Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 30, 2015 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | HST | |
Entity Registrant Name | HOST HOTELS & RESORTS, INC. | |
Entity Central Index Key | 1,070,750 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 751,122,824 | |
HOST HOTELS & RESORTS L.P. | ||
Document And Entity Information [Line Items] | ||
Entity Registrant Name | HOST HOTELS & RESORTS L.P. | |
Entity Central Index Key | 1,061,937 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | |
ASSETS | |||
Property and equipment, net | $ 10,776 | $ 10,575 | |
Due from managers | 135 | 70 | |
Advances to and investments in affiliates | 419 | 433 | |
Deferred financing costs, net | 31 | 35 | |
Furniture, fixtures and equipment replacement fund | 151 | 129 | |
Other | 264 | 281 | |
Restricted cash | 3 | ||
Cash and cash equivalents | 262 | 684 | |
Total assets | 12,041 | 12,207 | |
Debt | |||
Senior notes, including $395 million and $386 million, respectively, net of discount, of Exchangeable Senior Debentures | 2,894 | 2,884 | |
Credit facility | 770 | 704 | |
Mortgage debt | 389 | 404 | |
Total debt | 4,053 | 3,992 | |
Accounts payable and accrued expenses | 230 | 298 | |
Other | 310 | 324 | |
Total liabilities | 4,593 | 4,614 | |
Partnership interests | 186 | 225 | |
Host Hotels & Resorts, Inc. stockholders’ equity: | |||
Common stock, par value $.01, 1,050 million shares authorized, 749.9 million shares and 755.8 million shares issued and outstanding, respectively | 7 | 8 | |
Additional paid-in capital | 8,396 | 8,476 | |
Accumulated other comprehensive loss | (84) | (50) | |
Deficit | (1,089) | (1,098) | |
Total equity of Host Hotels & Resorts, Inc. stockholders | 7,230 | 7,336 | |
Non-controlling interests—other consolidated partnerships | 32 | 32 | |
Total equity | 7,262 | 7,368 | |
Total liabilities, non-controlling interests and equity | 12,041 | 12,207 | |
Host Hotels & Resorts, L.P. capital: | |||
Accumulated other comprehensive loss | (84) | (50) | |
HOST HOTELS & RESORTS L.P. | |||
ASSETS | |||
Property and equipment, net | 10,776 | 10,575 | |
Due from managers | 135 | 70 | |
Advances to and investments in affiliates | 419 | 433 | |
Deferred financing costs, net | 31 | 35 | |
Furniture, fixtures and equipment replacement fund | 151 | 129 | |
Other | 264 | 281 | |
Restricted cash | 3 | ||
Cash and cash equivalents | 262 | 684 | |
Total assets | 12,041 | 12,207 | |
Debt | |||
Senior notes, including $395 million and $386 million, respectively, net of discount, of Exchangeable Senior Debentures | 2,894 | 2,884 | |
Credit facility | 770 | 704 | |
Mortgage debt | 389 | 404 | |
Total debt | 4,053 | 3,992 | |
Accounts payable and accrued expenses | 230 | 298 | |
Other | 310 | 324 | |
Total liabilities | 4,593 | 4,614 | |
Partnership interests | [1] | 186 | 225 |
Host Hotels & Resorts, Inc. stockholders’ equity: | |||
Accumulated other comprehensive loss | (84) | (50) | |
Total equity | 7,262 | 7,368 | |
Total liabilities, non-controlling interests and equity | 12,041 | 12,207 | |
Host Hotels & Resorts, L.P. capital: | |||
General partner | 1 | 1 | |
Limited partner | 7,313 | 7,385 | |
Accumulated other comprehensive loss | (84) | (50) | |
Total Host Hotels & Resorts, L.P. capital | 7,230 | 7,336 | |
Non-controlling interests—consolidated partnerships | 32 | 32 | |
Total capital | $ 7,262 | $ 7,368 | |
[1] | The book value recorded is equal to the greater of redemption value or historical cost. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Senior notes | $ 395 | $ 386 |
Credit facility | $ 770 | $ 704 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,050,000,000 | 1,050,000,000 |
Common stock, shares issued | 749,900,000 | 755,800,000 |
Common stock, shares outstanding | 749,900,000 | 755,800,000 |
HOST HOTELS & RESORTS L.P. | ||
Senior notes | $ 395 | $ 386 |
Credit facility | 770 | 704 |
Term Loan | ||
Credit facility | 500 | 500 |
Term Loan | HOST HOTELS & RESORTS L.P. | ||
Credit facility | $ 500 | $ 500 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
REVENUES | ||||
Rooms | $ 937 | $ 921 | $ 1,755 | $ 1,729 |
Food and beverage | 420 | 415 | 823 | 820 |
Other | 92 | 95 | 188 | 191 |
Total revenues | 1,449 | 1,431 | 2,766 | 2,740 |
EXPENSES | ||||
Rooms | 233 | 234 | 453 | 460 |
Food and beverage | 289 | 285 | 572 | 569 |
Other departmental and support expenses | 330 | 320 | 651 | 635 |
Management fees | 68 | 66 | 120 | 116 |
Other property-level expenses | 99 | 98 | 197 | 195 |
Depreciation and amortization | 180 | 174 | 355 | 346 |
Corporate and other expenses | 23 | 29 | 47 | 63 |
Gain on insurance settlements | (3) | |||
Total operating costs and expenses | 1,222 | 1,206 | 2,395 | 2,381 |
OPERATING PROFIT | 227 | 225 | 371 | 359 |
Interest income | 1 | 1 | 2 | 2 |
Interest expense | (73) | (55) | (124) | (113) |
Gain on sale of assets | 53 | 57 | 111 | |
Loss on foreign currency transactions and derivatives | (1) | (1) | (2) | (1) |
Equity in earnings (losses) of affiliates | 22 | 4 | 20 | (3) |
INCOME BEFORE INCOME TAXES | 229 | 174 | 324 | 355 |
Provision for income taxes | (13) | (15) | (4) | (11) |
NET INCOME | 216 | 159 | 320 | 344 |
Less: Net income attributable to non-controlling interests | (4) | (4) | (10) | (10) |
NET INCOME ATTRIBUTABLE TO REPORTING ENTITY | $ 212 | $ 155 | $ 310 | $ 334 |
Basic earnings per common share | $ 0.28 | $ 0.21 | $ 0.41 | $ 0.44 |
Diluted earnings per common share | $ 0.28 | $ 0.21 | $ 0.41 | $ 0.44 |
HOST HOTELS & RESORTS L.P. | ||||
REVENUES | ||||
Rooms | $ 937 | $ 921 | $ 1,755 | $ 1,729 |
Food and beverage | 420 | 415 | 823 | 820 |
Other | 92 | 95 | 188 | 191 |
Total revenues | 1,449 | 1,431 | 2,766 | 2,740 |
EXPENSES | ||||
Rooms | 233 | 234 | 453 | 460 |
Food and beverage | 289 | 285 | 572 | 569 |
Other departmental and support expenses | 330 | 320 | 651 | 635 |
Management fees | 68 | 66 | 120 | 116 |
Other property-level expenses | 99 | 98 | 197 | 195 |
Depreciation and amortization | 180 | 174 | 355 | 346 |
Corporate and other expenses | 23 | 29 | 47 | 63 |
Gain on insurance settlements | (3) | |||
Total operating costs and expenses | 1,222 | 1,206 | 2,395 | 2,381 |
OPERATING PROFIT | 227 | 225 | 371 | 359 |
Interest income | 1 | 1 | 2 | 2 |
Interest expense | (73) | (55) | (124) | (113) |
Gain on sale of assets | 53 | 57 | 111 | |
Loss on foreign currency transactions and derivatives | (1) | (1) | (2) | (1) |
Equity in earnings (losses) of affiliates | 22 | 4 | 20 | (3) |
INCOME BEFORE INCOME TAXES | 229 | 174 | 324 | 355 |
Provision for income taxes | (13) | (15) | (4) | (11) |
NET INCOME | 216 | 159 | 320 | 344 |
Less: Net income attributable to non-controlling interests | (1) | (2) | (6) | (5) |
NET INCOME ATTRIBUTABLE TO REPORTING ENTITY | $ 215 | $ 157 | $ 314 | $ 339 |
Basic earnings per common share | $ 0.29 | $ 0.21 | $ 0.42 | $ 0.45 |
Diluted earnings per common share | $ 0.29 | $ 0.21 | $ 0.42 | $ 0.45 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
NET INCOME | $ 216 | $ 159 | $ 320 | $ 344 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||||
Foreign currency translation and other comprehensive income (loss) of unconsolidated affiliates | 3 | 4 | (44) | 11 |
Change in fair value of derivative instruments | 1 | 15 | 1 | |
Amounts reclassified from other comprehensive income (loss) | (5) | |||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 3 | 5 | (34) | 12 |
COMPREHENSIVE INCOME | 219 | 164 | 286 | 356 |
Less: Comprehensive income attributable to non-controlling interests | (4) | (4) | (10) | (10) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO REPORTING ENTITY | 215 | 160 | 276 | 346 |
HOST HOTELS & RESORTS L.P. | ||||
NET INCOME | 216 | 159 | 320 | 344 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||||
Foreign currency translation and other comprehensive income (loss) of unconsolidated affiliates | 3 | 4 | (44) | 11 |
Change in fair value of derivative instruments | 1 | 15 | 1 | |
Amounts reclassified from other comprehensive income (loss) | (5) | |||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 3 | 5 | (34) | 12 |
COMPREHENSIVE INCOME | 219 | 164 | 286 | 356 |
Less: Comprehensive income attributable to non-controlling interests | (1) | (2) | (6) | (5) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO REPORTING ENTITY | $ 218 | $ 162 | $ 280 | $ 351 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES | ||
NET INCOME | $ 320 | $ 344 |
Adjustments to reconcile to cash provided by operations: | ||
Depreciation and amortization | 355 | 346 |
Amortization of finance costs, discounts and premiums, net | 13 | 13 |
Non-cash loss on extinguishment of debt | 6 | 2 |
Stock compensation expense | 8 | 10 |
Deferred income taxes | (1) | (3) |
Gain on sale of assets | (57) | (111) |
Loss on foreign currency transactions and derivatives | 2 | 1 |
Equity in (earnings) losses of affiliates | (20) | 3 |
Change in due from managers | (60) | (76) |
Distributions from equity investments | 7 | |
Changes in other assets | 33 | 6 |
Changes in other liabilities | (44) | (10) |
Cash provided by operating activities | 562 | 525 |
INVESTING ACTIVITIES | ||
Proceeds from sales of assets, net | 174 | 274 |
Return of investment | 42 | |
Acquisitions | (402) | (73) |
Advances to and investments in affiliates | (2) | (32) |
Capital expenditures: | ||
Renewals and replacements | (220) | (147) |
Redevelopment and acquisition-related investments | (101) | (36) |
New development | (5) | |
Change in furniture, fixtures and equipment ("FF&E") replacement fund | (12) | (11) |
Change in restricted cash for investing activities | (3) | |
Cash provided by (used in) investing activities | (566) | 12 |
FINANCING ACTIVITIES | ||
Financing costs | (4) | (4) |
Issuances of debt | 499 | |
Draws on credit facility | 250 | |
Repayment of credit facility | (170) | (225) |
Repurchase/redemption of senior notes | (500) | (150) |
Mortgage debt and other prepayments and scheduled maturities | (373) | |
Common stock repurchase | (131) | |
Dividends on common stock | (348) | (204) |
Other financing activities | (6) | (4) |
Cash used in financing activities | (410) | (960) |
Effects of exchange rate changes on cash held | (8) | 2 |
DECREASE IN CASH AND CASH EQUIVALENTS | (422) | (421) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 684 | 861 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 262 | 440 |
Supplemental disclosure of cash flow information: | ||
Interest paid - periodic interest expense | 88 | 93 |
