|
| |
|
| Exhibit 99.1 |
| SOURAV GHOSH | JAIME MARCUS |
Host Hotels & Resorts, Inc. Reports Results for Third Quarter 2021
Continued Quarterly Revenue Growth and Sequentially Improved Operations;
Exited Credit Facility Covenant Waiver - Three Quarters Ahead of its Expiration;
Successful Execution of Capital Allocation Strategy - Acquisition of Alila Ventana Big Sur and Disposition of Five Assets
BETHESDA, MD; November 3, 2021 – Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the nation’s largest lodging real estate investment trust (“REIT”), today announced results for third quarter 2021.
Operating Results
(unaudited, in millions, except per share and hotel statistics)
| Quarter ended September 30, |
|
| Percent Change |
| Percent Change |
|
| Year-to-date ended September 30, |
|
| Percent Change |
| Percent Change |
| ||||||||||||||
| 2021 |
|
| 2020 |
|
| vs. Q3 2020 |
| vs. Q3 2019⁽²⁾ |
|
| 2021 |
|
| 2020 |
|
| vs. YTD 2020 |
| vs. YTD 2019⁽²⁾ |
| ||||||||
Revenues | $ | 844 |
|
| $ | 198 |
|
|
| 326.3 | % |
| (33.1 | )% |
| $ | 1,892 |
|
| $ | 1,353 |
|
|
| 39.8 | % |
| (54.2 | )% |
All owned hotel revenues |
| 853 |
|
|
| 220 |
|
|
| 287.7 | % |
| (32.0 | )% |
|
| 1,978 |
|
|
| 1,429 |
|
|
| 38.4 | % |
| (51.5 | )% |
All owned hotel (pro forma) |
| 194.82 |
|
|
| 50.15 |
|
|
| 288.5 | % |
| (32.3 | )% |
|
| 152.19 |
|
|
| 109.72 |
|
|
| 38.7 | % |
| (51.7 | )% |
All owned hotel (pro forma) |
| 129.14 |
|
|
| 31.71 |
|
|
| 307.3 | % |
| (31.3 | )% |
|
| 99.68 |
|
|
| 65.82 |
|
|
| 51.5 | % |
| (49.6 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Quarter ended September 30, |
|
| Percent |
|
|
|
| Year-to-date ended September 30, |
|
| Percent |
|
|
| ||||||||||||||
| 2021 |
|
| 2020 |
|
| Change |
|
|
|
| 2021 |
|
| 2020 |
|
| Change |
|
|
| ||||||||
Net loss |
| (120 | ) |
|
| (316 | ) |
|
| 62.0 | % |
|
|
| $ | (334 | ) |
| $ | (675 | ) |
|
| 50.5 | % |
|
| ||
EBITDAre(1) |
| 179 |
|
|
| (154 | ) |
| N/M |
|
|
|
|
| 295 |
|
|
| (180 | ) |
| N/M |
|
|
| ||||
Adjusted EBITDAre(1) |
| 177 |
|
|
| (111 | ) |
| N/M |
|
|
|
|
| 290 |
|
|
| (136 | ) |
| N/M |
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Diluted loss per common |
| (0.17 | ) |
|
| (0.44 | ) |
|
| 61.4 | % |
|
|
|
| (0.47 | ) |
|
| (0.95 | ) |
|
| 50.5 | % |
|
| ||
NAREIT FFO per diluted |
| 0.20 |
|
|
| (0.21 | ) |
| N/M |
|
|
|
|
| 0.33 |
|
|
| (0.25 | ) |
| N/M |
|
|
| ||||
Adjusted FFO per diluted |
| 0.20 |
|
|
| (0.11 | ) |
| N/M |
|
|
|
|
| 0.33 |
|
|
| (0.14 | ) |
| N/M |
|
|
|
* Additional detail on the Company’s results, including data for 21 domestic markets, is available in the Third Quarter 2021 Supplemental Financial Information available on the Company’s website at www.hosthotels.com.
James F. Risoleo, President and Chief Executive Officer, said, “During the third quarter, we continued to see strong positive operating trends and significant sequential improvements across our portfolio. RevPAR was $129 for the quarter, representing a 26% increase over the prior quarter. While much of the recovery has been concentrated in Sunbelt markets, our urban markets also saw significant RevPAR improvements during the third quarter."
N/M = Not Meaningful
HOST HOTELS & RESORTS, INC. NEWS RELEASE | NOVEMBER 3, 2021 |
Risoleo continued, “In September, we completed another off-market acquisition, buying the Alila Ventana Big Sur in California, bringing our total acquisitions for 2021 to $1.2 billion. Subsequent to quarter end, we disposed of five hotels, totaling 2,323 keys, for $551 million. Additionally, our positive hotel operating results led to improved credit metrics and we exited the credit facility covenant waiver period three quarters ahead of its expiration. We continue to believe we are in the early stages of a prolonged lodging recovery, and remain focused on improving the quality and EBITDA growth profile of our portfolio."
Highlights:
Results for Third Quarter 2021
Subsequent Events
Balance Sheet
Subsequent to quarter end, the Company terminated its credit facility's covenant waiver period, as it met the required minimum fixed charge coverage ratio for its first phase-in quarter test. The Company will be required to meet the modified phase-in financial covenant thresholds for the following five quarters and, after that time, will be subject to the original covenant levels in the credit facility prior to amendment. Upon termination of the waiver period, the 40 basis point additional interest rate applicable to borrowings under the credit facility was removed, in addition to lifting additional restrictions on repayments, investments and distributions.
Sourav Ghosh, Executive Vice President, Chief Financial Officer, stated, “The third quarter represents a turning point in our recovery as continued sequential operating improvements led to positive cash flow. As a result, we have met the minimum covenant levels required under our senior notes, lifting the restriction on incurring debt. In addition, we have exited our credit facility waiver period, which provides immediate savings through a decrease in our interest rate and reflects the continued strength of our balance sheet. Despite the challenging environment during the quarter, we improved our flexibility for financing transactions and enhanced the quality of our portfolio through hotel acquisitions, dispositions, and reinvestment in our assets."
PAGE 2 OF 25
HOST HOTELS & RESORTS, INC. NEWS RELEASE | NOVEMBER 3, 2021 |
The Company maintains a robust balance sheet, with the following balances at September 30, 2021:
Operating Results
The following presents the monthly pro forma hotel operating results on a constant dollar basis for the full portfolio owned as of September 30, 2021 compared to 2020 and 2019 for the months presented(3):
|
| July |
|
| July |
|
|
|
|
| August |
|
| August |
|
|
|
|
| September |
|
| September |
|
|
|
|
| Quarter ended September 30, |
|
|
|
| |||||||||||||||
|
| 2021 |
|
| 2020 |
|
| Change |
|
| 2021 |
|
| 2020 |
|
| Change |
|
| 2021 |
|
| 2020 |
|
| Change |
|
| 2021 |
|
| 2020 |
|
| Change |
| ||||||||||||
Number of hotels |
|
| 84 |
|
|
| 83 |
|
|
|
|
|
| 84 |
|
|
| 83 |
|
|
|
|
|
| 84 |
|
|
| 83 |
|
|
|
|
|
| 84 |
|
|
| 83 |
|
|
|
| ||||
Number of rooms |
|
| 47,474 |
|
|
| 47,309 |
|
|
|
|
|
| 47,474 |
|
|
| 47,309 |
|
|
|
|
|
| 47,474 |
|
|
| 47,309 |
|
|
|
|
|
| 47,474 |
|
|
| 47,309 |
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Average |
|
| 57.2 | % |
|
| 13.2 | % |
|
| 44.0 pts |
|
|
| 54.1 | % |
|
| 19.1 | % |
|
| 35.0 pts |
|
|
| 55.4 | % |
|
| 19.9 | % |
|
| 35.5 pts |
|
|
| 55.6 | % |
|
| 17.4 | % |
|
| 38.2 pts |
|
Average Room |
| $ | 240.10 |
|
| $ | 190.38 |
|
|
| 26.1 | % |
| $ | 228.78 |
|
| $ | 173.27 |
|
|
| 32.0 | % |
| $ | 227.85 |
|
| $ | 186.16 |
|
|
| 22.4 | % |
| $ | 232.40 |
|
| $ | 182.46 |
|
|
| 27.4 | % |
RevPAR |
| $ | 137.32 |
|
| $ | 25.04 |
|
|
| 448.3 | % |
| $ | 123.76 |
|
| $ | 33.13 |
|
|
| 273.6 | % |
| $ | 126.23 |
|
| $ | 37.13 |
|
|
| 240.0 | % |
| $ | 129.14 |
|
| $ | 31.71 |
|
|
| 307.3 | % |
|
| July |
|
| July |
|
|
|
|
| August |
|
| August |
|
|
|
|
| September |
|
| September |
|
|
|
|
| Quarter ended September 30, |
|
|
|
| |||||||||||||||
|
| 2021 |
|
| 2019 |
|
| Change |
|
| 2021 |
|
| 2019 |
|
| Change |
|
| 2021 |
|
| 2019 |
|
| Change |
|
| 2021 |
|
| 2019 |
|
| Change |
| ||||||||||||
Number of hotels |
|
| 84 |
|
|
| 83 |
|
|
|
|
|
| 84 |
|
|
| 83 |
|
|
|
|
|
| 84 |
|
|
| 83 |
|
|
|
|
|
| 84 |
|
|
| 83 |
|
|
|
| ||||
Number of rooms |
|
| 47,474 |
|
|
| 47,309 |
|
|
|
|
|
| 47,474 |
|
|
| 47,309 |
|
|
|
|
|
| 47,474 |
|
|
| 47,309 |
|
|
|
|
|
| 47,474 |
|
|
| 47,309 |
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Average |
|
| 57.2 | % |
|
| 82.4 | % |
|
| (25.2 pts) |
|
|
| 54.1 | % |
|
| 80.5 | % |
|
| (26.4 pts) |
|
|
| 55.4 | % |
|
| 78.2 | % |
|
| (22.8 pts) |
|
|
| 55.6 | % |
|
| 80.4 | % |
|
| (24.8 pts) |
|
Average Room |
| $ | 240.10 |
|
| $ | 233.89 |
|
|
| 2.7 | % |
| $ | 228.78 |
|
| $ | 222.06 |
|
|
| 3.0 | % |
| $ | 227.85 |
|
| $ | 246.32 |
|
|
| (7.5 | )% |
| $ | 232.40 |
|
| $ | 233.84 |
|
|
| (0.6 | )% |
RevPAR |
| $ | 137.32 |
|
| $ | 192.79 |
|
|
| (28.8 | )% |
| $ | 123.76 |
|
| $ | 178.73 |
|
|
| (30.8 | )% |
| $ | 126.23 |
|
| $ | 192.55 |
|
|
| (34.4 | )% |
| $ | 129.14 |
|
| $ | 187.97 |
|
|
| (31.3 | )% |
Third Quarter 2021 Revenue Performance
PAGE 3 OF 25
HOST HOTELS & RESORTS, INC. NEWS RELEASE | NOVEMBER 3, 2021 |
Third Quarter 2021 Hotel Operating Expense Performance
Hotel Business Mix Update
The Company’s customers fall into three broad groups: transient, group and contract business, which accounted for approximately 61%, 35%, and 4%, respectively, of its 2019 room sales.
During the third quarter, demand continued to be primarily driven by leisure at drive-to and resort destinations. The following are the sequential results of the Company’s consolidated portfolio, including all owned hotels at September 30, 2021 on a pro forma basis, for transient, group and contract business in comparison to 2019 performance:
| Quarter ended |
|
| Quarter ended |
| ||||||||||||||||||
| Transient |
|
| Group |
|
| Contract |
|
| Transient |
|
| Group |
|
| Contract |
| ||||||
Room nights (in thousands) |
| 1,678 |
|
|
| 594 |
|
|
| 157 |
|
|
| 1,416 |
|
|
| 346 |
|
|
| 109 |
|
Percentage change in room nights |
| (23.3 | )% |
|
| (47.8 | )% |
|
| (9.9 | )% |
|
| (29.6 | )% |
|
| (74.4 | )% |
|
| (34.3 | )% |
Room Revenues (in millions) | $ | 424 |
|
| $ | 114 |
|
| $ | 26 |
|
| $ | 367 |
|
| $ | 60 |
|
| $ | 18 |
|
Percentage change in revenues vs. |
| (19.6 | )% |
|
| (54.0 | )% |
|
| (40.5 | )% |
|
| (30.6 | )% |
|
| (81.7 | )% |
|
| (59.0 | )% |
Capital Allocation Strategy
The Company continued to execute on its capital allocation strategy by recycling capital into assets that the Company believes will improve the quality and EBITDA growth profile of its portfolio. During the quarter, the Company acquired the 200-room Baker's Cay Resort Key Largo, Curio Collection by Hilton, for $200 million, a 223-room luxury downtown Houston hotel for $65 million and the 59-room Alila Ventana Big Sur for $150 million. The downtown Houston hotel has been rebranded as The Laura Hotel, as part of the Autograph Collection by Marriott. It will be managed by HEI Hotels & Resorts and is expected to open in the fourth quarter of 2021. Year-to-date, the Company has acquired five hotels and land for a total purchase price of $1.2 billion.
