convert their limited partner interests to common OP units. No effect is shown for securities if they are anti-dilutive.

Comparable 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-levelcomparable hotel, or "same store," basis as supplemental information for our investors. Our comparable hotel results reflect thepresent operating results offor our hotels without giving effect to dispositions or properties that experienced closures due to renovations or property damage, as discussed in “All Owned“Comparable Hotel Operating Statistics and Results” above. We present All Owned Hotelcomparable hotel EBITDA to help us and our investors evaluate the ongoing operating performance of our comparable hotels after removing the impact of our capital structure (primarily interest expense) and our 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 comparable hotels. All Owned HotelComparable hotel results are presented both by location and for our properties in the aggregate. We eliminate from our hotel-levelcomparable hotel level operating results severance costs related to broad-based and significant property-level reconfiguration that is not considered to be within the

44

normal course of business, as we believe

41

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 comparable 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.

We present these hotel operating results on a comparable hotel basis because we believe that doing so provides investors and management with useful information for evaluating the period-to-period performance of our hotels and facilitates comparisons with other hotel REITs and hotel owners. In particular, these measures assist management and investors in distinguishing whether increases or decreases in revenues and/or expenses are due to growth or decline of operations at comparable hotels (which represent the vast majority of our portfolio) or from other factors. While management believes that presentation of All Owned Hotelcomparable 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 Hotelcomparable hotel results in the aggregate. For these reasons, we believe All Owned Hotelcomparable hotel operating results, when combined with the presentation of GAAP operating profit, revenues and expenses, provide useful information to investors and management.

The following tables present certain operating results and statistics for our hotels for the periods presented herein and a reconciliation of the differences between All Ownedcomparable Hotel EBITDA, a non-GAAP financial measure, and net income, (loss), the financial measure calculated and presented in accordance with GAAP that we consider most directly comparable. Similar reconciliations of the differences between (i) hotel revenues and (ii) our revenues as calculated and presented in accordance with GAAP (each of which is used in the applicable margin calculation), and between (iii) hotel expenses and (iv) operating costs and expenses as calculated and presented in accordance with GAAP, also are included in the reconciliation:

45

All Owned

Comparable Hotel Results for Host Inc. and Host L.P.

(in millions, except hotel statistics)
Quarter ended September 30,Year-to-date ended September 30,
2023202220232022
Number of hotels75 75 75 75 
Number of rooms41,031 41,031 41,031 41,031 
Change in comparable hotel Total RevPAR(0.6 %)— 11.0 %— 
Change in comparable hotel RevPAR1.8 %— 10.4 %— 
Operating profit margin⁽¹⁾12.9 %12.4 %16.4 %16.4 %
Comparable hotel EBITDA margin⁽¹⁾26.6 %29.4 %30.8 %32.5 %
Food and beverage profit margin⁽¹⁾26.5 %30.3 %34.2 %34.6 %
Comparable hotel food and beverage profit margin⁽¹⁾27.6 %31.0 %34.6 %35.1 %
Net income$113 $116 $618 $494 
Depreciation and amortization174 164 511 498 
Interest expense48 40 142 113 
Provision for income taxes15 6 27 29 
Gain on sale of property and corporate level income/expense10 15 (43)32 
Severance expense at hotel properties— — — 2 
Property transaction adjustments⁽²⁾— 8 (3)24 
Non-comparable hotel results, net⁽³⁾(46)— (50)(48)
Comparable hotel EBITDA$314 $349 $1,202 $1,144 
___________
(1)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. Comparable hotel margins are calculated using amounts presented in the following tables, which include reconciliations to the applicable GAAP results:

Quarter ended September 30, 2023Quarter ended September 30, 2022
Adjustments
Adjustments
   
GAAP Results
Non-comparable hotel results, net ⁽3⁾
Depreciation and corporate level
items
Comparable Hotel Results
GAAP Results
 
