Exhibit 99.2
SUPPLEMENTAL FINANCIAL INFORMATION June 30, 2023
|
|
ST HOTELS & RESORTS CORPORATE HEADQUARTERS
|
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION Financial Covenants NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION |
AN ZANDT
ABOUT HOST HOTELS & RESORTS
PREMIER U.S. LODGING REIT |
||
S&P 500 |
$12.1B |
$15.7B |
COMPANY |
MARKET CAP(1) |
ENTERPRISE VALUE(1) |
|
|
|
LUXURY & UPPER UPSCALE CONSOLIDATED HOTELS PORTFOLIO(2) |
||
77 |
41,900 |
20 |
HOTELS |
ROOMS |
TOP U.S. MARKETS |
© Host Hotels & Resorts, Inc. |
4 |
ANALYST COVERAGE
BAIRD Mike Bellisario 414-298-6130 mbellisario@rwbaird.com |
DEUTSCHE BANK SECURITIES Chris Woronka 212-250-9376 chris.woronka@db.com |
OPPENHEIMER & CO. INC. Tyler Batory 212-667-7230 tyler.batory@opco.com |
BOFA SECURITIES, INC. Shaun Kelley 646-855-1005 shaun.kelley@baml.com |
EVERCORE ISI Duane Pfennigwerth 212-497-0817 duane.pfennigwerth@evercoreisi.com |
RAYMOND JAMES & ASSOCIATES Bill Crow 727-567-2594 bill.crow@raymondjames.com |
BARCLAYS CAPITAL Anthony Powell 212-526-8768 anthony.powell@barclays.com |
GREEN STREET ADVISORS Chris Darling 949-640-8780 cdarling@greenst.com |
STIFEL, NICOLAUS & CO. Simon Yarmak 443-224-1345 yarmaks@stifel.com |
BMO CAPITAL MARKETS Ari Klein 212-885-4103 ari.klein@bmo.com |
JEFFERIES David Katz 212-323-3355 dkatz@jefferies.com |
TRUIST C. Patrick Scholes 212-319-3915 patrick.scholes@suntrust.com |
CITI INVESTMENT RESEARCH Smedes Rose 212-816-6243 smedes.rose@citi.com |
J .P. MORGAN SECURITIES Joe Greff 212-622-0548 joseph.greff@jpmorgan.com |
UBS SECURITIES LLC Robin Farley 212-713-2060 robin.farley@ubs.com |
COMPASS POINT RESEARCH & TRADING, LLC Floris van Dijkum 646-757-2621 fvandijkum@compasspointllc.com |
MORGAN STANLEY & CO. Stephen Grambling 212-761-1010 stephen.grambling@morganstanley.com |
WELLS FARGO SECURITIES LLC Dori Kesten 617-603-4233 dori.kesten@wellsfargo.com |
The Company is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding the Company’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of the Company or its management. The Company does not by its reference above imply its endorsement of or concurrence with any of such analysts’ information, conclusions or recommendations.
© Host Hotels & Resorts, Inc. |
5 |
OVERVIEW
ABOUT HOST HOTELS & RESORTS
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 June 30, 2023, which are non-controlling interests in Host LP in our consolidated balance sheets and are 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.
FORWARD-LOOKING STATEMENTS
This supplemental information contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements which include, but may not be limited to, our expectations regarding the impact of the COVID-19 pandemic on our business, the recovery of travel and the lodging industry, the impact of Hurricane Ian and 2023 estimates with respect to our business, including our anticipated capital expenditures and financial and operating 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 those described in the Company's annual report on Form 10-K and other filings 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 supplemental presentation is as of August 2, 2023 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.
© Host Hotels & Resorts, Inc. |
6 |
NON-GAAP FINANCIAL MEASURES
Included in this supplemental information 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 (U.S. generally accepted accounting principles), within the meaning of applicable SEC rules. They are as follows: (i) Funds From Operations (“FFO”) and FFO per diluted share (both NAREIT and Adjusted), (ii) EBITDA (for both the Company and hotel level), (iii) EBITDAre and Adjusted EBITDAre, and (iv) Comparable Hotel Operating Statistics and Results. Also included are reconciliations to the most directly comparable GAAP measures. See the Notes to Supplemental Financial Information for definitions of these measures, why we believe these measures are useful and limitations on their use.
Also included in this supplemental information is our leverage ratio, unsecured interest coverage ratio and fixed charge coverage ratio, calculated in accordance with our credit facility, along with our EBITDA to interest coverage ratio, indenture indebtedness test, indenture secured indebtedness test, and indenture unencumbered assets to unsecured indebtedness test, calculated in accordance with our senior notes indenture covenants. Included with these ratios are reconciliations calculated in accordance with GAAP. See the Notes to Supplemental Financial Information for information on how these supplemental measures are calculated, why we believe they are useful and limitations on their use.
© Host Hotels & Resorts, Inc. |
7 |
|
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION Financial Covenants NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION |
comparable Hotel Results by Location
(unaudited, in millions, except hotel statistics and per room basis)
|
Quarter ended June 30, 2023 |
|
|||||||||||||||||||||||||
Location |
No. of |
|
No. of |
|
Average |
|
Average |
|
RevPAR (1) |
|
Total revenues |
|
Total Revenues per Available Room (2) |
|
Hotel Net Income |
|
Hotel EBITDA |
|
|||||||||
Maui/Oahu |
|
4 |
|
|
2,006 |
|
$ |
594.07 |
|
|
73.7 |
% |
$ |
437.96 |
|
$ |
123.8 |
|
$ |
678.06 |
|
$ |
27.5 |
|
$ |
44.0 |
|
Miami |
|
2 |
|
|
1,033 |
|
|
538.70 |
|
|
69.6 |
|
|
374.98 |
|
|
62.7 |
|
|
646.85 |
|
|
13.2 |
|
|
20.4 |
|
Jacksonville |
|
1 |
|
|
446 |
|
|
549.95 |
|
|
82.1 |
|
|
451.53 |
|
|
39.6 |
|
|
974.60 |
|
|
13.9 |
|
|
17.0 |
|
Phoenix |
|
3 |
|
|
1,545 |
|
|
372.81 |
|
|
73.6 |
|
|
274.51 |
|
|
91.6 |
|
|
651.73 |
|
|
25.9 |
|
|
35.5 |
|
Florida Gulf Coast |
|
3 |
|
|
941 |
|
|
387.60 |
|
|
76.3 |
|
|
295.81 |
|
|
52.7 |
|
|
615.07 |
|
|
12.7 |
|
|
18.4 |
|
Orlando |
|
2 |
|
|
2,448 |
|
|
363.44 |
|
|
73.4 |
|
|
266.90 |
|
|
120.7 |
|
|
542.00 |
|
|
24.6 |
|
|
37.6 |
|
New York |
|
2 |
|
|
2,486 |
|
|
346.21 |
|
|
84.3 |
|
|
291.87 |
|
|
95.9 |
|
|
423.84 |
|
|
13.7 |
|
|
26.2 |
|
Los Angeles/ Orange County |
|
3 |
|
|
1,067 |
|
|
297.22 |
|
|
82.4 |
|
|
245.01 |
|
|
34.2 |
|
|
352.37 |
|
|
4.6 |
|
|
7.7 |
|
San Diego |
|
3 |
|
|
3,294 |
|
|
281.16 |
|
|
83.1 |
|
|
233.70 |
|
|
129.6 |
|
|
432.22 |
|
|
30.7 |
|
|
46.4 |
|
Washington, D.C. (CBD) (3) |
|
5 |
|
|
3,240 |
|
|
312.23 |
|
|
78.0 |
|
|
243.43 |
|
|
102.1 |
|
|
346.51 |
|
|
30.2 |
|
|
38.7 |
|
Boston |
|
2 |
|
|
1,496 |
|
|
293.70 |
|
|
83.0 |
|
|
243.74 |
|
|
42.4 |
|
|
311.38 |
|
|
12.4 |
|
|
17.0 |
|
Austin |
|
2 |
|
|
767 |
|
|
257.48 |
|
|
70.8 |
|
|
182.18 |
|
|
22.9 |
|
|
327.53 |
|
|
3.1 |
|
|
7.5 |
|
Philadelphia |
|
2 |
|
|
810 |
|
|
249.51 |
|
|
83.5 |
|
|
208.44 |
|
|
24.2 |
|
|
327.91 |
|
|
6.2 |
|
|
8.6 |
|
Northern Virginia |
|
2 |
|
|
916 |
|
|
261.74 |
|
|
73.7 |
|
|
192.88 |
|
|
24.4 |
|
|
292.30 |
|
|
6.0 |
|
|
8.4 |
|
San Francisco/ San Jose |
|
6 |
|
|
4,162 |
|
|
235.44 |
|
|
66.6 |
|
|
156.72 |
|
|
87.4 |
|
|
230.73 |
|
|
(2.3 |
) |
|
13.6 |
|
New Orleans |
|
1 |
|
|
1,333 |
|
|
208.75 |
|
|
75.0 |
|
|
156.55 |
|
|
29.3 |
|
|
241.38 |
|
|
11.2 |
|
|
13.3 |
|
Chicago |
|
3 |
|
|
1,562 |
|
|
278.93 |
|
|
76.2 |
|
|
212.54 |
|
|
43.1 |
|
|
303.24 |
|
|
11.0 |
|
|
15.3 |
|
San Antonio |
|
2 |
|
|
1,512 |
|
|
214.90 |
|
|
63.9 |
|
|
137.37 |
|
|
30.2 |
|
|
219.40 |
|
|
4.9 |
|
|
8.9 |
|
Houston |
|
5 |
|
|
1,942 |
|
|
208.54 |
|
|
72.3 |
|
|
150.82 |
|
|
36.7 |
|
|
207.78 |
|
|
5.2 |
|
|
11.2 |
|
Atlanta |
|
2 |
|
|
810 |
|
|
194.10 |
|
|
76.0 |
|
|
147.44 |
|
|
17.7 |
|
|
239.70 |
|
|
3.6 |
|
|
5.7 |
|
Seattle |
|
2 |
|
|
1,315 |
|
|
241.55 |
|
|
72.9 |
|
|
176.09 |
|
|
28.4 |
|
|
237.33 |
|
|
3.1 |
|
|
6.2 |
|
Denver |
|
3 |
|
|
1,340 |
|
|
196.19 |
|
|
66.2 |
|
|
129.88 |
|
|
23.3 |
|
|
190.82 |
|
|
4.7 |
|
|
7.9 |
|
Other |
|
10 |
|
|
3,061 |
|
|
287.69 |
|
|
69.7 |
|
|
200.45 |
|
|
86.3 |
|
|
306.65 |
|
|
15.0 |
|
|
25.0 |
|
Other property level (4) |
|
|
|
|
|
|
|
|
|
|
|
0.1 |
|
|
|
|
(0.2 |
) |
|
(0.2 |
) |
||||||
Domestic |
|
70 |
|
|
39,532 |
|
|
306.78 |
|
|
74.7 |
|
|
229.05 |
|
|
1,349.3 |
|
|
374.40 |
|
|
280.9 |
|
|