Interest paid - debt extinguishments | 15 | 2 |
Total interest paid | 103 | 95 |
Income taxes paid | 6 | 14 |
HOST HOTELS & RESORTS L.P. | ||
OPERATING ACTIVITIES | ||
NET INCOME | 320 | 344 |
Adjustments to reconcile to cash provided by operations: | ||
Depreciation and amortization | 355 | 346 |
Amortization of finance costs, discounts and premiums, net | 13 | 13 |
Non-cash loss on extinguishment of debt | 6 | 2 |
Stock compensation expense | 8 | 10 |
Deferred income taxes | (1) | (3) |
Gain on sale of assets | (57) | (111) |
Loss on foreign currency transactions and derivatives | 2 | 1 |
Equity in (earnings) losses of affiliates | (20) | 3 |
Change in due from managers | (60) | (76) |
Distributions from equity investments | 7 | |
Changes in other assets | 33 | 6 |
Changes in other liabilities | (44) | (10) |
Cash provided by operating activities | 562 | 525 |
INVESTING ACTIVITIES | ||
Proceeds from sales of assets, net | 174 | 274 |
Return of investment | 42 | |
Acquisitions | (402) | (73) |
Advances to and investments in affiliates | (2) | (32) |
Capital expenditures: | ||
Renewals and replacements | (220) | (147) |
Redevelopment and acquisition-related investments | (101) | (36) |
New development | (5) | |
Change in furniture, fixtures and equipment ("FF&E") replacement fund | (12) | (11) |
Change in restricted cash for investing activities | (3) | |
Cash provided by (used in) investing activities | (566) | 12 |
FINANCING ACTIVITIES | ||
Financing costs | (4) | (4) |
Issuances of debt | 499 | |
Draws on credit facility | 250 | |
Repayment of credit facility | (170) | (225) |
Repurchase/redemption of senior notes | (500) | (150) |
Mortgage debt and other prepayments and scheduled maturities | (373) | |
Repurchase of common OP units | (131) | |
Distributions on common OP units | (352) | (207) |
Other financing activities | (2) | (1) |
Cash used in financing activities | (410) | (960) |
Effects of exchange rate changes on cash held | (8) | 2 |
DECREASE IN CASH AND CASH EQUIVALENTS | (422) | (421) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 684 | 861 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 262 | 440 |
Supplemental disclosure of cash flow information: | ||
Interest paid - periodic interest expense | 88 | 93 |
Interest paid - debt extinguishments | 15 | 2 |
Total interest paid | 103 | 95 |
Income taxes paid | $ 6 | $ 14 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | 1. Organization Description of Business Host Hotels & Resorts, Inc. operates as a self-managed and self-administered real estate investment trust (“REIT”), with its operations conducted solely through Host Hotels & Resorts, L.P. and its subsidiaries. Host Hotels & Resorts, L.P., a Delaware limited partnership, operates through an umbrella partnership structure, with Host Hotels & Resorts, Inc., a Maryland corporation, as its sole general partner. In the notes to these condensed consolidated financial statements, we use the terms “we” or “our” to refer to Host Hotels & Resorts, Inc. and Host Hotels & Resorts, L.P. together, unless the context indicates otherwise. We also use the term “Host Inc.” specifically to refer to Host Hotels & Resorts, Inc. and the term “Host L.P.” specifically to refer to Host Hotels & Resorts, L.P. in cases where it is important to distinguish between Host Inc. and Host L.P. As of June 30, 2015, Host Inc. holds approximately 99% of Host L.P.’s OP units. Consolidated Portfolio As of June 30, 2015, our consolidated portfolio, primarily consisting of luxury and upper upscale hotels, is located in the following countries: Hotels United States 95 Australia 1 Brazil 3 Canada 2 Chile 2 Mexico 1 New Zealand 7 Total 111 International Joint Ventures We own a non-controlling interest in a joint venture in Europe (“Euro JV”) that owns hotels in two separate funds. We own a 32.1% interest in the first fund (“Euro JV Fund I”) (9 hotels) and a 33.4% interest in the second fund (“Euro JV Fund II”) (9 hotels). As of June 30, 2015, the Euro JV owned hotels located in the following countries: Hotels Belgium 3 France 4 Germany 2 Italy 3 Poland 1 Spain 2 Sweden 1 The Netherlands 1 United Kingdom 1 Total 18 In addition, our joint venture in Asia (“Asia/Pacific JV”), in which we own a 25% non-controlling interest, owns one hotel in Australia and a non-controlling interest in an entity that owns three operating hotels and four additional hotels in various stages of development in India. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP in the accompanying unaudited condensed consolidated financial statements. We believe the disclosures made herein are adequate to prevent the information presented from being misleading. However, the financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10–K for the year ended December 31, 2014. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In our opinion, the accompanying financial statements reflect all adjustments necessary to present fairly our financial position as of June 30, 2015, and the results of our operations for the quarter and year-to-date periods ended June 30, 2015 and 2014, respectively, and cash flows for the year-to-date periods ended June 30, 2015 and 2014, respectively. Interim results are not necessarily indicative of full year performance because of the impact of seasonal variations. New Accounting Standards In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
Earnings Per Common Share (Unit
Earnings Per Common Share (Unit) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share (Unit) | 3. Earnings Per Common Share (Unit) Host Inc. Earnings Per Common Share Basic earnings per common share is computed by dividing net income attributable to common stockholders by the weighted average number of shares of Host Inc. common stock outstanding. Diluted earnings per common share is computed by dividing net income attributable to common stockholders, as adjusted for potentially dilutive securities, by the weighted average number of shares of Host Inc. common stock outstanding plus other potentially dilutive securities. Dilutive securities may include shares granted under comprehensive stock plans, other non-controlling interests that have the option to convert their limited partnership interests to common OP units and convertible debt securities. No effect is shown for any securities that are anti-dilutive. We have 9.2 million OP units which are convertible into 9.4 million common shares which are not included in Host Inc.’s calculation of earnings per share as their effect is not dilutive. The calculation of basic and diluted earnings per common share is shown below (in millions, except per share amounts): Quarter ended June 30, Year-to-date ended June 30, 2015 2014 2015 2014 Net income $ 216 $ 159 $ 320 $ 344 Less: Net income attributable to non-controlling interests (4 ) (4 ) (10 ) (10 ) Net income attributable to Host Inc. 212 155 310 334 Assuming conversion of exchangeable senior debentures 7 — — — Diluted income attributable to Host Inc. $ 219 $ 155 $ 310 $ 334 Basic weighted average shares outstanding 753.9 755.4 755.0 755.1 Assuming weighted average shares for conversion of exchangeable senior debentures 31.2 — — — Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market 0.4 0.5 0.4 0.5 Diluted weighted average shares outstanding (1) 785.5 755.9 755.4 755.6 Basic earnings per common share $ .28 $ .21 $ .41 $ .44 Diluted earnings per common share $ .28 $ .21 $ .41 $ .44 ___________ (1) There were approximately 31 million potentially dilutive shares for the year-to-date period ended June 30, 2015, and approximately 30 million potentially dilutive units for both the quarter and year-to-date periods ended June 30, 2014, related to our exchangeable senior debentures, which shares were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the period. Host L.P. Earnings Per Common Unit Basic earnings per common unit is computed by dividing net income attributable to common unitholders by the weighted average number of common units outstanding. Diluted earnings per common unit is computed by dividing net income attributable to common unitholders, as adjusted for potentially dilutive securities, by the weighted average number of common units outstanding plus other potentially dilutive securities. Dilutive securities may include units distributed to Host Inc. to support Host Inc. common shares granted under comprehensive stock plans, other non-controlling interests that have the option to convert their limited partnership interests to common OP units and convertible debt securities. No effect is shown for any securities that are anti-dilutive. The calculation of basic and diluted earnings per unit is shown below (in millions, except per unit amounts): Quarter ended June 30, Year-to-date ended June 30, 2015 2014 2015 2014 Net income $ 216 $ 159 $ 320 $ 344 Less: Net income attributable to non-controlling interests (1 ) (2 ) (6 ) (5 ) Net income attributable to Host L.P. 215 157 314 339 Assuming conversion of exchangeable senior debentures 7 — — — Diluted income attributable to Host L.P. $ 222 $ 157 $ 314 $ 339 Basic weighted average units outstanding 747.3 748.9 748.3 748.7 Assuming weighted average units for conversion of exchangeable senior debentures 30.5 — — — Assuming distribution of common units granted under the comprehensive stock plans, less units assumed purchased at market 0.3 0.6 0.4 0.5 Diluted weighted average units outstanding (1) 778.1 749.5 748.7 749.2 Basic earnings per common unit $ .29 $ .21 $ .42 $ .45 Diluted earnings per common unit $ .29 $ .21 $ .42 $ .45 ___________ (1) There were approximately 30 million potentially dilutive units for the year-to-date ended June 30, 2015, and approximately 30 million and 29 million potentially dilutive shares for the quarter and year-to-date periods ended June 30, 2014, respectively, related to our exchangeable senior debentures, which units were not included in the computation of diluted earnings per unit because to do so would have been anti-dilutive for the period. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2015 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment consists of the following (in millions): June 30, 2015 December 31, 2014 Land and land improvements $ 2,047 $ 1,990 Buildings and leasehold improvements 13,665 13,336 Furniture and equipment 2,281 2,217 Construction in progress 165 209 18,158 17,752 Less accumulated depreciation and amortization (7,382 ) (7,177 ) $ 10,776 $ 10,575 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt Senior notes. On May 15, 2015, we issued $500 million of 4% Series E senior notes due June of 2025 for net proceeds of approximately $495 million. Interest on the Series E senior notes is payable semi-annually in arrears on June 15 and December 15, commencing June 15, 2015. In contemplation of this issuance, we entered into interest rate hedging transactions that reduced our effective interest rate on the 4% Series E senior notes to 3.93%. The net proceeds from the issuance of the Series E senior notes, along with cash on hand, were used on June 15, 2015 to redeem $500 million of 5 7/8 Credit facility. During the quarter, we had net borrowings under the revolver portion of our credit facility of $80 million. As of June 30, 2015, we have $730 million of available capacity under the credit facility. |