Property transaction adjustments ⁽2⁾
 
Non-comparable hotel results, net ⁽3⁾
 Depreciation and corporate level
items		 
Comparable Hotel Results
Revenues
Room$777 $(16)$— $761 $746 $15 $(13)$— $748 
Food and beverage328 (13)— 315 330 5 (9)— 326 
Other109 (4)— 105 113 4 (3)— 114 
Total revenues1,214 (33)— 1,181 1,189 24 (25)— 1,188 
Expenses
Room196 (5)— 191 190 2 (4)— 188 
Food and beverage241 (13)— 228 230 4 (9)— 225 
Other471 (18)— 453 438 10 (12)— 436 
Depreciation and amortization174 — (174)— 164 — — (164)— 
Corporate and other expenses29 — (29)— 29 — — (29)— 
Gain on insurance and business interruption settlements(54)49 — (5)(10)— — — (10)
Total expenses1,057 13 (203)867 1,041 16 (25)(193)839 
Operating Profit - Comparable hotel EBITDA$157 $(46)$203 $314 $148 $8 $— $193 $349 

 

 

Quarter ended September 30,

 

 

Year-to-date ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Number of hotels

 

 

77

 

 

 

76

 

 

 

77

 

 

 

76

 

Number of rooms

 

 

42,084

 

 

 

41,861

 

 

 

42,084

 

 

 

41,861

 

Change in All Owned Hotel Total RevPAR

 

 

48.1

%

 

 

—

 

 

 

90.5

%

 

 

—

 

Change in All Owned Hotel RevPAR

 

 

42.0

%

 

 

—

 

 

 

81.5

%

 

 

—

 

Operating profit (loss) margin⁽²⁾

 

 

12.4

%

 

 

(11.3

)%

 

 

16.4

%

 

 

(17.4

)%

All Owned Hotel EBITDA margin⁽²⁾

 

 

28.7

%

 

 

24.9

%

 

 

32.7

%

 

 

21.1

%

Food and beverage profit margin⁽²⁾

 

 

30.3

%

 

 

23.6

%

 

 

34.6

%

 

 

22.7

%

All Owned Hotel food and beverage profit margin⁽²⁾

 

 

30.3

%

 

 

24.3

%

 

 

35.1

%

 

 

23.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

116

 

 

$

(120

)

 

$

494

 

 

$

(334

)

Depreciation and amortization

 

 

164

 

 

 

263

 

 

 

498

 

 

 

597

 

Interest expense

 

 

40

 

 

 

43

 

 

 

113

 

 

 

128

 

Provision (benefit) for income taxes

 

 

6

 

 

 

(13

)

 

 

29

 

 

 

(81

)

Gain on sale of property and corporate level income/expense

 

 

15

 

 

 

19

 

 

 

32

 

 

 

31

 

Severance expense (reversal) at hotel properties

 

 

—

 

 

 

(2

)

 

 

2

 

 

 

(5

)

All Owned Hotel adjustments⁽¹⁾

 

 

—

 

 

 

8

 

 

 

11

 

 

 

62

 

All Owned Hotel EBITDA⁽¹⁾

 

$

341

 

 

$

198

 

 

$

1,179

 

 

$

398

 

46

Year-to-date ended September 30, 2023Year-to-date ended September 30, 2022
Adjustments
Adjustments
GAAP Results
Property transaction
adjustments⁽²⁾		Non-comparable hotel
results, net ⁽³⁾		Depreciation and corporate
level items
Comparable hotel Results
GAAP Results
Severance at hotel propertiesProperty transaction
adjustments⁽²⁾		Non-comparable hotel
results, net ⁽³⁾		Depreciation and corporate
level items
Comparable hotel Results
Revenues
Room$2,447 $(5)$(34)$— $2,408 $2,251 $— $2 $(71)$— $2,182 
Food and beverage1,174 (2)(31)— 1,141 1,032 — 5 (51)— 986 
Other367 — (7)— 360 361 — 8 (15)— 354 
Total revenues3,988 (7)(72)— 3,909 3,644 — 15 (137)— 3,522 
Expenses
Room590 (1)(9)— 580 539 — (10)(13)— 516 
Food and beverage773 (1)(26)— 746 675 — (1)(34)— 640 
Other1,427 (2)(36)— 1,389 1,275 (2)2 (42)— 1,233 
Depreciation and amortization511 — — (511)— 498 — — — (498)— 
Corporate and other expenses90 — — (90)— 77 — — — (77)— 
Gain on insurance and business interruption settlements(57)— 49 — (8)(17)— — — 6 (11)
Total expenses3,334 (4)(22)(601)2,707 3,047 (2)(9)(89)(569)2,378 
Operating Profit - Comparable hotel EBITDA$654 $(3)$(50)$601 $1,202 $597 $2 $24 $(48)$569 $1,144 
(2)

___________

(1) All Owned HotelProperty transaction adjustments represent the following items: (i) the elimination of results of operations of hotels sold or held-for-sale as of September 30, 2022,2023, 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 September 30, 2022. All Owned Hotel2023.