440.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
International |
|
5 |
|
|
1,499 |
|
|
193.42 |
|
|
62.7 |
|
|
121.31 |
|
|
25.2 |
|
|
184.99 |
|
|
6.2 |
|
|
8.4 |
|
All Locations - comparable hotels (5) |
|
75 |
|
|
41,031 |
|
$ |
303.29 |
|
|
74.2 |
% |
$ |
225.12 |
|
$ |
1,374.5 |
|
$ |
367.54 |
|
$ |
287.1 |
|
$ |
448.7 |
|
Non-comparable hotels |
|
2 |
|
|
909 |
|
|
|
|
|
|
|
|
18.4 |
|
|
|
|
(8.9 |
) |
|
(1.5 |
) |
||||
Gain on sale of property and corporate level income/expense (6) |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
(64.1 |
) |
|
(5.8 |
) |
||||||
Total |
|
77 |
|
|
41,940 |
|
|
— |
|
|
— |
|
|
— |
|
$ |
1,392.9 |
|
|
— |
|
$ |
214.1 |
|
$ |
441.4 |
|
___________
© Host Hotels & Resorts, Inc. |
9 |
comparable Hotel Results by Location
(unaudited, in millions, except hotel statistics and per room basis)
|
Quarter ended June 30, 2023 |
|
|||||||||||||||||||
Location |
No. of |
|
No. of |
|
Hotel Net Income |
|
Plus: Depreciation |
|
Plus: Interest Expense |
|
Plus: Income Tax |
|
Equals: Hotel EBITDA |
|
|||||||
Maui/Oahu |
|
4 |
|
|
2,006 |
|
$ |
27.5 |
|
$ |
16.5 |
|
$ |
— |
|
$ |
— |
|
$ |
44.0 |
|
Miami |
|
2 |
|
|
1,033 |
|
|
13.2 |
|
|
7.2 |
|
|
— |
|
|
— |
|
|
20.4 |
|
Jacksonville |
|
1 |
|
|
446 |
|
|
13.9 |
|
|
3.1 |
|
|
— |
|
|
— |
|
|
17.0 |
|
Phoenix |
|
3 |
|
|
1,545 |
|
|
25.9 |
|
|
9.6 |
|
|
— |
|
|
— |
|
|
35.5 |
|
Florida Gulf Coast |
|
3 |
|
|
941 |
|
|
12.7 |
|
|
5.7 |
|
|
— |
|
|
— |
|
|
18.4 |
|
Orlando |
|
2 |
|
|
2,448 |
|
|
24.6 |
|
|
13.0 |
|
|
— |
|
|
— |
|
|
37.6 |
|
New York |
|
2 |
|
|
2,486 |
|
|
13.7 |
|
|
12.5 |
|
|
— |
|
|
— |
|
|
26.2 |
|
Los Angeles/ Orange County |
|
3 |
|
|
1,067 |
|
|
4.6 |
|
|
3.1 |
|
|
— |
|
|
— |
|
|
7.7 |
|
San Diego |
|
3 |
|
|
3,294 |
|
|
30.7 |
|
|
15.7 |
|
|
— |
|
|
— |
|
|
46.4 |
|
Washington, D.C. (CBD) |
|
5 |
|
|
3,240 |
|
|
30.2 |
|
|
8.5 |
|
|
— |
|
|
— |
|
|
38.7 |
|
Boston |
|
2 |
|
|
1,496 |
|
|
12.4 |
|
|
4.6 |
|
|
— |
|
|
— |
|
|
17.0 |
|
Austin |
|
2 |
|
|
767 |
|
|
3.1 |
|
|
3.2 |
|
|
1.2 |
|
|
— |
|
|
7.5 |
|
Philadelphia |
|
2 |
|
|
810 |
|
|
6.2 |
|
|
2.4 |
|
|
— |
|
|
— |
|
|
8.6 |
|
Northern Virginia |
|
2 |
|
|
916 |
|
|
6.0 |
|
|
2.4 |
|
|
— |
|
|
— |
|
|
8.4 |
|
San Francisco/ San Jose |
|
6 |
|
|
4,162 |
|
|
(2.3 |
) |
|
15.9 |
|
|
— |
|
|
— |
|
|
13.6 |
|
New Orleans |
|
1 |
|
|
1,333 |
|
|
11.2 |
|
|
2.1 |
|
|
— |
|
|
— |
|
|
13.3 |
|
Chicago |
|
3 |
|
|
1,562 |
|
|
11.0 |
|
|
4.3 |
|
|
— |
|
|
— |
|
|
15.3 |
|
San Antonio |
|
2 |
|
|
1,512 |
|
|
4.9 |
|
|
4.0 |
|
|
— |
|
|
— |
|
|
8.9 |
|
Houston |
|
5 |
|
|
1,942 |
|
|
5.2 |
|
|
6.0 |
|
|
— |
|
|
— |
|
|
11.2 |
|
Atlanta |
|
2 |
|
|
810 |
|
|
3.6 |
|
|
2.1 |
|
|
— |
|
|
— |
|
|
5.7 |
|
Seattle |
|
2 |
|
|
1,315 |
|
|
3.1 |
|
|
3.1 |
|
|
— |
|
|
— |
|
|
6.2 |
|
Denver |
|
3 |
|
|
1,340 |
|
|
4.7 |
|
|
3.2 |
|
|
— |
|
|
— |
|
|
7.9 |
|
Other |
|
10 |
|
|
3,061 |
|
|
15.0 |
|
|
10.0 |
|
|
— |
|
|
— |
|
|
25.0 |
|
Other property level (1) |
|
|
|
|
|
(0.2 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(0.2 |
) |
||
Domestic |
|
70 |
|
|
39,532 |
|
|
280.9 |
|
|
158.2 |
|
|
1.2 |
|
|
— |
|
|
440.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
International |
|
5 |
|
|
1,499 |
|
|
6.2 |
|
|
2.2 |
|
|
— |
|
|
— |
|
|
8.4 |
|
All Locations - comparable hotels |
|
75 |
|
|
41,031 |
|
$ |
287.1 |
|
$ |
160.4 |
|
$ |
1.2 |
|
$ |
— |
|
$ |
448.7 |
|
Non-comparable hotels |
|
2 |
|
|
909 |
|
|
(8.9 |
) |
|
7.4 |
|
|
— |
|
|
— |
|
|
(1.5 |
) |
Gain on sale of property and corporate level income/expense (2) |
|
|
|
|
|
(64.1 |
) |
|
0.3 |
|
|
44.0 |
|
|
14.0 |
|
|
(5.8 |
) |
||
Total |
|
77 |
|
|
41,940 |
|
$ |
214.1 |
|
$ |
168.1 |
|
$ |
45.2 |
|
$ |
14.0 |
|
$ |
441.4 |
|
___________
© Host Hotels & Resorts, Inc. |
10 |
comparable Hotel Results by Location
(unaudited, in millions, except hotel statistics and per room basis)
|
Quarter ended June 30, 2022 |
|
|||||||||||||||||||||||||
Location |
No. of |
|
No. of |
|
Average |
|
Average |
|
RevPAR |
|
Total revenues |
|
Total Revenues per Available Room |
|
Hotel Net Income |
|
Hotel EBITDA |
|
|||||||||
Maui/Oahu |
|
4 |
|
|
2,006 |
|
$ |
567.20 |
|
|
78.0 |
% |
$ |
442.56 |
|
$ |
126.0 |
|
$ |
690.02 |
|
$ |
34.8 |
|
$ |
49.0 |
|
Miami |
|
2 |
|
|
1,033 |
|
|
618.60 |
|
|
67.4 |
|
|
416.89 |
|
|
68.0 |
|
|
697.72 |
|
|
21.5 |
|
|
27.1 |
|
Jacksonville |
|
1 |
|
|
446 |
|
|
572.46 |
|
|
81.1 |
|
|
463.99 |
|
|
39.5 |
|
|
974.04 |
|
|
14.3 |
|
|
17.4 |
|
Phoenix |
|
3 |
|
|
1,545 |
|
|
394.21 |
|
|
76.0 |
|
|
299.63 |
|
|
95.3 |
|
|
677.94 |
|
|
30.4 |
|
|
39.0 |
|
Florida Gulf Coast |
|
3 |
|
|
941 |
|
|
386.13 |
|
|
79.0 |
|
|
304.90 |
|
|
55.1 |
|
|
640.76 |
|
|
16.0 |
|
|
21.4 |
|
Orlando |
|
2 |
|
|
2,448 |
|
|
402.61 |
|
|
73.8 |
|
|
297.06 |
|
|
129.3 |
|
|
580.59 |
|
|
37.7 |
|
|
50.5 |
|
New York |
|
2 |
|
|
2,486 |
|
|
326.39 |
|
|
80.3 |
|
|
261.97 |
|
|
87.2 |
|
|
385.41 |
|
|
14.9 |
|
|
29.3 |
|
Los Angeles/ Orange County |
|
3 |
|
|
1,067 |
|
|
278.61 |
|
|
87.4 |
|
|
243.48 |
|
|
34.6 |
|
|
356.01 |
|
|
5.7 |
|
|
9.0 |
|
San Diego |
|
3 |
|
|
3,294 |
|
|
271.84 |
|
|
81.0 |
|
|
220.07 |
|
|
117.1 |
|
|
391.37 |
|
|
28.7 |
|
|
43.9 |
|
Washington, D.C. (CBD) |
|
5 |
|
|
3,240 |
|
|
286.32 |
|
|
77.0 |
|
|
220.58 |
|
|
92.0 |
|
|
312.13 |
|
|
28.0 |
|
|
36.8 |
|
Boston |
|
2 |
|
|
1,496 |
|
|
277.40 |
|
|
60.7 |
|
|
168.38 |
|
|
30.4 |
|
|
223.59 |
|
|
12.3 |
|
|
15.9 |
|
Austin |
|
2 |
|
|
767 |
|
|
272.13 |
|
|
80.7 |
|
|
219.57 |
|
|
26.7 |
|
|
383.03 |
|
|
7.1 |
|
|
11.3 |
|
Philadelphia |
|
2 |
|
|
810 |
|
|
229.82 |
|
|
86.6 |
|
|
199.08 |
|
|
22.4 |
|
|
303.95 |
|
|
5.7 |
|
|
8.3 |
|
Northern Virginia |
|
2 |
|
|
916 |
|
|
228.38 |
|
|
75.8 |
|
|
173.05 |
|
|
22.3 |
|
|
266.99 |
|
|
5.4 |
|
|
7.8 |
|
San Francisco/ San Jose |
|
6 |
|
|
4,162 |
|
|
237.03 |
|
|
72.7 |
|
|
172.26 |
|
|
90.0 |
|
|
237.65 |
|
|
7.9 |
|
|
24.4 |
|
New Orleans |
|
1 |
|
|
1,333 |
|
|
219.22 |
|
|
76.4 |
|
|
167.55 |
|
|
28.8 |
|
|
237.37 |
|
|
9.6 |
|
|
12.0 |
|
Chicago |
|
3 |
|
|
1,562 |
|
|
253.18 |
|
|
74.0 |
|
|
187.35 |
|
|
37.1 |
|
|
260.67 |
|
|
9.1 |
|
|
13.3 |
|
San Antonio |
|
2 |
|
|
1,512 |
|
|
202.69 |
|
|
70.3 |
|
|
142.44 |
|
|
29.4 |
|
|
213.86 |
|
|
5.0 |
|
|
9.2 |
|
Houston |
|
5 |
|
|
1,942 |
|
|
184.11 |
|
|
67.1 |
|
|
123.53 |
|
|
31.1 |
|
|
175.70 |
|
|
4.3 |
|
|
9.5 |
|
Atlanta |
|
2 |
|
|
810 |
|
|
186.06 |
|
|
77.5 |
|
|
144.28 |
|
|
17.4 |
|
|
236.30 |
|
|
4.3 |
|
|
6.5 |
|
Seattle |
|
2 |
|
|
1,315 |
|
|
228.80 |
|
|
74.6 |
|
|
170.62 |
|
|
26.2 |
|
|
218.92 |
|
|
4.0 |
|
|
7.3 |
|
Denver |
|
3 |
|
|
1,340 |
|
|
188.02 |
|
|
69.4 |
|
|
130.52 |
|
|
23.2 |
|
|
189.86 |
|
|
6.6 |
|
|
9.3 |
|
Other |
|
10 |
|
|
3,061 |
|
|
272.79 |
|
|
66.3 |
|
|
180.80 |
|
|
75.2 |
|
|
267.34 |
|
|
18.8 |
|
|
25.2 |
|
Other property level (1) |
|
|
|
|
|
|
|
|
|
|
|
0.3 |
|
|
|
|
0.6 |
|
|
0.6 |
|
||||||
Domestic |
|
70 |
|
|
39,532 |
|
|
300.38 |
|
|
74.6 |
|
|
224.05 |
|
|
1,304.6 |
|
|
361.94 |
|
|
332.7 |
|
|
484.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
International |
|
5 |
|
|
1,499 |
|
|
155.80 |
|
|
59.0 |
|
|
91.91 |
|
|
19.2 |
|
|
140.79 |
|
|
4.2 |
|
|
6.4 |
|
All Locations - comparable hotels |
|
75 |
|
|
41,031 |
|
$ |
296.18 |
|
|
74.0 |
% |
$ |
219.23 |
|
$ |
1,323.8 |
|
$ |
353.95 |
|
$ |
336.9 |
|
$ |
490.4 |
|
Non-comparable hotels |
|
2 |
|
|
909 |
|
|
|
|
|
|
|
|
45.8 |
|
|
|
|
8.0 |
|
|
15.2 |
|
||||
Property transaction adjustments (2) |
|
|
|
|
|
|
|
|
|
|
|
11.4 |
|
|
|
|
— |
|
|
2.6 |
|
||||||
Gain on sale of property and corporate level income/expense (3) |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
(84.9 |
) |
|
(10.1 |
) |
||||||
Total |
|
77 |
|
|
41,940 |
|
|
— |
|
|
— |
|
|
— |
|
$ |
1,381.0 |
|
|
— |
|
$ |
260.0 |
|
$ |
498.1 |
|
___________
© Host Hotels & Resorts, Inc. |
11 |
comparable Hotel Results by Location
(unaudited, in millions, except hotel statistics and per room basis)
|
Quarter ended June 30, 2022 |
|
||||||||||||||||||||||
Location |
No. of |
|
No. of |
|
Hotel Net Income |
|
Plus: Depreciation |
|
Plus: Interest Expense |
|
Plus: Income Tax |
|
Plus: Property Transaction Adjustments |
|
