Maryland (Host Hotels & Resorts, Inc.) 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 None None None Host Hotels & Resorts, Inc. Yes þ No o Host Hotels & Resorts, L.P. Yes þ No o Host Hotels & Resorts, Inc. Yes þ No o Host Hotels & Resorts, L.P. Yes þ No o Host Hotels & Resorts, Inc. Large accelerated filer þ Non-accelerated filer o Emerging growth company o Host Hotels & Resorts, L.P. Large accelerated filer o Non-accelerated filer þ Emerging growth company o Host Hotels & Resorts, Inc. Yes No þ Yes No þ 2023 June 30, 2023 December 31, 2022 unaudited ASSETS Property and equipment, net $ 9,717 $ 9,748 Right-of-use assets 555 556 Due from managers 87 94 Advances to and investments in affiliates 144 132 Furniture, fixtures and equipment replacement fund 213 200 Notes receivable 485 413 Other 362 459 Cash and cash equivalents 802 667 Total assets $ 12,365 $ 12,269 LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY Debt Senior notes $ 3,117 $ 3,115 Credit facility, including the term loans of $997 and $998, respectively 987 994 Mortgage and other debt 106 106 Total debt 4,210 4,215 Lease liabilities 567 568 Accounts payable and accrued expenses 209 372 Due to managers 67 67 Other 167 168 Total liabilities 5,220 5,390 Redeemable non-controlling interests - Host Hotels & Resorts, L.P. 168 164 Host Hotels & Resorts, Inc. stockholders’ equity: Common stock, par value $.01, 1,050 million shares authorized, 711.4 million 7 7 Additional paid-in capital 7,671 7,717 Accumulated other comprehensive loss (70 ) (75 ) Deficit (636 ) (939 ) Total equity of Host Hotels & Resorts, Inc. stockholders 6,972 6,710 Non-redeemable non-controlling interests—other consolidated partnerships 5 5 Total equity 6,977 6,715 Total liabilities, non-controlling interests and equity $ 12,365 $ 12,269 Quarter ended June 30, Year-to-date ended June 30, 2023 2022 2023 2022 REVENUES Rooms $ 850 $ 850 $ 1,670 $ 1,505 Food and beverage 415 405 846 702 Other 128 126 258 248 Total revenues 1,393 1,381 2,774 2,455 EXPENSES Rooms 201 189 394 349 Food and beverage 263 245 532 445 Other departmental and support expenses 323 300 638 573 Management fees 69 62 134 102 Other property-level expenses 93 78 184 162 Depreciation and amortization 168 162 337 334 Corporate and other expenses 30 25 61 48 Gain on insurance and business interruption settlements (3 ) (7 ) (3 ) (7 ) Total operating costs and expenses 1,144 1,054 2,277 2,006 OPERATING PROFIT 249 327 497 449 Interest income 20 6 34 7 Interest expense (45 ) (37 ) (94 ) (73 ) Other gains — 1 69 14 Equity in earnings of affiliates 4 2 11 4 INCOME BEFORE INCOME TAXES 228 299 517 401 Provision for income taxes (14 ) (39 ) (12 ) (23 ) NET INCOME 214 260 505 378 Less: Net income attributable to non-controlling interests (4 ) (4 ) (8 ) (6 ) NET INCOME ATTRIBUTABLE TO HOST HOTELS & RESORTS, INC. $ 210 $ 256 $ 497 $ 372 Basic earnings per common share $ 0.30 $ 0.36 $ 0.70 $ 0.52 Diluted earnings per common share $ 0.29 $ 0.36 $ 0.70 $ 0.52 Quarter ended June 30, Year-to-date ended June 30, 2023 2022 2023 2022 NET INCOME $ 214 $ 260 $ 505 $ 378 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: Foreign currency translation and other comprehensive income of unconsolidated affiliates 4 (6 ) 6 1 Change in fair value of derivative instruments (1 ) 1 (1 ) 1 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX 3 (5 ) 5 2 COMPREHENSIVE INCOME 217 255 510 380 Less: Comprehensive income attributable to non-controlling interests (4 ) (4 ) (8 ) (6 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO HOST HOTELS & RESORTS, INC. $ 213 $ 251 $ 502 $ 374 Year-to-date ended June 30, 2023 2022 OPERATING ACTIVITIES Net income $ 505 $ 378 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization 337 334 Amortization of finance costs, discounts and premiums, net 5 5 Loss on extinguishment of debt 4 — Stock compensation expense 13 10 Other gains (69 ) (14 ) Gain on property insurance settlement — (6 ) Equity in earnings of affiliates (11 ) (4 ) Change in due from/to managers 3 (53 ) Distributions from investments in affiliates 18 20 Property insurance proceeds - remediation costs 83 — Changes in other assets 16 43 Changes in other liabilities (84 ) (5 ) Net cash provided by operating activities 820 708 INVESTING ACTIVITIES Proceeds from sales of assets, net 34 217 Advances to and investments in affiliates (20 ) (44 ) Capital expenditures: Renewals and replacements (226 ) (78 ) Return on investment (97 ) (162 ) Property insurance proceeds 34 7 Net cash used in investing activities (275 ) (60 ) FINANCING ACTIVITIES Financing costs (10 ) — Repayment of credit facility — (683 ) Mortgage debt and other prepayments and scheduled maturities (1 ) (1 ) Debt extinguishment costs (3 ) — Common stock repurchases (50 ) — Dividends on common stock (313 ) (21 ) Distributions and payments to non-controlling interests (6 ) — Other financing activities (13 ) (10 ) Net cash used in financing activities (396 ) (715 ) Effects of exchange rate changes on cash held 2 (1 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH 151 (68 ) CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD 874 953 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD $ 1,025 $ 885 June 30, 2023 June 30, 2022 Cash and cash equivalents $ 802 $ 699 Restricted cash (included in other assets) 10 7 Cash included in furniture, fixtures and equipment replacement fund 213 179 Total cash and cash equivalents and restricted cash shown in the statements of cash flows $ 1,025 $ 885 Year-to-date ended June 30, 2023 2022 Total interest paid $ 90 $ 69 Income taxes paid (refunds received) $ 2 $ (7 ) 2023 June 30, 2023 December 31, 2022 unaudited ASSETS Property and equipment, net $ 9,717 $ 9,748 Right-of-use assets 555 556 Due from managers 87 94 Advances to and investments in affiliates 144 132 Furniture, fixtures and equipment replacement fund 213 200 Notes receivable 485 413 Other 362 459 Cash and cash equivalents 802 667 Total assets $ 12,365 $ 12,269 LIABILITIES, LIMITED PARTNERSHIP INTERESTS OF THIRD PARTIES AND CAPITAL Debt Senior notes $ 3,117 $ 3,115 Credit facility, including the term loans of $997 and $998, respectively 987 994 Mortgage and other debt 106 106 Total debt 4,210 4,215 Lease liabilities 567 568 Accounts payable and accrued expenses 209 372 Due to managers 67 67 Other 167 168 Total liabilities 5,220 5,390 Limited partnership interests of third parties 168 164 Host Hotels & Resorts, L.P. capital: General partner 1 1 Limited partner 7,041 6,784 Accumulated other comprehensive loss (70 ) (75 ) Total Host Hotels & Resorts, L.P. capital 6,972 6,710 Non-controlling interests—consolidated partnerships 5 5 Total capital 6,977 6,715 Total liabilities, limited partnership interests of third parties and capital $ 12,365 $ 12,269 Quarter ended June 30, Year-to-date ended June 30, 2023 2022 2023 2022 REVENUES Rooms $ 850 $ 850 $ 1,670 $ 1,505 Food and beverage 415 405 846 702 Other 128 126 258 248 Total revenues 1,393 1,381 2,774 2,455 EXPENSES Rooms 201 189 394 349 Food and beverage 263 245 532 445 Other departmental and support expenses 323 300 638 573 Management fees 69 62 134 102 Other property-level expenses 93 78 184 162 Depreciation and amortization 168 162 337 334 Corporate and other expenses 30 25 61 48 Gain on insurance and business interruption settlements (3 ) (7 ) (3 ) (7 ) Total operating costs and expenses 1,144 1,054 2,277 2,006 OPERATING PROFIT 249 327 497 449 Interest income 20 6 34 7 Interest expense (45 ) (37 ) (94 ) (73 ) Other gains — 1 69 14 Equity in earnings of affiliates 4 2 11 4 INCOME BEFORE INCOME TAXES 228 299 517 401 Provision for income taxes (14 ) (39 ) (12 ) (23 ) NET INCOME 214 260 505 378 Less: Net (income) loss attributable to non-controlling interests (1 ) 1 (1 ) — NET INCOME ATTRIBUTABLE TO HOST HOTELS & RESORTS, L.P. $ 213 $ 261 $ 504 $ 378 Basic earnings per common unit $ 0.30 $ 0.37 $ 0.71 $ 0.53 Diluted earnings per common unit $ 0.30 $ 0.37 $ 0.71 $ 0.53 Quarter ended June 30, Year-to-date ended June 30, 2023 2022 2023 2022 NET INCOME $ 214 $ 260 $ 505 $ 378 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: Foreign currency translation and other comprehensive income of unconsolidated affiliates 4 (6 ) 6 1 Change in fair value of derivative instruments (1 ) 1 (1 ) 1 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX 3 (5 ) 5 2 COMPREHENSIVE INCOME 217 255 510 380 Less: Comprehensive (income) loss attributable to non-controlling interests (1 ) 1 (1 ) — COMPREHENSIVE INCOME ATTRIBUTABLE TO HOST HOTELS & RESORTS, L.P. $ 216 $ 256 $ 509 $ 380 Year-to-date ended June 30, 2023 2022 OPERATING ACTIVITIES Net income $ 505 $ 378 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization 337 334 Amortization of finance costs, discounts and premiums, net 5 5 Loss on extinguishment of debt 4 — Stock compensation expense 13 10 Other gains (69 ) (14 ) Gain on property insurance settlement — (6 ) Equity in earnings of affiliates (11 ) (4 ) Change in due from/to managers 3 (53 ) Distributions from investments in affiliates 18 20 Property insurance proceeds - remediation costs 83 — Changes in other assets 16 43 Changes in other liabilities (84 ) (5 ) Net cash provided by operating activities 820 708 INVESTING ACTIVITIES Proceeds from sales of assets, net 34 217 Advances to and investments in affiliates (20 ) (44 ) Capital expenditures: Renewals and replacements (226 ) (78 ) Return on investment (97 ) (162 ) Property insurance proceeds 34 7 Net cash used in investing activities (275 ) (60 ) FINANCING ACTIVITIES Financing costs (10 ) — Repayment of credit facility — (683 ) Mortgage debt and other prepayments and scheduled maturities (1 ) (1 ) Debt extinguishment costs (3 ) — Repurchase of common OP units (50 ) — Distributions on common OP units (318 ) (21 ) Distributions and payments to non-controlling interests (1 ) — Other financing activities (13 ) (10 ) Net cash used in financing activities (396 ) (715 ) Effects of exchange rate changes on cash held 2 (1 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH 151 (68 ) CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD 874 953 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD $ 1,025 $ 885 June 30, 2023 June 30, 2022 Cash and cash equivalents $ 802 $ 699 Restricted cash (included in other assets) 10 7 Cash included in furniture, fixtures and equipment replacement fund 213 179 Total cash and cash equivalents and restricted cash shown in the statements of cash flows $ 1,025 $ 885 Year-to-date ended June 30, 2023 2022 Total interest paid $ 90 $ 69 Income taxes paid (refunds received) $ 2 $ (7 ) As of United States 72 Brazil 3 Canada 2 Total 77 2. Summary of Significant Accounting Policies 2023. 3. Earnings Per Common Share (Unit) Quarter ended June 30, Year-to-date ended June 30, 2023 2022 2023 2022 Net income $ 214 $ 260 $ 505 $ 378 Less: Net income attributable to non-controlling interests (4 ) (4 ) (8 ) (6 ) Net income attributable to Host Inc. $ 210 $ 256 $ 497 $ 372 Basic weighted average shares outstanding 711.3 714.8 712.3 714.6 Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market 1.9 2.2 1.9 2.2 Diluted weighted average shares outstanding 713.2 717.0 714.2 716.8 Basic earnings per common share $ 0.30 $ 0.36 $ 0.70 $ 0.52 Diluted earnings per common share $ 0.29 $ 0.36 $ 0.70 $ 0.52 Quarter ended June 30, Year-to-date ended June 30, 2023 2022 2023 2022 Net income $ 214 $ 260 $ 505 $ 378 Less: Net (income) loss attributable to non-controlling interests (1 ) 1 (1 ) — Net income attributable to Host L.P. $ 213 $ 261 $ 504 $ 378 Basic weighted average units outstanding 706.3 710.0 707.3 709.5 Assuming distribution of common units granted under the comprehensive stock plans, less units assumed purchased at market 1.8 2.2 1.8 2.1 Diluted weighted average units outstanding 708.1 712.2 709.1 711.6 Basic earnings per common unit $ 0.30 $ 0.37 $ 0.71 $ 0.53 Diluted earnings per common unit $ 0.30 $ 0.37 $ 0.71 $ 0.53 4. Revenue Quarter ended June 30, Year-to-date ended June 30, Location 2023 2022 2023 2022 Orlando $ 121 $ 129 $ 262 $ 237 San Diego 130 118 255 205 Maui/Oahu 124 126 250 242 Phoenix 92 101 221 212 San Francisco/San Jose 88 90 188 142 Washington, D.C. (Central Business District) 102 92 178 130 Florida Gulf Coast 71 100 167 231 New York 96 93 166 143 Miami 63 69 146 152 Houston 36 31 73 57 Boston 42 30 71 48 Jacksonville 39 39 70 68 Los Angeles/Orange County 34 35 68 60 San Antonio 30 29 66 56 Chicago 43 39 62 53 New Orleans 29 29 58 49 Austin 23 26 48 46 Seattle 29 27 47 37 Northern Virginia 24 23 43 35 Philadelphia 25 23 42 36 Denver 23 24 37 36 Atlanta 17 17 35 30 Other 86 72 176 123 Domestic 1,367 1,362 2,729 2,428 International 26 19 45 27 Total $ 1,393 $ 1,381 $ 2,774 $ 2,455 June 30, 2023 December 31, 2022 Land and land improvements $ 2,012 $ 2,020 Buildings and leasehold improvements 13,919 13,849 Furniture and equipment 2,247 2,249 Construction in progress 403 313 18,581 18,431 Less accumulated depreciation and amortization (8,864 ) (8,683 ) $ 9,717 $ 9,748 HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES 7. Equity of Host Inc. and Capital of Host L.P. 