(3)Non-comparable hotel results, also includenet, includes the following items: (i) the results of operations of our leased office buildings and other non-hotel revenue and expense items. The AC Hotel Scottsdale North is a new development hotel that openednon-comparable hotels, which operations are included 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.

(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 condensedour consolidated statements of operations. All Owned Hotel margins are calculated using amounts presented inoperations as continuing operations, and (ii) gains on business interruption proceeds relating to events that occurred while the following tables, which include reconciliations to the applicable GAAP results:hotels were classified as non-comparable.  

42

 

Quarter ended September 30, 2022

 

 

Quarter ended September 30, 2021

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

GAAP Results

 

 

All Owned Hotel adjustments

 

 

Depreciation and corporate level items

 

 

All Owned Hotel Results

 

 

GAAP Results

 

 

Severance at hotel properties

 

 

All Owned Hotel adjustments

 

 

Depreciation and corporate level items

 

 

All Owned Hotel Results

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Room

$

746

 

 

$

(2

)

 

$

—

 

 

$

744

 

 

$

557

 

 

$

—

 

 

$

(36

)

 

$

—

 

 

$

521

 

Food and beverage

 

330

 

 

 

—

 

 

 

—

 

 

 

330

 

 

 

191

 

 

 

—

 

 

 

(7

)

 

 

—

 

 

 

184

 

Other

 

113

 

 

 

—

 

 

 

—

 

 

 

113

 

 

 

96

 

 

 

—

 

 

 

(3

)

 

 

—

 

 

 

93

 

Total revenues

 

1,189

 

 

 

(2

)

 

 

—

 

 

 

1,187

 

 

 

844

 

 

 

—

 

 

 

(46

)

 

 

—

 

 

 

798

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Room

 

190

 

 

 

(1

)

 

 

—

 

 

 

189

 

 

 

150

 

 

 

1

 

 

 

(16

)

 

 

—

 

 

 

135

 

Food and beverage

 

230

 

 

 

—

 

 

 

—

 

 

 

230

 

 

 

146

 

 

 

1

 

 

 

(8

)

 

 

—

 

 

 

139

 

Other

 

438

 

 

 

(1

)

 

 

—

 

 

 

437

 

 

 

361

 

 

 

—

 

 

 

(30

)

 

 

—

 

 

 

331

 

Depreciation and amortization

 

164

 

 

 

—

 

 

 

(164

)

 

 

—

 

 

 

263

 

 

 

—

 

 

 

—

 

 

 

(263

)

 

 

—

 

Corporate and other expenses

 

29

 

 

 

—

 

 

 

(29

)

 

 

—

 

 

 

24

 

 

 

—

 

 

 

—

 

 

 

(24

)

 

 

—

 

Gain on insurance and
     business interruption
     settlements

 

(10

)

 

 

—

 

 

 

—

 

 

 

(10

)

 

 

(5

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(5

)

Total expenses

 

1,041

 

 

 

(2

)

 

 

(193

)

 

 

846

 

 

 

939

 

 

 

2

 

 

 

(54

)

 

 

(287

)

 

 

600

 

Operating Profit - All Owned
     Hotel EBITDA

$

148

 

 

$

—

 

 

$

193

 

 

$

341

 

 

$

(95

)

 

$

(2

)

 

$

8

 

 

$

287

 

 

$

198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-date ended September 30, 2022

 

 

Year-to-date ended September 30, 2021

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

GAAP Results

 

 

Severance at hotel properties

 

 

All Owned Hotel adjustments

 

 

Depreciation and corporate level items

 

 

All Owned Hotel Results

 