Equals: Hotel EBITDA |
|
||||||||
Maui/Oahu |
|
4 |
|
|
2,006 |
|
$ |
34.8 |
|
$ |
14.2 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
49.0 |
|
Miami |
|
2 |
|
|
1,033 |
|
|
21.5 |
|
|
5.8 |
|
|
— |
|
|
— |
|
|
(0.2 |
) |
|
27.1 |
|
Jacksonville |
|
1 |
|
|
446 |
|
|
14.3 |
|
|
3.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
17.4 |
|
Phoenix |
|
3 |
|
|
1,545 |
|
|
30.4 |
|
|
10.8 |
|
|
— |
|
|
— |
|
|
(2.2 |
) |
|
39.0 |
|
Florida Gulf Coast |
|
3 |
|
|
941 |
|
|
16.0 |
|
|
5.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
21.4 |
|
Orlando |
|
2 |
|
|
2,448 |
|
|
37.7 |
|
|
12.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
50.5 |
|
New York |
|
2 |
|
|
2,486 |
|
|
14.9 |
|
|
12.9 |
|
|
— |
|
|
— |
|
|
1.5 |
|
|
29.3 |
|
Los Angeles/ Orange County |
|
3 |
|
|
1,067 |
|
|
5.7 |
|
|
3.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
9.0 |
|
San Diego |
|
3 |
|
|
3,294 |
|
|
28.7 |
|
|
15.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
43.9 |
|
Washington, D.C. (CBD) |
|
5 |
|
|
3,240 |
|
|
28.0 |
|
|
8.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
36.8 |
|
Boston |
|
2 |
|
|
1,496 |
|
|
12.3 |
|
|
3.6 |
|
|
— |
|
|
— |
|
|
— |
|
|
15.9 |
|
Austin |
|
2 |
|
|
767 |
|
|
7.1 |
|
|
3.1 |
|
|
1.1 |
|
|
— |
|
|
— |
|
|
11.3 |
|
Philadelphia |
|
2 |
|
|
810 |
|
|
5.7 |
|
|
2.6 |
|
|
— |
|
|
— |
|
|
— |
|
|
8.3 |
|
Northern Virginia |
|
2 |
|
|
916 |
|
|
5.4 |
|
|
2.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
7.8 |
|
San Francisco/ San Jose |
|
6 |
|
|
4,162 |
|
|
7.9 |
|
|
16.5 |
|
|
— |
|
|
— |
|
|
— |
|
|
24.4 |
|
New Orleans |
|
1 |
|
|
1,333 |
|
|
9.6 |
|
|
2.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
12.0 |
|
Chicago |
|
3 |
|
|
1,562 |
|
|
9.1 |
|
|
4.9 |
|
|
— |
|
|
— |
|
|
(0.7 |
) |
|
13.3 |
|
San Antonio |
|
2 |
|
|
1,512 |
|
|
5.0 |
|
|
4.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
9.2 |
|
Houston |
|
5 |
|
|
1,942 |
|
|
4.3 |
|
|
5.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
9.5 |
|
Atlanta |
|
2 |
|
|
810 |
|
|
4.3 |
|
|
2.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
6.5 |
|
Seattle |
|
2 |
|
|
1,315 |
|
|
4.0 |
|
|
3.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
7.3 |
|
Denver |
|
3 |
|
|
1,340 |
|
|
6.6 |
|
|
2.7 |
|
|
— |
|
|
— |
|
|
— |
|
|
9.3 |
|
Other |
|
10 |
|
|
3,061 |
|
|
18.8 |
|
|
7.4 |
|
|
— |
|
|
— |
|
|
(1.0 |
) |
|
25.2 |
|
Other property level (1) |
|
|
|
|
|
0.6 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.6 |
|
||
Domestic |
|
70 |
|
|
39,532 |
|
|
332.7 |
|
|
152.8 |
|
|
1.1 |
|
|
— |
|
|
(2.6 |
) |
|
484.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
International |
|
5 |
|
|
1,499 |
|
|
4.2 |
|
|
2.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
6.4 |
|
All Locations - comparable hotels |
|
75 |
|
|
41,031 |
|
$ |
336.9 |
|
$ |
155.0 |
|
$ |
1.1 |
|
$ |
— |
|
$ |
(2.6 |
) |
$ |
490.4 |
|
Non-comparable hotels |
|
2 |
|
|
909 |
|
|
8.0 |
|
|
7.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
15.2 |
|
Property transaction adjustments (2) |
|
|
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2.6 |
|
|
2.6 |
|
||
Gain on sale of property and corporate level income/expense (3) |
|
|
|
|
|
(84.9 |
) |
|
0.2 |
|
|
35.5 |
|
|
39.1 |
|
|
— |
|
|
(10.1 |
) |
||
Total |
|
77 |
|
|
41,940 |
|
$ |
260.0 |
|
$ |
162.4 |
|
$ |
36.6 |
|
$ |
39.1 |
|
$ |
— |
|
$ |
498.1 |
|
___________
© Host Hotels & Resorts, Inc. |
12 |
comparable Hotel Results by Location
(unaudited, in millions, except hotel statistics and per room basis)
|
Year-to-Date ended June 30, 2023 |
|
|||||||||||||||||||||||||
Location |
No. of |
|
No. of |
|
Average |
|
Average |
|
RevPAR |
|
Total revenues |
|
Total Revenues per Available Room |
|
Hotel Net Income |
|
Hotel EBITDA |
|
|||||||||
Maui/Oahu |
|
4 |
|
|
2,006 |
|
$ |
599.89 |
|
|
75.0 |
% |
$ |
449.74 |
|
$ |
250.3 |
|
$ |
689.14 |
|
$ |
57.9 |
|
$ |
90.4 |
|
Miami |
|
2 |
|
|
1,033 |
|
|
594.02 |
|
|
73.8 |
|
|
438.09 |
|
|
145.5 |
|
|
753.95 |
|
|
39.9 |
|
|
54.3 |
|
Jacksonville |
|
1 |
|
|
446 |
|
|
532.21 |
|
|
74.7 |
|
|
397.60 |
|
|
70.4 |
|
|
872.26 |
|
|
21.8 |
|
|
27.9 |
|
Phoenix |
|
3 |
|
|
1,545 |
|
|
455.18 |
|
|
78.0 |
|
|
355.17 |
|
|
213.6 |
|
|
764.31 |
|
|
77.8 |
|
|
94.9 |
|
Florida Gulf Coast |
|
3 |
|
|
941 |
|
|
433.52 |
|
|
80.2 |
|
|
347.70 |
|
|
127.5 |
|
|
747.93 |
|
|
40.3 |
|
|
51.5 |
|
Orlando |
|
2 |
|
|
2,448 |
|
|
395.90 |
|
|
74.7 |
|
|
295.85 |
|
|
262.1 |
|
|
591.62 |
|
|
65.7 |
|
|
91.7 |
|
New York |
|
2 |
|
|
2,486 |
|
|
316.51 |
|
|
78.8 |
|
|
249.47 |
|
|
166.1 |
|
|
369.18 |
|
|
10.1 |
|
|
35.1 |
|
Los Angeles/ Orange County |
|
3 |
|
|
1,067 |
|
|
296.97 |
|
|
81.2 |
|
|
241.12 |
|
|
68.2 |
|
|
352.91 |
|
|
8.4 |
|
|
14.8 |
|
San Diego |
|
3 |
|
|
3,294 |
|
|
282.01 |
|
|
80.1 |
|
|
225.75 |
|
|
254.6 |
|
|
427.16 |
|
|
58.6 |
|
|
89.6 |
|
Washington, D.C. (CBD) |
|
5 |
|
|
3,240 |
|
|
293.53 |
|
|
71.1 |
|
|
208.82 |
|
|
178.2 |
|
|
304.05 |
|
|
45.3 |
|
|
62.0 |
|
Boston |
|
2 |
|
|
1,496 |
|
|
256.23 |
|
|
76.1 |
|
|
195.06 |
|
|
71.1 |
|
|
262.66 |
|
|
14.5 |
|
|
23.6 |
|
Austin |
|
2 |
|
|
767 |
|
|
273.23 |
|
|
70.4 |
|
|
192.43 |
|
|
47.6 |
|
|
343.15 |
|
|
6.7 |
|
|
15.2 |
|
Philadelphia |
|
2 |
|
|
810 |
|
|
229.68 |
|
|
78.9 |
|
|
181.17 |
|
|
41.6 |
|
|
283.96 |
|
|
7.5 |
|
|
12.3 |
|
Northern Virginia |
|
2 |
|
|
916 |
|
|
245.58 |
|
|
69.7 |
|
|
171.08 |
|
|
43.0 |
|
|
259.21 |
|
|
7.5 |
|
|
12.3 |
|
San Francisco/ San Jose |
|
6 |
|
|
4,162 |
|
|
261.73 |
|
|
63.7 |
|
|
166.68 |
|
|
187.6 |
|
|
249.04 |
|
|
7.1 |
|
|
39.1 |
|
New Orleans |
|
1 |
|
|
1,333 |
|
|
215.24 |
|
|
74.0 |
|
|
159.23 |
|
|
57.9 |
|
|
240.08 |
|
|
19.8 |
|
|
24.2 |
|
Chicago |
|
3 |
|
|
1,562 |
|
|
238.80 |
|
|
64.0 |
|
|
152.79 |
|
|
62.1 |
|
|
219.73 |
|
|
7.8 |
|
|
16.5 |
|
San Antonio |
|
2 |
|
|
1,512 |
|
|
227.23 |
|
|
67.0 |
|
|
152.20 |
|
|
66.4 |
|
|
242.68 |
|
|
13.1 |
|
|
21.1 |
|
Houston |
|
5 |
|
|
1,942 |
|
|
206.36 |
|
|
72.8 |
|
|
150.32 |
|
|
73.4 |
|
|
208.68 |
|
|
10.3 |
|
|
22.6 |
|
Atlanta |
|
2 |
|
|
810 |
|
|
195.42 |
|
|
75.0 |
|
|
146.53 |
|
|
35.4 |
|
|
241.17 |
|
|
7.3 |
|
|
11.5 |
|
Seattle |
|
2 |
|
|
1,315 |
|
|
223.18 |
|
|
63.1 |
|
|
140.79 |
|
|
46.9 |
|
|
196.97 |
|
|
0.4 |
|
|
6.7 |
|
Denver |
|
3 |
|
|
1,340 |
|
|
185.96 |
|
|
57.5 |
|
|
106.90 |
|
|
37.1 |
|
|
152.98 |
|
|
3.7 |
|
|
9.7 |
|
Other |
|
10 |
|
|
3,061 |
|
|
319.34 |
|
|
64.0 |
|
|
204.29 |
|
|
175.8 |
|
|
314.22 |
|
|
28.2 |
|
|
48.8 |
|
Other property level (1) |
|
|
|
|
|
|
|
|
|
|
|
0.3 |
|
|
|
|
(1.4 |
) |
|
(1.4 |
) |
||||||
Domestic |
|
70 |
|
|
39,532 |
|
|
314.70 |
|
|
71.7 |
|
|
225.60 |
|
|
2,682.7 |
|
|
374.31 |
|
|
558.3 |
|
|
874.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
International |
|
5 |
|
|
1,499 |
|
|
182.51 |
|
|
61.5 |
|
|
112.29 |
|
|
44.9 |
|
|
165.31 |
|
|
9.4 |
|
|
13.7 |
|
All Locations - comparable hotels |
|
75 |
|
|
41,031 |
|
$ |
310.54 |
|
|
71.3 |
% |
$ |
221.46 |
|
$ |
2,727.6 |
|
$ |
366.74 |
|
$ |
567.7 |
|
$ |
888.1 |
|
Non-comparable hotels |
|
2 |
|
|
909 |
|
|
|
|
|
|
|
|
39.2 |
|
|
|
|
(11.1 |
) |
|
3.7 |
|
||||
Property transaction adjustments (2) |
|
|
|
|
|
|
|
|
|
|
|
6.8 |
|
|
|
|
— |
|
|
2.9 |
|
||||||
Gain on sale of property and corporate level income/expense (3) |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
(51.5 |
) |
|
53.4 |
|
||||||
Total |
|
77 |
|
|
41,940 |
|
|
— |
|
|
— |
|
|
— |
|
$ |
2,773.6 |
|
|
— |
|
$ |
505.1 |
|
$ |
948.1 |
|
___________
© Host Hotels & Resorts, Inc. |
13 |
comparable Hotel Results by Location
(unaudited, in millions, except hotel statistics and per room basis)
|
Year-to-Date ended June 30, 2023 |
|
||||||||||||||||||||||
Location |
No. of |
|
No. of |
|
Hotel Net Income |
|
Plus: Depreciation |
|
Plus: Interest Expense |
|
Plus: Income Tax |
|
Plus: Property Transaction Adjustments |
|
Equals: Hotel EBITDA |
|
||||||||
Maui/Oahu |
|
4 |
|
|
2,006 |
|
$ |
57.9 |
|
$ |
32.5 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
90.4 |
|
Miami |
|
2 |
|
|
1,033 |
|
|
39.9 |
|
|
14.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
54.3 |
|
Jacksonville |
|
1 |
|
|
446 |
|