Investment in Affiliates
Investment in Affiliates | 6 Months Ended |
Jun. 30, 2015 | |
Investments In And Advances To Affiliates Schedule Of Investments [Abstract] | |
Investment in Affiliates | 6 . Investment in Affiliates On June 5, 2015 the Euro JV Fund I sold the Crowne Plaza Hotel Amsterdam City Centre for €106 million ($118 million), which includes the €3 million ($3 million) FF&E reserve, for a gain of approximately €36 million ($40 million). In connection with the sale, the Euro JV Fund I repaid the |
Equity of Host Inc. and Capital
Equity of Host Inc. and Capital of Host L.P. | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Equity of Host Inc. and Capital of Host L.P. | 7. Equity of Host Inc. and Capital of Host L.P. Equity of Host Inc. Equity of Host Inc. is allocated between controlling and non-controlling interests as follows (in millions): Equity of Host Inc. Non-redeemable, non-controlling interests Total equity Redeemable, non-controlling interests Balance, December 31, 2014 $ 7,336 $ 32 $ 7,368 $ 225 Net income 310 6 316 4 Issuance of common stock 12 — 12 — Repurchase of common stock (131 ) — (131 ) — Dividends declared on common stock (301 ) — (301 ) — Distributions to non-controlling interests — (5 ) (5 ) (4 ) Other changes in ownership 38 (1 ) 37 (39 ) Other comprehensive loss (34 ) — (34 ) — Balance, June 30, 2015 $ 7,230 $ 32 $ 7,262 $ 186 Capital of Host L.P. As of June 30, 2015, Host Inc. is the owner of approximately 99% of Host L.P.’s common OP units. The remaining common OP units are held by third party limited partners. Each 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 OP unit. In exchange for any shares issued by Host Inc., Host L.P. will issue OP units to Host Inc. based on the applicable conversion ratio. Additionally, funds used by Host Inc. to pay dividends on its common stock are provided by distributions from Host L.P. Capital of Host L.P. is allocated between controlling and non-controlling interests as follows (in millions): Limited Non- Partnership Capital of controlling Total Interests of Host L.P. Interests Capital Third Balance, December 31, 2014 $ 7,336 $ 32 $ 7,368 $ 225 Net income 310 6 316 4 Issuance of common OP units 12 — 12 — Repurchase of common OP units (131 ) — (131 ) — Distributions declared on common OP units (301 ) — (301 ) (4 ) Distributions to non-controlling interests — (5 ) (5 ) — Other changes in ownership 38 (1 ) 37 (39 ) Other comprehensive loss (34 ) — (34 ) — Balance, June 30, 2015 $ 7,230 $ 32 $ 7,262 $ 186 Dividends/Distributions On June 11, 2015, Host Inc.’s Board of Directors declared a regular quarterly cash dividend of $0.20 per share on its common stock. The dividend was paid on July 15, 2015 to stockholders of record as of June 30, 2015. Accordingly, Host L.P. made a distribution of $0.2042988 per unit on its common OP units based on the current conversion ratio. Share Host Inc.’s Board of Directors has authorized a program to repurchase up to $500 million of common stock. The common stock may be purchased in the open market or through private transactions from time to time through December 31, 2016, dependent upon market conditions. The plan does not obligate us to repurchase any specific number of shares and may be suspended at any time at management’s discretion. As of June 30, 2015, the Company has repurchased 6.55 million shares at an average price of $20.07 for a total purchase price of approximately $131 million. The shares repurchased constitute authorized but unissued shares. We have $369 million of repurchase capacity remaining under the program. |
Dispositions
Dispositions | 6 Months Ended |
Jun. 30, 2015 | |
Disposal Group Not Discontinued Operation Disposal Disclosures [Abstract] | |
Dispositions | 8. Dispositions On June 23, 2015, we sold the Park Ridge Marriott and the Chicago Marriott O’Hare for approximately $89 million. Additionally, on June 3, 2015, we sold the Sheraton Needham for approximately $54 million. The following table provides summary results of operations for the four hotels sold in 2015 and the five hotels sold in 2014, which are included in continuing operations (in millions): Quarter ended June 30, Year-to-date ended June 30, 2015 2014 2015 2014 Revenues $ 16 $ 45 $ 32 $ 89 Income before taxes 2 7 — 10 Gain on disposals 53 — 56 111 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | 9 . Acquisitions On June 8, 2015, we acquired The Phoenician, a 643-room Luxury Collection resort, in Scottsdale, Arizona for $400 million. In connection with the acquisition, we incurred $1 million of acquisition costs. Accounting for the acquisition requires an allocation of the purchase price to the assets acquired and the liabilities assumed at their respective estimated fair values. The purchase price allocations are estimated based on currently available information; however, we still are in the process of obtaining appraisals and finalizing the accounting for the acquisition. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed related to this acquisition (in millions): Property and equipment $ 400 Other assets 1 Total assets 401 Other liabilities (1 ) Net assets acquired $ 400 Our summarized unaudited consolidated pro forma results of operations, assuming the acquisition completed during 2015 occurred on January 1, 2014, are as follows (in millions, except per share and per unit amounts): Quarter ended June 30, Year-to-date ended June 30, 2015 2014 2015 2014 Revenues $ 1,478 $ 1,461 $ 2,838 $ 2,810 Income from continuing operations 226 163 345 361 Net income 226 163 345 361 Host Inc.: Net income attributable to Host Inc. $ 222 $ 159 $ 335 $ 351 Basic earnings per common share $ .29 $ .21 $ .44 $ .46 Diluted earnings per common share $ .29 $ .21 $ .44 $ .46 Host L.P.: Net income attributable to Host L.P. $ 225 $ 161 $ 339 $ 356 Basic earnings per common unit $ .30 $ .21 $ .45 $ .48 Diluted earnings per common unit $ .30 $ .21 $ .45 $ .48 The above pro forma results of operations exclude $1 million of acquisition costs for both the quarter and year-to-date periods ended June 30, 2015. The condensed consolidated statements of operations for both the quarter and year-to-date periods ended June 30, 2015 include approximately $5 million of revenues and $1 million of net loss for both the quarter and year-to-date periods ended June 30, 2015 related to our 2015 acquisition. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. Fair Value Measurements The following tables detail the fair value of our financial assets and liabilities that are required to be measured at fair value on a recurring basis, as well as non-recurring fair value measurements, at June 30, 2015 and December 31, 2014, respectively (in millions): Fair Value at Measurement Date Using Balance at June 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Measurements on a Recurring Basis: Assets Foreign currency forward sale contracts (1) $ 24 $ — $ 24 $ — Liabilities Interest rate swap derivatives (1) (2 ) — (2 ) — Fair Value at Measurement Date Using Balance at December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Measurements on a Recurring Basis: Assets Foreign currency forward sale contracts (1) $ 13 $ — $ 13 $ — Liabilities Interest rate swap derivatives (1) (2 ) — (2 ) — Fair Value Measurements on a Non-recurring Basis: Impaired hotel properties sold (2) — — — 18 ___________ (1) These derivative contracts have been designated as hedging instruments. (2) The fair value measurements are as of the measurement date of the impairment and may not reflect the book value as of December 31, 2014. Derivatives and Hedging Interest rate swap derivatives designated as cash flow hedges. We have designated our floating-to-fixed interest rate swap derivatives as cash flow hedges. The purpose of the interest rate swaps is to hedge against changes in cash flows (interest payments) attributable to fluctuations in variable rate debt. The derivatives are valued based on the prevailing market yield curve on the date of measurement. We also evaluate counterparty credit risk when we calculate the fair value of the swaps. Changes in the fair value of the derivatives are recorded to other comprehensive income (loss) on the accompanying balance sheets. The hedges were fully effective as of June 30, 2015. During 2015, in contemplation of issuing the 4% Series E senior notes, we entered into three forward swaps and two treasury locks for total notional amounts of $150 million and $200 million, respectively. The purpose of the forward swaps and treasury locks was to hedge against changes in interest-related cash flows (forecast interest payments) on an issuance of long-term debt. The forward swaps hedged the risk of changes in the 3-month LIBOR rate over a 10-year period and the treasury locks hedged the risk of changes in the 10-year U.S. Treasury rate. Subsequent to the pricing date of the 4% Series E senior notes, we net settled the three forward swaps and two treasury locks for total proceeds of approximately $4 million. The gain on the forward swaps and treasury locks has been recorded to other comprehensive income and will be amortized over the 10-year life of the Series E senior notes, as a reduction to interest expense. For the second quarter and year-to-date 2015, there was no material change in the fair value of our interest rate swap derivatives designated as cash flow hedges. The following table summarizes our outstanding contracts (in millions): Total Notional Maturity Swapped All-in- Transaction Date Amount Date Index Rate November 2011 (1) A$ 62 November Reuters BBSY 6.7 % February 2011 (2) NZ$ 