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, 2022 $ 7 $ 7,717 $ (75 ) $ (939 ) $ 5 $ 6,715 $ 164 Net income — — — 497 1 498 7 Issuance of common stock for comprehensive stock plans, net — 4 — — — 4 — Repurchase of common — (50 ) — — — (50 ) — Dividends declared on common stock — — — (194 ) — (194 ) — Distributions to non-controlling interests — — — — (1 ) (1 ) (3 ) Other comprehensive income — — 5 — — 5 — Balance, June 30, 2023 $ 7 $ 7,671 $ (70 ) $ (636 ) $ 5 $ 6,977 $ 168 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, March 31, 2023 $ 7 $ 7,663 $ (73 ) $ (739 ) $ 5 $ 6,863 $ 167 Net income — — — 210 1 211 3 Issuance of common stock for comprehensive stock plans, net — 8 — — — 8 — Dividends declared on common stock — — — (107 ) — (107 ) — Distributions to non-controlling interests — — — — (1 ) (1 ) (2 ) Other comprehensive income — — 3 — — 3 — Balance, June 30, 2023 $ 7 $ 7,671 $ (70 ) $ (636 ) $ 5 $ 6,977 $ 168 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 — — — 372 — 372 6 Issuance of common stock for comprehensive stock plans, net — 3 — — — 3 — Dividends declared on common stock — — — (65 ) — (65 ) — Issuance of common OP units — — — — — — 56 Distributions to non-controlling interests — — — — — — (1 ) Changes in ownership and other — 24 — — — 24 (24 ) Other comprehensive income — — 2 — — 2 — Balance, June 30, 2022 $ 7 $ 7,729 $ (74 ) $ (885 ) $ 5 $ 6,782 $ 163 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, March 31, 2022 $ 7 $ 7,680 $ (69 ) $ (1,098 ) $ 5 $ 6,525 $ 203 Net income (loss) — — — 256 (1 ) 255 5 Issuance of common stock for comprehensive stock plans, net — 12 — — — 12 — Dividends declared on common — — — (43 ) — (43 ) — Distributions to non-controlling — — — — — — (1 ) Changes in ownership and other — 37 — — 1 38 (44 ) Other comprehensive loss — — (5 ) — — (5 ) — Balance, June 30, 2022 $ 7 $ 7,729 $ (74 ) $ (885 ) $ 5 $ 6,782 $ 163 The components of the Capital of Host L.P. are as follows (in millions): General Partner Limited Partner Accumulated Other Comprehensive Income (Loss) Non-controlling interests Total capital Limited partnership interests of third parties Balance, December 31, 2022 $ 1 $ 6,784 $ (75 ) $ 5 $ 6,715 $ 164 Net income — 497 — 1 498 7 Issuance of common OP units to Host Inc. for comprehensive stock plans, net — 4 — — 4 — Repurchase of common OP units — (50 ) — — (50 ) — Distributions declared on common OP units — (194 ) — — (194 ) (3 ) Distributions to non-controlling interests — — — (1 ) (1 ) — Other comprehensive income — — 5 — 5 — Balance, June 30, 2023 $ 1 $ 7,041 $ (70 ) $ 5 $ 6,977 $ 168 General Partner Limited Partner Accumulated Other Comprehensive Income (Loss) Non-controlling interests Total capital Limited partnership interests of third parties Balance, March 31, 2023 $ 1 $ 6,930 $ (73 ) $ 5 $ 6,863 $ 167 Net income — 210 — 1 211 3 Issuance of common OP units to Host Inc. for comprehensive stock plans, net — 8 — — 8 — Distributions declared on common OP units — (107 ) — — (107 ) (2 ) Distributions to non-controlling interests — — — (1 ) (1 ) — Other comprehensive income — — 3 — 3 — Balance, June 30, 2023 $ 1 $ 7,041 $ (70 ) $ 5 $ 6,977 $ 168 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 — 372 — — 372 6 Issuance of common OP units to Host Inc. for comprehensive stock plans, net — 3 — — 3 — Distributions declared on common OP units — (65 ) — — (65 ) (1 ) Issuance of common OP units — — — — — 56 Changes in ownership and other — 24 — — 24 (24 ) Other comprehensive income — — 2 — 2 — Balance, June 30, 2022 $ 1 $ 6,850 $ (74 ) $ 5 $ 6,782 $ 163 General Partner Limited Partner Accumulated Other Comprehensive Income (Loss) Non-controlling interests Total capital Limited partnership interests of third parties Balance, March 31, 2022 $ 1 $ 6,588 $ (69 ) $ 5 $ 6,525 $ 203 Net income (loss) — 256 — (1 ) 255 5 Issuance of common OP units to Host Inc. for comprehensive stock plans, net — 12 — — 12 — Distributions declared on common — (43 ) — — (43 ) (1 ) Changes in ownership and other — 37 — 1 38 (44 ) Other comprehensive loss — — (5 ) — (5 ) — Balance, June 30, 2022 $ 1 $ 6,850 $ (74 ) $ 5 $ 6,782 $ 163 8. Fair Value Measurements The fair value of certain financial assets and financial liabilities is shown below (in millions): June 30, 2023 December 31, 2022 Carrying Fair Value Carrying Fair Value Financial assets Notes receivable (Level 2) $ 485 $ 483 $ 413 $ 404 Financial liabilities Senior notes (Level 1) 3,117 2,815 3,115 2,768 Credit facility (Level 2) 987 1,000 994 1,000 Mortgage debt (Level 2) 101 87 102 95 9. Geographic Information 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 June 30, Year-to-date ended June 30, June 30, December 31, 2023 2022 2023 2022 2023 2022 United States $ 1,367 $ 1,362 $ 2,729 $ 2,428 $ 9,645 $ 9,678 Brazil 5 3 11 7 37 33 Canada 21 16 34 20 35 37 Total $ 1,393 $ 1,381 $ 2,774 $ 2,455 $ 9,717 $ 9,748 The table below details the historical cost and redemption values for the non-controlling interests of Host L.P.: June 30, 2023 December 31, 2022 Common OP units outstanding (millions) 9.8 10.0 Market price per Host Inc. common share $ 16.83 $ 16.05 Shares issuable upon conversion of one common OP unit 1.021494 1.021494 Redemption value (millions) $ 168 $ 164 Historical cost (millions) 99 97 Book value (millions) ⁽¹⁾ 168 164 we acquired the 215-room 1 Hotel Nashville and 506-room Embassy Suites by Hilton Nashville Downtown for a total purchase price of $530 million on April 15, 2024; and repayment on the facility, after which we have $1.3 billion available under our capacity. Historical Income Statement Data: Quarter ended June 30, Year-to-date ended June 30, 2023 2022 Change 2023 2022 Change Total revenues $ 1,393 $ 1,381 0.9 % $ 2,774 $ 2,455 13.0 % Net income 214 260 (17.7 )% 505 378 33.6 % Operating profit 249 327 (23.9 )% 497 449 10.7 % Operating profit margin under GAAP 17.9 % 23.7 % (580 bps) 17.9 % 18.3 % (40 bps) EBITDAre⁽¹⁾ $ 446 $ 506 (11.9 )% $ 890 $ 812 9.6 % Adjusted EBITDAre⁽¹⁾ 446 500 (10.8 )% 890 806 10.4 % Diluted earnings per common share 0.29 0.36 (19.4 )% 0.70 0.52 34.6 % NAREIT FFO per diluted share⁽¹⁾ 0.53 0.58 (8.6 )% 1.07 0.97 10.3 % Adjusted FFO per diluted share⁽¹⁾ 0.53 0.58 (8.6 )% 1.08 0.97 11.3 % Comparable Hotel Data: Quarter ended June 30, Year-to-date ended June 30, 2023 2022 Change 2023 2022 Change Comparable hotel revenues ⁽¹⁾ $ 1,375 $ 1,324 3.9 % $ 2,728 $ 2,334 16.9 % Comparable hotel EBITDA ⁽¹⁾ 449 490 (8.4 )% 888 795 11.7 % Comparable hotel EBITDA margin ⁽¹⁾ 32.7 % 37.1 % (440 bps) 32.6 % 34.1 % (150 bps) Comparable hotel Total RevPAR ⁽¹⁾ $ 367.54 $ 353.95 3.8 % $ 366.74 $ 313.73 16.9 % Comparable hotel RevPAR ⁽¹⁾ 225.12 219.23 2.7 % 221.46 192.82 14.9 % For the growth is anticipated. Blue Chip Economic Indicators consensus currently estimates an increase in real U.S. GDP of . Subsequent to quarter end, we acquired the 215-room 1 Hotel Nashville and 506-room Embassy Suites by Hilton Nashville Downtown for a total purchase price of $530 million. The hotels comprise a two-hotel complex featuring seven food and beverage outlets, a spa, two fitness centers, a yoga studio and 33,000 square feet of shared meeting space. disruptions. Quarter ended June 30, Year-to-date ended June 30, 2023 2022 Change 2023 2022 Change Total revenues $ 1,393 $ 1,381 0.9 % $ 2,774 $ 2,455 13.0 % Operating costs and expenses: Property-level costs ⁽¹⁾ 1,117 1,036 7.8 2,219 1,965 12.9 Corporate and other expenses 30 25 20.0 61 48 27.1 Gain on insurance and business interruption settlements 3 7 (57.1 ) 3 7 (57.1 ) Operating profit 249 327 (23.9 ) 497 449 10.7 Interest expense 45 37 21.6 94 73 28.8 Other gains — 1 (100.0 ) 69 14 392.9 Provision for income taxes 14 39 (64.1 ) 12 23 (47.8 ) Host Inc.: Net income attributable to non-controlling interests 4 4 — 8 6 33.3 Net income attributable to Host Inc. 210 256 (18.0 ) 497 372 33.6 Host L.P.: Net income (loss) attributable to non-controlling interests 1 (1 ) N/M 1 — N/M Net income attributable to Host L.P. 213 261 (18.4 ) 504 378 33.3 Quarter ended June 30, Year-to-date ended June 30, 2023 2022 Change 2023 2022 Change Revenues: Rooms $ 850 $ 850 — $ 1,670 $ 1,505 11.0 % Food and beverage 415 405 2.5 % 846 702 20.5 Other 128 126 1.6 258 248 4.0 Total revenues $ 1,393 $ 1,381 0.9 $ 2,774 $ 2,455 13.0 RevPAR at our comparable hotels. first quarter Quarter ended June 30, Year-to-date ended June 30, 2023 2022 Change 2023 2022 Change Expenses: Rooms $ 201 $ 189 6.3 % $ 394 $ 349 12.9 % Food and beverage 263 245 7.3 532 445 19.6 Other departmental and support expenses 323 300 7.7 638 573 11.3 Management fees 69 62 11.3 134 102 31.4 Other property-level expenses 93 78 19.2 184 162 13.6 Depreciation and amortization 168 162 3.7 337 334 0.9 Total property-level operating expenses $ 1,117 $ 1,036 7.8 $ 2,219 $ 1,965 12.9 2024. described below: 6.3%. Quarter ended June 30, Year-to-date ended June 30, 2023 2022 2023 2022 General and administrative costs $ 20 $ 20 $ 41 $ 38 Non-cash stock-based compensation expense 6 5 13 10 Litigation accruals 4 — 7 — Total $ 30 $ 25 $ 61 $ 48 In 2024, we recorded a gain on insurance consisting of $21 million related to property insurance proceeds and $10 million for receipt of business interruption proceeds relating to Hurricane Ian. Quarter ended June 30, Year-to-date ended June 30, 2023 2022 2023 2022 Cash interest expense ⁽¹⁾ $ 42 $ 35 $ 85 $ 68 Non-cash interest expense 3 2 5 5 Non-cash debt extinguishment costs — — 1 — Cash debt extinguishment costs ⁽¹⁾ — — 3 — Total interest expense $ 45 $ 37 $ 94 $ 73 As of June 30, 2023 Quarter ended June 30, 2023 Quarter ended June 30, 2022 Location No. of No. of Average Average RevPAR Total RevPAR Average Average RevPAR Total RevPAR Percent Percent Maui/Oahu 4 2,006 $ 594.07 73.7 % $ 437.96 $ 678.06 $ 567.20 78.0 % $ 442.56 $ 690.02 (1.0 )% (1.7 )% Miami 2 1,033 538.70 69.6 374.98 646.85 618.60 67.4 416.89 697.72 (10.1 ) (7.3 ) Jacksonville 1 446 549.95 82.1 451.53 974.60 572.46 81.1 463.99 974.04 (2.7 ) 0.1 Phoenix 3 1,545 372.81 73.6 274.51 651.73 394.21 76.0 299.63 677.94 (8.4 ) (3.9 ) Florida Gulf Coast 3 941 387.60 76.3 295.81 615.07 386.13 79.0 304.90 640.76 (3.0 ) (4.0 ) Orlando 2 2,448 363.44 73.4 266.90 542.00 402.61 73.8 297.06 580.59 (10.2 ) (6.6 ) New York 2 2,486 346.21 84.3 291.87 423.84 326.39 80.3 261.97 385.41 11.4 10.0 Los Angeles/Orange County 3 1,067 297.22 82.4 245.01 352.37 278.61 87.4 243.48 356.01 0.6 (1.0 ) San Diego 3 3,294 281.16 83.1 233.70 432.22 271.84 81.0 220.07 391.37 6.2 10.4 Washington, D.C. (CBD) 5 3,240 312.23 78.0 243.43 346.51 286.32 77.0 220.58 312.13 10.4 11.0 Boston 2 1,496 293.70 83.0 243.74 311.38 277.40 60.7 168.38 223.59 44.8 39.3 Austin 2 767 257.48 70.8 182.18 327.53 272.13 80.7 219.57 383.03 (17.0 ) (14.5 ) Philadelphia 2 810 249.51 83.5 208.44 327.91 229.82 86.6 199.08 303.95 4.7 7.9 Northern Virginia 2 916 261.74 73.7 192.88 292.30 228.38 75.8 173.05 266.99 11.5 9.5 San Francisco/San Jose 6 4,162 235.44 66.6 156.72 230.73 237.03 72.7 172.26 237.65 (9.0 ) (2.9 ) New Orleans 1 1,333 208.75 75.0 156.55 241.38 219.22 76.4 167.55 237.37 (6.6 ) 1.7 Chicago 3 1,562 278.93 76.2 212.54 303.24 253.18 74.0 187.35 260.67 13.4 16.3 San Antonio 2 1,512 214.90 63.9 137.37 219.40 202.69 70.3 142.44 213.86 (3.6 ) 2.6 Houston 5 1,942 208.54 72.3 150.82 207.78 184.11 67.1 123.53 175.70 22.1 18.3 Atlanta 2 810 194.10 76.0 147.44 239.70 186.06 77.5 144.28 236.30 2.2 1.4 Seattle 2 1,315 241.55 72.9 176.09 237.33 228.80 74.6 170.62 218.92 3.2 8.4 Denver 3 1,340 196.19 66.2 129.88 190.82 188.02 69.4 130.52 189.86 (0.5 ) 0.5 Other 10 3,061 287.69 69.7 200.45 306.65 272.79 66.3 180.80 267.34 10.9 14.7 Domestic 70 39,532 306.78 74.7 229.05 374.40 300.38 74.6 224.05 361.94 2.2 3.4 International 5 1,499 193.42 62.7 121.31 184.99 155.80 59.0 91.91 140.79 32.0 31.4 All Locations 75 41,031 303.29 74.2 225.12 367.54 296.18 74.0 219.23 353.95 2.7 3.8 As of June 30, 2023 Year-to-date ended June 30, 2023 Year-to-date ended June 30, 2022 Location No. of No. of Average Average RevPAR Total RevPAR Average Average RevPAR Total RevPAR Percent Percent Maui/Oahu 4 2,006 $ 599.89 75.0 % $ 449.74 $ 689.14 $ 556.16 77.2 % $ 429.37 $ 665.56 4.7 % 3.5 % Miami 2 1,033 594.02 73.8 438.09 753.95 677.26 69.1 468.18 758.30 (6.4 ) (0.6 ) Jacksonville 1 446 532.21 74.7 397.60 872.26 555.35 70.8 393.31 846.75 1.1 3.0 Phoenix 3 1,545 455.18 78.0 355.17 764.31 442.80 74.8 331.38 709.91 7.2 7.7 Florida Gulf Coast 3 941 433.52 80.2 347.70 747.93 434.49 79.5 345.27 699.72 0.7 6.9 Orlando 2 2,448 395.90 74.7 295.85 591.62 427.24 66.0 281.89 534.73 5.0 10.6 New York 2 2,486 316.51 78.8 249.47 369.18 303.32 61.0 184.91 269.63 34.9 36.9 Los Angeles/Orange County 3 1,067 296.97 81.2 241.12 352.91 282.52 76.2 215.25 311.32 12.0 13.4 San Diego 3 3,294 282.01 80.1 225.75 427.16 265.79 71.3 189.62 343.77 19.1 24.3 Washington, D.C. (CBD) 5 3,240 293.53 71.1 208.82 304.05 269.82 57.9 156.21 222.15 33.7 36.9 Boston 2 1,496 256.23 76.1 195.06 262.66 235.57 54.2 127.70 168.31 52.8 56.1 Austin 2 767 273.23 70.4 192.43 343.15 274.92 71.3 196.03 334.68 (1.8 ) 2.5 Philadelphia 2 810 229.68 78.9 181.17 283.96 206.81 76.7 158.68 244.18 14.2 16.3 Northern Virginia 2 916 245.58 69.7 171.08 259.21 216.27 64.4 