|
21.8 |
|
|
6.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
27.9 |
|
Phoenix |
|
3 |
|
|
1,545 |
|
|
77.8 |
|
|
20.0 |
|
|
— |
|
|
— |
|
|
(2.9 |
) |
|
94.9 |
|
Florida Gulf Coast |
|
3 |
|
|
941 |
|
|
40.3 |
|
|
11.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
51.5 |
|
Orlando |
|
2 |
|
|
2,448 |
|
|
65.7 |
|
|
26.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
91.7 |
|
New York |
|
2 |
|
|
2,486 |
|
|
10.1 |
|
|
25.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
35.1 |
|
Los Angeles/ Orange County |
|
3 |
|
|
1,067 |
|
|
8.4 |
|
|
6.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
14.8 |
|
San Diego |
|
3 |
|
|
3,294 |
|
|
58.6 |
|
|
31.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
89.6 |
|
Washington, D.C. (CBD) |
|
5 |
|
|
3,240 |
|
|
45.3 |
|
|
16.7 |
|
|
— |
|
|
— |
|
|
— |
|
|
62.0 |
|
Boston |
|
2 |
|
|
1,496 |
|
|
14.5 |
|
|
9.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
23.6 |
|
Austin |
|
2 |
|
|
767 |
|
|
6.7 |
|
|
6.4 |
|
|
2.1 |
|
|
— |
|
|
— |
|
|
15.2 |
|
Philadelphia |
|
2 |
|
|
810 |
|
|
7.5 |
|
|
4.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
12.3 |
|
Northern Virginia |
|
2 |
|
|
916 |
|
|
7.5 |
|
|
4.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
12.3 |
|
San Francisco/ San Jose |
|
6 |
|
|
4,162 |
|
|
7.1 |
|
|
32.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
39.1 |
|
New Orleans |
|
1 |
|
|
1,333 |
|
|
19.8 |
|
|
4.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
24.2 |
|
Chicago |
|
3 |
|
|
1,562 |
|
|
7.8 |
|
|
8.7 |
|
|
— |
|
|
— |
|
|
— |
|
|
16.5 |
|
San Antonio |
|
2 |
|
|
1,512 |
|
|
13.1 |
|
|
8.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
21.1 |
|
Houston |
|
5 |
|
|
1,942 |
|
|
10.3 |
|
|
12.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
22.6 |
|
Atlanta |
|
2 |
|
|
810 |
|
|
7.3 |
|
|
4.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
11.5 |
|
Seattle |
|
2 |
|
|
1,315 |
|
|
0.4 |
|
|
6.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
6.7 |
|
Denver |
|
3 |
|
|
1,340 |
|
|
3.7 |
|
|
6.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
9.7 |
|
Other |
|
10 |
|
|
3,061 |
|
|
28.2 |
|
|
20.6 |
|
|
— |
|
|
— |
|
|
— |
|
|
48.8 |
|
Other property level (1) |
|
|
|
|
|
(1.4 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1.4 |
) |
||
Domestic |
|
70 |
|
|
39,532 |
|
|
558.3 |
|
|
316.9 |
|
|
2.1 |
|
|
— |
|
|
(2.9 |
) |
|
874.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
International |
|
5 |
|
|
1,499 |
|
|
9.4 |
|
|
4.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
13.7 |
|
All Locations - comparable hotels |
|
75 |
|
|
41,031 |
|
$ |
567.7 |
|
$ |
321.2 |
|
$ |
2.1 |
|
$ |
— |
|
$ |
(2.9 |
) |
$ |
888.1 |
|
Non-comparable hotels |
|
2 |
|
|
909 |
|
|
(11.1 |
) |
|
14.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
3.7 |
|
Property transaction adjustments (2) |
|
|
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2.9 |
|
|
2.9 |
|
||
Gain on sale of property and corporate level income/expense (3) |
|
|
|
|
|
(51.5 |
) |
|
0.7 |
|
|
92.2 |
|
|
12.0 |
|
|
— |
|
|
53.4 |
|
||
Total |
|
77 |
|
|
41,940 |
|
$ |
505.1 |
|
$ |
336.7 |
|
$ |
94.3 |
|
$ |
12.0 |
|
$ |
— |
|
$ |
948.1 |
|
___________
© Host Hotels & Resorts, Inc. |
14 |
comparable Hotel Results by Location
(unaudited, in millions, except hotel statistics and per room basis)
|
Year-to-Date ended June 30, 2022 |
|
|||||||||||||||||||||||||
Location |
No. of |
|
No. of |
|
Average |
|
Average |
|
RevPAR |
|
Total revenues |
|
Total Revenues per Available Room |
|
Hotel Net Income |
|
Hotel EBITDA |
|
|||||||||
Maui/Oahu |
|
4 |
|
|
2,006 |
|
$ |
556.16 |
|
|
77.2 |
% |
$ |
429.37 |
|
$ |
241.8 |
|
$ |
665.56 |
|
$ |
63.1 |
|
$ |
91.5 |
|
Miami |
|
2 |
|
|
1,033 |
|
|
677.26 |
|
|
69.1 |
|
|
468.18 |
|
|
147.2 |
|
|
758.30 |
|
|
52.9 |
|
|
62.5 |
|
Jacksonville |
|
1 |
|
|
446 |
|
|
555.35 |
|
|
70.8 |
|
|
393.31 |
|
|
68.4 |
|
|
846.75 |
|
|
22.5 |
|
|
28.8 |
|
Phoenix |
|
3 |
|
|
1,545 |
|
|
442.80 |
|
|
74.8 |
|
|
331.38 |
|
|
198.6 |
|
|
709.91 |
|
|
75.6 |
|
|
91.8 |
|
Florida Gulf Coast |
|
3 |
|
|
941 |
|
|
434.49 |
|
|
79.5 |
|
|
345.27 |
|
|
119.2 |
|
|
699.72 |
|
|
41.1 |
|
|
51.9 |
|
Orlando |
|
2 |
|
|
2,448 |
|
|
427.24 |
|
|
66.0 |
|
|
281.89 |
|
|
236.9 |
|
|
534.73 |
|
|
66.5 |
|
|
91.6 |
|
New York |
|
2 |
|
|
2,486 |
|
|
303.32 |
|
|
61.0 |
|
|
184.91 |
|
|
121.3 |
|
|
269.63 |
|
|
(28.1 |
) |
|
20.9 |
|
Los Angeles/ Orange County |
|
3 |
|
|
1,067 |
|
|
282.52 |
|
|
76.2 |
|
|
215.25 |
|
|
60.1 |
|
|
311.32 |
|
|
7.4 |
|
|
13.8 |
|
San Diego |
|
3 |
|
|
3,294 |
|
|
265.79 |
|
|
71.3 |
|
|
189.62 |
|
|
204.6 |
|
|
343.77 |
|
|
43.1 |
|
|
73.5 |
|
Washington, D.C. (CBD) |
|
5 |
|
|
3,240 |
|
|
269.82 |
|
|
57.9 |
|
|
156.21 |
|
|
130.2 |
|
|
222.15 |
|
|
24.8 |
|
|
42.4 |
|
Boston |
|
2 |
|
|
1,496 |
|
|
235.57 |
|
|
54.2 |
|
|
127.70 |
|
|
45.5 |
|
|
168.31 |
|
|
8.5 |
|
|
16.9 |
|
Austin |
|
2 |
|
|
767 |
|
|
274.92 |
|
|
71.3 |
|
|
196.03 |
|
|
46.5 |
|
|
334.68 |
|
|
10.9 |
|
|
19.2 |
|
Philadelphia |
|
2 |
|
|
810 |
|
|
206.81 |
|
|
76.7 |
|
|
158.68 |
|
|
35.8 |
|
|
244.18 |
|
|
5.6 |
|
|
10.7 |
|
Northern Virginia |
|
2 |
|
|
916 |
|
|
216.27 |
|
|
64.4 |
|
|
139.18 |
|
|
34.5 |
|
|
208.25 |
|
|
4.3 |
|
|
9.0 |
|
San Francisco/ San Jose |
|
6 |
|
|
4,162 |
|
|
221.94 |
|
|
58.9 |
|
|
130.72 |
|
|
142.0 |
|
|
188.52 |
|
|
(6.8 |
) |
|
26.3 |
|
New Orleans |
|
1 |
|
|
1,333 |
|
|
212.83 |
|
|
66.2 |
|
|
140.90 |
|
|
48.9 |
|
|
202.78 |
|
|
14.2 |
|
|
19.2 |
|
Chicago |
|
3 |
|
|
1,562 |
|
|
220.82 |
|
|
57.4 |
|
|
126.78 |
|
|
49.5 |
|
|
174.77 |
|
|
(1.4 |
) |
|
7.9 |
|
San Antonio |
|
2 |
|
|
1,512 |
|
|
195.73 |
|
|
68.8 |
|
|
134.67 |
|
|
56.3 |
|
|
205.78 |
|
|
9.9 |
|
|
18.4 |
|
Houston |
|
5 |
|
|
1,942 |
|
|
182.12 |
|
|
64.0 |
|
|
116.60 |
|
|
57.1 |
|
|
162.56 |
|
|
6.2 |
|
|
16.5 |
|
Atlanta |
|
2 |
|
|
810 |
|
|
180.13 |
|
|
72.0 |
|
|
129.60 |
|
|
30.4 |
|
|
207.01 |
|
|
6.3 |
|
|
10.7 |
|
Seattle |
|
2 |
|
|
1,315 |
|
|
211.55 |
|
|
55.1 |
|
|
116.53 |
|
|
36.5 |
|
|
153.56 |
|
|
(2.7 |
) |
|
4.2 |
|
Denver |
|
3 |
|
|
1,340 |
|
|
173.91 |
|
|
57.4 |
|
|
99.84 |
|
|
35.6 |
|
|
146.61 |
|
|
6.7 |
|
|
12.2 |
|
Other |
|
10 |
|
|
3,061 |
|
|
323.74 |
|
|
59.1 |
|
|
191.24 |
|
|
159.2 |
|
|
284.58 |
|
|
23.5 |
|
|
48.7 |
|
Other property level (1) |
|
|
|
|
|
|
|
|
|
|
|
0.4 |
|
|
|
|
0.1 |
|
|
0.1 |
|
||||||
Domestic |
|
70 |
|
|
39,532 |
|
|
304.95 |
|
|
64.8 |
|
|
197.64 |
|
|
2,306.5 |
|
|
321.78 |
|
|
454.2 |
|
|
788.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
International |
|
5 |
|
|
1,499 |
|
|
133.14 |
|
|
49.3 |
|
|
65.66 |
|
|
27.0 |
|
|
99.56 |
|
|
2.2 |
|
|
6.7 |
|
All Locations - comparable hotels |
|
75 |
|
|
41,031 |
|
$ |
300.14 |
|
|
64.2 |
% |
$ |
192.82 |
|
$ |
2,333.5 |
|
$ |
313.73 |
|
$ |
456.4 |
|
$ |
795.4 |
|
Non-comparable hotels |
|
2 |
|
|
909 |
|
|
|
|
|
|
|
|
112.2 |
|
|
|
|
33.5 |
|
|
47.5 |
|
||||
Severance at hotel properties |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
— |
|
|
(1.7 |
) |
||||||
Property transaction adjustments (2) |
|
|
|
|
|
|
|
|
|
|
|
9.2 |
|
|
|
|
— |
|
|
(15.9 |
) |
||||||
Gain on sale of property and corporate level income/expense (3) |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
(111.9 |
) |
|
(17.1 |
) |
||||||
Total |
|
77 |
|
|
41,940 |
|
|
— |
|
|
— |
|
|
— |
|
$ |
2,454.9 |
|
|
— |
|
$ |
378.0 |
|
$ |
808.2 |
|
___________
© Host Hotels & Resorts, Inc. |
15 |
comparable Hotel Results by Location
(unaudited, in millions, except hotel statistics and per room basis)
|
Year-to-Date ended June 30, 2022 |
|
|||||||||||||||||||||||||
Location |
No. of |
|
No. of |
|
Hotel Net Income |
|
Plus: Depreciation |
|
Plus: Interest Expense |
|
Plus: Income Tax |
|
Plus: Severance at hotel properties |
|
Plus: Property Transaction Adjustments |
|
Equals: Hotel EBITDA |
|
|||||||||
Maui/Oahu |
|
4 |
|
|
2,006 |
|
$ |
63.1 |
|
$ |
28.3 |
|
$ |
— |
|
$ |
— |
|
$ |
0.1 |
|
$ |
— |
|
$ |
91.5 |
|
Miami |
|
2 |
|
|
1,033 |
|
|
52.9 |
|
|
11.5 |
|
|
— |
|
|
— |
|
|
— |
|
|
(1.9 |
) |
|
62.5 |
|
Jacksonville |
|
1 |
|
|
446 |
|
|
22.5 |
|
|