Subsequent to quarter end, the Company sold the Westfields Marriott Washington Dulles, San Ramon Marriott, The Westin Buckhead Atlanta, The Westin Los Angeles Airport and The Whitley for $551 million, including approximately $11 million for the FF&E replacement funds, and expects to record a gain on sale of $300 million in the fourth quarter.
PAGE 4 OF 25
HOST HOTELS & RESORTS, INC. NEWS RELEASE | NOVEMBER 3, 2021 |
Capital Expenditures
The following presents the Company’s year-to-date 2021 capital expenditures spend and the forecast for full year 2021 (in millions):
|
| Year-to-date ended September 30, 2021 |
|
| 2021 Full Year Forecast |
| ||||||
|
| Actuals |
|
| Low-end of range |
|
| High-end of range |
| |||
ROI - Marriott transformational capital program |
| $ | 82 |
|
| $ | 115 |
|
| $ | 140 |
|
ROI - All other ROI projects |
|
| 119 |
|
|
| 170 |
|
|
| 180 |
|
Total ROI project spend |
|
| 201 |
|
|
| 285 |
|
|
| 320 |
|
Renewals and Replacements |
|
| 92 |
|
|
| 125 |
|
|
| 145 |
|
Total Capital Expenditures |
| $ | 293 |
|
| $ | 410 |
|
| $ | 465 |
|
The Company is utilizing the lower occupancy environment to accelerate certain projects and minimize future disruption and believes the renovations will position these hotels to capture additional revenue during the economic recovery. The Company is on track to complete 85% of the Marriott transformational capital program by the end of 2021. The Company expects to receive approximately $14 million in operating profit guarantees in 2021 under the Marriott transformational capital program. As of September 30, 2021, the Company has received $12 million in operating profit guarantees for the year, with $2 million received in the third quarter.
2021 Outlook
Given the global economic uncertainty COVID-19 has created for the travel, airline, lodging and tourism and event industries, the Company cannot provide guidance for its operations or fully estimate the effect of COVID-19 or its variants and the current U.S. vaccination deployment on its operations.
The Company believes that recovery within the lodging industry will be driven by the strength of the economy, increased consumer confidence that the risks associated with travelling and contracting COVID-19 have been significantly reduced, and the return of business and group customers.
While the Company is not providing guidance on operations at this time, it estimates that for full year 2021, interest expense and corporate and other expenses will be in the following ranges (in millions):
|
| Full Year 2021 |
| |||||
|
| Low-end of range |
|
| High-end of range |
| ||
Interest expense |
| $ | 169 |
|
| $ | 171 |
|
Corporate and other expenses |
|
| 98 |
|
|
| 100 |
|
The Company does not intend to provide further guidance updates unless deemed appropriate.
About Host Hotels & Resorts
Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 75 properties in the United States and five properties internationally totaling approximately 45,400 rooms. The Company also holds non-controlling interests in six domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The Luxury Collection®, Hyatt®, Fairmont®, Hilton®, Four Seasons®, Swissôtel®, ibis® and Novotel®, as well as independent brands. For additional information, please visit the Company’s website at www.hosthotels.com.
Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements include forecast results and are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “plan,” “predict,” “project,” “will,” “continue” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the duration and scope of the COVID-19 pandemic and its short and longer-term impact on the demand for travel, transient and group business, and levels of consumer confidence; actions governments, businesses and individuals take in response to the pandemic, including limiting or banning travel or the size of gatherings; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies, travel, and economic activity, including the duration and magnitude of its impact on unemployment rates, business investment and consumer discretionary spending; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in U.S. markets where we own hotels and a worsening of economic conditions or low levels of economic growth in these markets; the effects of steps we
PAGE 5 OF 25
HOST HOTELS & RESORTS, INC. NEWS RELEASE | NOVEMBER 3, 2021 |
and our hotel managers take to reduce operating costs in response to the COVID-19 pandemic; other changes (apart from the COVID-19 pandemic) in national and local economic and business conditions and other factors such as natural disasters and weather that will affect occupancy rates at our hotels and the demand for hotel products and services; the impact of geopolitical developments outside the U.S. on lodging demand; volatility in global financial and credit markets; operating risks associated with the hotel business; risks and limitations in our operating flexibility associated with the level of our indebtedness and our ability to meet covenants in our debt agreements; risks associated with our relationships with property managers and joint venture partners; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; the effects of hotel renovations on our hotel occupancy and financial results; our ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; risks associated with our ability to complete acquisitions and develop new properties and the risks that acquisitions and new developments may not perform in accordance with our expectations; our ability to continue to satisfy complex rules in order for us to remain a REIT for federal income tax purposes; risks associated with our ability to effectuate our dividend policy, including factors such as operating results and the economic outlook influencing our board’s decision whether to pay further dividends at levels previously disclosed or to use available cash to make special dividends; and other risks and uncertainties associated with our business described in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of November 3, 2021 and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
* This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks has any responsibility or liability for any information contained in this press release.
*** Tables to Follow ***
PAGE 6 OF 25
HOST HOTELS & RESORTS, INC. NEWS RELEASE | NOVEMBER 3, 2021 |
Host Hotels & Resorts, Inc., herein referred to as “we,” “Host Inc.,” or the “Company,” is a self-managed and self-administered real estate investment trust that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resorts, L.P. (“Host LP”), of which we are the sole general partner. When distinguishing between Host Inc. and Host LP, the primary difference is approximately 1% of the partnership interests in Host LP held by outside partners as of September 30, 2021, which is non-controlling interests in Host LP in our consolidated balance sheets and is included in net (income) loss attributable to non-controlling interests in our consolidated statements of operations. Readers are encouraged to find further detail regarding our organizational structure in our annual report on Form 10-K.
2021 OPERATING RESULTS |
| PAGE NO. |
Condensed Consolidated Balance Sheets (unaudited) September 30, 2021 and December 31, 2020 |
| 8 |
Condensed Consolidated Statements of Operations (unaudited) Quarter and Year-to-date ended September 30, 2021 and 2020 |
| 9 |
Earnings (Loss) per Common Share (unaudited) Quarter and Year-to-date ended September 30, 2021 and 2020 |
| 10 |
Hotel Operating Data |
|
|
Hotel Operating Data for Consolidated Hotels (by Location) |
| 11 |
|
|
|
Schedule of All Owned Hotel Pro Forma Results |
| 15 |
Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre |
| 20 |
Reconciliation of Diluted Earnings (Loss) per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share |
| 21 |
Notes to Financial Information |
| 22 |
PAGE 7 OF 25
HOST HOTELS & RESORTS, INC.
Condensed Consolidated Balance Sheets
(unaudited, in millions, except shares and per share amounts)
|
| September 30, |
|
| December 31, |
| ||
|
|
|
|
|
|
| ||
ASSETS |
| |||||||
Property and equipment, net |
| $ | 10,124 |
|
| $ | 9,416 |
|
Right-of-use assets |
|
| 559 |
|
|
| 597 |
|
Assets held for sale |
|
| 280 |
|
|
| — |
|
Due from managers |
|
| 58 |
|
|
| 22 |
|
Advances to and investments in affiliates |
|
| 62 |
|
|
| 21 |
|
Furniture, fixtures and equipment replacement fund |
|
| 138 |
|
|
| 139 |
|
Other |
|
| 453 |
|
|
| 360 |
|
Cash and cash equivalents |
|
| 1,038 |
|
|
| 2,335 |
|
Total assets |
| $ | 12,712 |
|
| $ | 12,890 |
|
|
|
|
|
|
|
| ||
LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY |
| |||||||
Debt⁽¹⁾ |
|
|
|
|
|
| ||
Senior notes |
| $ | 3,068 |
|
| $ | 3,065 |
|
Credit facility, including the term loans of $997 |
|
| 2,472 |
|
|
| 2,471 |
|
Other debt |
|
| 5 |
|
|
| 5 |
|
Total debt |
|
| 5,545 |
|
|
| 5,541 |
|
Lease liabilities |
|
| 572 |
|
|
| 610 |
|
Accounts payable and accrued expenses |
|
| 91 |
|
|
| 71 |
|
Due to managers |
|
| 55 |
|
|
| 64 |
|
Liabilities held for sale |
|
| 37 |
|
|
| — |
|
Other |
|
| 167 |
|
|
| 170 |
|
Total liabilities |
|
| 6,467 |
|
|
| 6,456 |
|
|
|
|
|
|
|
| ||
Redeemable non-controlling interests - Host Hotels & Resorts, L.P. |
|
| 119 |
|
|
| 108 |
|
|
|
|
|
|
|
| ||
Host Hotels & Resorts, Inc. stockholders’ equity: |
|
|
|
|
|
| ||
Common stock, par value $.01, 1,050 million shares authorized, |
|
| 7 |
|
|
| 7 |
|
Additional paid-in capital |
|
| 7,700 |
|
|
| 7,568 |
|
Accumulated other comprehensive loss |
|
| (75 | ) |
|
| (74 | ) |
Deficit |
|
| (1,511 | ) |
|
| (1,180 | ) |
Total equity of Host Hotels & Resorts, Inc. stockholders |
|
| 6,121 |
|
|
| 6,321 |
|
Non-redeemable non-controlling interests—other consolidated |
|
| 5 |
|
|
| 5 |
|
Total equity |
|
| 6,126 |
|
|
| 6,326 |
|
Total liabilities, non-controlling interests and equity |
| $ | 12,712 |
|
| $ | 12,890 |
|
___________ |
|
|
|
|
|
|
PAGE 8 OF 25
HOST HOTELS & RESORTS, INC.
Condensed Consolidated Statements of Operations
(unaudited, in millions, except per share amounts)
|
| Quarter ended |
|
| Year-to-date ended |
| ||||||||||
|
| 2021 |
|
| 2020 |
|
| 2021 |
|
| 2020 |
| ||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Rooms |
| $ | 557 |
|
| $ | 126 |
|
| $ | 1,237 |
|
| $ | 813 |
|
Food and beverage |
|
| 191 |
|
|
| 31 |
|
|
| 405 |
|
|
| 372 |
|
Other |
|
| 96 |
|
|
| 41 |
|
|
| 250 |
|
|
| 168 |
|
Total revenues |
|
| 844 |
|
|
| 198 |
|
|
| 1,892 |
|
|
| 1,353 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Rooms |
|
| 150 |
|
|
| 69 |
|
|
| 324 |
|
|
| 299 |
|
Food and beverage |
|
| 146 |
|
|
| 72 |
|
|
| 313 |
|
|
| 356 |
|
Other departmental and support expenses |
|
| 252 |
|
|
| 109 |
|
|
| 621 |
|
|
| 541 |
|
Management fees |
|
| 27 |
|
|
| 5 |
|
|
| 59 |
|
|
| 33 |
|
Other property-level expenses |
|
| 82 |
|
|
| 77 |
|
|
| 239 |
|
|
| 240 |
|
Depreciation and amortization |
|
| 263 |
|
|
| 166 |
|
|
| 597 |
|
|
| 498 |
|
Corporate and other expenses⁽¹⁾ |
|
| 24 |
|
|
| 18 |
|
|
| 73 |
|
|
| 68 |
|
Gain on insurance and business interruption settlements |
|
| (5 | ) |
|
| — |
|
|
| (5 | ) |
|
| — |
|
Total operating costs and expenses |
|
| 939 |
|
|
| 516 |
|
|
| 2,221 |
|
|
| 2,035 |
|
Operating loss |
|
| (95 | ) |
|
| (318 | ) |
|
| (329 | ) |
|
| (682 | ) |
Interest income |
|
| 1 |
|
|
| — |
|
|
| 2 |
|
|
| 7 |
|
Interest expense |
|
| (43 | ) |
|
| (66 | ) |
|
| (128 | ) |
|
| (143 | ) |
Other gains |
|
| 2 |
|
|
| — |
|
|
| 4 |
|
|
| 13 |
|
Equity in earnings (losses) of affiliates⁽²⁾ |
|
| 2 |
|
|
| (5 | ) |
|
| 36 |
|
|
| (26 | ) |
Loss before income taxes |
|
| (133 | ) |
|
| (389 | ) |
|
| (415 | ) |
|
| (831 | ) |
Benefit for income taxes⁽³⁾ |
|
| 13 |
|
|
| 73 |
|
|
| 81 |
|
|
| 156 |
|
Net loss |
|
| (120 | ) |
|
| (316 | ) |
|
| (334 | ) |
|
| (675 | ) |
Less: Net loss attributable to non-controlling |
|
| 1 |
|
|
| 3 |
|
|
| 3 |
|
|
| 7 |
|
Net loss attributable to Host Inc. |
| $ | (119 | ) |
| $ | (313 | ) |
| $ | (331 | ) |
| $ | (668 | ) |
Basic and diluted loss per common share |
| $ | (.17 | ) |
| $ | (.44 | ) |
| $ | (.47 | ) |
| $ | (.95 | ) |
___________ |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quarter ended September 30, |
|
| Year-to-date ended September 30, |
| ||||||||||
|
| 2021 |
|
| 2020 |
|
| 2021 |
|
| 2020 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
General and administrative costs |
| $ | 20 |
|
| $ | 14 |
|
| $ | 60 |
|
| $ | 57 |
|
Non-cash stock-based compensation expense |
|
| 4 |
|
|
| 4 |
|
|
| 13 |
|
|
| 11 |
|
Total |
| $ | 24 |
|
| $ | 18 |
|
| $ | 73 |
|
| $ | 68 |
|
PAGE 9 OF 25
HOST HOTELS & RESORTS, INC.