139.18 208.25 22.9 24.5 San Francisco/San Jose 6 4,162 261.73 63.7 166.68 249.04 221.94 58.9 130.72 188.52 27.5 32.1 New Orleans 1 1,333 215.24 74.0 159.23 240.08 212.83 66.2 140.90 202.78 13.0 18.4 Chicago 3 1,562 238.80 64.0 152.79 219.73 220.82 57.4 126.78 174.77 20.5 25.7 San Antonio 2 1,512 227.23 67.0 152.20 242.68 195.73 68.8 134.67 205.78 13.0 17.9 Houston 5 1,942 206.36 72.8 150.32 208.68 182.12 64.0 116.60 162.56 28.9 28.4 Atlanta 2 810 195.42 75.0 146.53 241.17 180.13 72.0 129.60 207.01 13.1 16.5 Seattle 2 1,315 223.18 63.1 140.79 196.97 211.55 55.1 116.53 153.56 20.8 28.3 Denver 3 1,340 185.96 57.5 106.90 152.98 173.91 57.4 99.84 146.61 7.1 4.3 Other 10 3,061 319.34 64.0 204.29 314.22 323.74 59.1 191.24 284.58 6.8 10.4 Domestic 70 39,532 314.70 71.7 225.60 374.31 304.95 64.8 197.64 321.78 14.1 16.3 International 5 1,499 182.51 61.5 112.29 165.31 133.14 49.3 65.66 99.56 71.0 66.1 All Locations 75 41,031 310.54 71.3 221.46 366.74 300.14 64.2 192.82 313.73 14.9 16.9 As of June 30, 2023 2022 Quarter ended June 30, 2023 Quarter ended June 30, 2022 Location No. of No. of Average Average RevPAR Total RevPAR Average Average RevPAR Total RevPAR Percent Percent Maui/Oahu 4 4 $ 594.07 73.7 % $ 437.96 $ 678.06 $ 567.20 78.0 % $ 442.56 $ 690.02 (1.0 )% (1.7 )% Miami 2 2 538.70 69.6 374.98 646.85 596.12 68.2 406.35 676.00 (7.7 ) (4.3 ) Jacksonville 1 1 549.95 82.1 451.53 974.60 572.46 81.1 463.99 974.04 (2.7 ) 0.1 Phoenix 3 4 372.81 73.6 274.51 651.73 367.35 75.5 277.29 612.01 (1.0 ) 6.5 Florida Gulf Coast 5 5 347.63 56.5 196.31 418.07 411.67 70.2 288.94 598.02 (32.1 ) (30.1 ) Orlando 2 2 363.44 73.4 266.90 542.00 402.61 73.8 297.06 580.59 (10.2 ) (6.6 ) New York 2 2 346.21 84.3 291.87 423.84 313.84 78.3 245.88 361.64 18.7 17.2 Los Angeles/Orange County 3 3 297.22 82.4 245.01 352.37 278.61 87.4 243.48 356.01 0.6 (1.0 ) San Diego 3 3 281.16 83.1 233.70 432.22 271.84 81.0 220.07 391.37 6.2 10.4 Washington, D.C. (CBD) 5 5 312.23 78.0 243.43 346.51 286.32 77.0 220.58 312.13 10.4 11.0 Boston 2 2 293.70 83.0 243.74 311.38 277.40 60.7 168.38 223.59 44.8 39.3 Austin 2 2 257.48 70.8 182.18 327.53 272.13 80.7 219.57 383.03 (17.0 ) (14.5 ) Philadelphia 2 2 249.51 83.5 208.44 327.91 229.82 86.6 199.08 303.95 4.7 7.9 Northern Virginia 2 2 261.74 73.7 192.88 292.30 228.38 75.8 173.05 266.99 11.5 9.5 San Francisco/San Jose 6 6 235.44 66.6 156.72 230.73 237.03 72.7 172.26 237.65 (9.0 ) (2.9 ) New Orleans 1 1 208.75 75.0 156.55 241.38 219.22 76.4 167.55 237.37 (6.6 ) 1.7 Chicago 3 4 278.93 76.2 212.54 303.24 240.04 71.8 172.32 237.59 23.3 27.6 San Antonio 2 2 214.90 63.9 137.37 219.40 202.69 70.3 142.44 213.86 (3.6 ) 2.6 Houston 5 5 208.54 72.3 150.82 207.78 184.11 67.1 123.53 175.70 22.1 18.3 Atlanta 2 2 194.10 76.0 147.44 239.70 186.06 77.5 144.28 236.30 2.2 1.4 Seattle 2 2 241.55 72.9 176.09 237.33 228.80 74.6 170.62 218.92 3.2 8.4 Denver 3 3 196.19 66.2 129.88 190.82 188.02 69.4 130.52 189.86 (0.5 ) 0.5 Other 10 9 287.69 69.7 200.45 306.65 262.88 69.1 181.67 265.61 10.3 15.5 Domestic 72 73 306.27 73.8 226.00 370.80 300.15 74.3 223.13 362.34 1.3 2.3 International 5 5 193.42 62.7 121.31 184.99 155.80 59.0 91.91 140.79 32.0 31.4 All Locations 77 78 302.82 73.4 222.26 364.22 296.11 73.8 218.53 354.65 1.7 2.7 As of June 30, 2023 2022 Year-to-date ended June 30, 2023 Year-to-date ended June 30, 2022 Location No. of No. of Average Average RevPAR Total RevPAR Average Average RevPAR Total RevPAR Percent Percent Maui/Oahu 4 4 $ 599.89 75.0 % $ 449.74 $ 689.14 $ 556.16 77.2 % $ 429.37 $ 665.56 4.7 % 3.5 % Miami 2 2 594.02 73.8 438.09 753.95 609.44 70.9 432.20 690.16 1.4 9.2 Jacksonville 1 1 532.21 74.7 397.60 872.26 555.35 70.8 393.31 846.75 1.1 3.0 Phoenix 3 4 446.98 78.0 348.64 738.46 412.40 74.7 307.94 643.07 13.2 14.8 Florida Gulf Coast 5 5 392.96 58.6 230.46 497.50 485.09 72.1 349.66 691.06 (34.1 ) (28.0 ) Orlando 2 2 395.90 74.7 295.85 591.62 427.24 66.0 281.89 534.73 5.0 10.6 New York 2 2 316.51 78.8 249.47 369.18 276.49 56.1 155.17 222.91 60.8 65.6 Los Angeles/Orange County 3 3 296.97 81.2 241.12 352.91 282.52 76.2 215.25 311.32 12.0 13.4 San Diego 3 3 �� 282.01 80.1 225.75 427.16 265.79 71.3 189.62 343.77 19.1 24.3 Washington, D.C. (CBD) 5 5 293.53 71.1 208.82 304.05 269.82 57.9 156.21 222.15 33.7 36.9 Boston 2 2 256.23 76.1 195.06 262.66 228.61 51.8 118.39 155.01 64.8 69.4 Austin 2 2 273.23 70.4 192.43 343.15 274.92 71.3 196.03 334.68 (1.8 ) 2.5 Philadelphia 2 2 229.68 78.9 181.17 283.96 206.81 76.7 158.68 244.18 14.2 16.3 Northern Virginia 2 2 245.58 69.7 171.08 259.21 216.27 64.4 139.18 208.25 22.9 24.5 San Francisco/San Jose 6 6 261.73 63.7 166.68 249.04 221.94 58.9 130.72 188.52 27.5 32.1 New Orleans 1 1 215.24 74.0 159.23 240.08 212.83 66.2 140.90 202.78 13.0 18.4 Chicago 3 4 238.80 64.0 152.79 219.73 210.41 56.0 117.93 161.24 29.6 36.3 San Antonio 2 2 227.23 67.0 152.20 242.68 195.73 68.8 134.67 205.78 13.0 17.9 Houston 5 5 206.36 72.8 150.32 208.68 182.12 64.0 116.60 162.56 28.9 28.4 Atlanta 2 2 195.42 75.0 146.53 241.17 180.13 72.0 129.60 207.01 13.1 16.5 Seattle 2 2 223.18 63.1 140.79 196.97 211.55 55.1 116.53 153.56 20.8 28.3 Denver 3 3 185.96 57.5 106.90 152.98 173.91 57.4 99.84 146.61 7.1 4.3 Other 10 9 319.34 64.0 204.29 314.22 266.94 60.0 160.20 229.80 27.5 36.7 Domestic 72 73 314.56 70.9 223.06 371.22 302.36 64.3 194.28 317.04 14.8 17.1 International 5 5 182.51 61.5 112.29 165.31 133.14 49.3 65.66 99.56 71.0 66.1 All Locations 77 78 310.46 70.6 219.11 363.94 297.88 63.7 189.88 309.66 15.4 17.5 Quarter ended June 30, 2023 Year-to-date ended June 30, 2023 Transient business Group business Contract business Transient business Group business Contract business Room nights (in thousands) 1,517 1,085 174 2,849 2,123 332 Percentage change in room nights vs. same period in 2022 (0.8 )% 0.0 % 12.6 % 3.7 % 22.5 % 12.0 % Rooms revenues (in millions) $ 517 $ 292 $ 33 $ 992 $ 593 $ 62 Percentage change in revenues vs. same period in 2022 0.8 % 4.2 % 23.8 % 6.4 % 30.7 % 30.2 % 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 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 of 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. Transaction Date Description of Transaction Transaction Amount Equity of Host Inc. January - July 2023 Dividend payments⁽¹⁾⁽²⁾ $ (420 ) March 2023 Repurchase of 3.2 million shares of Host Inc. common stock (50 ) Cash payments on equity transactions $ (470 ) 4.3 years. Actual Ratio Covenant Requirement Leverage ratio 2.0x Maximum ratio of 7.25x Fixed charge coverage ratio 6.7x Minimum ratio of 1.25x Unsecured interest coverage ratio ⁽¹⁾ 8.8x Minimum ratio of 1.75x March 31, 2024: Actual Ratio Covenant Requirement Unencumbered assets tests 507 % Minimum ratio of 150% Total indebtedness to total assets 20 % Maximum ratio of 65% Secured indebtedness to total assets <1% Maximum ratio of 40% EBITDA-to-interest coverage ratio 8.7x Minimum ratio of 1.5x 2023. 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. 2023. used to 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: Quarter ended June 30, Year-to-date ended June 30, 2023 2022 2023 2022 Net income $ 214 $ 260 $ 505 $ 378 Interest expense 45 37 94 73 Depreciation and amortization 168 162 337 334 Income taxes 14 39 12 23 EBITDA 441 498 948 808 Gain on dispositions⁽¹⁾ — (1 ) (69 ) (13 ) Equity investment adjustments: Equity in earnings of affiliates (4 ) (2 ) (11 ) (4 ) Pro rata EBITDAre of equity investments⁽²⁾ 9 11 22 21 EBITDAre 446 506 890 812 Adjustments to EBITDAre: Gain on property insurance settlement — (6 ) — (6 ) Adjusted EBITDAre $ 446 $ 500 $ 890 $ 806 Quarter ended June 30, Year-to-date ended June 30, 2023 2022 2023 2022 Net income $ 214 $ 260 $ 505 $ 378 Less: Net income attributable to non-controlling interests (4 ) (4 ) (8 ) (6 ) Net income attributable to Host Inc. 210 256 497 372 Adjustments: Gain on dispositions⁽¹⁾ — (1 ) (69 ) (13 ) Gain on property insurance settlement — (6 ) — (6 ) Depreciation and amortization 168 162 336 333 Equity investment adjustments: Equity in earnings of affiliates (4 ) (2 ) (11 ) (4 ) Pro rata FFO of equity investments⁽²⁾ 6 8 16 17 Consolidated partnership adjustments: FFO adjustments for non-controlling interests of Host L.P. (3 ) (1 ) (4 ) (4 ) NAREIT FFO 377 416 765 695 Adjustments to NAREIT FFO: Loss on debt extinguishment — — 4 — Adjusted FFO $ 377 $ 416 $ 769 $ 695 For calculation on a per share basis:⁽³⁾ Diluted weighted average shares outstanding - EPS, NAREIT FFO and Adjusted FFO 713.2 717.0 714.2 716.8 Diluted earnings per common share $ 0.29 $ 0.36 $ 0.70 $ 0.52 NAREIT FFO per diluted share $ 0.53 $ 0.58 $ 1.07 $ 0.97 Adjusted FFO per diluted share $ 0.53 $ 0.58 $ 1.08 $ 0.97 Quarter ended June 30, Year-to-date ended June 30, 2023 2022 2023 2022 Number of hotels 75 75 75 75 Number of rooms 41,031 41,031 41,031 41,031 Change in comparable hotel Total RevPAR 3.8 % — 16.9 % — Change in comparable hotel RevPAR 2.7 % — 14.9 % — Operating profit margin⁽¹⁾ 17.9 % 23.7 % 17.9 % 18.3 % Comparable hotel EBITDA margin⁽¹⁾ 32.7 % 37.1 % 32.6 % 34.1 % Food and beverage profit margin⁽¹⁾ 36.6 % 39.5 % 37.1 % 36.6 % Comparable hotel food and beverage profit margin⁽¹⁾ 36.9 % 39.8 % 37.2 % 37.2 % Net income $ 214 $ 260 $ 505 $ 378 Depreciation and amortization 168 162 337 334 Interest expense 45 37 94 73 Provision for income taxes 14 39 12 23 Gain on sale of property and corporate level income/expense 6 10 (53 ) 17 Severance expense at hotel properties — — — 2 Property transaction adjustments⁽²⁾ — (3 ) (3 ) 16 Non-comparable hotel results, net⁽³⁾ 2 (15 ) (4 ) (48 ) Comparable hotel EBITDA $ 449 $ 490 $ 888 $ 795 Quarter ended June 30, 2023 Quarter ended June 30, 2022 Adjustments Adjustments GAAP Results Non-comparable hotel results, net ⁽⁴⁾ Depreciation and corporate level items Comparable Hotel Results GAAP Results Property transaction adjustments ⁽³⁾ Non-comparable hotel results, net ⁽⁴⁾ Depreciation and corporate level items Comparable Hotel Results Revenues Room $ 850 $ (8 ) $ — $ 842 $ 850 $ (8 ) $ (22 ) $ — $ 820 Food and beverage 415 (9 ) — 406 405 (3 ) (18 ) — 384 Other 128 (1 ) — 127 126 — (6 ) — 120 Total revenues 1,393 (18 ) — 1,375 1,381 (11 ) (46 ) — 1,324 Expenses Room 201 (2 ) — 199 189 (3 ) (3 ) — 183 Food and beverage 263 (7 ) — 256 245 (1 ) (13 ) — 231 Other 485 (11 ) — 474 440 (4 ) (15 ) — 421 Depreciation and amortization 168 — (168 ) — 162 — — (162 ) — Corporate and other expenses 30 — (30 ) — 25 — — (25 ) — Gain on insurance and (3 ) — — (3 ) (7 ) — — 6 (1 ) Total expenses 1,144 (20 ) (198 ) 926 1,054 (8 ) (31 ) (181 ) 834 Operating Profit - Comparable $ 249 $ 2 $ 198 $ 449 $ 327 $ (3 ) $ (15 ) $ 181 $ 490 Year-to-date ended June 30, 2023 Year-to-date ended June 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 properties Property transaction adjustments⁽²⁾ Non-comparable hotel results, net ⁽³⁾ Depreciation and corporate level items Comparable hotel Results Revenues Room $ 1,670 $ (5 ) $ (18 ) $ — $ 1,647 $ 1,505 $ — $ (13 ) $ (57 ) $ — $ 1,435 Food and beverage 846 (2 ) (18 ) — 826 702 — — (42 ) — 660 Other 258 — (3 ) — 255 248 — 4 (13 ) — 239 Total revenues 2,774 (7 ) (39 ) — 2,728 2,455 — (9 ) (112 ) — 2,334 Expenses Room 394 (1 ) (4 ) — 389 349 — (13 ) (9 ) — 327 Food and beverage 532 (1 ) (13 ) — 518 445 — (3 ) (27 ) — 415 Other 956 (2 ) (18 ) — 936 837 (2 ) (9 ) (28 ) — 798 Depreciation and amortization 337 — — (337 ) — 334 — — — (334 ) — Corporate and other expenses 61 — — (61 ) — 48 — — — (48 ) — Gain on insurance and (3 ) — — — (3 ) (7 ) — — — 6 (1 ) Total expenses 2,277 (4 ) (35 ) (398 ) 1,840 2,006 (2 ) (25 ) (64 ) (376 ) 1,539 Operating Profit - Comparable $ 497 $ (3 ) $ (4 ) $ 398 $ 888 $ 449 $ 2 $ 16 $ (48 ) $ 376 $ 795 Period Total Number of Host Inc. Common Shares Purchased Average Price Paid 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) April 1, 2023 – April 30, 2023 — $ — — $ 923 May 1, 2023 – May 31, 2023 — — — 923 June 1, 2023 – June 30, 2023 — — — 923 Total — $ — — $ 923 Period Total Number of Host L.P. Common OP Units Purchased Average Price 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) * 1.021494 shares of Host Hotels & Resorts, Inc. common stock * 1.021494 shares of Host Hotels & Resorts, Inc. common stock * 1.021494 shares of Host Hotels & Resorts, Inc. common stock Exhibit No. Description 31 Rule 13a-14(a)/15d-14(a) Certifications 31.1* 31.2* 31.3* 31.4* 32 Section 1350 Certifications 32.1†* 32.2†* 101.SCH 101.CAL 101.DEF 101.LAB 101.PRE 104 Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). HOST HOTELS & RESORTS, INC. /s/ Joseph C. Ottinger Joseph C. Ottinger HOST HOTELS & RESORTS, L.P. /s/ Joseph C. Ottinger Joseph C. Ottinger10-Q☒x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.June 30, 2023OR☐o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.53-0085950 Delaware (Host Hotels & Resorts, L.P.) 52-2095412 53-008595052-209541220814 Bethesda, Maryland (Zip Code) Bethesda, Maryland(Address of Principal Executive Offices) 20814(Zip Code)(240) ☑No ☐ ☑No ☐ ☑No ☐ ☑No ☐ ☑Accelerated filer ☐o ☐Smaller reporting company ☐o☐ ☐Accelerated filer ☐o ☑Smaller reporting company ☐o☐☐oYes ☐oNo ☑Yes ☐oNo ☑August 2, 2023,May 3, 2024, there were 711,604,872705,044,134 shares of Host Hotels & Resorts, Inc.’s common stock, $0.01 par value per share, outstanding.20222023 under the heading “Explanatory Note.”iPART I. FINANCIAL INFORMATIONiiJune 30, 20232022December 31, 2023 unaudited ASSETS Property and equipment, net $ 9,565 $ 9,624 Right-of-use assets 551 550 Due from managers 158 128 Advances to and investments in affiliates 147 126 Furniture, fixtures and equipment replacement fund 231 217 Notes receivable 72 72 Other 391 382 Cash and cash equivalents 1,349 1,144 Total assets $ 12,464 $ 12,243 LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY Debt Senior notes $ 3,121 $ 3,120 Credit facility, including the term loans of $997 1,290 989 Mortgage and other debt 99 100 Total debt 4,510 4,209 Lease liabilities 564 563 Accounts payable and accrued expenses 237 408 Due to managers 37 64 Other 176 173 Total liabilities 5,524 5,417 Redeemable non-controlling interests - Host Hotels & Resorts, L.P. 200 189 Host Hotels & Resorts, Inc. stockholders’ equity: Common stock, par value $0.01, 1,050 million shares authorized, 705.0 million shares and 703.6 million shares issued and outstanding, respectively 7 7 Additional paid-in capital 7,514 7,535 Accumulated other comprehensive loss (73) (70) Deficit (712) (839) Total equity of Host Hotels & Resorts, Inc. stockholders 6,736 6,633 Non-redeemable non-controlling interests—other consolidated partnerships 4 4 Total equity 6,740 6,637 Total liabilities, non-controlling interests and equity $ 12,464 $ 12,243