6.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
28.8 |
|
Phoenix |
|
3 |
|
|
1,545 |
|
|
75.6 |
|
|
21.7 |
|
|
— |
|
|
— |
|
|
— |
|
|
(5.5 |
) |
|
91.8 |
|
Florida Gulf Coast |
|
3 |
|
|
941 |
|
|
41.1 |
|
|
10.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
51.9 |
|
Orlando |
|
2 |
|
|
2,448 |
|
|
66.5 |
|
|
25.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
91.6 |
|
New York |
|
2 |
|
|
2,486 |
|
|
(28.1 |
) |
|
35.2 |
|
|
— |
|
|
— |
|
|
1.6 |
|
|
12.2 |
|
|
20.9 |
|
Los Angeles/ Orange County |
|
3 |
|
|
1,067 |
|
|
7.4 |
|
|
6.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
13.8 |
|
San Diego |
|
3 |
|
|
3,294 |
|
|
43.1 |
|
|
30.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
73.5 |
|
Washington, D.C. (CBD) |
|
5 |
|
|
3,240 |
|
|
24.8 |
|
|
17.6 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
42.4 |
|
Boston |
|
2 |
|
|
1,496 |
|
|
8.5 |
|
|
6.6 |
|
|
— |
|
|
— |
|
|
— |
|
|
1.8 |
|
|
16.9 |
|
Austin |
|
2 |
|
|
767 |
|
|
10.9 |
|
|
6.2 |
|
|
2.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
19.2 |
|
Philadelphia |
|
2 |
|
|
810 |
|
|
5.6 |
|
|
5.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
10.7 |
|
Northern Virginia |
|
2 |
|
|
916 |
|
|
4.3 |
|
|
4.7 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
9.0 |
|
San Francisco/ San Jose |
|
6 |
|
|
4,162 |
|
|
(6.8 |
) |
|
33.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
26.3 |
|
New Orleans |
|
1 |
|
|
1,333 |
|
|
14.2 |
|
|
5.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
19.2 |
|
Chicago |
|
3 |
|
|
1,562 |
|
|
(1.4 |
) |
|
10.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.8 |
) |
|
7.9 |
|
San Antonio |
|
2 |
|
|
1,512 |
|
|
9.9 |
|
|
8.5 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
18.4 |
|
Houston |
|
5 |
|
|
1,942 |
|
|
6.2 |
|
|
10.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
16.5 |
|
Atlanta |
|
2 |
|
|
810 |
|
|
6.3 |
|
|
4.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
10.7 |
|
Seattle |
|
2 |
|
|
1,315 |
|
|
(2.7 |
) |
|
6.9 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4.2 |
|
Denver |
|
3 |
|
|
1,340 |
|
|
6.7 |
|
|
5.5 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
12.2 |
|
Other |
|
10 |
|
|
3,061 |
|
|
23.5 |
|
|
15.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
10.1 |
|
|
48.7 |
|
Other property level (1) |
|
|
|
|
|
0.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.1 |
|
||
Domestic |
|
70 |
|
|
39,532 |
|
|
454.2 |
|
|
314.8 |
|
|
2.1 |
|
|
— |
|
|
1.7 |
|
|
15.9 |
|
|
788.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
International |
|
5 |
|
|
1,499 |
|
|
2.2 |
|
|
4.5 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
6.7 |
|
All Locations - comparable hotels |
|
75 |
|
|
41,031 |
|
$ |
456.4 |
|
$ |
319.3 |
|
$ |
2.1 |
|
$ |
— |
|
$ |
1.7 |
|
$ |
15.9 |
|
$ |
795.4 |
|
Non-comparable hotels |
|
2 |
|
|
909 |
|
|
33.5 |
|
|
14.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
47.5 |
|
Severance at hotel properties |
|
|
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1.7 |
) |
|
— |
|
|
(1.7 |
) |
||
Property transaction adjustments (2) |
|
|
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(15.9 |
) |
|
(15.9 |
) |
||
Gain on sale of property and corporate level income/expense (3) |
|
|
|
|
|
(111.9 |
) |
|
0.6 |
|
|
70.8 |
|
|
23.4 |
|
|
— |
|
|
— |
|
|
(17.1 |
) |
||
Total |
|
77 |
|
|
41,940 |
|
$ |
378.0 |
|
$ |
333.9 |
|
$ |
72.9 |
|
$ |
23.4 |
|
$ |
— |
|
$ |
— |
|
$ |
808.2 |
|
___________
© Host Hotels & Resorts, Inc. |
16 |
HISTORICAL COMPARABLE HOTEL RESULTS
(UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS)
Historical Comparable Hotel Metrics(1)
|
|
Three Months Ended |
|
|
Full Year |
|
|
Three Months Ended |
|
|
Full Year |
|
||||||||||||||||||||||||||||||||||||
|
|
March 31, 2023 |
|
|
June 30, 2023 |
|
|
March 31, 2022 |
|
|
June 30, 2022 |
|
|
September 30, 2022 |
|
|
December 31, 2022 |
|
|
December 31, 2022 |
|
|
March 31, 2019 |
|
|
June 30, 2019 |
|
|
September 30, 2019 |
|
|
December 31, 2019 |
|
|
December 31, 2019 |
|
||||||||||||
Number of hotels |
|
|
75 |
|
|
|
75 |
|
|
|
75 |
|
|
|
75 |
|
|
|
75 |
|
|
|
75 |
|
|
|
75 |
|
|
|
73 |
|
|
|
73 |
|
|
|
73 |
|
|
|
73 |
|
|
|
73 |
|
Number of rooms |
|
|
41,031 |
|
|
|
41,031 |
|
|
|
41,031 |
|
|
|
41,031 |
|
|
|
41,031 |
|
|
|
41,031 |
|
|
|
41,031 |
|
|
|
40,643 |
|
|
|
40,643 |
|
|
|
40,643 |
|
|
|
40,643 |
|
|
|
40,643 |
|
Comparable hotel RevPAR |
|
$ |
217.77 |
|
|
$ |
225.12 |
|
|
$ |
166.12 |
|
|
$ |
219.23 |
|
|
$ |
197.76 |
|
|
$ |
199.97 |
|
|
$ |
195.87 |
|
|
$ |
202.83 |
|
|
$ |
211.88 |
|
|
$ |
192.81 |
|
|
$ |
194.32 |
|
|
$ |
200.42 |
|
Comparable hotel occupancy |
|
|
68.4 |
% |
|
|
74.2 |
% |
|
|
54.4 |
% |
|
|
74.0 |
% |
|
|
70.3 |
% |
|
|
66.5 |
% |
|
|
66.3 |
% |
|
|
76.3 |
% |
|
|
81.9 |
% |
|
|
80.0 |
% |
|
|
75.6 |
% |
|
|
78.5 |
% |
Comparable hotel ADR |
|
$ |
318.49 |
|
|
$ |
303.29 |
|
|
$ |
305.60 |
|
|
$ |
296.18 |
|
|
$ |
281.27 |
|
|
$ |
300.71 |
|
|
$ |
295.24 |
|
|
$ |
265.90 |
|
|
$ |
258.56 |
|
|
$ |
240.91 |
|
|
$ |
256.94 |
|
|
$ |
255.39 |
|
Historical Comparable Hotel Revenues(1)(2)
|
|
Three Months Ended |
|
|
Full Year |
|
|
Three Months Ended |
|
|
Full Year |
|
||||||||||||||||||||||||||||||||||||
|
|
March 31, 2023 |
|
|
June 30, 2023 |
|
|
March 31, 2022 |
|
|
June 30, 2022 |
|
|
September 30, 2022 |
|
|
December 31, 2022 |
|
|
December 31, 2022 |
|
|
March 31, 2019 |
|
|
June 30, 2019 |
|
|
September 30, 2019 |
|
|
December 31, 2019 |
|
|
December 31, 2019 |
|
||||||||||||
Total revenues |
|
$ |
1,381 |
|
|
$ |
1,393 |
|
|
$ |
1,074 |
|
|
$ |
1,381 |
|
|
$ |
1,189 |
|
|
$ |
1,263 |
|
|
$ |
4,907 |
|
|
$ |
1,390 |
|
|
$ |
1,483 |
|
|
$ |
1,262 |
|
|
$ |
1,334 |
|
|
$ |
5,469 |
|
Add: Revenues from asset acquisitions |
|
|
- |
|
|
|
- |
|
|
|
34 |
|
|
|
4 |
|
|
|
30 |
|
|
|
4 |
|
|
|
72 |
|
|
|
128 |
|
|
|
91 |
|
|
|
90 |
|
|
|
92 |
|
|
|
401 |
|
Less: Revenues from asset dispositions |
|
|
(7 |
) |
|
|
- |
|
|
|
(32 |
) |
|
|
(15 |
) |
|
|
(6 |
) |
|
|
(7 |
) |
|
|
(60 |
) |
|
|
(230 |
) |
|
|
(251 |
) |
|
|
(205 |
) |
|
|
(180 |
) |
|
|
(866 |
) |
Less: Revenues from non-comparable hotels |
|
|
(21 |
) |
|
|
(18 |
) |
|
|
(66 |
) |
|
|
(46 |
) |
|
|
(25 |
) |
|
|
(9 |
) |
|
|
(146 |
) |
|
|
(74 |
) |
|
|
(48 |
) |
|
|
(28 |
) |
|
|
(48 |
) |
|
|
(198 |
) |
Comparable hotel revenues |
|
$ |
1,353 |
|
|
$ |
1,375 |
|
|
$ |
1,010 |
|
|
$ |
1,324 |
|
|
$ |
1,188 |
|
|
$ |
1,251 |
|
|
$ |
4,773 |
|
|
$ |
1,214 |
|
|
$ |
1,275 |
|
|
$ |
1,119 |
|
|
$ |
1,198 |
|
|
$ |
4,806 |
|
Historical Comparable Hotel EBITDA(1)(2)
|
|
Three Months Ended |
|
|
Full Year |
|
|
Three Months Ended |
|
|
Full Year |
|
||||||||||||||||||||||||||||||||||||
|
|
March 31, 2023 |
|
|
June 30, 2023 |
|
|
March 31, 2022 |
|
|
June 30, 2022 |
|
|
September 30, 2022 |
|
|
December 31, 2022 |
|
|
December 31, 2022 |
|
|
March 31, 2019 |
|
|
June 30, 2019 |
|
|
September 30, 2019 |
|
|
December 31, 2019 |
|
|
December 31, 2019 |
|
||||||||||||
Net income (loss) |
|
$ |
291 |
|
|
$ |
214 |
|
|
$ |
118 |
|
|
$ |
260 |
|
|
$ |
116 |
|
|
$ |
149 |
|
|
$ |
643 |
|
|
$ |
189 |
|
|
$ |
290 |
|
|
$ |
372 |
|
|
$ |
81 |
|
|
$ |
932 |
|
Depreciation and amortization |
|
|
169 |
|
|
|
168 |
|
|
|
172 |
|
|
|
162 |
|
|
|
164 |
|
|
|
166 |
|
|
|
664 |
|
|
|
170 |
|
|
|
166 |
|
|
|
165 |
|
|
|
175 |
|
|
|
676 |
|
Interest expense |
|
|
49 |
|
|
|
45 |
|
|
|
36 |
|
|
|
37 |
|
|
|
40 |
|
|
|
43 |
|
|
|
156 |
|
|
|
43 |
|
|
|
43 |
|
|
|
46 |
|
|
|
90 |
|
|
|
222 |
|
Provision (benefit) for income taxes |
|
|
(2 |
) |
|
|
14 |
|
|
|
(16 |
) |
|
|
39 |
|
|
|
6 |
|
|
|
(3 |
) |
|
|
26 |
|
|
|
2 |
|
|
|
16 |
|
|
|
4 |
|
|
|
8 |
|
|
|
30 |
|
Gain on sale of property and corporate level income/expense |
|
|
(59 |
) |
|
|
6 |
|
|
|
7 |
|
|
|
10 |
|
|
|
15 |
|
|
|
18 |
|
|
|
51 |
|
|
|
11 |
|
|
|
(44 |
) |
|
|
(263 |
) |
|
|
13 |
|
|
|
(283 |
) |
Severance expense at hotel properties |
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Property transaction adjustments |
|
|
(3 |
) |
|
|
- |
|
|
|
19 |
|
|
|
(3 |
) |
|
|
8 |
|
|
|
(1 |
) |
|
|
23 |
|
|
|
(10 |
) |
|
|
(46 |
) |
|
|
(25 |
) |
|
|