Earnings (Loss) per Common Share
(unaudited, in millions, except per share amounts)
|
| Quarter ended September 30, |
|
| Year-to-date ended September 30, |
| ||||||||||
|
| 2021 |
|
| 2020 |
|
| 2021 |
|
| 2020 |
| ||||
Net loss |
| $ | (120 | ) |
| $ | (316 | ) |
| $ | (334 | ) |
| $ | (675 | ) |
Less: Net loss attributable to non-controlling |
|
| 1 |
|
|
| 3 |
|
|
| 3 |
|
|
| 7 |
|
Net loss attributable to Host Inc. |
| $ | (119 | ) |
| $ | (313 | ) |
| $ | (331 | ) |
| $ | (668 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Basic weighted average shares outstanding |
|
| 713.9 |
|
|
| 705.2 |
|
|
| 709.0 |
|
|
| 706.1 |
|
Diluted weighted average shares outstanding⁽¹⁾ |
|
| 713.9 |
|
|
| 705.2 |
|
|
| 709.0 |
|
|
| 706.1 |
|
Basic and diluted loss per common share |
| $ | (.17 | ) |
| $ | (.44 | ) |
| $ | (.47 | ) |
| $ | (.95 | ) |
___________ |
|
|
|
|
|
|
|
|
|
|
|
|
PAGE 10 OF 25
HOST HOTELS & RESORTS, INC.
Hotel Operating Data for Consolidated Hotels (1)(2)
All Owned Hotels (pro forma) by Location in Constant US$ Compared to 2020
| As of |
| Quarter ended September 30, 2021 |
| Quarter ended September 30, 2020 |
|
|
|
|
| ||||||||||||||||||||||||||
Location | No. of |
| No. of |
| Average |
| Average |
| RevPAR |
| Total RevPAR |
| Average |
| Average |
| RevPAR |
| Total RevPAR |
| Percent |
| Percent |
| ||||||||||||
Maui/Oahu |
| 4 |
|
| 2,007 |
| $ | 514.34 |
|
| 82.8 | % | $ | 425.86 |
| $ | 635.28 |
| $ | 172.74 |
|
| 11.3 | % | $ | 19.47 |
| $ | 25.42 |
|
| 2,087.7 | % |
| 2,399.1 | % |
Jacksonville |
| 1 |
|
| 446 |
|
| 465.60 |
|
| 68.7 |
|
| 319.90 |
|
| 683.35 |
|
| 419.23 |
|
| 43.3 |
|
| 181.67 |
|
| 383.23 |
|
| 76.1 |
|
| 78.3 |
|
Miami |
| 3 |
|
| 1,276 |
|
| 364.54 |
|
| 55.2 |
|
| 201.40 |
|
| 333.79 |
|
| 209.34 |
|
| 26.8 |
|
| 56.08 |
|
| 98.65 |
|
| 259.1 |
|
| 238.3 |
|
Florida Gulf Coast |
| 5 |
|
| 1,842 |
|
| 314.16 |
|
| 45.2 |
|
| 141.93 |
|
| 286.62 |
|
| 288.56 |
|
| 33.7 |
|
| 97.38 |
|
| 194.67 |
|
| 45.7 |
|
| 47.2 |
|
Phoenix |
| 4 |
|
| 1,822 |
|
| 245.88 |
|
| 57.7 |
|
| 141.92 |
|
| 321.83 |
|
| 201.12 |
|
| 22.0 |
|
| 44.33 |
|
| 110.66 |
|
| 220.1 |
|
| 190.8 |
|
Orlando |
| 2 |
|
| 2,448 |
|
| 332.90 |
|
| 37.4 |
|
| 124.35 |
|
| 228.19 |
|
| 433.28 |
|
| 7.0 |
|
| 30.40 |
|
| 63.13 |
|
| 309.1 |
|
| 261.5 |
|
Los Angeles/ |
| 5 |
|
| 2,119 |
|
| 218.60 |
|
| 71.1 |
|
| 155.40 |
|
| 216.04 |
|
| 182.68 |
|
| 26.4 |
|
| 48.15 |
|
| 62.24 |
|
| 222.8 |
|
| 247.1 |
|
Philadelphia |
| 2 |
|
| 810 |
|
| 191.85 |
|
| 79.1 |
|
| 151.74 |
|
| 223.07 |
|
| 147.01 |
|
| 32.2 |
|
| 47.36 |
|
| 68.09 |
|
| 220.4 |
|
| 227.6 |
|
San Diego |
| 3 |
|
| 3,288 |
|
| 247.61 |
|
| 72.1 |
|
| 178.55 |
|
| 281.14 |
|
| 203.85 |
|
| 15.6 |
|
| 31.78 |
|
| 52.66 |
|
| 461.8 |
|
| 433.9 |
|
Houston |
| 4 |
|
| 1,716 |
|
| 149.60 |
|
| 66.6 |
|
| 99.67 |
|
| 133.88 |
|
| 105.12 |
|
| 32.4 |
|
| 34.07 |
|
| 47.93 |
|
| 192.5 |
|
| 179.3 |
|
Atlanta |
| 4 |
|
| 1,682 |
|
| 178.31 |
|
| 56.6 |
|
| 100.94 |
|
| 142.30 |
|
| 139.03 |
|
| 31.6 |
|
| 43.89 |
|
| 60.57 |
|
| 130.0 |
|
| 134.9 |
|
Northern Virginia |
| 3 |
|
| 1,252 |
|
| 169.41 |
|
| 60.6 |
|
| 102.70 |
|
| 156.44 |
|
| 157.90 |
|
| 19.7 |
|
| 31.11 |
|
| 43.91 |
|
| 230.1 |
|
| 256.3 |
|
San Antonio/ |
| 3 |
|
| 1,960 |
|
| 181.37 |
|
| 56.1 |
|
| 101.79 |
|
| 152.09 |
|
| 130.06 |
|
| 15.4 |
|
| 20.04 |
|
| 28.10 |
|
| 408.0 |
|
| 441.3 |
|
Washington, D.C. (CBD) |
| 5 |
|
| 3,238 |
|
| 185.06 |
|
| 37.1 |
|
| 68.65 |
|
| 96.94 |
|
| 163.25 |
|
| 6.3 |
|
| 10.22 |
|
| 12.42 |
|
| 571.6 |
|
| 680.6 |
|
Denver |
| 3 |
|
| 1,340 |
|
| 169.25 |
|
| 65.4 |
|
| 110.75 |
|
| 141.64 |
|
| 122.10 |
|
| 21.5 |
|
| 26.24 |
|
| 34.58 |
|
| 322.0 |
|
| 309.6 |
|
Chicago |
| 4 |
|
| 1,816 |
|
| 191.01 |
|
| 62.4 |
|
| 119.27 |
|
| 149.38 |
|
| 124.78 |
|
| 17.6 |
|
| 21.95 |
|
| 26.96 |
|
| 443.2 |
|
| 454.1 |
|
New York |
| 3 |
|
| 4,261 |
|
| 217.90 |
|
| 46.2 |
|
| 100.72 |
|
| 130.88 |
|
| 187.37 |
|
| 11.0 |
|
| 20.70 |
|
| 23.16 |
|
| 386.5 |
|
| 465.2 |
|
Seattle |
| 2 |
|
| 1,315 |
|
| 202.49 |
|
| 53.5 |
|
| 108.25 |
|
| 130.03 |
|
| 172.32 |
|
| 6.1 |
|
| 10.48 |
|
| 12.33 |
|
| 932.5 |
|
| 954.7 |
|
New Orleans |
| 1 |
|
| 1,333 |
|
| 136.76 |
|
| 54.3 |
|
| 74.30 |
|
| 91.66 |
|
| 112.64 |
|
| 26.6 |
|
| 30.00 |
|
| 35.57 |
|
| 147.7 |
|
| 157.7 |
|
San Francisco/ |
| 7 |
|
| 4,530 |
|
| 163.42 |
|
| 50.0 |
|
| 81.72 |
|
| 104.30 |
|
| 165.35 |
|
| 13.1 |
|
| 21.59 |
|
| 27.13 |
|
| 278.4 |
|
| 284.5 |
|
Boston |
| 3 |
|
| 2,715 |
|
| 204.56 |
|
| 48.1 |
|
| 98.46 |
|
| 117.58 |
|
| 135.30 |
|
| 4.9 |
|
| 6.62 |
|
| 9.43 |
|
| 1,387.8 |
|
| 1,146.4 |
|
Other |
| 8 |
|
| 2,759 |
|
| 252.92 |
|
| 53.8 |
|
| 136.07 |
|
| 189.18 |
|
| 198.70 |
|
| 26.0 |
|
| 51.63 |
|
| 73.67 |
|
| 163.6 |
|
| 156.8 |
|
Domestic |
| 79 |
|
| 45,975 |
|
| 236.65 |
|
| 55.7 |
|
| 131.82 |
|
| 199.00 |
|
| 184.34 |
|
| 17.6 |
|
| 32.40 |
|
| 51.32 |
|
| 306.8 |
|
| 287.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
International |
| 5 |
|
| 1,499 |
|
| 90.99 |
|
| 51.4 |
|
| 46.77 |
|
| 66.43 |
|
| 93.15 |
|
| 11.3 |
|
| 10.56 |
|
| 14.14 |
|
| 342.8 |
|
| 369.8 |
|
All Locations - |
| 84 |
|
| 47,474 |
|
| 232.40 |
|
| 55.6 |
|
| 129.14 |
|
| 194.82 |
|
| 182.46 |
|
| 17.4 |
|
| 31.71 |
|
| 50.15 |
|
| 307.3 |
|
| 288.5 |
|
All Owned Hotels (pro forma) in Nominal US$ Compared to 2020
| As of September 30, 2021 |
| Quarter ended September 30, 2021 |
| Quarter ended September 30, 2020 |
|
|
|
|
| ||||||||||||||||||||||||||
| No. of |
| No. of |
| Average |
| Average |
| RevPAR |
| Total RevPAR |
| Average |
| Average |
| RevPAR |
| Total RevPAR |
| Percent |
| Percent |
| ||||||||||||
International |
| 5 |
|
| 1,499 |
| $ | 90.99 |
|
| 51.4 | % | $ | 46.77 |
| $ | 66.43 |
| $ | 88.93 |
|
| 11.3 | % | $ | 10.08 |
| $ | 13.50 |
|
| 363.8 | % |
| 392.0 | % |
Domestic |
| 79 |
|
| 45,975 |
|
| 236.65 |
|
| 55.7 |
|
| 131.82 |
|
| 199.00 |
|
| 184.34 |
|
| 17.6 |
|
| 32.40 |
|
| 51.32 |
|
| 306.8 |
|
| 287.7 |
|
All Locations |
| 84 |
|
| 47,474 |
|
| 232.40 |
|
| 55.6 |
|
| 129.14 |
|
| 194.82 |
|
| 182.37 |
|
| 17.4 |
|
| 31.69 |
|
| 50.13 |
|
| 307.5 |
|
| 288.7 |
|
PAGE 11 OF 25
HOST HOTELS & RESORTS, INC.
Hotel Operating Data for Consolidated Hotels (1)(2) (cont.)