shares and 713.4 million shares issued and outstanding, respectively1Year-to-date ended June 30, 2023 and 2022Quarter ended March 31, 2024 2023 REVENUES Rooms $ 853 $ 820 Food and beverage 473 431 Other 145 130 Total revenues 1,471 1,381 EXPENSES Rooms 202 193 Food and beverage 295 269 Other departmental and support expenses 334 315 Management fees 69 65 Other property-level expenses 104 91 Depreciation and amortization 180 169 Corporate and other expenses 27 31 Gain on insurance settlements (31) — Total operating costs and expenses 1,180 1,133 OPERATING PROFIT 291 248 Interest income 18 14 Interest expense (47) (49) Other gains — 69 Equity in earnings of affiliates 8 7 INCOME BEFORE INCOME TAXES 270 289 Benefit for income taxes 2 2 NET INCOME 272 291 Less: Net income attributable to non-controlling interests (4) (4) NET INCOME ATTRIBUTABLE TO HOST HOTELS & RESORTS, INC. $ 268 $ 287 Basic earnings per common share $ 0.38 $ 0.40 Diluted earnings per common share $ 0.38 $ 0.40 2Year-to-date ended June 30, 2023 and 2022Quarter ended March 31, 2024 2023 NET INCOME $ 272 $ 291 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: Foreign currency translation and other comprehensive income of unconsolidated affiliates (3) 2 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX (3) 2 COMPREHENSIVE INCOME 269 293 Less: Comprehensive income attributable to non-controlling interests (4) (4) COMPREHENSIVE INCOME ATTRIBUTABLE TO HOST HOTELS & RESORTS, INC. $ 265 $ 289 3Year-to-dateJune 30,March 31, 2024 and 2023 and 2022Quarter ended March 31, 2024 2023 OPERATING ACTIVITIES Net income $ 272 $ 291 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 180 169 Amortization of finance costs, discounts and premiums, net 2 2 Loss on extinguishment of debt — 4 Stock compensation expense 6 7 Other gains — (69) Gain on property insurance settlement (21) — Equity in earnings of affiliates (8) (7) Change in due from/to managers (58) (88) Distributions from investments in affiliates 3 7 Property insurance proceeds - remediation costs — 31 Payments for inventory costs (6) — Changes in other assets 8 3 Changes in other liabilities (13) (42) Net cash provided by operating activities 365 308 INVESTING ACTIVITIES Proceeds from sales of assets, net — 35 Advances to and investments in affiliates (18) (18) Capital expenditures: Renewals and replacements (70) (95) Return on investment (33) (51) Property insurance proceeds 21 24 Net cash used in investing activities (100) (105) FINANCING ACTIVITIES Financing costs — (10) Draws on credit facility 300 — Debt extinguishment costs — (3) Common stock repurchases — (50) Dividends on common stock (316) (228) Distributions and payments to non-controlling interests (5) (3) Other financing activities (23) (14) Net cash used in financing activities (44) (308) Effects of exchange rate changes on cash held (2) 1 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH 219 (104) CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD 1,363 874 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD $ 1,582 $ 770 4Year-to-dateJune 30,March 31, 2024 and 2023 and 2022withinon the balance sheet to the amount shown in the statements of cash flows:March 31, 2024 March 31, 2023 Cash and cash equivalents $ 1,349 $ 563 Restricted cash (included in other assets) 2 4 Cash included in furniture, fixtures and equipment replacement fund 231 203 Total cash and cash equivalents and restricted cash shown in the statements of cash flows $ 1,582 $ 770 Quarter ended March 31, 2024 2023 Total interest paid $ 39 $ 40 Income taxes paid (refunds received) $ 2 $ (1) salessale 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 loansa $72 million loan to the buyers for $72 million, $163 million, and $250 million, respectively.buyer. The proceeds received from the sales are net of the loans.loan.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.5June 30, 20232022December 31, 2023 unaudited ASSETS Property and equipment, net $ 9,565 $ 9,624 Right-of-use assets 551 550 Due from managers 158 128 Advances to and investments in affiliates 147 126 Furniture, fixtures and equipment replacement fund 231 217 Notes receivable 72 72 Other 391 382 Cash and cash equivalents 1,349 1,144 Total assets $ 12,464 $ 12,243 LIABILITIES, LIMITED PARTNERSHIP INTERESTS OF THIRD PARTIES AND CAPITAL Debt Senior notes $ 3,121 $ 3,120 Credit facility, including the term loans of $997 1,290 989 Mortgage and other debt 99 100 Total debt 4,510 4,209 Lease liabilities 564 563 Accounts payable and accrued expenses 237 408 Due to managers 37 64 Other 176 173 Total liabilities 5,524 5,417 Limited partnership interests of third parties 200 189 Host Hotels & Resorts, L.P. capital: General partner 1 1 Limited partner 6,808 6,702 Accumulated other comprehensive loss (73) (70) Total Host Hotels & Resorts, L.P. capital 6,736 6,633 Non-controlling interests—consolidated partnerships 4 4 Total capital 6,740 6,637 Total liabilities, limited partnership interests of third parties and capital $ 12,464 $ 12,243 statementsstatements..6Year-to-date ended June 30, 2023 and 2022Quarter ended March 31, 2024 2023 REVENUES Rooms $ 853 $ 820 Food and beverage 473 431 Other 145 130 Total revenues 1,471 1,381 EXPENSES Rooms 202 193 Food and beverage 295 269 Other departmental and support expenses 334 315 Management fees 69 65 Other property-level expenses 104 91 Depreciation and amortization 180 169 Corporate and other expenses 27 31 Gain on insurance settlements (31) — Total operating costs and expenses 1,180 1,133 OPERATING PROFIT 291 248 Interest income 18 14 Interest expense (47) (49) Other gains — 69 Equity in earnings of affiliates 8 7 INCOME BEFORE INCOME TAXES 270 289 Benefit for income taxes 2 2 NET INCOME 272 291 Less: Net income attributable to non-controlling interests — — NET INCOME ATTRIBUTABLE TO HOST HOTELS & RESORTS, L.P. $ 272 $ 291 Basic earnings per common unit $ 0.39 $ 0.41 Diluted earnings per common unit $ 0.39 $ 0.41 7Year-to-date ended June 30, 2023 and 2022Quarter ended March 31, 2024 2023 NET INCOME $ 272 $ 291 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: Foreign currency translation and other comprehensive income of unconsolidated affiliates (3) 2 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX (3) 2 COMPREHENSIVE INCOME 269 293 Less: Comprehensive income attributable to non-controlling interests — — COMPREHENSIVE INCOME ATTRIBUTABLE TO HOST HOTELS & RESORTS, L.P. $ 269 $ 293 8Year-to-dateJune 30,March 31, 2024 and 2023 and 2022Quarter ended March 31, 2024 2023 OPERATING ACTIVITIES Net income $ 272 $ 291 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 180 169 Amortization of finance costs, discounts and premiums, net 2 2 Loss on extinguishment of debt — 4 Stock compensation expense 6 7 Other gains — (69) Gain on property insurance settlement (21) — Equity in earnings of affiliates (8) (7) Change in due from/to managers (58) (88) Distributions from investments in affiliates 3 7 Property insurance proceeds - remediation costs — 31 Payments for inventory costs (6) — Changes in other assets 8 3 Changes in other liabilities (13) (42) Net cash provided by operating activities 365 308 INVESTING ACTIVITIES Proceeds from sales of assets, net — 35 Advances to and investments in affiliates (18) (18) Capital expenditures: Renewals and replacements (70) (95) Return on investment (33) (51) Property insurance proceeds 21 24 Net cash used in investing activities (100) (105) FINANCING ACTIVITIES Financing costs — (10) Draws on credit facility 300 — Debt extinguishment costs — (3) Repurchase of common OP units — (50) Distributions on common OP units (320) (231) Distributions and payments to non-controlling interests (1) — Other financing activities (23) (14) Net cash used in financing activities (44) (308) Effects of exchange rate changes on cash held (2) 1 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH 219 (104) CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD 1,363 874 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD $ 1,582 $ 770 9Year-to-dateJune 30,March 31, 2024 and 2023 and 2022withinon the balance sheet to the amount shown in the statements of cash flows: March 31, 2024 March 31, 2023 Cash and cash equivalents $ 1,349 $ 563 Restricted cash (included in other assets) 2 4 Cash included in furniture, fixtures and equipment replacement fund 231 203 Total cash and cash equivalents and restricted cash shown in the statements of cash flows $ 1,582 $ 770 Quarter ended March 31, 2024 2023 Total interest paid $ 39 $ 40 Income taxes paid (refunds received) $ 2 $ (1) salessale 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 loansa $72 million loan to the buyers for $72 million, $163 million, and $250 million, respectively.buyer. The proceeds received from the sales are net of the loans.loan.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.101.Organizationspecifically to refer specifically to Host Hotels & Resorts, Inc., and the term “Host L.P.” specifically to refer specifically to Host Hotels & Resorts, L.P. in cases where it is important to distinguish between Host Inc. and Host L.P. As of June 30, 2023,March 31, 2024, Host Inc. holds approximately 99%99% of Host L.P.’s partnership interests.June 30, 2023,March 31, 2024, our consolidated portfolio, primarily consisting of luxury and upper upscale hotels, is located in the following countries:Hotels Hotels2.Summary of Significant Accounting Policies2022.June 30, 2023,March 31, 2024, and the results of our operations for the quarter and year-to-date periods ended June 30, 2023 and 2022, respectively, and cash flows for the year-to-date periodsquarter ended June 30, March 31, 2024 and 2023, and 2022, respectively. Interim results are not necessarily indicative of full year performance because of the effect of seasonal variations.99%99% of the limited partner interests; the consolidated partnership that owns the Houston Airport Marriott at George Bush Intercontinental; and two unconsolidated partnerships that own hotel properties, of which we hold limited partner interests ranging from 11%11% - 19%21%. Host Inc.’s sole significant asset is its investment in Host L.P. and, consequently, substantially all of Host Inc.’s assets and liabilities consists 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 settled only with assets of Host L.P.113.Earnings Per Common Share (Unit) 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 9.8There are 9.5 million Host L.P. common units, which are convertible into 10.09.7 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 per common share is shown below (in millions, except per share amounts):Quarter ended March 31, 2024 2023 Net income $ 272 $ 291 Less: Net income attributable to non-controlling interests (4) (4) Net income attributable to Host Inc. $ 268 $ 287 Basic weighted average shares outstanding 704.0 713.4 Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market 1.5 1.5 Diluted weighted average shares outstanding 705.5 714.9 Basic earnings per common share $ 0.38 $ 0.40 Diluted earnings per common share $ 0.38 $ 0.40 Quarter ended March 31, Quarter ended March 31, Quarter ended March 31, 2024 2024 2023 Less: Net income attributable to non-controlling interests Basic weighted average units outstanding Basic weighted average units outstanding 698.7 708.3 Assuming distribution of common units granted under the comprehensive stock plans, less units assumed purchased at market 1.5 1.5 Diluted weighted average units outstanding 700.2 709.8 4.Revenue12HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)89 – Geographic Information.Quarter ended March 31, Location 2024 2023 Florida Gulf Coast $ 168 $ 96 Orlando 142 141 San Diego 136 125 Phoenix 120 129 Maui/Oahu 115 126 San Francisco/San Jose 106 100 Miami 84 83 Washington, D.C. (Central Business District) 80 76 New York 72 70 Houston 41 37 San Antonio 35 36 Los Angeles/Orange County 33 34 Jacksonville 31 31 New Orleans 31 29 Boston 30 29 Austin 23 25 Northern Virginia 22 19 Chicago 21 19 Seattle 19 18 Denver 19 14 Philadelphia 17 17 Atlanta 17 18 Other 90 90 Domestic 1,452 1,362 International 19 19 Total $ 1,471 $ 1,381 5.Property and EquipmentProperty and equipment consists of the following (in millions):13March 31, 2024 December 31, 2023 Land and land improvements $ 1,981 $ 1,981 Buildings and leasehold improvements 14,347 14,253 Furniture and equipment 2,357 2,331 Construction in progress 234 237 18,919 18,802 Less accumulated depreciation and amortization (9,354) (9,178) $ 9,565 $ 9,624 (Unaudited)6.Equity of Host Inc. and Capital of Host L.P.Equity of Host Inc.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, 2023 $ 7 $ 7,535 $ (70) $ (839) $ 4 $ 6,637 $ 189 Net income — — — 268 — 268 4 Issuance of common stock for comprehensive stock plans, net — (12) — — — (12) — Dividends declared on common stock — — — (141) — (141) — Distributions to non-controlling interests — — — — (1) (1) (2) Changes in ownership and other — (9) — — 1 (8) 9 Other comprehensive loss — — (3) — — (3) — Balance, March 31, 2024 $ 7 $ 7,514 $ (73) $ (712) $ 4 $ 6,740 $ 200