79 February 2016 NZ$ Bank Bill 7.15 % ___________ (1) The swap was entered into in connection with the A$86 million ($66 million) mortgage loan on the Hilton Melbourne South Wharf. (2) The swap was entered into in connection with the NZ$105 million ($71 million) mortgage loan on seven properties in New Zealand. Foreign Investment Hedging Instruments. We have five foreign currency forward sale contracts that hedge a portion of the foreign currency exposure resulting from the eventual repatriation of our net investment in foreign operations. These derivatives are considered hedges of the foreign currency exposure of a net investment in a foreign operation and are marked-to-market with changes in fair value recorded to other comprehensive income (loss) within the equity portion of our balance sheet. The foreign currency forward sale contracts are valued based on the forward yield curve of the foreign currency to U.S. dollar forward exchange rate on the date of measurement. We also evaluate counterparty credit risk when we calculate the fair value of the derivatives. The following table summarizes our foreign currency forward sale contracts (in millions): Currently Outstanding Change in Fair Value - All Contracts Total Transaction Amount in Total Transaction Gain (Loss) Gain (Loss) Transaction Date Foreign Amount Forward Quarter ended June 30, Year-to-date ended June 30, Range Currency in Dollars Date Range 2015 2014 2015 2014 July 2011-May 2014 € 100 $ 135 August 2015-May 2017 $ (4 ) $ 1 $ 10 $ 1 November 2014 C$ 25 $ 22 November 2016 $ — $ — $ 1 $ — In addition to the foreign currency forward sale contracts, we have designated a portion of the foreign currency draws on our credit facility as hedges of net investments in foreign operations. Changes in fair value of the designated credit facility draws are recorded to other comprehensive income (loss). The following table summarizes the draws on our credit facility that are designated as hedges of net investments in foreign operations (in millions): Balance Balance Gain (Loss) Gain (Loss) Outstanding Outstanding in Quarter ended June 30, Year-to-date ended June 30, Currency US$ Foreign Currency 2015 2014 2015 2014 Canadian dollars (1) $ 37 C$ 46 $ (1 ) $ (1 ) $ 1 $ — Euros $ 86 € 77 $ (3 ) $ 1 $ 7 $ 1 ___________ (1) We have drawn an additional $49 million on the credit facility in Canadian dollars, which draw has not been designated as a hedging instrument. Other Liabilities Fair Value of Other Financial Liabilities. We did not elect the fair value measurement option for any of our other financial liabilities. The fair values of secured debt and our credit facility are determined based on the expected future payments discounted at risk-adjusted rates. Senior Notes and the Exchangeable Senior Debentures are valued based on quoted market prices. The fair values of financial instruments not included in this table are estimated to be equal to their carrying amounts. The fair value of certain financial liabilities is shown below (in millions): June 30, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities Senior notes (Level 1) $ 2,499 $ 2,608 $ 2,498 $ 2,668 Exchangeable Senior Debentures (Level 1) 395 621 386 739 Credit facility (Level 2) 770 770 704 704 Mortgage debt and other, excluding capital leases (Level 388 396 403 413 |
Geographic Information
Geographic Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Geographic Information | 11. Geographic Information We consider each of our hotels to be an operating segment, none of which meets the threshold for a reportable segment. We also allocate resources and assess operating performance based on individual hotels. All of our other real estate investment activities (primarily office buildings and apartments) are immaterial and, with our operating segments, meet the aggregation criteria, and thus, we report one segment: hotel ownership. Our consolidated foreign operations consist of hotels in six countries. There were no intersegment sales during the periods presented. The following table presents total revenues and property and equipment for each of the geographical areas in which we operate (in millions): Revenues Revenues Property and Equipment, net Quarter ended June 30, Year-to-date ended June 30, June 30, December 31, 2015 2014 2015 2014 2015 2014 United States $ 1,394 $ 1,358 $ 2,652 $ 2,601 $ 10,373 $ 10,111 Australia 8 10 17 19 95 102 Brazil 8 12 15 19 69 82 Canada 15 24 29 44 66 82 Chile 6 8 13 16 42 44 Mexico 7 7 14 14 22 26 New Zealand 11 12 26 27 109 128 Total $ 1,449 $ 1,431 $ 2,766 $ 2,740 $ 10,776 $ 10,575 |
Non-Controlling Interests
Non-Controlling Interests | 6 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Non-Controlling Interests | 12. Non-controlling Interests Other Consolidated Partnerships. We consolidate six majority-owned partnerships that have third-party, non-controlling ownership interests. The third-party partnership interests are included in non-controlling interests — other consolidated partnerships on the balance sheets and totaled $32 million for both June 30, 2015 and December 31, 2014. Two of the partnerships have finite lives that terminate between 2081 and 2095, and the associated non-controlling interests are mandatorily redeemable at our option at the end of, but not prior to, the finite life. At June 30, 2015 and December 31, 2014, the fair values of the non-controlling interests in the partnerships with finite lives were approximately $94 million and $85 million, respectively. Net income attributable to non-controlling interests of consolidated partnerships is included in our determination of net income. Net income attributable to non-controlling interests of third parties was $1 million and $2 million for the quarters ended June 30, 2015 and 2014, respectively, and $6 million and $5 million for the year-to-date periods ended June 30, 2015 and 2014, respectively. Host Inc.’s treatment of the non-controlling interests of Host L.P.: Host Inc. adjusts the non-controlling interests of Host L.P. each period so that the amount presented equals the greater of its carrying value based on accumulated historical cost or its redemption value. The historical cost is based on the proportional relationship between the historical cost of equity held by our common stockholders relative to that of the unitholders of Host L.P. The redemption value is based on the amount of cash or Host Inc. common stock, at our option, that would be paid to the non-controlling interests of Host L.P. if it were terminated. Therefore, the redemption value of the common OP units is equivalent to the number of shares that would be issued upon conversion of the common OP units held by third parties valued at the market price of Host Inc. common stock at the balance sheet date. One common OP unit may be exchanged into 1.021494 shares of Host Inc. common stock. Non-controlling interests of Host L.P. are classified in the mezzanine section of our balance sheets as they do not meet the requirements for equity classification because the redemption feature requires the delivery of registered shares. The table below details the historical cost and redemption values for the non-controlling interests: June 30, 2015 December 31, 2014 OP units outstanding (millions) 9.2 9.3 Market price per Host Inc. common share $ 19.83 $ 23.77 Shares issuable upon conversion of one OP unit 1.021494 1.021494 Redemption value (millions) $ 186 $ 225 Historical cost (millions) 92 94 Book value (millions) (1) 186 225 ___________ ( 1 ) The book value recorded is equal to the greater of redemption value or historical cost. Net income is allocated to the non-controlling interests of Host L.P. based on their weighted average ownership interest during the period. Net income attributable to the non-controlling interests of Host L.P. for the quarter and year-to- date periods ended June 30, 2015 was $3 million and $4 million, respectively. The income attributable to the non-controlling interests of Host L.P. for the quarter and year-to-date periods ended June 30, 2014 was $2 million and $5 million, respectively. |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Proceedings | 13. Legal Proceedings We are involved in various legal proceedings in the normal course of business regarding the operation of our hotels and company matters. To the extent not covered by insurance, these legal proceedings generally fall into the following broad categories: disputes involving hotel-level contracts, employment litigation, compliance with laws such as the Americans with Disabilities Act, tax disputes and other general matters. Under our management agreements, our operators have broad latitude to resolve individual hotel-level claims for amounts generally less than $150,000. However, for matters exceeding such threshold, our operators may not settle claims without our consent. Based on our analysis of legal proceedings with which we currently are involved or of which we are aware and our experience in resolving similar claims in the past, we have accrued approximately $4 million as of June 30, 2015 for liabilities related to legal proceedings and estimate that, in the aggregate, our losses related to these proceedings will not exceed $10 million. We believe this range represents the maximum potential loss for all of our legal proceedings. We are not aware of any other 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. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
New Accounting Standards | New Accounting Standards In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
Organization (Tables)
Organization (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Consolidated Portfolio of Hotels by Location | As of June 30, 2015, our consolidated portfolio, primarily consisting of luxury and upper upscale hotels, is located in the following countries: Hotels United States 95 Australia 1 Brazil 3 Canada 2 Chile 2 Mexico 1 New Zealand 7 Total 111 |
European Joint Venture | |
Consolidated Portfolio of Hotels by Location | As of June 30, 2015, the Euro JV owned hotels located in the following countries: Hotels Belgium 3 France 4 Germany 2 Italy 3 Poland 1 Spain 2 Sweden 1 The Netherlands 1 United Kingdom 1 Total 18 |
Earnings Per Common Share (Un22