All Owned Hotels (pro forma) by Location in Constant US$ Compared to 2019
| As of September 30, 2021 |
| Quarter ended September 30, 2021 |
| Quarter ended September 30, 2019 |
|
|
|
|
| ||||||||||||||||||||||||||
Location | No. of |
| No. of |
| Average |
| Average |
| RevPAR |
| Total RevPAR |
| Average |
| Average |
| RevPAR |
| Total RevPAR |
| Percent |
| Percent |
| ||||||||||||
Maui/Oahu |
| 4 |
|
| 2,007 |
| $ | 514.34 |
|
| 82.8 | % | $ | 425.86 |
| $ | 635.28 |
| $ | 385.51 |
|
| 91.5 | % | $ | 352.78 |
| $ | 554.15 |
|
| 20.7 | % |
| 14.6 | % |
Jacksonville |
| 1 |
|
| 446 |
|
| 465.60 |
|
| 68.7 |
|
| 319.90 |
|
| 683.35 |
|
| 363.69 |
|
| 69.0 |
|
| 251.05 |
|
| 516.90 |
|
| 27.4 |
|
| 32.2 |
|
Miami |
| 3 |
|
| 1,276 |
|
| 364.54 |
|
| 55.2 |
|
| 201.40 |
|
| 333.79 |
|
| 235.65 |
|
| 73.9 |
|
| 174.18 |
|
| 294.09 |
|
| 15.6 |
|
| 13.5 |
|
Florida Gulf Coast |
| 5 |
|
| 1,842 |
|
| 314.16 |
|
| 45.2 |
|
| 141.93 |
|
| 286.62 |
|
| 242.93 |
|
| 61.6 |
|
| 149.63 |
|
| 302.07 |
|
| (5.1 | ) |
| (5.1 | ) |
Phoenix |
| 4 |
|
| 1,822 |
|
| 245.88 |
|
| 57.7 |
|
| 141.92 |
|
| 321.83 |
|
| 197.07 |
|
| 57.9 |
|
| 114.19 |
|
| 287.59 |
|
| 24.3 |
|
| 11.9 |
|
Orlando |
| 2 |
|
| 2,448 |
|
| 332.90 |
|
| 37.4 |
|
| 124.35 |
|
| 228.19 |
|
| 250.13 |
|
| 61.0 |
|
| 152.55 |
|
| 315.38 |
|
| (18.5 | ) |
| (27.6 | ) |
Los Angeles/ |
| 5 |
|
| 2,119 |
|
| 218.60 |
|
| 71.1 |
|
| 155.40 |
|
| 216.04 |
|
| 229.84 |
|
| 86.3 |
|
| 198.43 |
|
| 289.80 |
|
| (21.7 | ) |
| (25.5 | ) |
Philadelphia |
| 2 |
|
| 810 |
|
| 191.85 |
|
| 79.1 |
|
| 151.74 |
|
| 223.07 |
|
| 207.13 |
|
| 88.2 |
|
| 182.60 |
|
| 295.52 |
|
| (16.9 | ) |
| (24.5 | ) |
San Diego |
| 3 |
|
| 3,288 |
|
| 247.61 |
|
| 72.1 |
|
| 178.55 |
|
| 281.14 |
|
| 256.92 |
|
| 83.5 |
|
| 214.41 |
|
| 372.78 |
|
| (16.7 | ) |
| (24.6 | ) |
Houston |
| 4 |
|
| 1,716 |
|
| 149.60 |
|
| 66.6 |
|
| 99.67 |
|
| 133.88 |
|
| 170.32 |
|
| 67.0 |
|
| 114.07 |
|
| 159.84 |
|
| (12.6 | ) |
| (16.2 | ) |
Atlanta |
| 4 |
|
| 1,682 |
|
| 178.31 |
|
| 56.6 |
|
| 100.94 |
|
| 142.30 |
|
| 168.37 |
|
| 85.6 |
|
| 144.09 |
|
| 219.82 |
|
| (29.9 | ) |
| (35.3 | ) |
Northern Virginia |
| 3 |
|
| 1,252 |
|
| 169.41 |
|
| 60.6 |
|
| 102.70 |
|
| 156.44 |
|
| 199.70 |
|
| 72.7 |
|
| 145.09 |
|
| 217.46 |
|
| (29.2 | ) |
| (28.1 | ) |
San Antonio/ |
| 3 |
|
| 1,960 |
|
| 181.37 |
|
| 56.1 |
|
| 101.79 |
|
| 152.09 |
|
| 171.99 |
|
| 70.8 |
|
| 121.83 |
|
| 182.42 |
|
| (16.4 | ) |
| (16.6 | ) |
Washington, D.C. (CBD) |
| 5 |
|
| 3,238 |
|
| 185.06 |
|
| 37.1 |
|
| 68.65 |
|
| 96.94 |
|
| 211.15 |
|
| 84.4 |
|
| 178.19 |
|
| 254.63 |
|
| (61.5 | ) |
| (61.9 | ) |
Denver |
| 3 |
|
| 1,340 |
|
| 169.25 |
|
| 65.4 |
|
| 110.75 |
|
| 141.64 |
|
| 184.28 |
|
| 84.5 |
|
| 155.64 |
|
| 218.16 |
|
| (28.8 | ) |
| (35.1 | ) |
Chicago |
| 4 |
|
| 1,816 |
|
| 191.01 |
|
| 62.4 |
|
| 119.27 |
|
| 149.38 |
|
| 220.91 |
|
| 85.5 |
|
| 188.78 |
|
| 264.29 |
|
| (36.8 | ) |
| (43.5 | ) |
New York |
| 3 |
|
| 4,261 |
|
| 217.90 |
|
| 46.2 |
|
| 100.72 |
|
| 130.88 |
|
| 271.11 |
|
| 92.0 |
|
| 249.40 |
|
| 341.59 |
|
| (59.6 | ) |
| (61.7 | ) |
Seattle |
| 2 |
|
| 1,315 |
|
| 202.49 |
|
| 53.5 |
|
| 108.25 |
|
| 130.03 |
|
| 260.45 |
|
| 90.2 |
|
| 234.96 |
|
| 291.64 |
|
| (53.9 | ) |
| (55.4 | ) |
New Orleans |
| 1 |
|
| 1,333 |
|
| 136.76 |
|
| 54.3 |
|
| 74.30 |
|
| 91.66 |
|
| 156.82 |
|
| 77.0 |
|
| 120.78 |
|
| 175.05 |
|
| (38.5 | ) |
| (47.6 | ) |
San Francisco/ |
| 7 |
|
| 4,530 |
|
| 163.42 |
|
| 50.0 |
|
| 81.72 |
|
| 104.30 |
|
| 266.18 |
|
| 84.2 |
|
| 224.20 |
|
| 301.99 |
|
| (63.6 | ) |
| (65.5 | ) |
Boston |
| 3 |
|
| 2,715 |
|
| 204.56 |
|
| 48.1 |
|
| 98.46 |
|
| 117.58 |
|
| 243.00 |
|
| 91.1 |
|
| 221.28 |
|
| 291.41 |
|
| (55.5 | ) |
| (59.6 | ) |
Other |
| 8 |
|
| 2,759 |
|
| 252.92 |
|
| 53.8 |
|
| 136.07 |
|
| 189.18 |
|
| 199.21 |
|
| 80.2 |
|
| 159.70 |
|
| 245.36 |
|
| (14.8 | ) |
| (22.9 | ) |
Domestic |
| 79 |
|
| 45,975 |
|
| 236.65 |
|
| 55.7 |
|
| 131.82 |
|
| 199.00 |
|
| 236.51 |
|
| 80.5 |
|
| 190.47 |
|
| 291.96 |
|
| (30.8 | ) |
| (31.8 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
International |
| 5 |
|
| 1,499 |
|
| 90.99 |
|
| 51.4 |
|
| 46.77 |
|
| 66.43 |
|
| 147.24 |
|
| 75.9 |
|
| 111.82 |
|
| 155.21 |
|
| (58.2 | ) |
| (57.2 | ) |
All Locations - |
| 84 |
|
| 47,474 |
|
| 232.40 |
|
| 55.6 |
|
| 129.14 |
|
| 194.82 |
|
| 233.84 |
|
| 80.4 |
|
| 187.97 |
|
| 287.63 |
|
| (31.3 | ) |
| (32.3 | ) |
All Owned Hotels (pro forma) in Nominal US$ Compared to 2019
| As of September 30, 2021 |
| Quarter ended September 30, 2021 |
| Quarter ended September 30, 2019 |
|
|
|
|
| ||||||||||||||||||||||||||
| No. of |
| No. of |
| Average |
| Average |
| RevPAR |
| Total RevPAR |
| Average |
| Average |
| RevPAR |
| Total RevPAR |
| Percent |
| Percent |
| ||||||||||||
International |
| 5 |
|
| 1,499 |
| $ | 90.99 |
|
| 51.4 | % | $ | 46.77 |
| $ | 66.43 |
| $ | 159.14 |
|
| 75.9 | % | $ | 120.86 |
| $ | 166.88 |
|
| (61.3 | )% |
| (60.2 | )% |
Domestic |
| 79 |
|
| 45,975 |
|
| 236.65 |
|
| 55.7 |
|
| 131.82 |
|
| 199.00 |
|
| 236.51 |
|
| 80.5 |
|
| 190.47 |
|
| 291.96 |
|
| (30.8 | ) |
| (31.8 | ) |
All Locations |
| 84 |
|
| 47,474 |
|
| 232.40 |
|
| 55.6 |
|
| 129.14 |
|
| 194.82 |
|
| 234.20 |
|
| 80.4 |
|
| 188.26 |
|
| 288.00 |
|
| (31.4 | ) |
| (32.4 | ) |
PAGE 12 OF 25
HOST HOTELS & RESORTS, INC.
Hotel Operating Data for Consolidated Hotels (1)(2) (cont.)
All Owned Hotels (pro forma) by Location in Constant US$ Compared to 2020
| As of September 30, 2021 |
| Year-to-date ended September 30, 2021 |
| Year-to-date ended September 30, 2020 |
|
|
|
|
| ||||||||||||||||||||||||||
Location | No. of |
| No. of |
| Average |
| Average |
| RevPAR |
| Total RevPAR |
| Average |
| Average |
| RevPAR |
| Total RevPAR |
| Percent |
| Percent |
| ||||||||||||
Maui/Oahu |
| 4 |
|
| 2,007 |
| $ | 470.97 |
|
| 67.4 | % | $ | 317.20 |
| $ | 480.87 |
| $ | 415.84 |
|
| 29.7 | % | $ | 123.66 |
| $ | 186.54 |
|
| 156.5 | % |
| 157.8 | % |
Jacksonville |
| 1 |
|
| 446 |
|
| 506.77 |
|
| 57.8 |
|
| 293.02 |
|
| 587.76 |
|
| 405.40 |
|
| 42.8 |
|
| 173.66 |
|
| 356.40 |
|
| 68.7 |
|
| 64.9 |
|
Miami |
| 3 |
|
| 1,276 |
|
| 472.94 |
|
| 57.4 |
|
| 271.38 |
|
| 424.17 |
|
| 370.39 |
|
| 35.3 |
|
| 130.64 |
|
| 211.54 |
|
| 107.7 |
|
| 100.5 |
|
Florida Gulf Coast |
| 5 |
|
| 1,842 |
|
| 416.57 |
|
| 54.8 |
|
| 228.24 |
|
| 426.68 |
|
| 369.22 |
|
| 40.7 |
|
| 150.28 |
|
| 314.92 |
|
| 51.9 |
|
| 35.5 |
|
Phoenix |
| 4 |
|
| 1,822 |
|
| 301.23 |
|
| 56.5 |
|
| 170.12 |
|
| 346.53 |
|
| 317.49 |
|
| 32.0 |
|
| 101.46 |
|
| 238.55 |
|
| 67.7 |
|
| 45.3 |
|
Orlando |
| 2 |
|
| 2,448 |
|
| 398.72 |
|
| 27.3 |
|
| 108.98 |
|
| 196.25 |
|
| 347.84 |
|
| 21.5 |
|
| 74.64 |
|
| 159.82 |
|
| 46.0 |
|
| 22.8 |
|
Los Angeles/ |
| 5 |
|
| 2,119 |
|
| 190.62 |
|
| 53.1 |
|
| 101.25 |
|
| 138.42 |
|
| 204.60 |
|
| 33.9 |
|
| 69.42 |
|
| 100.22 |
|
| 45.9 |
|
| 38.1 |
|
Philadelphia |
| 2 |
|
| 810 |
|
| 169.58 |
|
| 58.7 |
|
| 99.52 |
|
| 147.38 |
|
| 160.15 |
|
| 35.2 |
|
| 56.35 |
|
| 88.08 |
|
| 76.6 |
|
| 67.3 |
|
San Diego |
| 3 |
|
| 3,288 |
|
| 218.39 |
|
| 45.3 |
|
| 98.85 |
|
| 155.68 |
|
| 234.30 |
|
| 26.4 |
|
| 61.82 |
|
| 120.05 |
|
| 59.9 |
|
| 29.7 |
|
Houston |
| 4 |
|
| 1,716 |
|
| 140.32 |
|
| 59.7 |
|
| 83.73 |
|
| 113.03 |
|
| 145.80 |
|
| 35.9 |
|
| 52.30 |
|
| 76.89 |
|
| 60.1 |
|
| 47.0 |
|
Atlanta |
| 4 |
|
| 1,682 |
|
| 170.45 |
|
| 48.0 |
|
| 81.83 |
|
| 111.31 |
|
| 171.23 |
|
| 34.7 |
|
| 59.48 |
|
| 91.63 |
|
| 37.6 |
|
| 21.5 |
|
Northern Virginia |
| 3 |
|
| 1,252 |
|
| 161.62 |
|
| 44.3 |
|
| 71.60 |
|
| 107.52 |
|
| 187.00 |
|
| 26.7 |
|
| 50.00 |
|
| 79.88 |
|
| 43.2 |
|
| 34.6 |
|
San Antonio/ |
| 3 |
|
| 1,960 |
|
| 162.63 |
|
| 43.8 |
|
| 71.26 |
|
| 103.90 |
|
| 176.22 |
|
| 23.1 |
|
| 40.72 |
|
| 65.85 |
|
| 75.0 |
|
| 57.8 |
|
Washington, D.C. (CBD) |
| 5 |
|
| 3,238 |
|
| 161.96 |
|
| 42.2 |
|
| 68.41 |
|
| 81.26 |
|
| 223.18 |
|
| 21.5 |
|
| 48.07 |
|
| 68.76 |
|
| 42.3 |
|
| 18.2 |
|
Denver |
| 3 |
|
| 1,340 |
|
| 149.35 |
|
| 42.1 |
|