stock14(Unaudited)
stock
interests 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, 2022 $ 7 $ 7,717 $ (75) $ (939) $ 5 $ 6,715 $ 164 Net income — — — 287 — 287 4 Issuance of common stock for comprehensive stock plans, net — (4) — — — (4) — Repurchase of common stock — (50) — — — (50) — Dividends declared on common stock — — — (87) — (87) — Distributions to non-controlling interests — — — — — — (1) Other comprehensive income — — 2 — — 2 — Balance, March 31, 2023 $ 7 $ 7,663 $ (73) $ (739) $ 5 $ 6,863 $ 167 June 30, 2023,March 31, 2024, 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.15General Partner Limited Partner Accumulated Other Comprehensive Income (Loss) Non-controlling interests Total capital
Limited partnership interests of third partiesBalance, December 31, 2023 $ 1 $ 6,702 $ (70) $ 4 $ 6,637 $ 189 Net income — 268 — — 268 4 Issuance of common OP units to Host Inc. for comprehensive stock plans, net — (12) — — (12) — Distributions declared on common OP units — (141) — — (141) (2) Distributions to non-controlling interests — — — (1) (1) — Changes in ownership and other — (9) — 1 (8) 9 Other comprehensive loss — — (3) — (3) — Balance, March 31, 2024 $ 1 $ 6,808 $ (73) $ 4 $ 6,740 $ 200 General Partner Limited Partner Accumulated Other Comprehensive Income (Loss) Non-controlling interests Total capital
Limited partnership interests of third partiesBalance, December 31, 2022 $ 1 $ 6,784 $ (75) $ 5 $ 6,715 $ 164 Net income — 287 — — 287 4 Issuance of common OP units to Host Inc. for comprehensive stock plans, net — (4) — — (4) — Repurchase of common OP units — (50) — — (50) — Distributions declared on common OP units — (87) — — (87) (1) Other comprehensive income — — 2 — 2 — Balance, March 31, 2023 $ 1 $ 6,930 $ (73) $ 5 $ 6,863 $ 167 16
OP unitsShare RepurchasesDuring the first quarter of 2023, we repurchased 3.2 million shares at an average price of $15.65 per share, exclusive of commissions, through our common share repurchase program for a total of $50 million. There were no share repurchases in the second quarter of 2023. As of June 30, 2023, there was $923 million available for repurchase under our common share repurchase program.Issuance of Common StockOn 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 during the first half of 2023. As of June 30, 2023, there was $600 million of remaining capacity under the agreement.Dividends/DistributionsOn June 14, 2023, Host Inc.'s Board of Directors announced a regular quarterly cash dividend of $0.15 per share on its common stock. The dividend was paid on July 17, 2023 to stockholders of record as of June 30, 2023. Accordingly, Host L.P. made a distribution of $0.1532241 per unit on its common OP units based on the current conversion ratio.17HOST HOTELS & RESORTS, INC., HOST HOTELS & RESORTS, L.P., AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)7.Fair Value MeasurementsMarch 31, 2024 December 31, 2023 Carrying
AmountFair Value Carrying
AmountFair Value Financial assets Notes receivable (Level 2) $ 72 $ 73 $ 72 $ 73 Financial liabilities Senior notes (Level 1) 3,121 2,903 3,120 2,915 Credit facility (Level 2) 1,290 1,300 989 1,000 Mortgage debt (Level 2) 99 87 100 86
Amount
AmountNotes receivable consists of three loans issued to the buyers in connection with the sales of The Camby, Autograph Collection, the Sheraton Boston Hotel and the Sheraton New York Times Square Hotel. The loan to the buyer of the Sheraton Boston Hotel matured on August 1, 2023. We entered into a forbearance agreement with the buyer on August 1, 2023, by which we will forbear exercising our remedies until September 30, 2023. In exchange, the all-in interest rate on the loan was increased from 6.5% to 12% and the buyer made a principal paydown of 10% of the outstanding principal balance, among other consideration.E8.Geographic InformationJune 30, 2023.March 31, 2024. There were no intersegment sales during the periods presented.Total Revenues Property and Equipment, net Quarter ended March 31, March 31,
2024December 31,
20232024 2023 United States $ 1,452 $ 1,362 $ 9,500 $ 9,556 Brazil 6 6 34 35 Canada 13 13 31 33 Total $ 1,471 $ 1,381 $ 9,565 $ 9,624 9.Non-controlling Interests18classified in the mezzanine section of our
___________ March 31, 2024 December 31, 2023 Common OP units outstanding (millions) 9.5 9.5 Market price per Host Inc. common share $ 20.68 $ 19.47 Shares issuable upon conversion of one common OP unit 1.021494 1.021494 Redemption value (millions) $ 200 $ 189 Historical cost (millions) 94 93 Book value (millions) ⁽¹⁾ 200 189 As of June 30, 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-redeemableNon-redeemable non-controlling interests —- other consolidated partnerships on the balance sheets and totaled $5 million asconsists of both June 30, 2023 and December 31, 2022.the third party partnership interest of one majority-owned partnership.10.Contingenciesandwith the final phase of reconstruction, the resort's waterpark, was completed in June 2023. On July 6, 2023, The Ritz-Carlton, Naples reopened the guestrooms, suites and amenities, including the new tower expansion.We are still evaluatingcompletebook value of the property and business interruption impacts of the storm. During the second quarter of 2023, we recorded an additional $25 million of property damageequipment written off and remediation costs increasing our total estimate to $130 million. We haveis approximately $130 million, for which we recorded a corresponding insurance receivable of $130 million.receivable. As of June 30, 2023,March 31, 2024, we have received $113$244 million of property insurance proceeds related to these claims, reducing theof which $130 million reduced our receivable to $17 million. Our expected potentialzero and, during the first quarter, $10 million of these proceeds were recognized as a gain on business interruption and $21 million was recognized as a gain on property insurance, recovery is $310which are both included in gain on insurance settlements on our unaudited condensed consolidated statements of operations. Subsequent to quarter end, we received an additional $19 million for covered costs, including the property remediation and reconstruction costs and the near-term loss of business; however, there can be no assurances that this coverage will be sufficient to cover the entirety of the impact from the storm.insurance proceeds.11.Legal Proceedings$150,000.$150,000. However, for matters exceeding such threshold, our operators may not settle claims without our consent.June 30, 2023March 31, 2024 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.19•currentrecent 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, including natural disasters, such as natural disasters,the Maui wildfires in 2023, weather events, (includingsuch as Hurricane Ian in 2022),2022, pandemics and 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;United States,U.S., such as large-scale wars or international conflicts, slowing global growth, 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; including volatility caused by recent failures of several financial institutions and liquidity concerns at other financial institutions, which could materially adversely affect U.S. and global economic conditions, business activity, and lodging demand as well as negatively impact our ability to obtain financing and increase our borrowing costs;pending and future U.S. governmental action to address budget 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. economic conditions, business activity, credit availability and borrowing costs;costs, and risks relating to the continued response to the COVID-19 pandemic by our hotel managers, such as increased hotel costs for cleaning protocols;20cyber- attacks;20222023 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.21Historical Income Statement Data: Quarter ended March 31, 2024 2023 Total revenues $ 1,471 $ 1,381 6.5 % Net income 272 291 (6.5 %) Operating profit 291 248 17.3 % Operating profit margin under GAAP 19.8 % 18.0 % 180 bps $ 504 $ 444 13.5 % 483 444 8.8 % Diluted earnings per common share 0.38 0.40 (5.0 %) NAREIT FFO per diluted share⁽¹⁾ 0.60 0.54 11.1 % Adjusted FFO per diluted share⁽¹⁾ 0.60 0.55 9.1 % Comparable Hotel Data: Quarter ended March 31, 2024 2023 Comparable hotel revenues ⁽¹⁾ $ 1,398 $ 1,375 1.7 % Comparable hotel EBITDA ⁽¹⁾ 435 448 (2.9 %) Comparable hotel EBITDA margin ⁽¹⁾ 31.2 % 32.6 % (140) bps Comparable hotel Total RevPAR ⁽¹⁾ $ 369.58 $ 367.56 0.5 % Comparable hotel RevPAR ⁽¹⁾ 215.37 218.08 (1.2 %) 7576 comparable hotels as of June 30, 2023March 31, 2024 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$12$90 million, or 0.9%, and $319 million, or 13.0%6.5%, as compared to the secondfirst quarter of 2022 and year-to-date 2022, respectively,2023 driven by strong group business leading to increases in food and beverage revenues, in addition to improvements in group business and continued strength in rates forother revenues. First quarter also benefited from the portfolio overall, despite some moderation at our resort properties. In the second quarter, the growthresults of The Ritz-Carlton, Naples, which was offset by moderating transient demandclosed in the San Francisco and Seattle markets and resort hotels, as well as elevated outbound travel without a corresponding increase in international inbound travel. first half of 2023.and comparable hotel Total RevPAR for the second quarter increased 2.7% and 3.8%, respectively, compared to the second quarter of 2022, primarily due to rate growth. Year-to-date, comparable hotel RevPARdecreased 1.2% and comparable hotel Total RevPAR increased 14.9% and 16.9%0.5%, respectively, compared to 2022. The significant improvement year-to-date was buoyed bythe first quarter of 2023. The decline in comparable hotel RevPAR was due to a decrease in average rates, as occupancy remained flat to 2023, results, aswhile comparable hotel Total RevPAR benefited from an increase in food and beverage and other revenues. Downtown markets continued to perform well, fueled by group business, however improvements were offset due to the Omicron variantcontinuing impacts of COVID-19 significantly impaired travel during Januarythe August 2023 wildfires in Maui and softening short term leisure demand, primarily impacting our resort properties in locations that also faced poor weather conditions in the first partquarter of February in 2022. In addition, the recovery at our city-center properties during the first half of 2023 allowed for significant improvements at some of the markets such as New York, Washington, D.C. and Boston that lagged in 2022.The recovery at our city-center properties led the portfolio, as comparable2024.Boston,Denver, Northern Virginia, and Houston markets led the portfolio with increases of 39.1%, 17.8% and Chicago markets increased by 39.3%, 18.3% and 16.3%10.4%, respectively, in the secondfirst quarter, primarily due to rate and occupancy growth driven by transient ratestrong group and city-wide events.leisure demand. Hotels in our Washington, D.C., San Diego and New York markets, somemarket, one of our larger markets by room counts,count, also outperformed our portfolio with a comparable hotel Total RevPAR increase of 7.3%, with rate increases driven by strong group performance, while our San Francisco/San Jose market outperformed with comparable hotel Total RevPAR growth of 11.0%4.8%, 10.4% and 10.0%, respectively.with a very strong January due to convention events. These strong performances were offset by comparable hotelMiamiAtlanta and OrlandoLos Angeles/Orange County markets of 14.5%9.8%, 7.3%6.1% and 6.6%5.3%, respectively. The declines were driven primarily by decreases in transient demand, while Austin also experienced a decline in