Earnings Per Common Share (Unit) (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Common Share (Unit) | The calculation of basic and diluted earnings per common share is shown below (in millions, except per share amounts): Quarter ended June 30, Year-to-date ended June 30, 2015 2014 2015 2014 Net income $ 216 $ 159 $ 320 $ 344 Less: Net income attributable to non-controlling interests (4 ) (4 ) (10 ) (10 ) Net income attributable to Host Inc. 212 155 310 334 Assuming conversion of exchangeable senior debentures 7 — — — Diluted income attributable to Host Inc. $ 219 $ 155 $ 310 $ 334 Basic weighted average shares outstanding 753.9 755.4 755.0 755.1 Assuming weighted average shares for conversion of exchangeable senior debentures 31.2 — — — Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market 0.4 0.5 0.4 0.5 Diluted weighted average shares outstanding (1) 785.5 755.9 755.4 755.6 Basic earnings per common share $ .28 $ .21 $ .41 $ .44 Diluted earnings per common share $ .28 $ .21 $ .41 $ .44 ___________ (1) There were approximately 31 million potentially dilutive shares for the year-to-date period ended June 30, 2015, and approximately 30 million potentially dilutive units for both the quarter and year-to-date periods ended June 30, 2014, related to our exchangeable senior debentures, which shares were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the period. |
HOST HOTELS & RESORTS L.P. | |
Earnings Per Common Share (Unit) | The calculation of basic and diluted earnings per unit is shown below (in millions, except per unit amounts): Quarter ended June 30, Year-to-date ended June 30, 2015 2014 2015 2014 Net income $ 216 $ 159 $ 320 $ 344 Less: Net income attributable to non-controlling interests (1 ) (2 ) (6 ) (5 ) Net income attributable to Host L.P. 215 157 314 339 Assuming conversion of exchangeable senior debentures 7 — — — Diluted income attributable to Host L.P. $ 222 $ 157 $ 314 $ 339 Basic weighted average units outstanding 747.3 748.9 748.3 748.7 Assuming weighted average units for conversion of exchangeable senior debentures 30.5 — — — Assuming distribution of common units granted under the comprehensive stock plans, less units assumed purchased at market 0.3 0.6 0.4 0.5 Diluted weighted average units outstanding (1) 778.1 749.5 748.7 749.2 Basic earnings per common unit $ .29 $ .21 $ .42 $ .45 Diluted earnings per common unit $ .29 $ .21 $ .42 $ .45 ___________ (1) There were approximately 30 million potentially dilutive units for the year-to-date ended June 30, 2015, and approximately 30 million and 29 million potentially dilutive shares for the quarter and year-to-date periods ended June 30, 2014, respectively, related to our exchangeable senior debentures, which units were not included in the computation of diluted earnings per unit because to do so would have been anti-dilutive for the period. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Property and equipment consists of the following (in millions): June 30, 2015 December 31, 2014 Land and land improvements $ 2,047 $ 1,990 Buildings and leasehold improvements 13,665 13,336 Furniture and equipment 2,281 2,217 Construction in progress 165 209 18,158 17,752 Less accumulated depreciation and amortization (7,382 ) (7,177 ) $ 10,776 $ 10,575 |
Equity of Host Inc. and Capit24
Equity of Host Inc. and Capital of Host L.P. (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Equity Allocation between Controlling and Non-Controlling Interests | Equity of Host Inc. is allocated between controlling and non-controlling interests as follows (in millions): Equity of Host Inc. Non-redeemable, non-controlling interests Total equity Redeemable, non-controlling interests Balance, December 31, 2014 $ 7,336 $ 32 $ 7,368 $ 225 Net income 310 6 316 4 Issuance of common stock 12 — 12 — Repurchase of common stock (131 ) — (131 ) — Dividends declared on common stock (301 ) — (301 ) — Distributions to non-controlling interests — (5 ) (5 ) (4 ) Other changes in ownership 38 (1 ) 37 (39 ) Other comprehensive loss (34 ) — (34 ) — Balance, June 30, 2015 $ 7,230 $ 32 $ 7,262 $ 186 |
Capital Allocation between Controlling and Non-Controlling Interests | Capital of Host L.P. is allocated between controlling and non-controlling interests as follows (in millions): Limited Non- Partnership Capital of controlling Total Interests of Host L.P. Interests Capital Third Balance, December 31, 2014 $ 7,336 $ 32 $ 7,368 $ 225 Net income 310 6 316 4 Issuance of common OP units 12 — 12 — Repurchase of common OP units (131 ) — (131 ) — Distributions declared on common OP units (301 ) — (301 ) (4 ) Distributions to non-controlling interests — (5 ) (5 ) — Other changes in ownership 38 (1 ) 37 (39 ) Other comprehensive loss (34 ) — (34 ) — Balance, June 30, 2015 $ 7,230 $ 32 $ 7,262 $ 186 |
Dispositions (Tables)
Dispositions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Results of Operations for Hotels Sold Included in Continuing Operations | The following table provides summary results of operations for the four hotels sold in 2015 and the five hotels sold in 2014, which are included in continuing operations (in millions): Quarter ended June 30, Year-to-date ended June 30, 2015 2014 2015 2014 Revenues $ 16 $ 45 $ 32 $ 89 Income before taxes 2 7 — 10 Gain on disposals 53 — 56 111 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Estimated Fair Value of Assets Acquired and Liabilities Assumed in Acquisitions | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed related to this acquisition (in millions): Property and equipment $ 400 Other assets 1 Total assets 401 Other liabilities (1 ) Net assets acquired $ 400 |
Summary of Unaudited Consolidated Pro Forma Results of Operations | Our summarized unaudited consolidated pro forma results of operations, assuming the acquisition completed during 2015 occurred on January 1, 2014, are as follows (in millions, except per share and per unit amounts): Quarter ended June 30, Year-to-date ended June 30, 2015 2014 2015 2014 Revenues $ 1,478 $ 1,461 $ 2,838 $ 2,810 Income from continuing operations 226 163 345 361 Net income 226 163 345 361 Host Inc.: Net income attributable to Host Inc. $ 222 $ 159 $ 335 $ 351 Basic earnings per common share $ .29 $ .21 $ .44 $ .46 Diluted earnings per common share $ .29 $ .21 $ .44 $ .46 Host L.P.: Net income attributable to Host L.P. $ 225 $ 161 $ 339 $ 356 Basic earnings per common unit $ .30 $ .21 $ .45 $ .48 Diluted earnings per common unit $ .30 $ .21 $ .45 $ .48 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | The following tables detail the fair value of our financial assets and liabilities that are required to be measured at fair value on a recurring basis, as well as non-recurring fair value measurements, at June 30, 2015 and December 31, 2014, respectively (in millions): Fair Value at Measurement Date Using Balance at June 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Measurements on a Recurring Basis: Assets Foreign currency forward sale contracts (1) $ 24 $ — $ 24 $ — Liabilities Interest rate swap derivatives (1) (2 ) — (2 ) — Fair Value at Measurement Date Using Balance at December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Measurements on a Recurring Basis: Assets Foreign currency forward sale contracts (1) $ 13 $ — $ 13 $ — Liabilities Interest rate swap derivatives (1) (2 ) — (2 ) — Fair Value Measurements on a Non-recurring Basis: Impaired hotel properties sold (2) — — — 18 ___________ (1) These derivative contracts have been designated as hedging instruments. (2) The fair value measurements are as of the measurement date of the impairment and may not reflect the book value as of December 31, 2014. |
Interest Rate Swap Derivatives Designated as Cash Flow Hedges | For the second quarter and year-to-date 2015, there was no material change in the fair value of our interest rate swap derivatives designated as cash flow hedges. The following table summarizes our outstanding contracts (in millions): Total Notional Maturity Swapped All-in- Transaction Date Amount Date Index Rate November 2011 (1) A$ 62 November Reuters BBSY 6.7 % February 2011 (2) NZ$ 79 February 2016 NZ$ Bank Bill 7.15 % ___________ (1) The swap was entered into in connection with the A$86 million ($66 million) mortgage loan on the Hilton Melbourne South Wharf. (2) The swap was entered into in connection with the NZ$105 million ($71 million) mortgage loan on seven properties in New Zealand. |
Foreign Currency Sale Contracts | The following table summarizes our foreign currency forward sale contracts (in millions): Currently Outstanding Change in Fair Value - All Contracts Total Transaction Amount in Total Transaction Gain (Loss) Gain (Loss) Transaction Date Foreign Amount Forward Quarter ended June 30, Year-to-date ended June 30, Range Currency in Dollars Date Range 2015 2014 2015 2014 July 2011-May 2014 € 100 $ 135 August 2015-May 2017 $ (4 ) $ 1 $ 10 $ 1 November 2014 C$ 25 $ 22 November 2016 $ — $ — $ 1 $ — |
Draws on Credit Facility that are Designated as Net Investments in Foreign Operations | The following table summarizes the draws on our credit facility that are designated as hedges of net investments in foreign operations (in millions): Balance Balance Gain (Loss) Gain (Loss) Outstanding Outstanding in Quarter ended June 30, Year-to-date ended June 30, Currency US$ Foreign Currency 2015 2014 2015 2014 Canadian dollars (1) $ 37 C$ 46 $ (1 ) $ (1 ) $ 1 $ — Euros $ 86 € 77 $ (3 ) $ 1 $ 7 $ 1 ___________ (1) We have drawn an additional $49 million on the credit facility in Canadian dollars, which draw has not been designated as a hedging instrument. |
Fair Values of Certain Financial Liabilities and Other Financial Instruments | The fair value of certain financial liabilities is shown below (in millions): June 30, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities Senior notes (Level 1) $ 2,499 $ 2,608 $ 2,498 $ 2,668 Exchangeable Senior Debentures (Level 1) 395 621 386 739 Credit facility (Level 2) 770 770 704 704 Mortgage debt and other, excluding capital leases (Level 388 396 403 413 |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Revenues and Long-Lived Assets by Geographical Area | The following table presents total revenues and property and equipment for each of the geographical areas in which we operate (in millions): Revenues Revenues Property and Equipment, net Quarter ended June 30, Year-to-date ended June 30, June 30, December 31, 2015 2014 2015 2014 2015 2014 United States $ 1,394 $ 1,358 $ 2,652 $ 2,601 $ 10,373 $ 10,111 Australia 8 10 17 19 95 102 Brazil 8 12 15 19 69 82 Canada 15 24 29 44 66 82 Chile 6 8 13 16 42 44 Mexico 7 7 14 14 22 26 New Zealand 11 12 26 27 109 128 Total $ 1,449 $ 1,431 $ 2,766 $ 2,740 $ 10,776 $ 10,575 |