(15 |
) |
|
|
(96 |
) |
Non-comparable hotel results, net |
|
|
(6 |
) |
|
|
2 |
|
|
|
(33 |
) |
|
|
(15 |
) |
|
|
- |
|
|
|
3 |
|
|
|
(45 |
) |
|
|
(32 |
) |
|
|
(13 |
) |
|
|
(2 |
) |
|
|
(15 |
) |
|
|
(62 |
) |
Comparable hotel EBITDA |
|
$ |
439 |
|
|
$ |
449 |
|
|
$ |
305 |
|
|
$ |
490 |
|
|
$ |
349 |
|
|
$ |
375 |
|
|
$ |
1,520 |
|
|
$ |
373 |
|
|
$ |
412 |
|
|
$ |
297 |
|
|
$ |
337 |
|
|
$ |
1,419 |
|
___________
© Host Hotels & Resorts, Inc. |
17 |
COMPARABLE HOTEL RESULTS 2023 FORECAST
(UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS)
|
|
2023 Comparable Hotel Set |
|
|||||||||
|
|
2023 Forecast⁽¹⁾ |
|
|
2022 |
|
|
2019 |
|
|||
Number of hotels |
|
|
75 |
|
|
|
75 |
|
|
|
73 |
|
Number of rooms |
|
|
41,031 |
|
|
|
41,031 |
|
|
|
40,643 |
|
Comparable hotel Total RevPAR |
|
$ |
343.88 |
|
|
$ |
318.25 |
|
|
$ |
323.84 |
|
Comparable hotel RevPAR |
|
|
211.59 |
|
|
|
195.87 |
|
|
|
200.42 |
|
Operating profit margin⁽⁴⁾ |
|
|
14.5 |
% |
|
|
15.8 |
% |
|
|
14.6 |
% |
Comparable hotel EBITDA margin⁽⁴⁾ |
|
|
29.9 |
% |
|
|
31.8 |
% |
|
|
29.5 |
% |
Food and beverage profit margin⁽⁴⁾ |
|
|
33.9 |
% |
|
|
34.6 |
% |
|
|
32.0 |
% |
Comparable hotel food and beverage profit margin⁽⁴⁾ |
|
|
34.4 |
% |
|
|
35.0 |
% |
|
|
33.4 |
% |
|
|
|
|
|
|
|
|
|
|
|||
Net income |
|
$ |
725 |
|
|
$ |
643 |
|
|
$ |
932 |
|
Depreciation and amortization |
|
|
680 |
|
|
|
664 |
|
|
|
676 |
|
Interest expense |
|
|
190 |
|
|
|
156 |
|
|
|
222 |
|
Provision for income taxes |
|
|
15 |
|
|
|
26 |
|
|
|
30 |
|
Gain on sale of property and corporate level income/expense |
|
|
(47 |
) |
|
|
51 |
|
|
|
(283 |
) |
Severance expense at hotel properties |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
Property transaction adjustments⁽²⁾ |
|
|
(3 |
) |
|
|
23 |
|
|
|
(96 |
) |
Non-comparable hotel results, net⁽³⁾ |
|
|
(17 |
) |
|
|
(45 |
) |
|
|
(62 |
) |
Comparable hotel EBITDA |
|
$ |
1,543 |
|
|
$ |
1,520 |
|
|
$ |
1,419 |
|
___________
© Host Hotels & Resorts, Inc. |
18 |
COMPARABLE HOTEL RESULTS 2023 FORECAST
(UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS)
|
Forecast Year ended December 31, 2023 |
|
|
|
Year ended December 31, 2022 |
|
|
|
Year ended December 31, 2019 |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
||||||||||||||||||||||||||||||||||
|
GAAP Results |
|
|
Property transaction adjustments |
|
|
Non-comparable hotel results, net (b) |
|
|
Depreciation and corporate level items |
|
|
Comparable hotel Results |
|
|
|
GAAP Results |
|
|
Property transaction adjustments |
|
|
Non-comparable hotel results, net (b) |
|
|
Hotel severance, Depreciation and corporate level items |
|
|
Comparable hotel Results |
|
|
|
GAAP Results |
|
|
Property transaction adjustments |
|
|
Non-comparable hotel results, net (b) |
|
|
Depreciation and corporate level items |
|
|
Comparable hotel Results |
|
|||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Room |
$ |
3,242 |
|
|
$ |
(5 |
) |
|
$ |
(63 |
) |
|
$ |
- |
|
|
$ |
3,174 |
|
|
|
$ |
3,014 |
|
|
$ |
- |
|
|
$ |
(76 |
) |
|
$ |
- |
|
|
$ |
2,938 |
|
|
|
$ |
3,431 |
|
|
$ |
(363 |
) |
|
|
(94 |
) |
|
$ |
- |
|
|
$ |
2,974 |
|
Food and beverage |
|
1,562 |
|
|
|
(2 |
) |
|
|
(50 |
) |
|
|
- |
|
|
|
1,510 |
|
|
|
|
1,418 |
|
|
|
3 |
|
|
|
(54 |
) |
|
|
- |
|
|
|
1,367 |
|
|
|
|
1,647 |
|
|
|
(95 |
) |
|
|
(82 |
) |
|
|
- |
|
|
|
1,470 |
|
Other |
|
486 |
|
|
|
- |
|
|
|
(12 |
) |
|
|
- |
|
|
|
474 |
|
|
|
|
475 |
|
|
|
9 |
|
|
|
(16 |
) |
|
|
- |
|
|
|
468 |
|
|
|
|
391 |
|
|
|
(7 |
) |
|
|
(22 |
) |
|
|
- |
|
|
|
362 |
|
Total revenues |
|
5,290 |
|
|
|
(7 |
) |
|
|
(125 |
) |
|
|
- |
|
|
|
5,158 |
|
|
|
|
4,907 |
|
|
|
12 |
|
|
|
(146 |
) |
|
|
- |
|
|
|
4,773 |
|
|
|
|
5,469 |
|
|
|
(465 |
) |
|
|
(198 |
) |
|
|
- |
|
|
|
4,806 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Room |
|
797 |
|
|
|
(1 |
) |
|
|
(13 |
) |
|
|
- |
|
|
|
783 |
|
|
|
|
727 |
|
|
|
(10 |
) |
|
|
(14 |
) |
|
|
- |
|
|
|
703 |
|
|
|
|
873 |
|
|
|
(125 |
) |
|
|
(19 |
) |
|
|
- |
|
|
|
729 |
|
Food and beverage |
|
1,033 |
|
|
|
(1 |
) |
|
|
(42 |
) |
|
|
- |
|
|
|
990 |
|
|
|
|
928 |
|
|
|
(1 |
) |
|
|
(38 |
) |
|
|
- |
|
|
|
889 |
|
|
|
|
1,120 |
|
|
|
(84 |
) |
|
|
(57 |
) |
|
|
- |
|
|
|
979 |
|
Other |
|
1,900 |
|
|
|
(2 |
) |
|
|
(53 |
) |
|
|
- |
|
|
|
1,845 |
|
|
|
|
1,723 |
|
|
|
- |
|
|
|
(49 |
) |
|
|
(2 |
) |
|
|
1,672 |
|
|
|
|
1,899 |
|
|
|
(160 |
) |
|
|
(60 |
) |
|
|
- |
|
|
|
1,679 |
|
Depreciation and amortization |
|
680 |
|
|
|
- |
|
|
|
- |
|
|
|
(680 |
) |
|
|
- |
|
|
|
|
664 |
|
|
|
- |
|
|
|
- |
|
|
|
(664 |
) |
|
|
- |
|
|
|
|
676 |
|
|
|
- |
|
|
|
- |
|
|
|
(676 |
) |
|
|
- |
|
Corporate and other expenses |
|
118 |
|
|
|
- |
|
|
|
- |
|
|
|
(118 |
) |
|
|
- |
|
|
|
|
107 |
|
|
|
- |
|
|
|
- |
|
|
|
(107 |
) |
|
|
- |
|
|
|
|
107 |
|
|
|
- |
|
|
|
- |
|
|
|
(107 |
) |
|
|
- |
|
Gain on insurance and business interruption settlements (a) |
|
(5 |
) |
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
(3 |
) |
|
|
|
(17 |
) |
|
|
- |
|
|
|
- |
|
|
|
6 |
|
|
|
(11 |
) |
|
|
|
(5 |
) |
|
|
- |
|
|
|
- |
|
|
|
5 |
|
|
|
- |
|
Total expenses |
|
4,523 |
|
|
|
(4 |
) |
|
|
(108 |
) |
|
|
(796 |
) |
|
|
3,615 |
|
|
|
|
4,132 |
|
|
|
(11 |
) |
|
|
(101 |
) |
|
|
(767 |
) |
|
|
3,253 |
|
|
|
|
4,670 |
|
|
|
(369 |
) |
|
|
(136 |
) |
|
|
(778 |
) |
|
|
3,387 |
|
Operating Profit - Comparable hotel EBITDA |
$ |
767 |
|
|
$ |
(3 |
) |
|
$ |
(17 |
) |
|
$ |
796 |
|
|
$ |
1,543 |
|
|
|
$ |
775 |
|
|
$ |
23 |
|
|
$ |
(45 |
) |
|
$ |
767 |
|
|
$ |
1,520 |
|
|
|
$ |
799 |
|
|
$ |
(96 |
) |
|
$ |
(62 |
) |
|
$ |
778 |
|
|
$ |
1,419 |
|
___________
|
|
|
Net Income (Loss) |
|
|
Plus: Depreciation |
|
|
Plus: Interest Expense |
|
|
Plus: Income Tax |
|
|
Equals: Hotel EBTIDA |
|
|||||
Current Forecast |
|
|
$ |
(14 |
) |
|
$ |
31 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
17 |
|
Forecast without Hurricane |
|
|
|
56 |
|
|
|
32 |
|
|
|
- |
|
|
|
- |
|
|
|
88 |
|
Change in Forecast |
|
|
$ |
(70 |
) |
|
$ |
(1 |
) |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(71 |
) |
© Host Hotels & Resorts, Inc. |
19 |
RECONCILIATION OF NET INCOME TO EBITDA, EBITDARE AND ADJUSTED EBITDARE AND DILUTED EARNINGS PER COMMON SHARE TO NAREIT AND ADJUSTED FUNDS FROM OPERATIONS PER DILUTED SHARE FOR FULL YEAR 2023 FORECASTS (1)
(UNAUDITED, IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
|
|
Full Year 2023 |
|
|
|
|
Mid-point |
|
|
Net income |
|
$ |
725 |
|
Interest expense |
|
|
190 |
|
Depreciation and amortization |
|
|
680 |
|
Income taxes |
|
|
15 |
|
EBITDA |
|
|
1,610 |
|
Gain on dispositions |
|
|
(69 |
) |
Equity investment adjustments: |
|
|
|
|
Equity in earnings of affiliates |
|
|
(19 |
) |
Pro rata EBITDAre of equity investments |
|
|
40 |
|
EBITDAre |
|
|
1,562 |
|
Adjustments to EBITDAre: |
|
|
|
|
Gain on property insurance settlement (2) |
|
|
(2 |
) |
Adjusted EBITDAre |
|
$ |
1,560 |
|
|
|
Full Year 2023 |
|
|
|
|
Mid-point |
|
|
Net income |
|
$ |
725 |
|
Less: Net income attributable to non-controlling interests |
|
|
(11 |
) |
Net income attributable to Host Inc. |
|
|
714 |
|
Adjustments: |
|
|
|
|
Gain on dispositions |
|
|
(69 |
) |
Gain on property insurance settlement (2) |
|
|
(2 |
) |
Depreciation and amortization |
|
|
679 |
|
Equity investment adjustments: |
|
|
|
|
Equity in earnings of affiliates |
|
|
(19 |
) |
Pro rata FFO of equity investments |
|
|
28 |
|
Consolidated partnership adjustments: |
|
|
|
|
FFO adjustment for non-controlling partnerships |
|
|
(1 |
) |
FFO adjustment for non-controlling interests of Host LP |
|
|
(8 |
) |
NAREIT FFO |
|
|
1,322 |
|
Adjustments to NAREIT FFO: |
|
|
|
|
Loss on extinguishment of debt |
|
|
4 |
|
Adjusted FFO |
|
$ |
1,326 |
|
|
|
|
|
|
Diluted weighted average shares outstanding - EPS, NAREIT FFO and Adjusted FFO |
|
|
713.9 |
|
Diluted earnings per common share |
|
$ |
1.00 |
|
NAREIT FFO per diluted share |
|
$ |
1.85 |
|
Adjusted FFO per diluted share |
|
$ |
1.86 |
|
___________
(1) The Forecasts are based on the below assumptions:
For a discussion of items that may affect forecast results, see the Notes to Supplemental Financial Information.