 

GAAP Results

 

 

Severance at hotel properties

 

 

All Owned Hotel adjustments

 

 

Depreciation and corporate level items

 

 

All Owned Hotel Results

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Room

 

$

2,251

 

 

$

—

 

 

$

(28

)

 

$

—

 

 

$

2,223

 

 

$

1,237

 

 

$

—

 

 

$

(20

)

 

$

—

 

 

$

1,217

 

Food and beverage

 

 

1,032

 

 

 

—

 

 

 

(5

)

 

 

—

 

 

 

1,027

 

 

 

405

 

 

 

—

 

 

 

7

 

 

 

—

 

 

 

412

 

Other

 

 

361

 

 

 

—

 

 

 

(2

)

 

 

—

 

 

 

359

 

 

 

250

 

 

 

—

 

 

 

5

 

 

 

—

 

 

 

255

 

Total revenues

 

 

3,644

 

 

 

—

 

 

 

(35

)

 

 

—

 

 

 

3,609

 

 

 

1,892

 

 

 

—

 

 

 

(8

)

 

 

—

 

 

 

1,884

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Room

 

 

539

 

 

 

—

 

 

 

(16

)

 

 

—

 

 

 

523

 

 

 

324

 

 

 

1

 

 

 

(24

)

 

 

—

 

 

 

301

 

Food and beverage

 

 

675

 

 

 

—

 

 

 

(8

)

 

 

—

 

 

 

667

 

 

 

313

 

 

 

1

 

 

 

2

 

 

 

—

 

 

 

316

 

Other

 

 

1,275

 

 

 

(2

)

 

 

(22

)

 

 

—

 

 

 

1,251

 

 

 

919

 

 

 

3

 

 

 

(48

)

 

 

—

 

 

 

874

 

Depreciation and amortization

 

 

498

 

 

 

—

 

 

 

—

 

 

 

(498

)

 

 

—

 

 

 

597

 

 

 

—

 

 

 

—

 

 

 

(597

)

 

 

—

 

Corporate and other expenses

 

 

77

 

 

 

—

 

 

 

—

 

 

 

(77

)

 

 

—

 

 

 

73

 

 

 

—

 

 

 

—

 

 

 

(73

)

 

 

—

 

Gain on insurance and
     business interruption
     settlements

 

 

(17

)

 

 

—

 

 

 

—

 

 

 

6

 

 

 

(11

)

 

 

(5

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(5

)

Total expenses

 

 

3,047

 

 

 

(2

)

 

 

(46

)

 

 

(569

)

 

 

2,430

 

 

 

2,221

 

 

 

5

 

 

 

(70

)

 

 

(670

)

 

 

1,486

 

Operating Profit - All Owned
     Hotel EBITDA

 

$

597

 

 

$

2

 

 

$

11

 

 

$

569

 

 

$

1,179

 

 

$

(329

)

 

$

(5

)

 

$

62

 

 

$

670

 

 

$

398

 

43

Item 3.     Quantitative and Qualitative Disclosures about Market Risk

All information in this section applies to both Host Inc. and Host L.P.

Interest Rate Sensitivity

As of September 30, 20222023 and December 31, 2021,2022, 76% and 66%, respectively, of our outstanding debt bore interest at fixed rates. To manage interest rate risk applicable to our debt, we may enter into interest rate swaps or caps. The interest rate derivatives into which we may enter are strictly to hedge interest rate risk and are not for trading purposes. As of September 30, 2022,2023, we do not have any interest rate derivatives outstanding. See Item 7A of our most recent Annual Report on Form 10–K.

Exchange Rate Sensitivity

As we have operations outside of the United States (specifically, the ownership of hotels in Brazil and Canada and a minority investment in a joint venture in India), currency exchange risks arise in the normal course of our business. To manage the currency exchange risk, we may enter into forward or option contracts or hedge our investment through the issuance of foreign currency denominated debt. During the third quarter of 2022,2023, three foreign currency forward purchase contracts matured, with a total notional amount of CAD 99 million ($7975 million), and we received $3.4$1.9 million in the aggregate upon settlement of these contracts. To replace the maturing contracts, we entered into three new foreign currency forward purchase contracts with a total notional amount of CAD 99 million ($7574 million), which will mature in August and September 2023.2024. The foreign currency exchange agreements into which we have entered are strictly to hedge foreign currency risk and are not for trading purposes.