Non-controlling Interests (Tabl
Non-controlling Interests (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Historical Cost and Redemption Values for Non-Controlling Interests | The table below details the historical cost and redemption values for the non-controlling interests: June 30, 2015 December 31, 2014 OP units outstanding (millions) 9.2 9.3 Market price per Host Inc. common share $ 19.83 $ 23.77 Shares issuable upon conversion of one OP unit 1.021494 1.021494 Redemption value (millions) $ 186 $ 225 Historical cost (millions) 92 94 Book value (millions) (1) 186 225 ___________ ( 1 ) The book value recorded is equal to the greater of redemption value or historical cost. |
Organization - Additional Infor
Organization - Additional Information (Detail) - Jun. 30, 2015 | HotelFund |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Number of hotels | 111 |
Australia | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Number of hotels | 1 |
European Joint Venture | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Number of hotels | 18 |
Number of funds | Fund | 2 |
European Joint Venture | Fund I | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Investment ownership percentage | 32.10% |
Number of hotels | 9 |
European Joint Venture | Fund II | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Investment ownership percentage | 33.40% |
Number of hotels | 9 |
Asia/Pacific Joint Venture | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Investment ownership percentage | 25.00% |
Asia/Pacific Joint Venture | Australia | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Number of hotels | 1 |
Asia/Pacific Joint Venture | India | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Number of hotels | 3 |
Number of hotels in various stages of development | 4 |
HOST HOTELS & RESORTS, INC. | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Percentage of the common OP Units | 99.00% |
Consolidated Portfolio of Hotel
Consolidated Portfolio of Hotels by Location (Detail) | Jun. 30, 2015Hotel |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 111 |
European Joint Venture | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 18 |
United States | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 95 |
Australia | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 1 |
Brazil | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 3 |
Canada | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 2 |
Chile | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 2 |
Mexico | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 1 |
New Zealand | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 7 |
Belgium | European Joint Venture | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 3 |
France | European Joint Venture | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 4 |
Germany | European Joint Venture | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 2 |
Italy | European Joint Venture | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 3 |
Poland | European Joint Venture | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 1 |
Spain | European Joint Venture | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 2 |
Sweden | European Joint Venture | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 1 |
The Netherlands | European Joint Venture | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 1 |
United Kingdom | European Joint Venture | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |
Hotels | 1 |
Earnings Per Common Share (Un32
Earnings Per Common Share (Unit) - Additional Information (Detail) - Jun. 30, 2015 - HOST HOTELS & RESORTS, INC. - shares shares in Millions | Total |
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | |
OP units outstanding | 9.2 |
Number of common shares that would be outstanding if OP units were converted | 9.4 |
Host Inc. Earnings (Loss) Per C
Host Inc. Earnings (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Earnings Per Share [Abstract] | |||||
NET INCOME | $ 216 | $ 159 | $ 320 | $ 344 | |
Less: Net income attributable to non-controlling interests | (4) | (4) | (10) | (10) | |
NET INCOME ATTRIBUTABLE TO REPORTING ENTITY | 212 | 155 | 310 | 334 | |
Assuming conversion of exchangeable senior debentures | 7 | ||||
Diluted income attributable to Host Inc. | $ 219 | $ 155 | $ 310 | $ 334 | |
Basic weighted average shares outstanding | 753.9 | 755.4 | 755 | 755.1 | |
Assuming weighted average shares for conversion of exchangeable senior debentures | 31.2 | ||||
Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market | 0.4 | 0.5 | 0.4 | 0.5 | |
Diluted weighted average shares outstanding | [1] | 785.5 | 755.9 | 755.4 | 755.6 |
Basic earnings per common share | $ 0.28 | $ 0.21 | $ 0.41 | $ 0.44 | |
Diluted earnings per common share | $ 0.28 | $ 0.21 | $ 0.41 | $ 0.44 | |
[1] | There were approximately 31 million potentially dilutive shares for the year-to-date period ended June 30, 2015, and approximately 30 million potentially dilutive units for both the quarter and year-to-date periods ended June 30, 2014, related to our exchangeable senior debentures, which shares were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the period. |
Host Inc. Earnings (Loss) Per34
Host Inc. Earnings (Loss) Per Common Share (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive shares which were not included in the computation of diluted EPS | 30 | 31 | 30 |
Host LP Earnings (Loss) Per Com
Host LP Earnings (Loss) Per Common Unit (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Earnings Per Share Diluted [Line Items] | |||||
NET INCOME | $ 216 | $ 159 | $ 320 | $ 344 | |
Less: Net income attributable to non-controlling interests | (4) | (4) | (10) | (10) | |
NET INCOME ATTRIBUTABLE TO REPORTING ENTITY | 212 | 155 | 310 | 334 | |
Diluted income attributable to Host Inc. | $ 219 | $ 155 | $ 310 | $ 334 | |
Basic weighted average shares outstanding | 753.9 | 755.4 | 755 | 755.1 | |
Assuming weighted average shares for conversion of exchangeable senior debentures | 31.2 | ||||
Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market | 0.4 | 0.5 | 0.4 | 0.5 | |
Diluted weighted average shares outstanding | [1] | 785.5 | 755.9 | 755.4 | 755.6 |
Basic earnings per common share | $ 0.28 | $ 0.21 | $ 0.41 | $ 0.44 | |
Diluted earnings per common share | $ 0.28 | $ 0.21 | $ 0.41 | $ 0.44 | |
HOST HOTELS & RESORTS L.P. | |||||
Earnings Per Share Diluted [Line Items] | |||||
NET INCOME | $ 216 | $ 159 | $ 320 | $ 344 | |
Less: Net income attributable to non-controlling interests | (1) | (2) | (6) | (5) | |
NET INCOME ATTRIBUTABLE TO REPORTING ENTITY | 215 | 157 | 314 | 339 | |
Assuming conversion of exchangeable senior debentures | 7 | ||||
Diluted income attributable to Host Inc. | $ 222 | $ 157 | $ 314 | $ 339 | |
Basic weighted average shares outstanding | 747.3 | 748.9 | 748.3 | 748.7 | |
Assuming weighted average shares for conversion of exchangeable senior debentures | 30.5 | ||||
Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market | 0.3 | 0.6 | 0.4 | 0.5 | |
Diluted weighted average shares outstanding | [2] | 778.1 | 749.5 | 748.7 | 749.2 |
Basic earnings per common share | $ 0.29 | $ 0.21 | $ 0.42 | $ 0.45 | |
Diluted earnings per common share | $ 0.29 | $ 0.21 | $ 0.42 | $ 0.45 | |
[1] | There were approximately 31 million potentially dilutive shares for the year-to-date period ended June 30, 2015, and approximately 30 million potentially dilutive units for both the quarter and year-to-date periods ended June 30, 2014, related to our exchangeable senior debentures, which shares were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the period. | ||||
[2] | There were approximately 30 million potentially dilutive units for the year-to-date ended June 30, 2015, and approximately 30 million and 29 million potentially dilutive shares for the quarter and year-to-date periods ended June 30, 2014, respectively, related to our exchangeable senior debentures, which units were not included in the computation of diluted earnings per unit because to do so would have been anti-dilutive for the period. |
Host LP Earnings (Loss) Per C36
Host LP Earnings (Loss) Per Common Unit (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive shares which were not included in the computation of diluted EPS | 30 | 31 | 30 |
HOST HOTELS & RESORTS L.P. | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive shares which were not included in the computation of diluted EPS | 30 | 30 | 29 |
Summary of Property and Equipme
Summary of Property and Equipment (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Property Plant And Equipment [Abstract] | ||
Land and land improvements | $ 2,047 | $ 1,990 |
Buildings and leasehold improvements | 13,665 | 13,336 |
Furniture and equipment | 2,281 | 2,217 |
Construction in progress | 165 | 209 |
Property, Plant and Equipment, Gross, Total | 18,158 | 17,752 |
Less accumulated depreciation and amortization | (7,382) | (7,177) |
Property and equipment, net | $ 10,776 | $ 10,575 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | Jun. 15, 2015 | May. 15, 2015 | Jun. 30, 2015 | Jun. 30, 2015 |
Debt Instrument [Line Items] | ||||
Net borrowings under revolver portion of credit facility | $ 250 | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Net borrowings under revolver portion of credit facility | $ 80 | |||
Amount of borrowing capacity currently available under the credit facility | $ 730 | $ 730 | ||
Series E senior notes 4% due June 2025 | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 500 | |||
Debt interest rate | 4.00% | 4.00% | 4.00% | |
Proceed from issuance of note | $ 495 | |||
Effective interest rate with hedge | 3.93% | |||
Series X senior notes 5.875% due 2019 | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 5.875% | |||
Repayment of debt | $ 500 | |||
Redemption price of senior notes | $ 515 |
Investment in Affiliates - Addi
Investment in Affiliates - Additional Information (Detail) € in Millions, $ in Millions | Jul. 08, 2015USD ($) | Jul. 08, 2015EUR (€) | Jun. 05, 2015USD ($) | Jun. 05, 2015EUR (€) | Jul. 31, 2015 | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) |
Investments In And Advances To Affiliates [Line Items] | |||||||
Proceeds from sales of assets, net | $ 174 | $ 274 | |||||
Mortgage repayment | $ 373 | ||||||
Distributions from equity investments | $ 7 | ||||||
European Joint Venture | Crowne Plaza Hotel Amsterdam City Centre | |||||||