(2) The insurance gain relates to proceeds in 2023 related to prior year insurance claims. 2023 Forecasts do not include any gains related to Hurricane Ian at this time, as timing of any recognition is uncertain
© Host Hotels & Resorts, Inc. |
20 |
GROUND LEASE SUMMARY AS OF DECEMBER 31, 2022
|
|
|
As of December 31, 2022 |
||||||||
|
|
|
No. of rooms |
|
Lessor Institution Type |
Minimum rent |
|
Current expiration |
Expiration after all potential options (1) |
||
1 |
|
Boston Marriott Copley Place |
|
1,145 |
|
Public |
N/A (2) |
|
12/13/2077 |
12/13/2077 |
|
2 |
|
Coronado Island Marriott Resort & Spa |
300 |
|
Public |
|
1,378,850 |
|
10/31/2062 |
10/31/2078 |
|
3 |
|
Denver Marriott West |
305 |
|
Private |
|
160,000 |
|
12/28/2028 |
12/28/2058 |
|
4 |
|
Houston Airport Marriott at George Bush Intercontinental |
573 |
|
Public |
|
1,560,000 |
|
10/31/2053 |
10/31/2053 |
|
5 |
|
Houston Marriott Medical Center/Museum District |
398 |
|
Non-Profit |
|
160,000 |
|
12/28/2029 |
12/28/2059 |
|
6 |
|
Manchester Grand Hyatt San Diego |
|
1,628 |
|
Public |
|
6,600,000 |
|
5/31/2067 |
5/31/2083 |
7 |
|
Marina del Rey Marriott |
370 |
|
Public |
|
1,991,076 |
|
3/31/2043 |
3/31/2043 |
|
8 |
|
Marriott Downtown at CF Toronto Eaton Centre |
461 |
|
Non-Profit |
|
368,900 |
|
9/20/2082 |
9/20/2082 |
|
9 |
|
Marriott Marquis San Diego Marina |
|
1,366 |
|
Public |
|
7,650,541 |
|
11/30/2061 |
11/30/2083 |
10 |
|
Newark Liberty International Airport Marriott |
591 |
|
Public |
|
2,576,119 |
|
12/31/2055 |
12/31/2055 |
|
11 |
|
Philadelphia Airport Marriott |
419 |
|
Public |
|
1,411,563 |
|
6/29/2045 |
6/29/2045 |
|
12 |
|
San Antonio Marriott Rivercenter |
|
1,000 |
|
Private |
|
700,000 |
|
12/31/2033 |
12/31/2063 |
13 |
|
San Francisco Marriott Marquis |
|
1,500 |
|
Public |
|
1,500,000 |
|
8/25/2046 |
8/25/2076 |
14 |
|
Santa Clara Marriott |
|
766 |
|
Private |
|
90,932 |
|
11/30/2028 |
11/30/2058 |
15 |
|
Tampa Airport Marriott |
|
298 |
|
Public |
|
1,463,770 |
|
12/31/2043 |
12/31/2043 |
16 |
|
The Ritz-Carlton, Marina del Rey |
|
304 |
|
Public |
|
2,078,916 |
|
7/29/2067 |
7/29/2067 |
17 |
|
The Ritz-Carlton, Tysons Corner |
|
398 |
|
Private |
|
1,043,459 |
|
6/30/2112 |
6/30/2112 |
18 |
|
The Westin Cincinnati |
|
456 |
|
Public |
|
100,000 |
|
6/30/2045 |
6/30/2075 (3) |
19 |
|
The Westin South Coast Plaza, Costa Mesa |
|
393 |
|
Private |
|
178,160 |
|
9/30/2025 |
9/30/2025 |
|
|
Weighted average remaining lease term (assuming all extension options) |
|
51 years |
|
|
|
|
|||
|
|
Percentage of leases (based on room count) with Public/Private/Non-Profit lessors |
|
71%/22%/7% |
|
|
|
|
© Host Hotels & Resorts, Inc. |
21 |
|
ovERVIEW PROPERTY LEVEL DATA CAPITALIZATION Financial Covenants NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION |
COMPARATIVE CAPITALIZATION
(in millions, except security pricing and per share amounts)
|
As of |
|
|
As of |
|
|
As of |
|
|
As of |
|
|
As of |
|
|||||
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|||||
Shares/Units |
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|||||
Common shares outstanding |
|
711.4 |
|
|
|
711.2 |
|
|
|
713.4 |
|
|
714.9 |
|
|
714.9 |
|
||
Common shares outstanding assuming |
721.4 |
|
|
721.3 |
|
|
723.6 |
|
|
725.3 |
|
|
725.3 |
|
|||||
Preferred OP Units outstanding |
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Security pricing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common stock at end of quarter (2) |
$ |
16.83 |
|
|
$ |
16.49 |
|
|
$ |
16.05 |
|
|
$ |
15.88 |
|
|
$ |
15.68 |
|
High during quarter |
|
17.83 |
|
|
|
19.23 |
|
|
|
18.94 |
|
|
|
19.55 |
|
|
|
21.24 |
|
Low during quarter |
|
15.80 |
|
|
|
14.86 |
|
|
|
15.81 |
|
|
|
15.47 |
|
|
|
15.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Capitalization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Market value of common equity (3) |
$ |
12,141 |
|
|
$ |
11,894 |
|
|
$ |
11,614 |
|
|
$ |
11,518 |
|
|
$ |
11,373 |
|
Consolidated debt |
|
4,210 |
|
|
|
4,208 |
|
|
|
4,215 |
|
|
|
4,214 |
|
|
|
4,212 |
|
Less: Cash |
|
(802 |
) |
|
|
(563 |
) |
|
|
(667 |
) |
|
|
(883 |
) |
|
|
(699 |
) |
Consolidated total capitalization |
|
15,549 |
|
|
|
15,539 |
|
|
|
15,162 |
|
|
|
14,849 |
|
|
|
14,886 |
|
Plus: Share of debt in unconsolidated |
183 |
|
|
199 |
|
|
205 |
|
|
156 |
|
|
143 |
|
|||||
Pro rata total capitalization (4) |
$ |
15,732 |
|
|
$ |
15,738 |
|
|
$ |
15,367 |
|
|
$ |
15,005 |
|
|
$ |
15,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Quarter ended |
|
|
Quarter ended |
|
|
Quarter ended |
|
|
Quarter ended |
|
|
Quarter ended |
|
|||||
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|||||
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|||||
Dividends declared per common share |
$ |
0.15 |
|
|
$ |
0.12 |
|
|
$ |
0.32 |
|
|
$ |
0.12 |
|
|
$ |
0.06 |
|
© Host Hotels & Resorts, Inc. |
23 |
CONSOLIDATED DEBT SUMMARY
(IN MILLIONS)
Debt |
|
|
|
|
|
|
|
|
|
|
|
||
Senior debt |
Rate |
|
Maturity date |
|
June 30, 2023 |
|
|
December 31, 2022 |
|
||||
Series E |
4% |
|
6/2025 |
|
|
$ |
499 |
|
|
|
$ |
499 |
|
Series F |
4 1⁄2% |
|
2/2026 |
|
|
399 |
|
|
|
399 |
|
||
Series G |
3 7⁄8% |
|
4/2024 |
|
|
399 |
|
|
|
399 |
|
||
Series H |
3 3⁄8% |
|
12/2029 |
|
|
642 |
|
|
|
642 |
|
||
Series I |
3 1⁄2% |
|
9/2030 |
|
|
737 |
|
|
|
736 |
|
||
Series J |
2.9% |
|
12/2031 |
|
|
441 |
|
|
|
|
440 |
|
|
2027 Credit facility term loan |
6.4% |
|
1/2027 |
|
|
499 |
|
|
|
499 |
|
||
2028 Credit facility term loan |
6.4% |
|
1/2028 |
|
|
498 |
|
|
|
499 |
|
||
Credit facility revolver (1) |
- |
|
1/2027 |
|
|
|
(10 |
) |
|
|
|
(4 |
) |
|
|
|
|
|
|
|
4,104 |
|
|
|
|
4,109 |
|
Mortgage and other debt |
|
|
|
|
|
|
|
|
|
|
|
||
Mortgage and other debt |
4.9% |
|
2/2024 - 11/2027 |
|
|
106 |
|
|
|
106 |
|
||
Total debt(2)(3) |
|
|
|
|
|
$ |
4,210 |
|
|
|
$ |
4,215 |
|
Percentage of fixed rate debt |
|
|
|
|
|
|
76 |
% |
|
|
|
76 |
% |
Weighted average interest rate |
|
|
|
|
|
|
4.5 |
% |
|
|
|
4.4 |
% |
Weighted average debt maturity |
|
|
|
|
|
4.7 years |
|
|
|
5.2 years |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||
Credit Facility |
|
|
|
|
|
|
|
|
|
|
|||
Total capacity |
|
|
|
|
|
$ |
1,500 |
|
|
|
|
|
|
Available capacity |
|
|
|
|
|
|
1,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Assets encumbered by mortgage debt |
|
|
|
|
|
|
1 |
|
|
|
|
|
© Host Hotels & Resorts, Inc. |
24 |
Consolidated Debt Maturity as of June 30, 2023
1 HOTEL SOUTH BEACH
© Host Hotels & Resorts, Inc. |
25 |
|
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION Financial Covenants NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION |
FINANCIAL COVENANTS: CREDIT FACILITY AND SENIOR NOTES FINANCIAL PERFORMANCE TESTS
(UNAUDITED, IN MILLIONS, EXCEPT RATIOS)
On January 4, 2023, we amended our Credit Facility agreement. The covenant requirements are consistent with previous amendment covenant levels:
Leverage Ratio |
Maximum 7.25x |
Fixed Charge Coverage Ratio |
Minimum 1.25x |
Unsecured Interest Coverage Ratio |
Minimum 1.75x⁽¹⁾ |
Covenant ratios are calculated using Host’s credit facility and senior notes definitions. See the subsequent pages for a reconciliation of the equivalent GAAP measure. The GAAP ratio is not relevant for the purpose of the financial covenants.