47

See Item 7A of our most recent Annual Report on Form 10-K and Item 3 of our Quarterly Report on Form 10-Q for the quarterly periods ended March 31 and June 30, 2022.

44

2023.

Item 4.     Controls and Procedures

Controls and Procedures (Host Hotels & Resorts, Inc.)

Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures are effective.

Changes to Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Controls and Procedures (Host Hotels & Resorts, L.P.)

Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including Host Inc.’s Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based on that evaluation, Host Inc.’s Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures are effective.

Changes to Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

48

45

PART II. OTHER INFORMATION

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities (Host Hotels & Resorts, Inc.)

On August 3, 2022, the Board of Directors authorized an increase in the amount authorized under the Company’s share repurchase program from the existing $371 remaining available during the second quarter to $1 billion. The common stock may be purchased from time to time depending upon market conditions and repurchases may be made in the open market or through private transactions or by other means, including principal transactions with various financial institutions, accelerated share repurchases, forwards, options and similar transactions, and through one or more trading plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The program does not obligate us to repurchase any specific number of shares or any specific dollar amount and may be suspended at any time at our discretion.

Period

 

Total Number of Host Inc. Common Shares Purchased

 

 

Average Price Paid
per Common Share

 

 

Total Number of Common Shares Purchased as Part of Publicly Announced Plans or Programs

 

 

Approximate Dollar Value of Common Shares that May Yet Be Purchased Under the Plans or Programs (in millions)

 

July 1, 2022 – July 31, 2022

 

 

—

 

 

$

—

 

 

 

—

 

 

$

371

 

August 1, 2022 – August 31, 2022

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,000

 

September 1, 2022 – September 30, 2022

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,000

 

Total

 

 

—

 

 

$

—

 

 

 

—

 

 

$

1,000

 

PeriodTotal Number of Host Inc. Common Shares PurchasedAverage Price Paid
per Common Share		Total Number of Common Shares Purchased as Part of Publicly Announced Plans or ProgramsApproximate Dollar Value of Common Shares that May Yet Be Purchased Under the Plans or Programs (in millions)
July 1, 2023 – July 31, 2023— $— — $923 
August 1, 2023 – August 31, 20234,585,121 15.86 4,585,121 850 
September 1, 2023 – September 30, 20231,705,808 16.00 1,705,808 823 
Total6,290,929 $15.90 6,920,929 $823 
Issuer Purchases of Equity Securities (Host Hotels & Resorts, L.P.)

Period

Total Number of Host L.P. Common OP Units Purchased

Average Price
Paid per Common OP Unit

Total Number of OP Units Purchased as Part of Publicly Announced Plans or Programs

Approximate Dollar Value of Units that May Yet Be Purchased Under the Plans or Programs (in millions)

July 1, 20222023 – July 31, 20222023

132,787 

14,898

*

1.021494 shares of Host Hotels & Resorts, Inc. common stock

— 

—

—

August 1, 20222023 – August 31, 20222023

4,544,833 

14,508

**

*

1.021494 shares of Host Hotels & Resorts, Inc. common stock

— 

—

—

September 1, 20222023 – September 30, 20222023

1,687,435 

30,004

***

*

1.021494 shares of Host Hotels & Resorts, Inc. common stock

— 

—

—

Total

6,365,055 

59,410

— 

—

—

___________

___________
*Reflects common OP units offered for redemption by limited partners in exchange for shares of Host Inc.’s's common stock.

** Reflects (i) 4,488,642 common OP units repurchased to fund the repurchase by Host Inc. of 4,585,121 shares of common stock as part of its publicly announced share repurchase program, and (ii) 56,191 common OP units redeemed by holders in exchange for shares of Host Inc.'s common stock.
*** Reflects (i) 1,669,914 common OP units repurchased to fund the repurchase by Host Inc. of 1,705,808 shares of common stock as part of its publicly announced share repurchase program, and (ii) 17,521 common OP units redeemed by holders in exchange for shares of Host Inc.'s common stock.