Investments In And Advances To Affiliates [Line Items] | |||||||
Proceeds from sales of assets, net | $ 118 | € 106 | |||||
Gain on sale of asset | 40 | 36 | |||||
Mortgage repayment | 49 | 44 | |||||
Fund II | European Joint Venture | Subsequent Event | |||||||
Investments In And Advances To Affiliates [Line Items] | |||||||
Capital commitment extension period | one year | ||||||
European Joint Venture | Fund I | Subsequent Event | |||||||
Investments In And Advances To Affiliates [Line Items] | |||||||
Distributions from equity investments | $ 21 | € 19 | |||||
FF&E reserve | European Joint Venture | Crowne Plaza Hotel Amsterdam City Centre | |||||||
Investments In And Advances To Affiliates [Line Items] | |||||||
Proceeds from sales of assets, net | $ 3 | € 3 |
Equity Allocation between Contr
Equity Allocation between Controlling and Non-Controlling Interests (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Stockholders Equity Note [Line Items] | ||||
Beginning Balance | $ 7,368 | |||
NET INCOME ATTRIBUTABLE TO REPORTING ENTITY | $ 212 | $ 155 | 310 | $ 334 |
Net income attributable to non-controlling interests | 1 | 2 | 6 | 5 |
Net income | 3 | 2 | 4 | 5 |
Other comprehensive loss | 3 | $ 5 | (34) | $ 12 |
Ending Balance | 7,262 | 7,262 | ||
HOST HOTELS & RESORTS, INC. | ||||
Stockholders Equity Note [Line Items] | ||||
Beginning Balance | 7,368 | |||
Net income | 316 | |||
Issuance of common stock | 12 | |||
Repurchase of common stock /OP units | (131) | |||
Dividends declared on common stock | (301) | |||
Distributions to non-controlling interests | (5) | |||
Other changes in ownership | 37 | |||
Other comprehensive loss | (34) | |||
Ending Balance | 7,262 | 7,262 | ||
HOST HOTELS & RESORTS, INC. | Parent | ||||
Stockholders Equity Note [Line Items] | ||||
Beginning Balance | 7,336 | |||
NET INCOME ATTRIBUTABLE TO REPORTING ENTITY | 310 | |||
Issuance of common stock | 12 | |||
Repurchase of common stock /OP units | (131) | |||
Dividends declared on common stock | (301) | |||
Other changes in ownership | 38 | |||
Other comprehensive loss | (34) | |||
Ending Balance | 7,230 | 7,230 | ||
HOST HOTELS & RESORTS, INC. | Non-redeemable, non-controlling interest | ||||
Stockholders Equity Note [Line Items] | ||||
Beginning Balance | 32 | |||
Net income attributable to non-controlling interests | 6 | |||
Distributions to non-controlling interests | (5) | |||
Other changes in ownership | (1) | |||
Ending Balance | 32 | 32 | ||
HOST HOTELS & RESORTS, INC. | Redeemable non-controlling interests | ||||
Stockholders Equity Note [Line Items] | ||||
Beginning Balance | 225 | |||
Net income | 4 | |||
Distributions to non-controlling interests | (4) | |||
Other changes in ownership | (39) | |||
Ending Balance | $ 186 | $ 186 |
Equity of Host Inc. and Capit41
Equity of Host Inc. and Capital of Host L.P. - Additional Information (Detail) $ / shares in Units, shares in Thousands | Jun. 11, 2015$ / shares | Jun. 30, 2015USD ($)$ / sharesshares | Dec. 31, 2014 |
HOST HOTELS & RESORTS, INC. | |||
Stockholders Equity Note [Line Items] | |||
Percentage of the common OP Units | 99.00% | ||
Dividend declaration date | Jun. 11, 2015 | ||
Dividend per share, declared | $ / shares | $ 0.20 | ||
Dividend payable date | Jul. 15, 2015 | ||
Dividend record date | Jun. 30, 2015 | ||
Common stock repurchase, shares | shares | 6,550 | ||
Common stock repurchase, average price per share | $ / shares | $ 20.07 | ||
Common stock repurchase, value | $ 131,000,000 | ||
Remaining capacity of stock repurchase | 369,000,000 | ||
HOST HOTELS & RESORTS, INC. | Maximum | |||
Stockholders Equity Note [Line Items] | |||
Common stock repurchase, authorized amount | $ 500,000,000 | ||
HOST HOTELS & RESORTS L.P. | |||
Stockholders Equity Note [Line Items] | |||
Shares issuable upon conversion of one OP unit | 1.021494 | 1.021494 | |
Common OP units, distribution paid | $ / shares | $ 0.2042988 |
Capital Allocation between Cont
Capital Allocation between Controlling and Non-Controlling Interests (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Limited Partners Capital Account [Line Items] | ||||
Beginning Balance | $ 7,368 | |||
NET INCOME ATTRIBUTABLE TO REPORTING ENTITY | $ 212 | $ 155 | 310 | $ 334 |
Net income attributable to non-controlling interests | 1 | 2 | 6 | 5 |
Net income | 3 | 2 | 4 | 5 |
Other comprehensive loss | 3 | 5 | (34) | 12 |
Ending Balance | 7,262 | 7,262 | ||
HOST HOTELS & RESORTS L.P. | ||||
Limited Partners Capital Account [Line Items] | ||||
Beginning Balance | 7,368 | |||
NET INCOME ATTRIBUTABLE TO REPORTING ENTITY | 215 | 157 | 314 | 339 |
Net income | 316 | |||
Issuance of common OP units | 12 | |||
Repurchase of common stock /OP units | (131) | |||
Distributions declared on common OP units | (301) | |||
Distributions to non-controlling interests | (5) | |||
Other changes in ownership | 37 | |||
Other comprehensive loss | 3 | $ 5 | (34) | $ 12 |
Ending Balance | 7,262 | 7,262 | ||
HOST HOTELS & RESORTS L.P. | Parent | ||||
Limited Partners Capital Account [Line Items] | ||||
Beginning Balance | 7,336 | |||
NET INCOME ATTRIBUTABLE TO REPORTING ENTITY | 310 | |||
Issuance of common OP units | 12 | |||
Repurchase of common stock /OP units | (131) | |||
Distributions declared on common OP units | (301) | |||
Other changes in ownership | 38 | |||
Other comprehensive loss | (34) | |||
Ending Balance | 7,230 | 7,230 | ||
HOST HOTELS & RESORTS L.P. | Non-controlling Interests | ||||
Limited Partners Capital Account [Line Items] | ||||
Beginning Balance | 32 | |||
Net income attributable to non-controlling interests | 6 | |||
Distributions to non-controlling interests | (5) | |||
Other changes in ownership | (1) | |||
Ending Balance | 32 | 32 | ||
HOST HOTELS & RESORTS L.P. | Limited Partnership Interests Of Third Parties | ||||
Limited Partners Capital Account [Line Items] | ||||
Beginning Balance | 225 | |||
Net income | 4 | |||
Distributions declared on common OP units | (4) | |||
Other changes in ownership | (39) | |||
Ending Balance | $ 186 | $ 186 |
Dispositions - Additional Infor
Dispositions - Additional Information (Detail) $ in Millions | Jun. 23, 2015USD ($) | Jun. 03, 2015USD ($) | Jun. 30, 2015USD ($)Hotel | Jun. 30, 2014USD ($) | Dec. 31, 2014Hotel |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Proceeds from sales of assets, net | $ 174 | $ 274 | |||
Number of properties sold | Hotel | 4 | 5 | |||
Park Ridge Marriott & Chicago Marriott O’Hare | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Proceeds from sales of assets, net | $ 89 | ||||
Sheraton Needham | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Proceeds from sales of assets, net | $ 54 |
Summary of Results of Operation
Summary of Results of Operations for One Hotel Sold in Twenty Fifteen and Five Hotels Sold in Twenty Fourteen which are Included in Continuing Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disposal Group Not Discontinued Operation Disposal Disclosures [Abstract] | ||||
Revenues | $ 16 | $ 45 | $ 32 | $ 89 |
Income before taxes | 2 | $ 7 | 10 | |
Gain on disposals | $ 53 | $ 56 | $ 111 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Millions | Jun. 08, 2015USD ($)Room | Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($) |
Business Acquisition [Line Items] | |||
Acquisition-related expenses | $ 1 | $ 1 | |
Pro forma, total revenues | 5 | 5 | |
Pro forma, net loss | $ (1) | $ (1) | |
The Phoenician | |||
Business Acquisition [Line Items] | |||
Number of rooms | Room | 643 | ||
Acquisition purchase price | $ 400 | ||
Acquisition-related expenses | $ 1 |
Estimated Fair Value of Assets
Estimated Fair Value of Assets Acquired and Liabilities Assumed in Acquisitions (Detail) $ in Millions | Jun. 30, 2015USD ($) |
Business Combinations [Abstract] | |
Property and equipment | $ 400 |
Other assets | 1 |
Total assets | 401 |
Other liabilities | (1) |
Net assets acquired | $ 400 |
Summary of Unaudited Consolidat
Summary of Unaudited Consolidated Pro Forma Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Business Acquisition, Pro Forma Information [Abstract] | ||||
Revenues | $ 1,478 | $ 1,461 | $ 2,838 | $ 2,810 |
Income from continuing operations | 226 | 163 | 345 | 361 |
Net income | 226 | 163 | 345 | 361 |
HOST HOTELS & RESORTS, INC. | ||||
Business Acquisition, Pro Forma Information [Abstract] | ||||
Net income attributable to Host Inc. | $ 222 | $ 159 | $ 335 | $ 351 |
Basic earnings per common share | $ 0.29 | $ 0.21 | $ 0.44 | $ 0.46 |
Diluted earnings per common share | $ 0.29 | $ 0.21 | $ 0.44 | $ 0.46 |
HOST HOTELS & RESORTS L.P. | ||||
Business Acquisition, Pro Forma Information [Abstract] | ||||
Net income attributable to Host Inc. | $ 225 | $ 161 | $ 339 | $ 356 |
Basic earnings per common share | $ 0.30 | $ 0.21 | $ 0.45 | $ 0.48 |
Diluted earnings per common share | $ 0.30 | $ 0.21 | $ 0.45 | $ 0.48 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | |
Foreign currency forward sale contracts | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value measurements on a recurring basis, Assets | [1] | $ 24 | $ 13 |
Interest rate swap derivatives | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value measurements on a recurring basis, Liabilities | [1] | (2) | (2) |
Significant Other Observable Inputs (Level 2) | Foreign currency forward sale contracts | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value measurements on a recurring basis, Assets | [1] | 24 | 13 |
Significant Other Observable Inputs (Level 2) | Interest rate swap derivatives | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value measurements on a recurring basis, Liabilities | [1] | $ (2) | (2) |
Significant Unobservable Inputs (Level 3) | Impaired Hotel Properties Held And Used | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value measurements on a non-recurring basis, Impaired hotel properties held and used | [2] | $ 18 | |
[1] | These derivative contracts have been designated as hedging instruments. | ||
[2] | The fair value measurements are as of the measurement date of the impairment and may not reflect the book value as of December 31, 2014. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2015USD ($)DerivativesContract | May. 15, 2015 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Number of foreign currency forward contracts outstanding | Contract | 5 | |
Series E senior notes 4% due June 2025 | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Debt interest rate | 4.00% | 4.00% |