| 62.95 |
|
| 80.24 |
|
| 145.92 |
|
| 26.5 |
|
| 38.63 |
|
| 56.80 |
|
| 63.0 |
|
| 41.3 |
|
Chicago |
| 4 |
|
| 1,816 |
|
| 168.03 |
|
| 37.4 |
|
| 62.92 |
|
| 77.59 |
|
| 134.05 |
|
| 25.0 |
|
| 33.45 |
|
| 45.13 |
|
| 88.1 |
|
| 71.9 |
|
New York |
| 3 |
|
| 4,261 |
|
| 189.90 |
|
| 31.7 |
|
| 60.17 |
|
| 75.05 |
|
| 190.05 |
|
| 32.4 |
|
| 61.49 |
|
| 87.59 |
|
| (2.1 | ) |
| (14.3 | ) |
Seattle |
| 2 |
|
| 1,315 |
|
| 188.47 |
|
| 27.8 |
|
| 52.43 |
|
| 63.79 |
|
| 191.36 |
|
| 20.4 |
|
| 38.98 |
|
| 55.62 |
|
| 34.5 |
|
| 14.7 |
|
New Orleans |
| 1 |
|
| 1,333 |
|
| 128.95 |
|
| 37.6 |
|
| 48.51 |
|
| 65.71 |
|
| 176.44 |
|
| 30.6 |
|
| 54.04 |
|
| 78.28 |
|
| (10.2 | ) |
| (16.1 | ) |
San Francisco/ |
| 7 |
|
| 4,530 |
|
| 153.68 |
|
| 31.5 |
|
| 48.40 |
|
| 62.82 |
|
| 266.39 |
|
| 25.5 |
|
| 67.87 |
|
| 98.41 |
|
| (28.7 | ) |
| (36.2 | ) |
Boston |
| 3 |
|
| 2,715 |
|
| 180.00 |
|
| 25.7 |
|
| 46.18 |
|
| 56.54 |
|
| 173.40 |
|
| 19.3 |
|
| 33.48 |
|
| 50.97 |
|
| 37.9 |
|
| 10.9 |
|
Other |
| 8 |
|
| 2,759 |
|
| 245.69 |
|
| 43.7 |
|
| 107.40 |
|
| 151.39 |
|
| 187.25 |
|
| 32.7 |
|
| 61.21 |
|
| 88.43 |
|
| 75.5 |
|
| 71.2 |
|
Domestic |
| 79 |
|
| 45,975 |
|
| 240.30 |
|
| 42.5 |
|
| 102.15 |
|
| 156.04 |
|
| 235.37 |
|
| 28.5 |
|
| 67.02 |
|
| 111.88 |
|
| 52.4 |
|
| 39.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
International |
| 5 |
|
| 1,499 |
|
| 85.10 |
|
| 28.0 |
|
| 23.85 |
|
| 34.15 |
|
| 119.06 |
|
| 24.3 |
|
| 28.94 |
|
| 43.76 |
|
| (17.6 | ) |
| (22.0 | ) |
All Locations - |
| 84 |
|
| 47,474 |
|
| 237.03 |
|
| 42.1 |
|
| 99.68 |
|
| 152.19 |
|
| 232.21 |
|
| 28.3 |
|
| 65.82 |
|
| 109.72 |
|
| 51.5 |
|
| 38.7 |
|
All Owned Hotels (pro forma) in Nominal US$ Compared to 2020
| As of September 30, 2021 |
| Year-to-date ended September 30, 2021 |
| Year-to-date ended September 30, 2020 |
|
|
|
|
| ||||||||||||||||||||||||||
| No. of |
| No. of |
| Average |
| Average |
| RevPAR |
| Total RevPAR |
| Average |
| Average |
| RevPAR |
| Total RevPAR |
| Percent |
| Percent |
| ||||||||||||
International |
| 5 |
|
| 1,499 |
| $ | 85.10 |
|
| 28.0 | % | $ | 23.85 |
| $ | 34.15 |
| $ | 121.49 |
|
| 24.3 | % | $ | 29.53 |
| $ | 44.01 |
|
| (19.3 | )% |
| (22.4 | )% |
Domestic |
| 79 |
|
| 45,975 |
|
| 240.30 |
|
| 42.5 |
|
| 102.15 |
|
| 156.04 |
|
| 235.37 |
|
| 28.5 |
|
| 67.02 |
|
| 111.88 |
|
| 52.4 |
|
| 39.5 |
|
All Locations |
| 84 |
|
| 47,474 |
|
| 237.03 |
|
| 42.1 |
|
| 99.68 |
|
| 152.19 |
|
| 232.27 |
|
| 28.3 |
|
| 65.84 |
|
| 109.73 |
|
| 51.4 |
|
| 38.7 |
|
PAGE 13 OF 25
HOST HOTELS & RESORTS, INC.
Hotel Operating Data for Consolidated Hotels (1)(2) (cont.)
All Owned Hotels (pro forma) by Location in Constant US$ Compared to 2019
| As of September 30, 2021 |
| Year-to-date ended September 30, 2021 |
| Year-to-date ended September 30, 2019 |
|
|
|
|
| ||||||||||||||||||||||||||
Location | No. of |
| No. of |
| Average |
| Average |
| RevPAR |
| Total RevPAR |
| Average |
| Average |
| RevPAR |
| Total RevPAR |
| Percent |
| Percent |
| ||||||||||||
Maui/Oahu |
| 4 |
|
| 2,007 |
| $ | 470.97 |
|
| 67.4 | % | $ | 317.20 |
| $ | 480.87 |
| $ | 401.92 |
|
| 90.9 | % | $ | 365.45 |
| $ | 577.41 |
|
| (13.2 | )% |
| (16.7 | )% |
Jacksonville |
| 1 |
|
| 446 |
|
| 506.77 |
|
| 57.8 |
|
| 293.02 |
|
| 587.76 |
|
| 383.37 |
|
| 77.2 |
|
| 296.02 |
|
| 652.91 |
|
| (1.0 | ) |
| (10.0 | ) |
Miami |
| 3 |
|
| 1,276 |
|
| 472.94 |
|
| 57.4 |
|
| 271.38 |
|
| 424.17 |
|
| 318.31 |
|
| 80.1 |
|
| 254.98 |
|
| 401.39 |
|
| 6.4 |
|
| 5.7 |
|
Florida Gulf Coast |
| 5 |
|
| 1,842 |
|
| 416.57 |
|
| 54.8 |
|
| 228.24 |
|
| 426.68 |
|
| 340.73 |
|
| 72.8 |
|
| 247.94 |
|
| 507.99 |
|
| (7.9 | ) |
| (16.0 | ) |
Phoenix |
| 4 |
|
| 1,822 |
|
| 301.23 |
|
| 56.5 |
|
| 170.12 |
|
| 346.53 |
|
| 292.22 |
|
| 71.7 |
|
| 209.42 |
|
| 472.19 |
|
| (18.8 | ) |
| (26.6 | ) |
Orlando |
| 2 |
|
| 2,448 |
|
| 398.72 |
|
| 27.3 |
|
| 108.98 |
|
| 196.25 |
|
| 285.49 |
|
| 70.7 |
|
| 201.76 |
|
| 412.06 |
|
| (46.0 | ) |
| (52.4 | ) |
Los Angeles/ |
| 5 |
|
| 2,119 |
|
| 190.62 |
|
| 53.1 |
|
| 101.25 |
|
| 138.42 |
|
| 223.42 |
|
| 86.0 |
|
| 192.10 |
|
| 285.12 |
|
| (47.3 | ) |
| (51.5 | ) |
Philadelphia |
| 2 |
|
| 810 |
|
| 169.58 |
|
| 58.7 |
|
| 99.52 |
|
| 147.38 |
|
| 216.10 |
|
| 85.4 |
|
| 184.46 |
|
| 301.70 |
|
| (46.0 | ) |
| (51.1 | ) |
San Diego |
| 3 |
|
| 3,288 |
|
| 218.39 |
|
| 45.3 |
|
| 98.85 |
|
| 155.68 |
|
| 255.81 |
|
| 81.2 |
|
| 207.62 |
|
| 372.41 |
|
| (52.4 | ) |
| (58.2 | ) |
Houston |
| 4 |
|
| 1,716 |
|
| 140.32 |
|
| 59.7 |
|
| 83.73 |
|
| 113.03 |
|
| 178.46 |
|
| 72.4 |
|
| 129.22 |
|
| 184.58 |
|
| (35.2 | ) |
| (38.8 | ) |
Atlanta |
| 4 |
|
| 1,682 |
|
| 170.45 |
|
| 48.0 |
|
| 81.83 |
|
| 111.31 |
|
| 193.72 |
|
| 79.7 |
|
| 154.41 |
|
| 241.44 |
|
| (47.0 | ) |
| (53.9 | ) |
Northern Virginia |
| 3 |
|
| 1,252 |
|
| 161.62 |
|
| 44.3 |
|
| 71.60 |
|
| 107.52 |
|
| 208.03 |
|
| 72.1 |
|
| 150.02 |
|
| 245.90 |
|
| (52.3 | ) |
| (56.3 | ) |
San Antonio/ |
| 3 |
|
| 1,960 |
|
| 162.63 |
|
| 43.8 |
|
| 71.26 |
|
| 103.90 |
|
| 192.68 |
|
| 76.3 |
|
| 146.98 |
|
| 225.63 |
|
| (51.5 | ) |
| (54.0 | ) |
Washington, D.C. (CBD) |
| 5 |
|
| 3,238 |
|
| 161.96 |
|
| 42.2 |
|
| 68.41 |
|
| 81.26 |
|
| 246.65 |
|
| 83.1 |
|
| 204.99 |
|
| 293.15 |
|
| (66.6 | ) |
| (72.3 | ) |
Denver |
| 3 |
|
| 1,340 |
|
| 149.35 |
|
| 42.1 |
|
| 62.95 |
|
| 80.24 |
|
| 175.15 |
|
| 76.3 |
|
| 133.61 |
|
| 195.92 |
|
| (52.9 | ) |
| (59.0 | ) |
Chicago |
| 4 |
|
| 1,816 |
|
| 168.03 |
|
| 37.4 |
|
| 62.92 |
|
| 77.59 |
|
| 207.76 |
|
| 76.2 |
|
| 158.28 |
|
| 224.27 |
|
| (60.2 | ) |
| (65.4 | ) |
New York |
| 3 |
|
| 4,261 |
|
| 189.90 |
|
| 31.7 |
|
| 60.17 |
|
| 75.05 |
|
| 268.50 |
|
| 83.0 |
|
| 222.99 |
|
| 329.67 |
|
| (73.0 | ) |
| (77.2 | ) |
Seattle |
| 2 |
|
| 1,315 |
|
| 188.47 |
|
| 27.8 |
|
| 52.43 |
|
| 63.79 |
|
| 231.59 |
|
| 84.3 |
|
| 195.17 |
|
| 256.01 |
|
| (73.1 | ) |
| (75.1 | ) |
New Orleans |
| 1 |
|
| 1,333 |
|
| 128.95 |
|
| 37.6 |
|
| 48.51 |
|
| 65.71 |
|
| 188.24 |
|
| 79.9 |
|
| 150.35 |
|
| 219.33 |
|
| (67.7 | ) |
| (70.0 | ) |
San Francisco/ |
| 7 |
|
| 4,530 |
|
| 153.68 |
|
| 31.5 |
|
| 48.40 |
|
| 62.82 |
|
| 279.15 |
|
| 81.5 |
|
| 227.38 |
|
| 315.49 |
|
| (78.7 | ) |
| (80.1 | ) |
Boston |
| 3 |
|
| 2,715 |
|
| 180.00 |
|
| 25.7 |
|
| 46.18 |
|
| 56.54 |
|
| 238.71 |
|
| 82.8 |
|
| 197.72 |
|
| 271.22 |
|
| (76.6 | ) |
| (79.2 | ) |
Other |
| 8 |
|
| 2,759 |
|
| 245.69 |
|
| 43.7 |
|
| 107.40 |
|
| 151.39 |
|
| 193.55 |
|
| 77.3 |
|
| 149.55 |
|
| 224.34 |
|
| (28.2 | ) |
| (32.5 | ) |
Domestic |
| 79 |
|
| 45,975 |
|
| 240.30 |
|
| 42.5 |
|
| 102.15 |
|
| 156.04 |
|
| 252.14 |
|
| 79.7 |
|
| 200.84 |
|
| 320.24 |
|
| (49.1 | ) |
| (51.3 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
International |
| 5 |
|
| 1,499 |
|
| 85.10 |
|
| 28.0 |
|
| 23.85 |
|
| 34.15 |
|
| 142.14 |
|
| 71.1 |
|
| 101.09 |
|
| 147.50 |
|
| (76.4 | ) |
| (76.8 | ) |
All Locations - |
| 84 |
|
| 47,474 |
|
| 237.03 |
|
| 42.1 |
|
| 99.68 |
|
| 152.19 |
|
| 249.02 |
|
| 79.4 |
|
| 197.68 |
|
| 314.77 |
|
| (49.6 | ) |
| (51.7 | ) |
All Owned Hotels (pro forma) in Nominal US$ Compared to 2019
| As of September 30, 2021 |
| Year-to-date ended September 30, 2021 |
| Year-to-date ended September 30, 2019 |
|
|
|
|
| ||||||||||||||||||||||||||
| No. of |
| No. of |
| Average |
| Average |
| RevPAR |
| Total RevPAR |
| Average |
| Average |
| RevPAR |
| Total RevPAR |
| Percent |
| Percent |
| ||||||||||||
International |
| 5 |
|
| 1,499 |
| $ | 85.10 |
|
| 28.0 | % | $ | 23.85 |
| $ | 34.15 |
| $ | 154.30 |
|
| 71.1 | % | $ | 109.74 |
| $ | 159.00 |
|
| (78.3 | )% |
| (78.5 | )% |
Domestic |
| 79 |
|
| 45,975 |
|
| 240.30 |
|
| 42.5 |
|
| 102.15 |
|
| 156.04 |
|
| 252.14 |
|
| 79.7 |
|
| 200.84 |
|
| 320.24 |
|
| (49.1 | ) |
| (51.3 | ) |
All Locations |
| 84 |
|
| 47,474 |
|
| 237.03 |
|
| 42.1 |
|
| 99.68 |
|
| 152.19 |
|
| 249.36 |
|
| 79.4 |
|
| 197.95 |
|
| 315.13 |
|
| (49.6 | ) |
| (51.7 | ) |
___________
N/M = Not meaningful
PAGE 14 OF 25
HOST HOTELS & RESORTS, INC.