short-term grouptransient demand, primarily due to poor weather conditions in several markets, as well as difficult comparisons to the second quarter.Our secondfirst quarter 2023 results when comparedof 2023. In addition, comparable hotel Total RevPAR at our Maui/Oahu market declined by 9.8% due to 2022 are as follows:•Net income decreased $46 million for the quarter and increased $127 million year-to-date;•Diluted earnings per share decreased $0.07 for the quarter and increased $0.18 year-to-date;•Adjusted EBITDAre decreased $54 million for the quarter and increased $84 million year-to-date; and•Adjusted FFO per diluted share decreased $0.05 for the quarter and increased $0.11 year-to-date.secondfirst quarter of 2023,2024, operating profit margin under GAAP was 17.9% and comparable19.8%, representing a 180 basis point improvement to 2023, primarily due to the insurance gains recognized in the first quarter. Comparable hotel EBITDA margin was 32.7%31.2%, a decrease of 580140 basis points compared to the same period in 2023, reflecting increases in wages and 440 basis points, respectively,insurance expenses.closera decline in gain on asset sales, partially offset by gains on insurance settlements recognized in the first quarter. These changes led to stable staffinga decrease in diluted earnings per share of $0.02, or 5.0%, for the quarter. Adjusted EBITDAre, which excludes gain on sale of assets, among other items, increased $39 million to $483 million. Adjusted FFO per diluted share increased $0.05 to $0.60 for the first quarter, reflecting the increase in Adjusted EBITDAre, partially offset by an increase in interest expense (excluding debt extinguishment costs) which is included in Adjusted FFO per diluted share but not Adjusted EBITDAre.higher wages, insurance and utility expenses, compared to second quarter of 2022. Year-to-date, operating profit margin under GAAP was 17.9% and comparable hotel EBITDA margin was 32.6%, a decrease of 40 basis points and 150 basis points, respectively.OutlookAlthough we have not experienced significant signsconsumer spending remains strong. However, the Federal Reserve has maintained its stance of a weakeningtight monetary policy, and expectations of rate cuts have been pushed further out. In addition, other risks to economic growth remain, including geopolitical instability throughout the globe, volatile oil prices and the uncertainty surrounding presidential elections both in the U.S. and abroad. As a result, while the overall lodging industry, current macroeconomic headwinds and concerns surrounding the potential for anexpectation of a recession has moderated, a slowdown in economic slowdown 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.221.6%2.4% for 2024, down slightly from 2.5% growth in 2023, with a slight decline in the fourth quarter, whileand business investment growth is also anticipated to slow over the coming quarters, expected to average 2.4% for 2024.increase 2.1%remain below the long-term historical average in 2024, although we expect to see above-average growth in a few markets where our hotels are located, such as New York and Austin. 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 the new project pipeline will remain suppressed until macroeconomic concerns moderate and interest rates decline.Inflation has eased but remains aboveHowever, the Federal Reserve's target of 2%. Monetary policy, geopolitical uncertainty, and liquidity concerns at financial institutions has led to ongoing concerns surrounding a potential economic slowdown over the next 12 months. 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, ongoing labor shortages in key industries, and escalating geopolitical conflicts.Hotel supply growth Additionally, following the collapse of a portion of Highway 1 in California in March 2024, Alila Ventana Big Sur is anticipatedtemporarily closed to remain below the long-term historical average in 2023. Supply chain challenges have resulted in project delays across the U.S., and regional banking stress has created construction financing challenges for future projects. We anticipate that the new project pipelineguests. The hotel will remain suppressed until macroeconomic concerns abate. While the pandemic had an outsized impact onbe removed from our industry, particularly in luxury and upper upscale hotels in top U.S. markets, where a majority of our hotels are located, our hotels have been able to maintain rates even as leisure travel moderates. We also have seen steady increases in group business and a gradual recovery in business transient demand in 2023. However, transient demand has moderatedcomparable hotel set beginning in the San Francisco and Seattle markets, as well as at resort hotels in recent months.second quarter of 2024.Based on the trends noted above, we expect comparable hotel RevPAR growth for the full year 2023 will be between 7.0% and 9.0%. highly uncertain; 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.halfquarter of 2023,2024, we spent approximately $97$33 million on return on investment ("ROI") capital projects, $133$58 million on renewal and replacement projects, and $93$12 million on hurricane restoration work. Significant projects completed during the second quarter include the renovation of rooms and public spaces at the final hotel in the Marriott transformational capital program, the Washington Marriott at Metro Center. In addition, we continuedThis included our continuing restoration efforts following Hurricane Ian, for which we estimate the total property reconstruction and remediation costs, including significant enhancements, to be approximately $260$300 million to $285$320 million, of which approximately 35%30% relates to remediation costs. The Ritz-Carlton, Naples reopened on July 6, 2023, includingAs of May 1, 2024, we have received total insurance proceeds of $263 million out of the guestrooms, suites and amenities, andexpected potential insurance recovery of approximately $310 million related to our Hurricane Ian claims, of which $10 million has been recognized as business interruption proceeds in the new tower expansion. Thefirst quarter of 2024.Regency Coconut Point Resort and Spa reopened to guests in November 2022, and the final phase of reconstruction, the resort's waterpark, was completed in June 2023.We have completed the Marriottwe initiated a transformational capital program which began in 2018. We believe this program will2023 on six properties in our portfolio. These investments are intended to position thesethe targeted hotels to be more competitivecompete better in their respective markets and willwhile seeking to enhance long-term performance through increasesperformance. During the first quarter of 2024, we spent approximately $11 million on this program, which is included in RevPAR and market yield index.ROI capital projects. 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 invest amounts in excess of the furniture fixture and equipment ("FF&E") reserves required under our management agreements and, in exchange, Marriott has providedprovide additional priority returns on the agreed upon investments and operating profit guarantees of $83totaling $40 million before reductions for incentive management fees, to offset expected business disruption.The Marriott transformational capital program included projects at 16 hotels, which were completed as follows: projects at 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; projects at The Ritz-Carlton Amelia Island, New York Marriott Marquis and Orlando World Center Marriott in 2021; 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 and Washington Marriott at Metro Center in 2023.2023,2024, we expect total capital expenditures of $625$500 million to $725$605 million, consisting of ROI projects of approximately $225 million to $250$280 million, renewal and replacement expenditures of $275$250 million to $300 million, and $25 million for the final restoration work for the damage caused by Hurricane Ian of $125 million to $175 million.Ian. The ROI projects include approximately $25$125 million to $30$150 million for the MarriottHyatt transformational capital program discussed above.23Quarter ended March 31, 2024 2023 Total revenues $ 1,471 $ 1,381 6.5 % Operating costs and expenses: Property-level costs ⁽¹⁾ 1,184 1,102 7.4 % Corporate and other expenses 27 31 (12.9) % Gain on insurance settlements 31 — N/M Operating profit 291 248 17.3 % Interest expense 47 49 (4.1) % Other gains — 69 (100.0) % Benefit for income taxes 2 2 — % Host Inc.: Net income attributable to non-controlling interests 4 4 — % Net income attributable to Host Inc. 268 287 (6.6) % Host L.P.: Net income attributable to non-controlling interests — — — % Net income attributable to Host L.P. 272 291 (6.5) % and business interruption settlements.M=M = Not meaningful.Second quarter totalQuarter ended March 31, 2024 2023 Revenues: Rooms $ 853 $ 820 4.0 % Food and beverage 473 431 9.7 % Other 145 130 11.5 % Total revenues $ 1,471 $ 1,381 6.5 % improved 0.9% over 2022 reflecting improvements in group business and continued strength in rates for the portfolio overall, despite some moderation at our resort properties. In the secondfirst quarter the growth was offset by moderating transient demand in the San Francisco and Seattle markets and resort hotels and elevated international outbound travel without a corresponding increase in international inbound travel. Year-to-date revenue improvement benefitted from easier comparisonsimproved 6.5% compared to 2022, as the Omicron variant of COVID-19 significantly impaired travel during January and the first partquarter of February in 2022 as noted previously. Operations in the second quarter and year-to-date 2023, in comparison to 2022 were impacted by lost revenuesprimarily due to the closureresumption of operations at The Ritz-Carlton, Naples, caused bywhich was closed during the first half of 2023 as a result of Hurricane Ian, which reopened on July 6, 2023.Ian. In addition, strong group business led to improvements in food and beverage revenues, while other revenues also increased, which offset the Four Seasons Resort and Residences Jackson Hole, which we acquireddecline in November 2022, contributed $11 million and $42 million to the growth in revenues for the second quarter and year-to-date 2023, respectively, compared to the negative impact on revenues resulting from 2022 and 2023 dispositions of $15 million and $40 million, for the second quarter and year-to-date 2023, respectively.were flat for the second quarter and increased $165$33 million, or 11.0%, year-to-date, compared to 2022. The results reflect the increases at our comparable hotels of $22 million, or 2.7%, and $212 million, or 14.8%4.0%, for the second24and year-to-date, respectively, driven by strong average room rates, which remain above 2019, but have startedcompared to moderate.2023, reflecting the reopening of The increases inRitz-Carlton, Naples. Rooms revenues at our comparable hotels were partially offsetdecreased $1 million, or 0.1%, for the quarter driven by lost revenues from dispositions and the closure of The Ritz-Carlton, Naples, which is includeda decrease in non-comparable hotels, caused by Hurricane Ian as noted above.average room rate.$10$42 million, or 2.5%, and $144 million, or 20.5%9.7%, for the first quarter and year-to-date, respectively, compared to 2022.2023 due to the reopening of The improvements reflect the increases at ourRitz-Carlton, Naples and reflecting an increase in comparable hotelsF&B revenues of $22$15 million, or 5.7%3.5%, and $166 million, or 25.2%, for the quarter and year-to-date, respectively, primarily driven by improvements in banquet and audio-visual revenues at convention hotels as well as increased outlet spend per occupied room across our portfolio. Similargroup demand continues to rooms revenues, the increases in F&B revenues from our comparable hotels were partially offset by lost revenues from dispositions and the closure of The Ritz-Carlton, Naples, which is included in non-comparable hotels, caused by Hurricane Ian as noted above.recover.