49
46

Item 5.     Other Information
During the period covered by this report, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.
Item 6.     Exhibits

In reviewing the agreements included as exhibits to this report, please remember they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about the company, its subsidiaries or other parties to the agreements. The agreements contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and:

•
should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;
•
have been qualified by disclosures that were made to other parties in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;
•
may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and
•
were made only as of the date of the applicable agreement or such other date or date as may be specified in the agreement and are subject to more recent developments.

Accordingly, these representation and warranties may not describe the actual state of affairs as of the date they were made or at any other time.

The exhibits listed on the accompanying Exhibit Index are filed as part of this report and such Exhibit Index is incorporated herein by reference.

Exhibit No.Description

Exhibit No.

Description

3.

Articles of Incorporation and Bylaws

3.1A*

Fourth Amended and Restated Agreement of Limited Partnership of Host Hotels & Resorts, L.P., dated October 31, 2022.

31

Rule 13a-14(a)/15d-14(a) Certifications

31.1*

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Host Hotels & Resorts, Inc.

31.2*

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Host Hotels & Resorts, Inc.

31.3*

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Host Hotels & Resorts, L.P.

31.4*

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Host Hotels & Resorts, L.P.

32

Section 1350 Certifications

32.1†*

Certificate of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002 for Host Hotels & Resorts, Inc.

32.2†*

Certificate of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002 for Host Hotels & Resorts, L.P.

101

XBRL

101.SCH

Inline XBRL Taxonomy Extension Schema Document. Submitted electronically with this report.

101.CAL

Inline XBRL Taxonomy Calculation Linkbase Document. Submitted electronically with this report.

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document. Submitted electronically with this report.

101.LAB

Inline XBRL Taxonomy Label Linkbase Document. Submitted electronically with this report.

101.PRE

Inline XBRL Taxonomy Presentation Linkbase Document. Submitted electronically with this report.

104

Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).


50
47

The following materials, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) the Condensed Consolidated Statements of Operations for the Quarter and Year-to-date ended September 30, 20222023 and 2021,2022, respectively, for Host Hotels & Resorts, Inc.; (ii) the Condensed Consolidated Balance Sheets at September 30, 20222023 and December 31, 2021,2022, respectively, for Host Hotels & Resorts, Inc.; (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss) for the Quarter and Year-to-date ended September 30, 20222023 and 2021,2022, respectively, for Host Hotels & Resorts, Inc.; (iv) the Condensed Consolidated Statements of Cash Flows for the Year-to-date ended September 30, 20222023 and 2021,2022, respectively, for Host Hotels & Resorts, Inc.; (v) the Condensed Consolidated Statements of Operations for the Quarter and Year-to-date ended September 30, 20222023 and 2021,2022, respectively, for Host Hotels & Resorts, L.P.; (vi) the Condensed Consolidated Balance Sheets at September 30, 20222023 and December 31, 2021,2022, respectively, for Host Hotels & Resorts, L.P.; (vii) the Condensed Consolidated Statements of Comprehensive Income (Loss) for the Quarter and Year-to-date ended September 30, 20222023 and 2021,2022, respectively, for Host Hotels & Resorts, L.P.; (viii) the Condensed Consolidated Statements of Cash Flows for the Year-to-date ended September 30, 20222023 and 2021,2022, respectively, for Host Hotels & Resorts, L.P.; and (ix) Notes to Condensed Consolidated Financial Statements.

*

* Filed herewith.

†This certificate is being furnished solely to accompany the report pursuant to 18 U.S.C. 1350 and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

51
48

SIGNATURES

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

HOST HOTELS & RESORTS, INC.

November 4, 2022

3, 2023

/s/ Joseph C. Ottinger

Joseph C. Ottinger

Senior Vice President,

Corporate Controller



SIGNATURES

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

HOST HOTELS & RESORTS, L.P.

By: HOST HOTELS & RESORTS, INC., its general partner

November 4, 2022

3, 2023

/s/ Joseph C. Ottinger


Joseph C. Ottinger

Senior Vice President,

Corporate Controller of Host Hotels & Resorts, Inc.,

general partner of Host Hotels & Resorts, L.P.