Schedule of All Owned Hotel Pro Forma Results (1)
(unaudited, in millions, except hotel statistics)
|
| Quarter ended September 30, |
|
| Year-to-date ended September 30, |
| ||||||||||||||||||
|
| 2021 |
|
| 2020 |
|
| 2019 |
|
| 2021 |
|
| 2020 |
|
| 2019 |
| ||||||
Number of hotels |
|
| 84 |
|
|
| 83 |
|
|
| 83 |
|
|
| 84 |
|
|
| 83 |
|
|
| 83 |
|
Number of rooms |
|
| 47,474 |
|
|
| 47,309 |
|
|
| 47,309 |
|
|
| 47,474 |
|
|
| 47,309 |
|
|
| 47,309 |
|
Change in hotel Total RevPAR - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Constant US$ |
|
| 288.5 | % |
|
| — |
|
|
| — |
|
|
| 38.7 | % |
|
| — |
|
|
| — |
|
Nominal US$ |
|
| 288.7 | % |
|
| — |
|
|
| — |
|
|
| 38.7 | % |
|
| — |
|
|
| — |
|
Change in hotel RevPAR - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Constant US$ |
|
| 307.3 | % |
|
| — |
|
|
| — |
|
|
| 51.5 | % |
|
| — |
|
|
| — |
|
Nominal US$ |
|
| 307.5 | % |
|
| — |
|
|
| — |
|
|
| 51.4 | % |
|
| — |
|
|
| — |
|
Operating profit (loss) margin⁽²⁾ |
|
| (11.3 | )% |
|
| (160.6 | )% |
|
| 10.9 | % |
|
| (17.4 | )% |
|
| (50.4 | )% |
|
| 15.3 | % |
All Owned Hotel Pro Forma |
|
| 23.0 | % |
|
| (44.5 | )% |
|
| 25.3 | % |
|
| 18.4 | % |
|
| (5.6 | )% |
|
| 29.0 | % |
Food and beverage profit margin⁽²⁾ |
|
| 23.6 | % |
|
| (132.3 | )% |
|
| 23.8 | % |
|
| 22.7 | % |
|
| 4.3 | % |
|
| 31.7 | % |
All Owned Hotel Pro Forma food |
|
| 22.9 | % |
|
| (47.4 | )% |
|
| 23.5 | % |
|
| 22.2 | % |
|
| 11.1 | % |
|
| 31.6 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net income (loss) |
| $ | (120 | ) |
| $ | (316 | ) |
| $ | 372 |
|
| $ | (334 | ) |
| $ | (675 | ) |
| $ | 851 |
|
Depreciation and amortization |
|
| 263 |
|
|
| 166 |
|
|
| 165 |
|
|
| 597 |
|
|
| 498 |
|
|
| 501 |
|
Interest expense |
|
| 43 |
|
|
| 66 |
|
|
| 46 |
|
|
| 128 |
|
|
| 143 |
|
|
| 132 |
|
Provision (benefit) for income taxes |
|
| (13 | ) |
|
| (73 | ) |
|
| 4 |
|
|
| (81 | ) |
|
| (156 | ) |
|
| 22 |
|
Gain on sale of property and |
|
| 19 |
|
|
| 23 |
|
|
| (263 | ) |
|
| 31 |
|
|
| 74 |
|
|
| (296 | ) |
Severance expense (reversal) at |
|
| (2 | ) |
|
| 43 |
|
|
| — |
|
|
| (5 | ) |
|
| 44 |
|
|
| — |
|
Pro forma adjustments⁽³⁾ |
|
| 6 |
|
|
| (7 | ) |
|
| (6 | ) |
|
| 28 |
|
|
| (8 | ) |
|
| (29 | ) |
All Owned Hotel Pro Forma |
| $ | 196 |
|
| $ | (98 | ) |
| $ | 318 |
|
| $ | 364 |
|
| $ | (80 | ) |
| $ | 1,181 |
|
PAGE 15 OF 25
HOST HOTELS & RESORTS, INC.
Schedule of All Owned Hotel Pro Forma Results (1) (cont.)
(unaudited, in millions, except hotel statistics)
| Quarter ended September 30, 2021 |
|
| Quarter ended September 30, 2020 |
| ||||||||||||||||||||||||||||||||||
|
|
|
| Adjustments |
|
|
|
|
|
|
|
| Adjustments |
|
|
|
| ||||||||||||||||||||||
| GAAP Results |
|
| Severance at hotel properties |
|
| Pro forma adjustments⁽³⁾ |
|
| Depreciation and corporate level items |
|
| All Owned Hotel Pro Forma Results⁽⁴⁾ |
|
| GAAP Results |
|
| Severance at hotel properties |
|
| Pro forma adjustments⁽³⁾ |
|
| Depreciation and corporate level items |
|
| All Owned Hotel Pro Forma Results⁽⁴⁾ |
| ||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Room | $ | 557 |
|
| $ | — |
|
| $ | 7 |
|
| $ | — |
|
| $ | 564 |
|
| $ | 126 |
|
| $ | — |
|
| $ | 12 |
|
| $ | — |
|
| $ | 138 |
|
Food and |
| 191 |
|
|
| — |
|
|
| 1 |
|
|
| — |
|
|
| 192 |
|
|
| 31 |
|
|
| — |
|
|
| 7 |
|
|
| — |
|
|
| 38 |
|
Other |
| 96 |
|
|
| — |
|
|
| 1 |
|
|
| — |
|
|
| 97 |
|
|
| 41 |
|
|
| — |
|
|
| 3 |
|
|
| — |
|
|
| 44 |
|
Total revenues |
| 844 |
|
|
| — |
|
|
| 9 |
|
|
| — |
|
|
| 853 |
|
|
| 198 |
|
|
| — |
|
|
| 22 |
|
|
| — |
|
|
| 220 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Room |
| 150 |
|
|
| 1 |
|
|
| 1 |
|
|
| — |
|
|
| 152 |
|
|
| 69 |
|
|
| (13 | ) |
|
| 4 |
|
|
| — |
|
|
| 60 |
|
Food and |
| 146 |
|
|
| 1 |
|
|
| 1 |
|
|
| — |
|
|
| 148 |
|
|
| 72 |
|
|
| (24 | ) |
|
| 8 |
|
|
| — |
|
|
| 56 |
|
Other |
| 361 |
|
|
| — |
|
|
| 1 |
|
|
| — |
|
|
| 362 |
|
|
| 191 |
|
|
| (6 | ) |
|
| 17 |
|
|
| — |
|
|
| 202 |
|
Depreciation |
| 263 |
|
|
| — |
|
|
| — |
|
|
| (263 | ) |
|
| — |
|
|
| 166 |
|
|
| — |
|
|
| — |
|
|
| (166 | ) |
|
| — |
|
Corporate and |
| 24 |
|
|
| — |
|
|
| — |
|
|
| (24 | ) |
|
| — |
|
|
| 18 |
|
|
| — |
|
|
| — |
|
|
| (18 | ) |
|
| — |
|
Gain on |
| (5 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (5 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Total expenses |
| 939 |
|
|
| 2 |
|
|
| 3 |
|
|
| (287 | ) |
|
| 657 |
|
|
| 516 |
|
|
| (43 | ) |
|
| 29 |
|
|
| (184 | ) |
|
| 318 |
|
Operating Profit | $ | (95 | ) |
| $ | (2 | ) |
| $ | 6 |
|
| $ | 287 |
|
| $ | 196 |
|
| $ | (318 | ) |
| $ | 43 |
|
| $ | (7 | ) |
| $ | 184 |
|
| $ | (98 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAGE 16 OF 25
HOST HOTELS & RESORTS, INC.
Schedule of All Owned Hotel Pro Forma Results (1) (cont.)
(unaudited, in millions, except hotel statistics)
|
| Quarter ended September 30, 2021 |
|
| Quarter ended September 30, 2019 |
| ||||||||||||||||||||||||||||||
|
|
|
|
| Adjustments |
|
|
|
|
|
|
|
| Adjustments |
|
|
|
| ||||||||||||||||||
|
| GAAP Results |
|
| Severance at hotel properties |
|
| Pro forma adjustments⁽³⁾ |
|
| Depreciation and corporate level items |
|
| All Owned Hotel Pro Forma Results⁽⁴⁾ |
|
| GAAP Results |
|
| Pro forma adjustments⁽³⁾ |
|
| Depreciation and corporate level items |
|
| All Owned Hotel Pro Forma Results⁽⁴⁾ |
| |||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Room |
| $ | 557 |
|
| $ | — |
|
| $ | 7 |
|
| $ | — |
|
| $ | 564 |
|
| $ | 830 |
|
| $ | (11 | ) |
| $ | — |
|
| $ | 819 |
|
Food and |
|
| 191 |
|
|
| — |
|
|
| 1 |
|
|
| — |
|
|
| 192 |
|
|
| 341 |
|
|
| — |
|
|
| — |
|
|
| 341 |
|
Other |
|
| 96 |
|
|
| — |
|
|
| 1 |
|
|
| — |
|
|
| 97 |
|
|
| 91 |
|
|
| 4 |
|
|
| — |
|
|
| 95 |
|
Total revenues |
|
| 844 |
|
|
| — |
|
|
| 9 |
|
|
| — |
|
|
| 853 |
|
|
| 1,262 |
|
|
| (7 | ) |
|
| — |
|
|
| 1,255 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Room |
|
| 150 |
|
|
| 1 |
|
|
| 1 |
|
|
| — |
|
|
| 152 |
|
|
| 221 |
|
|
| (2 | ) |
|
| — |
|
|
| 219 |
|
Food and |
|
| 146 |
|
|
| 1 |
|
|
| 1 |
|
|
| — |
|
|
| 148 |
|
|
| 260 |
|
|
| 1 |
|
|
| — |
|
|
| 261 |
|
Other |
|
| 361 |
|
|
| — |
|
|
| 1 |
|
|
| — |
|
|
| 362 |
|
|
| 457 |
|
|
| — |
|
|
| — |
|
|
| 457 |
|
Depreciation |
|
| 263 |
|
|
| — |
|
|
| — |
|
|
| (263 | ) |
|
| — |
|
|
| 165 |
|
|
| — |
|
|
| (165 | ) |
|
| — |
|
Corporate and |
|
| 24 |
|
|
| — |
|
|
| — |
|
|
| (24 | ) |
|
| — |
|
|
| 26 |
|
|
| — |
|
|
| (26 | ) |
|
| — |
|
Gain on insurance |
|
| (5 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (5 | ) |
|
| (4 | ) |
|
| — |
|
|
| 4 |
|
|
| — |
|
Total expenses |
|
| 939 |
|
|
| 2 |
|
|
| 3 |
|
|
| (287 | ) |
|
| 657 |
|
|
| 1,125 |
|
|
| (1 | ) |
|
| (187 | ) |
|
| 937 |
|
Operating Profit |
| $ | (95 | ) |
| $ | (2 | ) |
| $ | 6 |
|
| $ | 287 |
|
| $ | 196 |
|
| $ | 137 |
|
| $ | (6 | ) |
| $ | 187 |
|
| $ | 318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAGE 17 OF 25
HOST HOTELS & RESORTS, INC.