$2$15 million, or 1.6%, and $10 million, or 4.0%11.5%, for the first quarter and year-to-date, respectively, compared to 2022.2023 driven by the reopening of The improvements reflect the increasesRitz-Carlton, Naples and reflecting an increase at our comparable hotels in other revenues of $7$9 million, or 5.8%6.9%, and $16 million, or 6.7%, for the quarter and year-to-date, respectively, primarily due to elevated levels of attrition and cancelation fees and an increase in ancillary revenues from improved occupancy levels and continued strong golf and spa revenues.Quarter ended March 31, 2024 2023 Expenses: Rooms $ 202 $ 193 4.7 % Food and beverage 295 269 9.7 % Other departmental and support expenses 334 315 6.0 % Management fees 69 65 6.2 % Other property-level expenses 104 91 14.3 % Depreciation and amortization 180 169 6.5 % Total property-level operating expenses $ 1,184 $ 1,102 7.4 % 56%58% of these expenses. For the secondfirst quarter and year-to-date 2023,of 2024, these expenses increased 13%, and 22%, respectively,5% on a per available rooms basis compared to 2022, reflecting2023, primarily due to an overall increase in hiring as operations have recovered. In addition, early in 2022, hiring was temporarily paused in many areas due to the Omicron variant, as well as seasonality in certain markets. Specifically, in the second quarter of 2022, the significant acceleration in demand further challenged the ability of our hotels managers to increase hotel staffing commensurate with the increase in demand. Hiring pace has since improved,general wage rates and managers at the majority of our hotels now are operating at desired staffing levels.benefits. Wage and benefit rate inflation is expected to be approximately 5% in 2023.secondfirst quarter and year-to-date 2023of 2024 compared to 20222023 for rooms, food and beverage, other departmental and support, and management fees was generally due to the corresponding increaseincreases in revenues from improvementsdue to the reopening of the Ritz-Carlton, Naples and reflected changes in occupancy and hotel operations, and an increase in staffing,our comparable hotels results, as follows:$12$9 million, or 6.3%, and $45 million, or 12.9%4.7%, for the quarter and year-to-date, respectively.quarter. Our comparable hotels rooms expenses increased $16$5 million, or 8.7%, and $62 million, or 19.0%2.6%, for the quarter and year-to-date, respectively. These increases reflect thedriven by an overall increase in staffing described above.wage rates.25$18$26 million, or 7.3%, and $87 million, or 19.6%9.7%, for the quarter and year-to-date, respectively.quarter. For our comparable hotels, F&B expenses increased $25$11 million, or 10.8%, and $103 million, or 24.8%4.1% for the quarter and year-to-date, respectively.quarter. Overall, F&B costs as a percentage of revenues increased slightly for the quarter as staffing levels normalized. F&B costs as a percentage of revenues declined year-to-date, benefiting from improved banquet revenues and ongoing productivity improvement.remained consistent year over year.$23$19 million, or 7.7%, and $65 million, or 11.3%6.0%, for the quarter and year-to-date, respectively.quarter. On a comparable hotel basis, other departmental and support expenses increased $27$12 million, or 9.6%, and $79 million, or 14.7%3.8%, for the quarter and year-to-date, respectively.quarter. These increases were primarily due to the increase in staffing.higher wage expense.were flatincreased $4 million, or 8.4%, for the second quarter and increased $8 million, or 11.6%, year-to-date.quarter. At our comparable hotels, base management fees increased $1 million, or 2.9%, and $10 million, or 15.7%, for the quarter and year-to-date, respectively.3.5%. Incentive management fees, which generally areincreased $7 million, or 30.4%, and $24 million, or 72.7%, for the quarter and year-to-date, respectively.remained flat year over year. At our comparable hotels, incentive management fees increased $8decreased $2 million, or 34.9%, and $22 million, or 62.8% for the quarter and year-to-date, respectively. The increase in incentive management fees primarily reflects the improved operations at our properties.property levelproperty-level expenses increased $15$13 million, or 19.2%, and $22 million, or 13.6%14.3%, for the quarter, and year-to-date, respectively, due to increases in property insurance premiums, and rent on a portion of our ground leases that are based on a percentage of sales.sales, and property taxes. Other property-level expenses alsoat our comparable hotels increased $9 million, or 9.8%, for the quarter. Other property-level expenses were partially offset by the receipt of operating profit guarantees received from Marriott under the transformational capital programprograms in both 20222024 and 2023, with the last of the payments received in the second quarter of 2023. Other property-level expenses at our comparable hotels increased $17 million, or 20.8%, and $27 million, or 17.0%, for the quarter and year-to-date, respectively.Quarter ended March 31, 2024 2023 General and administrative costs $ 21 $ 21 Non-cash stock-based compensation expense 6 7 Litigation accruals — 3 Total $ 27 $ 31 increaseddecreased for the quarter and year-to-date due to debt extinguishment costs incurred during the first quarter of 2023, partially offset by an increase in interest rates on our floating rate debt. The following table details our interest expense for the quarter (in millions):Quarter ended March 31, 2024 2023 Cash interest expense ⁽¹⁾ $ 45 $ 43 Non-cash interest expense 2 2 Non-cash debt extinguishment costs — 1 Cash debt extinguishment costs ⁽¹⁾ — 3 Total interest expense $ 47 $ 49 $50$39 million and $41$40 million for the quarters ended June 30,March 31, 2024 and 2023, and 2022, respectively, and $90 million and $69 million for year-to-date 2023 and 2022, respectively.increased $55 million year-to-date, reflectingin the first quarter of 2023 reflected the sale of The Camby, Autograph Collection in the first quarter of 2023.Collection.Equity in earnings of affiliates. Equity in earnings of affiliates increased $2 million for the quarter and $7 million for the year-to-date, consisting of earnings from our investment in the Noble Joint Venture.26ProvisionBenefit 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 secondfirst quarter and year-to-date 2023,of 2024, we recorded ana net income tax provisionbenefit of $14$2 million and $12 million, respectively, due primarily to the profitabilityrecognition of hotel operations retained byfederal income tax credits related to the TRS.installation of a co-generation plant at one of our properties.Effective January 1, 2023, we have ceased presentation of All Owned Hoteland returned tofor our hotels on a comparable hotel presentation for our hotel level results.basis. 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 closures caused by Hurricane Ian. See “Comparable Hotel Operating Statistics and Results” below for more information on how we determine our comparable hotels.year-to-date ended June 30, 2023, and 2022, respectively, on a comparable hotel and actual basis:As of March 31, 2024 Quarter ended March 31, 2024 Quarter ended March 31, 2023 Location No. of
PropertiesNo. of
RoomsAverage
Room RateAverage
Occupancy
PercentageRevPAR Total RevPAR Average
Room RateAverage
Occupancy
PercentageRevPAR Total RevPAR Percent
Change in
RevPARPercent
Change in
Total RevPARMiami 2 1,038 $ 635.30 82.0 % $ 520.71 $ 867.57 $ 643.96 77.9 % $ 501.89 $ 862.22 3.7 % 0.6 % Phoenix 3 1,545 490.11 81.3 % 398.36 854.54 529.55 82.5 % 436.73 878.14 (8.8) % (2.7) % Maui/Oahu 4 2,006 539.98 72.6 % 391.83 631.50 605.58 76.2 % 461.65 700.34 (15.1) % (9.8) % Florida Gulf Coast 4 1,403 436.83 80.1 % 350.05 739.96 435.39 80.2 % 349.32 760.63 0.2 % (2.7) % Jacksonville 1 446 528.66 64.6 % 341.31 774.19 510.30 67.2 % 343.06 768.78 (0.5) % 0.7 % Orlando 2 2,448 407.08 74.2 % 302.14 637.59 427.60 76.0 % 325.11 641.80 (7.1) % (0.7) % San Diego 3 3,294 294.27 77.4 % 227.67 452.71 282.93 76.9 % 217.70 422.03 4.6 % 7.3 % Los Angeles/Orange County 3 1,067 299.02 74.8 % 223.80 334.70 296.72 79.9 % 237.19 353.46 (5.6) % (5.3) % New York 2 2,486 289.59 74.0 % 214.29 317.47 281.95 73.3 % 206.60 313.90 3.7 % 1.1 % San Francisco/San Jose 6 4,162 290.06 64.0 % 185.67 280.40 290.85 60.8 % 176.75 267.55 5.0 % 4.8 % Washington, D.C. (CBD) 5 3,245 275.83 66.9 % 184.43 270.75 270.57 64.2 % 173.81 261.11 6.1 % 3.7 % Austin 2 767 276.13 64.7 % 178.72 323.83 289.30 70.1 % 202.79 358.95 (11.9) % (9.8) % Houston 5 1,942 223.14 74.6 % 166.45 231.31 204.18 73.4 % 149.81 209.59 11.1 % 10.4 % Northern Virginia 2 916 244.11 67.8 % 165.55 265.89 227.21 65.6 % 149.04 225.76 11.1 % 17.8 % New Orleans 1 1,333 211.33 74.6 % 157.65 253.56 221.98 73.0 % 161.94 238.77 (2.7) % 6.2 % Boston 2 1,496 224.11 67.9 % 152.09 221.78 210.79 69.2 % 145.84 213.40 4.3 % 3.9 % San Antonio 2 1,512 229.52 66.1 % 151.75 252.73 238.60 70.1 % 167.19 266.21 (9.2) % (5.1) % Philadelphia 2 810 202.76 72.8 % 147.59 228.90 207.09 74.2 % 153.60 239.52 (3.9) % (4.4) % Atlanta 2 810 213.56 61.6 % 131.66 227.78 196.79 74.0 % 145.62 242.65 (9.6) % (6.1) % Seattle 2 1,315 210.91 52.7 % 111.05 162.48 197.72 53.1 % 105.09 156.16 5.7 % 4.1 % Chicago 3 1,562 179.25 55.7 % 99.76 145.54 178.91 51.6 % 92.37 135.28 8.0 % 7.6 % Denver 3 1,342 177.37 55.3 % 98.05 159.53 171.90 48.7 % 83.66 114.72 17.2 % 39.1 % Other 10 3,061 351.34 58.4 % 205.11 320.77 357.65 58.2 % 208.18 321.87 (1.5) % (0.3) % Domestic 71 40,006 318.95 68.9 % 219.79 378.15 323.60 68.7 % 222.38 375.83 (1.2) % 0.6 % International 5 1,499 173.64 56.1 % 97.47 139.44 171.05 60.3 % 103.18 145.42 (5.5) % (4.1) % All Locations 76 41,505 $ 314.65 68.4 % $ 215.37 $ 369.58 $ 318.75 68.4 % $ 218.08 $ 367.56 (1.2) % 0.5 %
Properties
Rooms
Room Rate
Occupancy
Percentage
Room Rate
Occupancy
Percentage
Change in
RevPAR
Change in
Total RevPAR27Comparable Hotel Results by Location
Properties
Rooms
Room Rate
Occupancy
Percentage
Room Rate
Occupancy
Percentage
Change in
RevPAR
Change in
Total RevPAR
Properties
Properties
Room Rate
Occupancy
Percentage
Room Rate
Occupancy
Percentage
Change in
RevPAR
Change in
Total RevPAR28Results by Location - actual, based on ownership periodAs of March 31, 2024 2023 Quarter ended March 31, 2024 Quarter ended March 31, 2023 Location No. of
PropertiesNo. of
PropertiesAverage
Room RateAverage
Occupancy
PercentageRevPAR Total RevPAR Average
Room RateAverage
Occupancy
PercentageRevPAR Total RevPAR Percent
Change in
RevPARPercent
Change in
Total RevPARMiami 2 2 $ 635.30 82.0 % $ 520.71 $ 867.57 $ 643.96 77.9 % $ 501.89 $ 862.22 3.7 % 0.6 % Phoenix 3 3 490.11 81.3 % 398.36 854.54 506.37 81.9 % 414.65 815.69 (3.9) % 4.8 % Maui/Oahu 4 4 539.98 72.6 % 391.83 631.50 605.58 76.2 % 461.65 700.34 (15.1) % (9.8) % Florida Gulf Coast 5 5 604.37 80.9 % 488.72 983.10 435.50 60.8 % 264.99 577.81 84.4 % 70.1 % Jacksonville 1 1 528.66 64.6 % 341.31 774.19 510.30 67.2 % 343.06 768.78 (0.5) % 0.7 % Orlando 2 2 407.08 74.2 % 302.14 637.59 427.60 76.0 % 325.11 641.80 (7.1) % (0.7) % San Diego 3 3 294.27 77.4 % 227.67 452.71 282.93 76.9 % 217.70 422.03 4.6 % 7.3 % Los Angeles/Orange County 3 3 299.02 74.8 % 223.80 334.70 296.72 79.9 % 237.19 353.46 (5.6) % (5.3) % New York 2 2 289.59 74.0 % 214.29 317.47 281.95 73.3 % 206.60 313.90 3.7 % 1.1 % San Francisco/San Jose 6 6 290.06 64.0 % 185.67 280.40 290.85 60.8 % 176.75 267.55 5.0 % 4.8 % Washington, D.C. (CBD) 5 5 275.83 66.9 % 184.43 270.75 270.57 64.2 % 173.81 261.11 6.1 % 3.7 % Austin 2 2 276.13 64.7 % 178.72 323.83 289.30 70.1 % 202.79 358.95 (11.9) % (9.8) % Houston 5 5 223.14 74.6 % 166.45 231.31 204.18 73.4 % 149.81 209.59 11.1 % 10.4 % Northern Virginia 2 2 244.11 67.8 % 165.55 265.89 227.21 65.6 % 149.04 225.76 11.1 % 17.8 % New Orleans 1 1 211.33 74.6 % 157.65 253.56 221.98 73.0 % 161.94 238.77 (2.7) % 6.2 % Boston 2 2 224.11 67.9 % 152.09 221.78 210.79 69.2 % 145.84 213.40 4.3 % 3.9 % San Antonio 2 2 229.52 66.1 % 151.75 252.73 238.60 70.1 % 167.19 266.21 (9.2) % (5.1) % Philadelphia 2 2 202.76 72.8 % 147.59 228.90 207.09 74.2 % 153.60 239.52 (3.9) % (4.4) % Atlanta 2 2 213.56 61.6 % 131.66 227.78 196.79 74.0 % 145.62 242.65 (9.6) % (6.1) % Seattle 2 2 210.91 52.7 % 111.05 162.48 197.72 53.1 % 105.09 156.16 5.7 % 4.1 % Chicago 3 3 179.25 55.7 % 99.76 145.54 178.91 51.6 % 92.37 135.28 8.0 % 7.6 % Denver 3 3 177.37 55.3 % 98.05 159.53 171.90 48.7 % 83.66 114.72 17.2 % 39.1 % Other 10 10 351.34 58.4 % 205.11 320.77 357.65 58.2 % 208.18 321.87 (1.5) % (0.3) % Domestic 72 72 329.69 69.1 % 227.73 393.64 323.61 68.0 % 220.10 371.64 3.5 % 5.9 % International 5 5 173.64 56.1 % 97.47 139.44 171.05 60.3 % 103.18 145.42 (5.5) % (4.1) % All Locations 77 77 $ 325.14 68.6 % $ 223.09 $ 384.62 $ 318.78 67.7 % $ 215.94 $ 363.65 3.3 % 5.8 %
Properties
Properties
Room Rate
Occupancy
Percentage
Room Rate
Occupancy
Percentage
Change in
RevPAR
Change in