Proceeds from forward swaps and treasury locks | $ 4,000,000 | |
Amortization of forward swaps and treasury locks | 10 years | |
Series E senior notes 4% due June 2025 | Interest rate swap derivatives | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Number of interest rate derivatives | Derivatives | 3 | |
Notional amount | $ 150,000,000 | |
Swaps hedged of variable rate basis | 3-month LIBOR | |
Series E senior notes 4% due June 2025 | Treasury locks | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Number of interest rate derivatives | Derivatives | 2 | |
Notional amount | $ 200,000,000 | |
Swaps hedged of variable rate basis | 10-year U.S. Treasury rate |
Interest Rate Swap Derivatives
Interest Rate Swap Derivatives Designated as Cash Flow Hedges (Detail) - Jun. 30, 2015 - Cash Flow Hedging - Interest Rate Swap | AUD | NZD | |
Swap Entered In Connection With Mortgage Loan On Hilton Melbourne South Wharf | Australia | |||
Derivative [Line Items] | |||
Transaction Date | [1] | November 2,011 | |
Notional amount | AUD | [1] | AUD 62,000,000 | |
Maturity Date | [1] | 2016-11 | |
Swapped Index | [1] | Reuters BBSY | |
All-in-Rate | [1] | 6.70% | 6.70% |
Swap Entered In Connection With Seven Properties | New Zealand | |||
Derivative [Line Items] | |||
Transaction Date | [2] | February 2,011 | |
Notional amount | [2] | NZD 79,000,000 | |
Maturity Date | [2] | 2016-02 | |
Swapped Index | [2] | NZ$ Bank Bill | |
All-in-Rate | [2] | 7.15% | 7.15% |
[1] | The swap was entered into in connection with the A$86 million ($66 million) mortgage loan on the Hilton Melbourne South Wharf. | ||
[2] | The swap was entered into in connection with the NZ$105 million ($71 million) mortgage loan on seven properties in New Zealand. |
Interest Rate Swap Derivative51
Interest Rate Swap Derivatives Designated as Cash Flow Hedges (Parenthetical) (Detail) NZD in Millions, AUD in Millions, $ in Millions | Jun. 30, 2015USD ($)Hotel | Jun. 30, 2015AUDHotel | Jun. 30, 2015NZDHotel | Dec. 31, 2014USD ($) |
Derivative [Line Items] | ||||
Mortgage debt | $ | $ 389 | $ 404 | ||
Hotels | 111 | 111 | 111 | |
Australia | ||||
Derivative [Line Items] | ||||
Hotels | 1 | 1 | 1 | |
New Zealand | ||||
Derivative [Line Items] | ||||
Hotels | 7 | 7 | 7 | |
Interest Rate Swap | Australia | Swap Entered In Connection With Mortgage Loan On Hilton Melbourne South Wharf | ||||
Derivative [Line Items] | ||||
Mortgage debt | $ 66 | AUD 86 | ||
Interest Rate Swap | New Zealand | Swap Entered In Connection With Seven Properties | ||||
Derivative [Line Items] | ||||
Mortgage debt | $ 71 | NZD 105 | ||
Hotels | 7 | 7 | 7 |
Foreign Currency Sale Contracts
Foreign Currency Sale Contracts (Detail) - Foreign Exchange Contract | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015USD ($) | Mar. 31, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015EUR (€) | Jun. 30, 2015CAD | |
Euros | ||||||
Derivative [Line Items] | ||||||
Transaction Date Range | July 2011-May 2014 | |||||
Total transaction amount | $ 135,000,000 | $ 135,000,000 | € 100,000,000 | |||
Forward purchase date range | August 2015-May 2017 | |||||
Change in fair value gain (loss) | (4,000,000) | $ 1,000,000 | $ 10,000,000 | $ 1,000,000 | ||
Canadian Dollars | ||||||
Derivative [Line Items] | ||||||
Transaction Date Range | November 2,014 | |||||
Total transaction amount | $ 22,000,000 | $ 22,000,000 | CAD 25,000,000 | |||
Forward purchase date range | ||||||
Change in fair value gain (loss) | $ 1,000,000 |
Draws on Credit Facility that a
Draws on Credit Facility that are Designated as Net Investments in Foreign Operations (Detail) € in Millions, CAD in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014EUR (€) | Dec. 31, 2014CAD | ||
Debt Instrument Designated As Hedges Of Net Investment In Foreign Operations [Line Items] | ||||||||
Balance Outstanding | $ 770 | $ 770 | $ 704 | |||||
Foreign currency translation and other comprehensive income (loss) of unconsolidated affiliates | 3 | $ 4 | (44) | $ 11 | ||||
Canadian Dollars | ||||||||
Debt Instrument Designated As Hedges Of Net Investment In Foreign Operations [Line Items] | ||||||||
Balance Outstanding | [1] | 37 | 37 | CAD 46 | ||||
Foreign currency translation and other comprehensive income (loss) of unconsolidated affiliates | [1] | (1) | (1) | 1 | ||||
Euros | ||||||||
Debt Instrument Designated As Hedges Of Net Investment In Foreign Operations [Line Items] | ||||||||
Balance Outstanding | 86 | 86 | € 77 | |||||
Foreign currency translation and other comprehensive income (loss) of unconsolidated affiliates | $ (3) | $ 1 | $ 7 | $ 1 | ||||
[1] | We have drawn an additional $49 million on the credit facility in Canadian dollars, which draw has not been designated as a hedging instrument. |
Draws on Credit Facility that54
Draws on Credit Facility that are Designated as Net Investments in Foreign Operations (Parenthetical) (Detail) CAD in Millions, $ in Millions | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014CAD | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Credit facility | $ 770 | $ 704 | ||
Canadian Dollars | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Credit facility | [1] | 37 | CAD 46 | |
Canadian Dollars | Not Designated as Hedging Instrument | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Credit facility | $ 49 | |||
[1] | We have drawn an additional $49 million on the credit facility in Canadian dollars, which draw has not been designated as a hedging instrument. |
Fair Values of Certain Financia
Fair Values of Certain Financial Liabilities and Other Financial Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Financial liabilities | ||
Senior notes (Level 1) | $ 2,499 | $ 2,498 |
Exchangeable Senior Debentures (Level 1), carrying value | 395 | 386 |
Credit facility (Level 2), carrying value | 770 | 704 |
Mortgage debt and other, excluding capital leases (Level 2), carrying value | 388 | 403 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial liabilities | ||
Senior notes (Level 1), fair value | 2,608 | 2,668 |
Exchangeable Senior Debentures (Level 1), fair value | 621 | 739 |
Significant Other Observable Inputs (Level 2) | ||
Financial liabilities | ||
Credit facility (Level 2), fair value | 770 | 704 |
Significant Other Observable Inputs (Level 2) | Mortgage debt and other, excluding capital leases | ||
Financial liabilities | ||
Mortgage debt and other, excluding capital leases (Level 2), fair value | $ 396 | $ 413 |
Geographic Information - Additi
Geographic Information - Additional Information (Detail) - Jun. 30, 2015 | EntityCountry |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Foreign operations, number of countries | Country | 6 |
Revenues and Long-Lived Assets
Revenues and Long-Lived Assets by Geographical Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 1,449 | $ 1,431 | $ 2,766 | $ 2,740 | |
Property and equipment, net | 10,776 | 10,776 | $ 10,575 | ||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,394 | 1,358 | 2,652 | 2,601 | |
Property and equipment, net | 10,373 | 10,373 | 10,111 | ||
Australia | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 8 | 10 | 17 | 19 | |
Property and equipment, net | 95 | 95 | 102 | ||
Brazil | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 8 | 12 | 15 | 19 | |
Property and equipment, net | 69 | 69 | 82 | ||
Canada | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 15 | 24 | 29 | 44 | |
Property and equipment, net | 66 | 66 | 82 | ||
Chile | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 6 | 8 | 13 | 16 | |
Property and equipment, net | 42 | 42 | 44 | ||
Mexico | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 7 | 7 | 14 | 14 | |
Property and equipment, net | 22 | 22 | 26 | ||
New Zealand | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 11 | $ 12 | 26 | $ 27 | |
Property and equipment, net | $ 109 | $ 109 | $ 128 |
Non-Controlling Interests - Add
Non-Controlling Interests - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)Entity | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)Entity | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Minority Interest [Line Items] | |||||
Number of majority-owned partnerships that have third-party, non-controlling ownership interests that have been consolidated | Entity | 6 | 6 | |||
Non-controlling interests—other consolidated partnerships | $ 32 | $ 32 | $ 32 | ||
Number of majority-owned partnerships that have third-party, non-controlling ownership interests with finite lives | Entity | 2 | 2 | |||
Non-controlling interests in outside partnerships, fair value | $ 94 | $ 94 | $ 85 | ||
Net income attributable to non-controlling interests outside partnerships | 1 | $ 2 | 6 | $ 5 | |
Net income | $ 3 | $ 2 | $ 4 | $ 5 | |
HOST HOTELS & RESORTS L.P. | |||||
Minority Interest [Line Items] | |||||
OP units conversion basis | One common OP unit may be exchanged into 1.021494 shares of Host Inc | ||||
Shares issuable upon conversion of one OP unit | 1.021494 | 1.021494 | 1.021494 | ||
Lower Limit | |||||
Minority Interest [Line Items] | |||||
Majority-owned partnerships with mandatorily redeemable non-controlling interests, termination year | 2,081 | ||||
Upper Limit | |||||
Minority Interest [Line Items] | |||||
Majority-owned partnerships with mandatorily redeemable non-controlling interests, termination year | 2,095 |
Historical Cost and Redemption
Historical Cost and Redemption Values for Non-Controlling Interests (Detail) $ / shares in Units, shares in Millions, $ in Millions | Jun. 30, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | |
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | |||
Book value | $ 186 | $ 225 | |
HOST HOTELS & RESORTS L.P. | |||
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | |||
OP units outstanding | shares | 9.2 | 9.3 | |
Market price per Host Inc. common share | $ / shares | $ 19.83 | $ 23.77 | |
Shares issuable upon conversion of one OP unit | 1.021494 | 1.021494 | |
Redemption value | $ 186 | $ 225 | |
Historical cost | 92 | 94 | |
Book value | [1] | $ 186 | $ 225 |
[1] | The book value recorded is equal to the greater of redemption value or historical cost. |
Legal Proceedings - Additional
Legal Proceedings - Additional Information (Detail) | Jun. 30, 2015USD ($) |
Loss Contingencies [Line Items] | |
Loss contingency accrual | $ 4,000,000 |
Estimate of possible losses | 10,000,000 |
Other Litigation Cases | |
Loss Contingencies [Line Items] | |
Maximum exposure of litigation | $ 150,000 |