Schedule of All Owned Hotel Pro Forma Results (1) (cont.)
(unaudited, in millions, except hotel statistics)
|
| Year-to-date ended September 30, 2021 |
|
| Year-to-date ended September 30, 2020 |
| ||||||||||||||||||||||||||||||||||
|
|
|
|
| Adjustments |
|
|
|
|
|
|
|
| Adjustments |
|
|
|
| ||||||||||||||||||||||
|
| GAAP Results |
|
| Severance at hotel properties |
|
| Pro forma adjustments⁽³⁾ |
|
| Depreciation and corporate level items |
|
| All Owned Hotel Pro Forma Results⁽⁴⁾ |
|
| GAAP Results |
|
| Severance at hotel properties |
|
| Pro forma adjustments⁽³⁾ |
|
| Depreciation and corporate level items |
|
| All Owned Hotel Pro Forma Results⁽⁴⁾ |
| ||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Room |
| $ | 1,237 |
|
| $ | — |
|
| $ | 55 |
|
| $ | — |
|
| $ | 1,292 |
|
| $ | 813 |
|
| $ | — |
|
| $ | 41 |
|
| $ | — |
|
| $ | 854 |
|
Food and |
|
| 405 |
|
|
| — |
|
|
| 18 |
|
|
| — |
|
|
| 423 |
|
|
| 372 |
|
|
| — |
|
|
| 24 |
|
|
| — |
|
|
| 396 |
|
Other |
|
| 250 |
|
|
| — |
|
|
| 13 |
|
|
| — |
|
|
| 263 |
|
|
| 168 |
|
|
| — |
|
|
| 11 |
|
|
| — |
|
|
| 179 |
|
Total revenues |
|
| 1,892 |
|
|
| — |
|
|
| 86 |
|
|
| — |
|
|
| 1,978 |
|
|
| 1,353 |
|
|
| — |
|
|
| 76 |
|
|
| — |
|
|
| 1,429 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Room |
|
| 324 |
|
|
| 1 |
|
|
| 10 |
|
|
| — |
|
|
| 335 |
|
|
| 299 |
|
|
| (13 | ) |
|
| 12 |
|
|
| — |
|
|
| 298 |
|
Food and |
|
| 313 |
|
|
| 1 |
|
|
| 15 |
|
|
| — |
|
|
| 329 |
|
|
| 356 |
|
|
| (24 | ) |
|
| 20 |
|
|
| — |
|
|
| 352 |
|
Other |
|
| 919 |
|
|
| 3 |
|
|
| 33 |
|
|
| — |
|
|
| 955 |
|
|
| 814 |
|
|
| (7 | ) |
|
| 52 |
|
|
| — |
|
|
| 859 |
|
Depreciation |
|
| 597 |
|
|
| — |
|
|
| — |
|
|
| (597 | ) |
|
| — |
|
|
| 498 |
|
|
| — |
|
|
| — |
|
|
| (498 | ) |
|
| — |
|
Corporate and |
|
| 73 |
|
|
| — |
|
|
| — |
|
|
| (73 | ) |
|
| — |
|
|
| 68 |
|
|
| — |
|
|
| — |
|
|
| (68 | ) |
|
| — |
|
Gain on |
|
| (5 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (5 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Total expenses |
|
| 2,221 |
|
|
| 5 |
|
|
| 58 |
|
|
| (670 | ) |
|
| 1,614 |
|
|
| 2,035 |
|
|
| (44 | ) |
|
| 84 |
|
|
| (566 | ) |
|
| 1,509 |
|
Operating Profit |
| $ | (329 | ) |
| $ | (5 | ) |
| $ | 28 |
|
| $ | 670 |
|
| $ | 364 |
|
| $ | (682 | ) |
| $ | 44 |
|
| $ | (8 | ) |
| $ | 566 |
|
| $ | (80 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAGE 18 OF 25
HOST HOTELS & RESORTS, INC.
Schedule of All Owned Hotel Pro Forma Results (1) (cont.)
(unaudited, in millions, except hotel statistics)
|
| Year-to-date ended September 30, 2021 |
|
| Year-to-date ended September 30, 2019 |
| ||||||||||||||||||||||||||||||
|
|
|
|
| Adjustments |
|
|
|
|
|
|
|
| Adjustments |
|
|
|
| ||||||||||||||||||
|
| GAAP Results |
|
| Severance at hotel properties |
|
| Pro forma adjustments⁽³⁾ |
|
| Depreciation and corporate level items |
|
| All Owned Hotel Pro Forma Results⁽⁴⁾ |
|
| GAAP Results |
|
| Pro forma adjustments⁽³⁾ |
|
| Depreciation and corporate level items |
|
| All Owned Hotel Pro Forma Results⁽⁴⁾ |
| |||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Room |
| $ | 1,237 |
|
| $ | — |
|
| $ | 55 |
|
| $ | — |
|
| $ | 1,292 |
|
| $ | 2,618 |
|
| $ | (61 | ) |
| $ | — |
|
| $ | 2,557 |
|
Food and |
|
| 405 |
|
|
| — |
|
|
| 18 |
|
|
| — |
|
|
| 423 |
|
|
| 1,223 |
|
|
| (6 | ) |
|
| — |
|
|
| 1,217 |
|
Other |
|
| 250 |
|
|
| — |
|
|
| 13 |
|
|
| — |
|
|
| 263 |
|
|
| 294 |
|
|
| 7 |
|
|
| — |
|
|
| 301 |
|
Total revenues |
|
| 1,892 |
|
|
| — |
|
|
| 86 |
|
|
| — |
|
|
| 1,978 |
|
|
| 4,135 |
|
|
| (60 | ) |
|
| — |
|
|
| 4,075 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Room |
|
| 324 |
|
|
| 1 |
|
|
| 10 |
|
|
| — |
|
|
| 335 |
|
|
| 664 |
|
|
| (17 | ) |
|
| — |
|
|
| 647 |
|
Food and |
|
| 313 |
|
|
| 1 |
|
|
| 15 |
|
|
| — |
|
|
| 329 |
|
|
| 835 |
|
|
| (3 | ) |
|
| — |
|
|
| 832 |
|
Other |
|
| 919 |
|
|
| 3 |
|
|
| 33 |
|
|
| — |
|
|
| 955 |
|
|
| 1,426 |
|
|
| (11 | ) |
|
| — |
|
|
| 1,415 |
|
Depreciation |
|
| 597 |
|
|
| — |
|
|
| — |
|
|
| (597 | ) |
|
| — |
|
|
| 501 |
|
|
| — |
|
|
| (501 | ) |
|
| — |
|
Corporate and |
|
| 73 |
|
|
| — |
|
|
| — |
|
|
| (73 | ) |
|
| — |
|
|
| 80 |
|
|
| — |
|
|
| (80 | ) |
|
| — |
|
Gain on insurance |
|
| (5 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (5 | ) |
|
| (4 | ) |
|
| — |
|
|
| 4 |
|
|
| — |
|
Total expenses |
|
| 2,221 |
|
|
| 5 |
|
|
| 58 |
|
|
| (670 | ) |
|
| 1,614 |
|
|
| 3,502 |
|
|
| (31 | ) |
|
| (577 | ) |
|
| 2,894 |
|
Operating Profit |
| $ | (329 | ) |
| $ | (5 | ) |
| $ | 28 |
|
| $ | 670 |
|
| $ | 364 |
|
| $ | 633 |
|
| $ | (29 | ) |
| $ | 577 |
|
| $ | 1,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAGE 19 OF 25
HOST HOTELS & RESORTS, INC.
Reconciliation of Net Income (Loss) to
EBITDA, EBITDAre and Adjusted EBITDAre (1)
(unaudited, in millions)
|
| Quarter ended September 30, |
|
| Year-to-date ended September 30, |
| ||||||||||
|
| 2021 |
|
| 2020 |
|
| 2021 |
|
| 2020 |
| ||||
Net loss⁽²⁾ |
| $ | (120 | ) |
| $ | (316 | ) |
| $ | (334 | ) |
| $ | (675 | ) |
Interest expense |
|
| 43 |
|
|
| 66 |
|
|
| 128 |
|
|
| 143 |
|
Depreciation and amortization |
|
| 171 |
|
|
| 166 |
|
|
| 505 |
|
|
| 498 |
|
Income taxes |
|
| (13 | ) |
|
| (73 | ) |
|
| (81 | ) |
|
| (156 | ) |
EBITDA⁽²⁾ |
|
| 81 |
|
|
| (157 | ) |
|
| 218 |
|
|
| (190 | ) |
Gain on dispositions |
|
| — |
|
|
| (1 | ) |
|
| — |
|
|
| (1 | ) |
Non-cash impairment expense |
|
| 92 |
|
|
| — |
|
|
| 92 |
|
|
| — |
|
Equity investment adjustments: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Equity in (earnings) losses of affiliates |
|
| (2 | ) |
|
| 5 |
|
|
| (36 | ) |
|
| 26 |
|
Pro rata EBITDAre of equity investments⁽³⁾ |
|
| 8 |
|
|
| (1 | ) |
|
| 21 |
|
|
| (15 | ) |
EBITDAre⁽²⁾ |
|
| 179 |
|
|
| (154 | ) |
|
| 295 |
|
|
| (180 | ) |
Adjustments to EBITDAre: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Severance expense (reversal) at hotel properties |
|
| (2 | ) |
|
| 43 |
|
|
| (5 | ) |
|
| 44 |
|
Adjusted EBITDAre⁽²⁾ |
| $ | 177 |
|
| $ | (111 | ) |
| $ | 290 |
|
| $ | (136 | ) |
___________ |
|
|
|
|
|
|
|
|
|
|
|
|
PAGE 20 OF 25
HOST HOTELS & RESORTS, INC.
Reconciliation of Diluted Earnings (Loss) per Common Share to
NAREIT and Adjusted Funds From Operations per Diluted Share (1)
(unaudited, in millions, except per share amounts)
|
| Quarter ended September 30, |
|
| Year-to-date ended September 30, |
| ||||||||||
|
| 2021 |
|
| 2020 |
|
| 2021 |
|
| 2020 |
| ||||
Net loss⁽²⁾ |
| $ | (120 | ) |
| $ | (316 | ) |
| $ | (334 | ) |
| $ | (675 | ) |
Less: Net loss attributable to non-controlling |
|
| 1 |
|
|
| 3 |
|
|
| 3 |
|
|
| 7 |
|
Net loss attributable to Host Inc. |
|
| (119 | ) |
|
| (313 | ) |
|
| (331 | ) |
|
| (668 | ) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Gain on dispositions |
|
| — |
|
|
| (1 | ) |
|
| — |
|
|
| (1 | ) |
Depreciation and amortization |
|
| 171 |
|
|
| 165 |
|
|
| 504 |
|
|
| 496 |
|
Non-cash impairment expense |
|
| 92 |
|
|
| — |
|
|
| 92 |
|
|
| — |
|
Equity investment adjustments: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Equity in (earnings) losses of affiliates |
|
| (2 | ) |
|
| 5 |
|
|
| (36 | ) |
|
| 26 |
|
Pro rata FFO of equity investments⁽³⁾ |
|
| 6 |
|
|
| (4 | ) |
|
| 16 |
|
|
| (21 | ) |
Consolidated partnership adjustments: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
FFO adjustment for non-controlling |
|
| — |
|
|
| — |
|
|
| (1 | ) |
|
| (1 | ) |
FFO adjustments for non-controlling interests |
|
| (3 | ) |
|
| (2 | ) |
|
| (6 | ) |
|
| (5 | ) |
NAREIT FFO⁽²⁾ |
|
| 145 |
|
|
| (150 | ) |
|
| 238 |
|
|
| (174 | ) |
Adjustments to NAREIT FFO: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Loss on debt extinguishment |
|
| — |
|
|
| 27 |
|
|
| — |
|
|
| 28 |
|
Severance expense (reversal) at hotel properties |
|
| (2 | ) |
|
| 43 |
|
|
| (5 | ) |
|
| 44 |
|
Adjusted FFO⁽²⁾ |
| $ | 143 |
|
| $ | (80 | ) |
| $ | 233 |
|
| $ | (102 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
For calculation on a per share basis:⁽⁴⁾ |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Diluted weighted average shares |
| 713.9 |
|
|
| 705.2 |
|
|
| 709.0 |
|
|
| 706.1 |
| |
Assuming issuance of common shares granted |
|
| 1.6 |
|
|
| — |
|
|
| 1.6 |
|
|
| — |
|
Diluted weighted average shares outstanding - |
|
| 715.5 |
|
|
| 705.2 |
|
|
| 710.6 |
|
|
| 706.1 |
|
Diluted loss per common share |
| $ | (.17 | ) |
| $ | (.44 | ) |
| $ | (.47 | ) |
| $ | (.95 | ) |
NAREIT FFO per diluted share |
| $ | .20 |
|
| $ | (.21 | ) |
| $ | .33 |
|
| $ | (.25 | ) |
Adjusted FFO per diluted share |
| $ | .20 |
|
| $ | (.11 | ) |
| $ | .33 |
|
| $ | (.14 | ) |
___________ |
|
|
|
|
|
|
|
|
|
|
|
|
(1-3) Refer to corresponding footnote on the Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre.