Total RevPAR___________(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.65%61%, 32%35%, and 3%4%, respectively, of our full year 20222023 room sales. The information below is derived from business mix data forresults from the 7576 comparable hotels owned as of June 30, 2023.March 31, 2024. 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 insecondfirst quarter, compared to second quarter of 2022 were primarilygroup revenue increased by 5.3%, driven by ana 4.1% increase in room nights sold and a 1.1% increase in average rate, as demand continued to improve at our convention and downtown properties. The growth in group business through increaseswas offset by a 4.7% decline in rate. Attransient revenue, reflecting the same time,impacts of the recoveryMaui wildfires and unseasonable weather conditions in business transient demand continued, driven by demand from small and medium-sized businesses, which accounted for a greater sharemany of demand as compared to large-companies than prior to the COVID-19 pandemic.our resort markets that reduced leisure demand.29Quarter ended March 31, 2024 Room nights (in thousands) 1,314 1,103 172 Percent change in room nights vs. same period in 2023 (1.9 %) 4.1 % 7.5 % Rooms revenues (in millions) $ 456 $ 324 $ 35 Percent change in revenues vs. same period in 2023 (4.7 %) 5.3 % 18.2 % We have no significant debt maturities until 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. Subsequent to quarter end, we repaid $400 million of Series G senior notes at maturity and purchased the 1 Hotel Nashville and Embassy Suites by Hilton Nashville Downtown for cash consideration of $530 million. Our next significant debt maturity is $500 million of senior notes due in June 2025.June 30, 2023,March 31, 2024, we had $802$1,349 million of cash and cash equivalents, $213$231 million in our FF&E escrow reserves and $1.5$1.2 billion available under the revolver portion of our credit facility. Subsequent to quarter end, we had net repayments of $85 million 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.ThereNo shares were no share repurchasesrepurchased during the second quarter.first quarter of 2024. At June 30, 2023,March 31, 2024, we had $923$792 million available for repurchase under our program.J. P.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 during the first halfquarter of 2023.2024. As of June 30, 2023,March 31, 2024, there was $600 million of remaining capacity under the agreement.30Year-to-date in 2023,In the first quarter of 2024, net cash provided by operating activities was $820$365 million compared to $708$308 million for 2022.the first quarter of 2023. The $112$57 million increase in 20232024 was primarily driven by improved operations at our hotels compared to 2022.2023, as well as $10 million of insurance proceeds received for business interruption related to Hurricane Ian.$275$100 million during 2023 year-to-datethe first quarter of 2024 compared to $60$105 million for 2022.the first quarter of 2023. Cash used in investing activities during year-to-datethe first quarter 2024 and 2023 primarily related to $323$103 million and $146 million of capital expenditures, respectively, and investmentinvestments in our joint ventures. Cash used in investing activities during year-to-date 2022 primarily related to $240 million of capital expenditures and an investment in a joint venture. Cash provided by investing activities includes the sale of one hotel in 2023 and three hotels in 2022, with 2023 proceeds of $34 million primarily related toincluded the sale of The Camby, Autograph Collection, with proceeds of $35 million, which is net of a $72 million loan issued to the buyer in connection with the sale.Year-to-date in 2023,In the first quarter of 2024, net cash used in financing activities was $396$44 million compared to $715$308 million for 2022.the first quarter of 2023. Cash provided by financing activities in 2024 related to the draw on the credit facility revolver. Cash used in financing activities in 20232024 primarily related to the payment of common stock dividends, and common stock repurchases. In year-to-date 2022,while in the first quarter of 2023, cash used in financing activities included the repaymentpayment of the credit facility revolver.common stock dividends and common stock repurchases.Transaction Date Description of Transaction Transaction Amount Debt issuances March 2024 Draw on the revolver portion of the credit facility $ 300 Total issuances $ 300 Transaction Date Description of Transaction Transaction Amount Debt repayments April 2024 Repayment of $400 million 3 ⅞% Series G senior notes $ (400) April 2024 Net repayment on the revolver portion of the credit facility (85) Total cash repayments $ (485) August 2, 2023May 1, 2024 (in millions):Transaction Date Description of Transaction Transaction Amount Equity of Host Inc. January - April 2024 Dividend payments⁽¹⁾⁽²⁾ $ (457) Cash payments on equity transactions $ (457) $426$464 million to its common OP unit holders.20222023 dividend that was paid in January 2023.2024.June 30, 2023,March 31, 2024, our total debt was $4.2$4.5 billion, with a weighted average interest rate of 4.5%4.6% and a weighted average maturity of 4.73.9 years. Additionally, 76%71% of our debt has a fixed rate of interest, and only one of our consolidated hotels is encumbered by mortgage debt.Financial CovenantsOn January 4, 2023, we entered intosixth amended and restated senior revolving credit and term loan facility, with Bank of America, N.A.,significant transactions completed subsequent to quarter end, 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 $1.531billion. 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 amountnoted in the casetables above, we estimate our total debt decreased to $4.0 billion, with a weighted average interest rate 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. dollars4.7% and a subfacilityweighted average maturity 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. As of 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.June 30, 2023,March 31, 2024, 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:
for all years2.2x8.0x9.3xJune 30, 2023:491201%9.1x including the terms of the Amendments, see our Annual Report on Form 10-K for the year ended December 31, 2022.June 30, 2023,March 31, 2024, 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 current conversion ratio is 1.021494 shares of Host Inc. common stock for each Host L.P. common OP unit.32June 14, 2023,February 21, 2024, Host Inc.'s Board of Directors announced a regular quarterly cash dividend of $0.15$0.20 per share on Host Inc.'s common stock. The dividend was paid on July 17, 2023April 15, 2024 to stockholders as of record on June 30, 2023.March 28, 2024.. All future dividends are subject to Board approval.2022.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.property insurance and business interruption settlements on our condensed 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.June 30, 2023, 75March 31, 2024, 76 have been classified as comparable hotels. The operating results of the following hotelsproperties that we owned as of June 30, 2023March 31, 2024 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.; and33 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:20222023 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.whothat 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.34Quarter ended March 31, 2024 2023 Net income $ 272 $ 291 Interest expense 47 49 Depreciation and amortization 180 169 Income taxes (2) (2) EBITDA 497 507 Gain on dispositions⁽¹⁾ — (69) Equity investment adjustments: Equity in earnings of affiliates (8) (7) 15 13 504 444 Gain on property insurance settlement (21) — $ 483 $ 444 ___________(1) Reflects the sale of one hotel in 2023 and three hotels in 2022.2023.Effective January 1, 2019, we adopted NAREIT’s35definition of FFO includedAs noted 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, 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.36Quarter ended March 31, 2024 2023 Net income $ 272 $ 291 Less: Net income attributable to non-controlling interests (4) (4) Net income attributable to Host Inc. 268 287 Adjustments: Gain on dispositions⁽¹⁾ — (69) Gain on property insurance settlement (21) — Depreciation and amortization 180 168 Equity investment adjustments: Equity in earnings of affiliates (8) (7) Pro rata FFO of equity investments⁽²⁾ 9 10 Consolidated partnership adjustments: FFO adjustments for non-controlling interests of Host L.P. (2) (1) NAREIT FFO 426 388 Adjustments to NAREIT FFO: Loss on debt extinguishment — 4 Adjusted FFO $ 426 $ 392 For calculation on a per share basis:⁽³⁾ Diluted weighted average shares outstanding - EPS, NAREIT FFO and Adjusted FFO 705.5 714.9 Diluted earnings per common share $ 0.38 $ 0.40 NAREIT FFO per diluted share $ 0.60 $ 0.54 Adjusted FFO per diluted share $ 0.60 $ 0.55 ___________(1-2) Refer to the corresponding footnote on the Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre for Host Inc. and Host L.P.minoritynon-controlling limited 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.Property LevelProperty-Level Operating Results3738Quarter ended March 31, 2024 2023 Number of hotels 76 76 Number of rooms 41,505 41,505 Change in comparable hotel Total RevPAR 0.5 % — Change in comparable hotel RevPAR (1.2 %) — Operating profit margin⁽¹⁾ 19.8 % 18.0 % Comparable hotel EBITDA margin⁽¹⁾ 31.2 % 32.6 % Food and beverage profit margin⁽¹⁾ 37.6 % 37.6 % Comparable hotel food and beverage profit margin⁽¹⁾ 37.4 % 37.7 % Net income $ 272 $ 291 Depreciation and amortization 180 169 Interest expense 47 49 Benefit for income taxes (2) (2) Gain on sale of property and corporate level income/expense (20) (59) Property transaction adjustments⁽²⁾ — (3) Non-comparable hotel results, net⁽³⁾ (42) 3 Comparable hotel EBITDA $ 435 $ 448 ___________(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:
business interruption
settlements
hotel EBITDA39
business interruption
settlements
hotel EBITDAQuarter ended March 31, 2024 Quarter ended March 31, 2023 Non-comparable hotel
results, net ⁽³⁾Depreciation and corporate
level itemsProperty transaction
adjustments⁽²⁾Non-comparable hotel
results, net ⁽³⁾Depreciation and corporate
level itemsRevenues Room $ 853 $ (38) $ — $ 815 $ 820 $ (5) $ 1 $ — $ 816 Food and beverage 473 (29) — 444 431 (2) — — 429 Other 145 (6) — 139 130 — — — 130 Total revenues 1,471 (73) — 1,398 1,381 (7) 1 — 1,375 Expenses Room 202 (5) — 197 193 (1) — — 192 Food and beverage 295 (17) — 278 269 (1) (1) — 267 Other 507 (19) — 488 471 (2) (1) — 468 Depreciation and amortization 180 — (180) — 169 — — (169) — Corporate and other expenses 27 — (27) — 31 — — (31) — Gain on insurance settlements (31) 10 21 — — — — — — Total expenses 1,180 (31) (186) 963 1,133 (4) (2) (200) 927 Operating Profit - Comparable hotel EBITDA $ 291 $ (42) $ 186 $ 435 $ 248 $ (3) $ 3 $ 200 $ 448 June 30, 2023,March 31, 2024, 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 June 30, 2023.March 31, 2024.(3) Non-comparable hotel results, net, includes the following items: (i) the results of operations of our non-comparable hotels, which operations are included in our condensed consolidated statements of operations as continuing operations, and (ii) gains on business interruption proceeds relating to events that occurred while the hotels were classified as non-comparable. June 30, 2023March 31, 2024 and December 31, 2022,2023, 71% and 76%, 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 June 30, 2023,March 31, 2024, we do not have any interest rate derivatives outstanding. See Item 7A of our most recent Annual Report on Form 10–K.2023.the first quarter of 2024. We currently have three 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.4142an increase in the amount authorized under the Company’sa $1 billion share repurchase program from the existing $371 remaining available to $1 billion.program. 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.
per Common SharePeriod Total Number of Host Inc. Common Shares Purchased Average Price Paid
per Common ShareTotal 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) January 1, 2024 - January 31, 2024 — $ — — $ 792 February 1, 2024 - February 29, 2024 — — — 792 March 1, 2024 - March 31, 2024 — — — 792 Total — $ — — $ 792
Paid per Common OP UnitAprilJanuary 1, 2023 – April 30, 20232024 - January 31, 20242,087 4,953— — ——MayFebruary 1, 2023 – May 31, 20232024 - February 29, 202442,798 23,691— — ——JuneMarch 1, 2023 – June 30, 20232024 - March 31, 202415,984 115,219— — Total 60,869 — — —Total143,863*——___________43 a “Rule any “Rule 10b5-1 trading arrangement” or “non-Rule“non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.10.Material Contracts10.910.11*10.12*44101 XBRL 101XBRLYear-to-date ended June 30, 2023, and 2022, respectively, for Host Hotels & Resorts, Inc.; (ii) the Condensed Consolidated Balance Sheets at June 30, 2023March 31, 2024 and December 31, 2022,2023, respectively, for Host Hotels & Resorts, Inc.; (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss) for the Quarter ended March 31, 2024 and Year-to-date ended June 30, 2023, and 2022, respectively, for Host Hotels & Resorts, Inc.; (iv) the Condensed ConsolidatedYear-to-dateQuarter ended June 30,March 31, 2024 and 2023, and 2022, respectively, for Host Hotels & Resorts, Inc.; (v) the Condensed Consolidated Statements of Operations for the Quarter ended March 31, 2024 and Year-to-date ended June 30, 2023, and 2022, respectively, for Host Hotels & Resorts, L.P.; (vi) the Condensed Consolidated Balance Sheets at June 30, 2023March 31, 2024 and December 31, 2022,2023, respectively, for Host Hotels & Resorts, L.P.; (vii) the Condensed Consolidated Statements of Comprehensive Income (Loss) for the Quarter ended March 31, 2024 and Year-to-date ended June 30, 2023, and 2022, respectively, for Host Hotels & Resorts, L.P.; (viii) the Condensed Consolidated Statements of Cash Flows for the Year-to-dateQuarter ended June 30,March 31, 2024 and 2023, and 2022, respectively, for Host Hotels & Resorts, L.P.; and (ix) Notes to Condensed Consolidated Financial Statements.* Filed herewith.45SIGNATURESAugust 4, 2023Senior Vice President, Corporate Controller SIGNATURESBy: HOST HOTELS & RESORTS, INC., its general partner August 4, 2023Senior Vice President, Corporate Controller of Host Hotels & Resorts, Inc., general partner of Host Hotels & Resorts, L.P.