PAGE 21 OF 25
HOST HOTELS & RESORTS, INC.
Notes to Financial Information
All Owned Hotel Pro Forma Operating Statistics and Results
To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in this presentation on a comparable hotel basis in order to enable our investors to better evaluate our operating performance (discussed in “Hotel Property Level Operating Results” below). However, due to the COVID-19 pandemic and its effects on operations, there is little comparability between periods. For this reason, we temporarily are suspending our comparable hotel presentation and instead present hotel operating results for all consolidated hotels and, to facilitate comparisons between periods, we are presenting results on a pro forma basis, including the following adjustments: (1) operating results are presented for all consolidated hotels owned as of September 30, 2021, but do not include the results of operations for properties sold through the reporting date; and (2) operating results for acquisitions as of September 30, 2021 are reflected for full calendar years, to include results for periods prior to our ownership. For these hotels, since the year-over-year comparison includes periods prior to our ownership, the changes will not necessarily correspond to changes in our actual results.
Constant US$ and Nominal US$
Operating results denominated in foreign currencies are translated using the prevailing exchange rates on the date of the transaction, or monthly based on the weighted average exchange rate for the period. For comparative purposes, we also present the RevPAR results for the prior year assuming the results of our foreign operations were translated using the same exchange rates that were effective for the comparable periods in the current year, thereby eliminating the effect of currency fluctuation for the year-over-year comparisons. We believe this presentation is useful to investors as it provides clarity with respect to the change in RevPAR in the local currency of the hotel consistent with the manner in which we would evaluate our domestic portfolio. However, the estimated effect of changes in foreign currency has been reflected in the results of net income (loss), EBITDA, Adjusted EBITDAre, diluted earnings (loss) per common share and Adjusted FFO per diluted share. Nominal US$ results include the effect of currency fluctuations, consistent with our financial statement presentation.
Non-GAAP Financial Measures
Included in this press release are certain “non-GAAP financial measures,” which are measures of our historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules. They are as follows: (i) FFO and FFO per diluted share (both NAREIT and Adjusted), (ii) EBITDA, (iii) EBITDAre and Adjusted EBITDAre, and (iv) All Owned Hotel Pro Forma Operating Statistics and Results. The following discussion defines these measures and presents why we believe they are useful supplemental measures of our performance.
NAREIT FFO and NAREIT FFO per Diluted Share
We present NAREIT FFO and NAREIT FFO per diluted share as non-GAAP measures of our performance in addition to our earnings per share (calculated in accordance with GAAP). We calculate NAREIT FFO per diluted share as our NAREIT FFO (defined as set forth below) for a given operating period, as adjusted for the effect of dilutive securities, divided by the number of fully diluted shares outstanding during such period, in accordance with NAREIT guidelines. Effective January 1, 2019, we adopted NAREIT’s definition of FFO included in NAREIT’s Funds From Operations White Paper – 2018 Restatement. NAREIT defines FFO as net income (calculated in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment expense of certain real estate assets and investments and adjustments for consolidated partially-owned entities and unconsolidated affiliates. Adjustments for consolidated partially-owned entities and unconsolidated affiliates are calculated to reflect our pro rata share of the FFO of those entities on the same basis.
We believe that NAREIT FFO per diluted share is a useful supplemental measure of our operating performance and that the presentation of NAREIT FFO per diluted share, when combined with the primary GAAP presentation of earnings per share, provides beneficial information to investors. By excluding the effect of real estate depreciation, amortization, impairment expense and gains and losses from sales of depreciable real estate, all of which are based on historical cost accounting and which may be of lesser significance in evaluating current performance, we believe that such measures can facilitate comparisons of operating performance between periods and with other REITs, even though NAREIT FFO per diluted share does not represent an amount that accrues directly to holders of our common stock. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. As noted by NAREIT in its Funds From Operations White Paper – 2018 Restatement, the primary purpose for including FFO as a supplemental measure of operating performance of a REIT is to address the artificial nature of historical cost depreciation and amortization of real estate and real estate-related assets mandated by GAAP. For these reasons, NAREIT adopted the FFO metric in order to promote a uniform industry-wide measure of REIT operating performance.
PAGE 22 OF 25
HOST HOTELS & RESORTS, INC.
Notes to Financial Information
Adjusted FFO per Diluted Share
We also present Adjusted FFO per diluted share when evaluating our performance because management believes that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. Management historically has made the adjustments detailed below in evaluating our performance, in our annual budget process and for our compensation programs. We believe that the presentation of Adjusted FFO per diluted share, when combined with both the primary GAAP presentation of diluted earnings per share and FFO per diluted share as defined by NAREIT, provides useful supplemental information that is beneficial to an investor’s understanding of our operating performance. We adjust NAREIT FFO per diluted share for the following items, which may occur in any period, and refer to this measure as Adjusted FFO per diluted share:
In unusual circumstances, we also may adjust NAREIT FFO for gains or losses that management believes are not representative of the Company’s current operating performance. For example, in 2017, as a result of the reduction of the U.S. federal corporate income tax rate from 35% to 21% by the Tax Cuts and Jobs Act, we remeasured our domestic deferred tax assets as of December 31, 2017 and recorded a one-time adjustment to reduce our deferred tax assets and to increase the provision for income taxes by approximately $11 million. We do not consider this adjustment to be reflective of our on-going operating performance and, therefore, we excluded this item from Adjusted FFO.
EBITDA
Earnings before Interest Expense, Income Taxes, Depreciation and Amortization (“EBITDA”) is a commonly used measure of performance in many industries. Management believes EBITDA provides useful information to investors regarding our results of operations because it helps us and our investors evaluate the ongoing operating performance of our properties after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization). Management also believes the use of EBITDA facilitates comparisons between us and other lodging REITs, hotel owners that are not REITs and other capital-intensive companies. Management uses EBITDA to evaluate property-level results and as one measure in determining the value of acquisitions and dispositions and, like FFO and Adjusted FFO per diluted share, it is widely used by management in the annual budget process and for our compensation programs.
EBITDAre and Adjusted EBITDAre
We present EBITDAre in accordance with NAREIT guidelines, as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate,” to provide an additional performance measure to facilitate the evaluation and comparison of the Company’s results with other REITs. NAREIT defines EBITDAre as net income (calculated in accordance with GAAP) excluding interest expense, income tax, depreciation and amortization, gains or losses on disposition of depreciated property (including gains or losses on change of control), impairment expense of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustments to reflect the entity’s pro rata share of EBITDAre of unconsolidated affiliates.
We make additional adjustments to EBITDAre when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. We believe that the presentation of Adjusted EBITDAre, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s understanding of our operating performance. Adjusted EBITDAre also is similar to the measure used to calculate certain
PAGE 23 OF 25
HOST HOTELS & RESORTS, INC.
Notes to Financial Information
credit ratios for our credit facility and senior notes. We adjust EBITDAre for the following items, which may occur in any period, and refer to this measure as Adjusted EBITDAre:
In unusual circumstances, we also may adjust EBITDAre for gains or losses that management believes are not representative of the Company’s current operating performance. The last adjustment of this nature was a 2013 exclusion of a gain from an eminent domain claim.
Limitations on the Use of NAREIT FFO per Diluted Share, Adjusted FFO per Diluted Share, EBITDA, EBITDAre and Adjusted EBITDAre
We calculate EBITDAre and NAREIT FFO per diluted share in accordance with standards established by NAREIT, which may not be comparable to measures calculated by other companies that do not use the NAREIT definition of EBITDAre and FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance. In addition, although EBITDAre and FFO per diluted share are useful measures when comparing our results to other REITs, they may not be helpful to investors when comparing us to non-REITs. We also calculate Adjusted FFO per diluted share and Adjusted EBITDAre, which are not in accordance with NAREIT guidance and may not be comparable to measures calculated by other REITs or by other companies. This information should not be considered as an alternative to net income, operating profit, cash from operations or any other operating performance measure calculated in accordance with GAAP. Cash expenditures for various long-term assets (such as renewal and replacement capital expenditures), interest expense (for EBITDA, EBITDAre and Adjusted EBITDAre purposes only), severance expense related to significant property-level reconfiguration and other items have been, and will be, made and are not reflected in the EBITDA, EBITDAre, Adjusted EBITDAre, NAREIT FFO per diluted share and Adjusted FFO per diluted share presentations. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our consolidated statements of operations and consolidated statements of cash flows (“Statements of Cash Flows”) in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures. Additionally, NAREIT FFO per diluted share, Adjusted FFO per diluted share, EBITDA, EBITDAre and Adjusted EBITDAre should not be considered as a measure of our liquidity or indicative of funds available to fund our cash needs, including our ability to make cash distributions. In addition, NAREIT FFO per diluted share and Adjusted FFO per diluted share do not measure, and should not be used as a measure of, amounts that accrue directly to stockholders’ benefit.
Similarly, EBITDAre, Adjusted EBITDAre, NAREIT FFO and Adjusted FFO per diluted share include adjustments for the pro rata share of our equity investments and NAREIT FFO and Adjusted FFO per diluted share include adjustments for the pro rata share of non-controlling partners in consolidated partnerships. Our equity investments consist of interests ranging from 11% to 67% in seven domestic and international partnerships that own a total of 10 properties and a vacation ownership development. Due to the voting rights of the outside owners, we do not control and, therefore, do not consolidate these entities. The non-controlling partners in consolidated partnerships primarily consist of the approximate 1% interest in Host LP held by outside partners, and a 15% interest held by outside partners in a partnership owning one hotel for which we do control the entity and, therefore, consolidate its operations. These pro rata results for NAREIT FFO and Adjusted FFO per diluted share, EBITDAre and Adjusted EBITDAre were calculated as set forth in the definitions above. Readers should be cautioned that the pro rata results presented in these measures for consolidated partnerships (for NAREIT FFO and Adjusted FFO per diluted share) and equity investments may not accurately depict the legal and economic implications of our investments in these entities.
Hotel Property Level Operating Results
We present certain operating results for our hotels, such as hotel revenues, expenses, food and beverage profit, and EBITDA (and the related margins), on a hotel-level pro forma basis as supplemental information for our investors. Our hotel results reflect the operating
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HOST HOTELS & RESORTS, INC.
Notes to Financial Information
results of our hotels as discussed in “All Owned Hotel Pro Forma Operating Statistics and Results” above. We present all owned hotel pro forma EBITDA to help us and our investors evaluate the ongoing operating performance of our hotels after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization expense). Corporate-level costs and expenses also are removed to arrive at property-level results. We believe these property-level results provide investors with supplemental information about the ongoing operating performance of our hotels. All owned hotel pro forma results are presented both by location and for the Company’s properties in the aggregate. While severance expense is not uncommon at the individual property level in the normal course of business, we eliminate from our hotel level operating results severance costs related to broad-based and significant property-level reconfiguration that is not considered to be within the normal course of business, as we believe this elimination provides useful supplemental information that is beneficial to an investor’s understanding of our ongoing operating performance. We also eliminate depreciation and amortization expense because, even though depreciation and amortization expense are property-level expenses, these non-cash expenses, which are based on historical cost accounting for real estate assets, implicitly assume that the value of real estate assets diminishes predictably over time. As noted earlier, because real estate values historically have risen or fallen with market conditions, many real estate industry investors have considered presentation of historical cost accounting for operating results to be insufficient.
Because of the elimination of corporate-level costs and expenses, gains or losses on disposition, certain severance expenses and depreciation and amortization expense, the hotel operating results we present do not represent our total revenues, expenses, operating profit or net income and should not be used to evaluate our performance as a whole. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our consolidated statements of operations include such amounts, all of which should be considered by investors when evaluating our performance.
While management believes that presentation of all owned hotel results is a supplemental measure that provides useful information in evaluating our ongoing performance, this measure is not used to allocate resources or to assess the operating performance of each of our hotels, as these decisions are based on data for individual hotels and are not based on all owned hotel results in the aggregate. For these reasons, we believe all owned hotel operating results, when combined with the presentation of GAAP operating profit, revenues and expenses, provide useful information to investors and management.
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