The following tables present the financial performance tests for our credit facility and senior notes:
|
|
At June 30, 2023 |
|
||||
Credit Facility Financial Performance Tests |
Permitted |
GAAP Ratio |
|
Covenant Ratio |
|
||
Leverage Ratio |
Maximum 7.25x |
|
5.5 |
x |
|
2.2 |
x |
Unsecured Interest Coverage Ratio |
Minimum 1.75x(1) |
|
4.4 |
x |
|
9.3 |
x |
Consolidated Fixed Charge Coverage Ratio |
Minimum 1.25x |
|
4.4 |
x |
|
8.0 |
x |
|
|
At June 30, 2023 |
|
||||
Bond Compliance Financial Performance Tests |
Permitted |
GAAP Ratio |
|
Covenant Ratio |
|
||
Indebtedness Test |
Maximum 65% |
|
34 |
% |
|
20 |
% |
Secured Indebtedness Test |
Maximum 40% |
|
1 |
% |
|
1 |
% |
EBITDA-to-interest Coverage ratio ⁽²⁾ |
Minimum 1.5x |
|
4.4 |
x |
|
9.1 |
x |
Ratio of Unencumbered Assets to Unsecured Indebtedness |
Minimum 150% |
|
294 |
% |
|
491 |
% |
© Host Hotels & Resorts, Inc. |
27 |
FINANCIAL COVENANTS: RECONCILIATION OF GAAP LEVERAGE
RATIO TO CREDIT FACILITY LEVERAGE RATIO
(UNAUDITED, IN MILLIONS, EXCEPT RATIOS)
The following tables presents the calculation of our leverage ratio using GAAP measures and as used in the financial covenants of the credit facility:
|
|
GAAP Leverage Ratio |
|
|
|
|
Leverage Ratio per Credit Facility |
|
||
|
|
Trailing Twelve Months |
|
|
|
|
Trailing Twelve Months |
|
||
|
|
June 30, 2023 |
|
|
|
|
June 30, 2023 |
|
||
Debt |
|
$ |
4,210 |
|
|
Net debt (1) |
|
$ |
3,509 |
|
Net income |
|
|
770 |
|
|
Adjusted Credit Facility EBITDA (2) |
|
|
1,610 |
|
GAAP Leverage Ratio |
|
|
5.5 |
x |
|
Leverage Ratio |
|
|
2.2 |
x |
(1) The following presents the reconciliation of debt to net debt per our credit facility definition:
|
|
June 30, 2023 |
|
|
Debt |
|
$ |
4,210 |
|
Less: Unrestricted cash over $100 million |
|
|
(701 |
) |
Net debt per credit facility definition |
|
$ |
3,509 |
|
(2) The following presents the reconciliation of net income to EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted EBITDA per our credit facility definition in determining leverage ratio:
|
|
Trailing Twelve Months |
|
|
|
|
June 30, 2023 |
|
|
Net income |
|
$ |
770 |
|
Interest expense |
|
|
177 |
|
Depreciation and amortization |
|
|
667 |
|
Income taxes |
|
|
15 |
|
EBITDA |
|
|
1,629 |
|
Gain on dispositions |
|
|
(72 |
) |
Equity in earnings of affiliates |
|
|
(10 |
) |
Pro rata EBITDAre of equity investments |
|
|
35 |
|
EBITDAre and Adjusted EBITDAre |
|
|
1,582 |
|
Pro forma EBITDA - Acquisitions |
|
|
10 |
|
Pro forma EBITDA - Dispositions |
|
|
(2 |
) |
Restricted stock expense and other non-cash items |
|
|
30 |
|
Non-cash partnership adjustments |
|
|
(10 |
) |
Adjusted Credit Facility EBITDA |
|
$ |
1,610 |
|
© Host Hotels & Resorts, Inc. |
28 |
Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio
(UNAUDITED, IN MILLIONS, EXCEPT RATIOS)
The following tables present the calculation of our unsecured interest coverage ratio using GAAP measures and as used in the financial covenants of the credit facility:
|
GAAP Interest Coverage Ratio |
|
|
|
Unsecured Interest Coverage per Credit Facility Ratio |
|
||
|
Trailing Twelve Months |
|
|
|
Trailing Twelve Months |
|
||
|
June 30, 2023 |
|
|
|
June 30, 2023 |
|
||
Net income |
$ |
770 |
|
|
Unencumbered consolidated EBITDA per credit facility definition (1) |
$ |
1,600 |
|
Interest Expense |
|
177 |
|
|
Adjusted Credit Facility unsecured interest expense (2) |
|
172 |
|
GAAP Interest Coverage Ratio |
|
4.4 |
x |
|
Unsecured Interest Coverage Ratio |
|
9.3 |
x |
(1) The following reconciles Adjusted Credit Facility EBITDA to Unencumbered Consolidated EBITDA per our credit facility definition. See Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio for calculation and reconciliation of net income to Adjusted Credit Facility EBITDA:
|
Trailing Twelve Months |
|
|
|
June 30, 2023 |
|
|
Adjusted Credit Facility EBITDA |
$ |
1,610 |
|
Less: Encumbered EBITDA |
|
(11 |
) |
Corporate overhead allocated to encumbered assets |
|
1 |
|
Unencumbered Consolidated EBITDA per credit facility definition |
$ |
1,600 |
|
(2) The following reconciles GAAP interest expense to unsecured interest expense per our credit facility definition:
|
Trailing Twelve Months |
|
|
|
June 30, 2023 |
|
|
GAAP Interest expense |
$ |
177 |
|
Interest on secured debt |
|
(5 |
) |
Debt extinguishment costs |
|
(4 |
) |
Deferred financing cost amortization |
|
(7 |
) |
Capitalized interest |
|
12 |
|
Pro forma interest adjustments |
|
(1 |
) |
Adjusted Credit Facility Unsecured Interest Expense |
$ |
172 |
|
© Host Hotels & Resorts, Inc. |
29 |
Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Fixed Charge Coverage Ratio
(UNAUDITED, IN MILLIONS, EXCEPT RATIOS)
The following tables present the calculation of our GAAP Interest coverage ratio and our fixed charge coverage ratio as used in the financial covenants of the credit facility:
|
GAAP Fixed Charge Coverage Ratio |
|
|
|
Credit Facility Fixed Charge Coverage Ratio |
|
||
|
Trailing Twelve Months |
|
|
|
Trailing Twelve Months |
|
||
|
June 30, 2023 |
|
|
|
June 30, 2023 |
|
||
Net income |
$ |
770 |
|
|
Credit Facility Fixed Charge Coverage Ratio EBITDA (1) |
$ |
1,349 |
|
Interest Expense |
|
177 |
|
|
Fixed charges (2) |
|
169 |
|
GAAP Fixed Charge Coverage Ratio |
|
4.4 |
x |
|
Credit Facility Fixed Charge Coverage Ratio |
|
8.0 |
x |
(1) The following reconciles Adjusted Credit Facility EBITDA to Credit Facility Fixed Charge Coverage Ratio EBITDA. See Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio for calculation and reconciliation of Adjusted Credit Facility EBITDA:
|
Trailing Twelve Months |
|
|
|
June 30, 2023 |
|
|
Adjusted Credit Facility EBITDA |
$ |
1,610 |
|
Less: 5% of hotel property gross revenue |
|
(260 |
) |
Less: 3% of revenues from other real estate |
|
(1 |
) |
Credit Facility Fixed Charge Coverage Ratio EBITDA |
$ |
1,349 |
|
(2) The following table calculates the fixed charges per our credit facility definition. See Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio for reconciliation of GAAP interest expense to adjusted unsecured interest expense per our credit facility definition:
|
Trailing Twelve Months |
|
|
|
June 30, 2023 |
|
|
Adjusted Credit Facility Interest Unsecured Expense |
$ |
172 |
|
Interest on secured debt |
|
5 |
|
Adjusted Credit Facility Interest Expense |
$ |
177 |
|
Scheduled principal payments |
|
2 |
|
Cash taxes on ordinary income |
|
(10 |
) |
Fixed Charges |
$ |
169 |
|
© Host Hotels & Resorts, Inc. |
30 |
Financial Covenants: Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test
(unaudited, in millions, except ratios)
The following tables present the calculation of our total indebtedness to total assets using GAAP measures and as used in the financial covenants of our senior notes indenture:
|
|
GAAP Total Indebtedness to Total Assets |
|
|
|
|
June 30, 2023 |
|
|
Debt |
|
$ |
4,210 |
|
Total assets |
|
|
12,365 |
|
GAAP Total Indebtedness to Total Assets |
|
|
34 |
% |
|
|
Total Indebtedness to Total Assets per Senior Notes Indenture |
|
|
|
|
June 30, 2023 |
|
|
Adjusted indebtedness (1) |
|
|
4,236 |
|
Adjusted total assets (2) |
|
|
20,682 |
|
Total Indebtedness to Total Assets |
|
|
20 |
% |
(1) The following reconciles our GAAP total indebtedness to our total indebtedness per our senior notes indenture:
|
|
June 30, 2023 |
|
|
Debt |
|
$ |
4,210 |
|
Add: Deferred financing costs |
|
|
28 |
|
Less: Mark-to-market on assumed mortgage |
|
|
(2 |
) |
Adjusted Indebtedness per Senior Notes Indenture |
|
$ |
4,236 |
|
(2) The following presents the reconciliation of total assets to adjusted total assets per the financial covenants of our senior notes indenture definition:
|
|
June 30, 2023 |
|
|
Total assets |
|
$ |
12,365 |
|
Add: Accumulated depreciation |
|
|
8,864 |
|
Add: Prior impairment of assets held |
|
|
11 |
|
Add: Prior inventory impairment at unconsolidated investment |
|
|
7 |
|
Less: Intangibles |
|
|
(10 |
) |
Less: Right-of-use assets |
|
|
(555 |
) |
Adjusted Total Assets per Senior Notes Indenture |
|
$ |
20,682 |
|
© Host Hotels & Resorts, Inc. |
31 |
Financial Covenants: Reconciliation of GAAP Secured Indebtedness Test to Senior Notes Indenture Secured Indebtedness Test
(unaudited, in millions, except ratios)
The following table presents the calculation of our secured indebtedness using GAAP measures and as used in the financial covenants of our senior notes indenture:
|
|
GAAP Secured Indebtedness |
|
|
|
|
June 30, 2023 |
|
|
Mortgage and other secured debt |
|
$ |
106 |
|
Total assets |
|
|
12,365 |
|
GAAP Secured Indebtedness to Total Assets |
|
|
1 |
% |
|
|
Secured Indebtedness per Senior Notes Indenture |
|
|
|
|
June 30, 2023 |
|
|
Secured indebtedness (1) |
|
$ |
104 |
|
Adjusted total assets (2) |
|
$ |
20,682 |
|
Secured Indebtedness to Total Assets |
|
|
1 |
% |
(1) The following presents the reconciliation of mortgage debt to secured indebtedness per the financial covenants of our senior notes indenture definition:
|
|
June 30, 2023 |
|
|
Mortgage and other secured debt |
|
$ |
106 |
|
Less: Mark-to-market on assumed mortgage |
|
|
(2 |
) |
Secured Indebtedness |
|
$ |
104 |
|
(2) See Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test for reconciliation of GAAP Total Assets to Adjusted Total Assets per our senior notes indenture.
© Host Hotels & Resorts, Inc. |
32 |
Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Senior Notes Indenture EBITDA-to-Interest Coverage Ratio
(unaudited, in millions, except ratios)
The following tables present the calculation of our interest coverage ratio using our GAAP measures and as used in the financial covenants of the senior notes indenture:
|
|
GAAP Interest Coverage Ratio |
|
|
|
|
Trailing Twelve Months |
|
|
|
|
June 30, 2023 |
|
|
Net income |
|
$ |
770 |
|
Interest expense |
|
|
177 |
|
GAAP Interest Coverage Ratio |
|
|
4.4 |
x |
|
|
EBITDA to Interest Coverage Ratio |
|
|
|
|
Trailing Twelve Months |
|
|
|
|
June 30, 2023 |
|
|
Adjusted Credit Facility EBITDA (1) |
|
$ |
1,610 |
|
Non-controlling interest adjustment |
|
|
2 |
|
Adjusted Senior Notes EBITDA |
|
$ |
1,612 |
|
Adjusted Credit Facility Interest Expense (2) |
|
|
177 |
|
Plus: Premium amortization on assumed mortgage |
|
|
1 |
|
Adjusted Senior Notes Interest Expense (2) |
|
$ |
178 |
|
EBITDA to Interest Coverage Ratio |
|
|
9.1 |
x |
© Host Hotels & Resorts, Inc. |
33 |
Financial Covenants: Reconciliation of GAAP Assets to Indebtedness Test to Senior Notes Unencumbered Assets to Unsecured Indebtedness Test
(unaudited, in millions, except ratios)
The following tables present the calculation of our total assets to total debt using GAAP measures and unencumbered assets to unsecured debt as used in the financial covenants of our senior notes indenture:
|
|
GAAP Assets / Debt |
|
|
|
|
June 30, 2023 |
|
|
Total assets |
|
$ |
12,365 |
|
Total debt |
|
|
4,210 |
|
GAAP Total Assets / Total Debt |
|
|
294 |
% |
|
|
Unencumbered Assets / Unsecured Debt per Senior Notes Indenture |
|
|
|
|
June 30, 2023 |
|
|
Unencumbered Assets (1) |
|
$ |
20,278 |
|
Unsecured Debt (2) |
|
|
4,132 |
|
Unencumbered Assets / Unsecured Debt |
|
|
491 |
% |
(1) The following presents the reconciliation of adjusted total assets to unencumbered assets per the financial covenants of our senior notes indenture definition:
|
|
June 30, 2023 |
|
|
Adjusted total assets (a) |
|
$ |
20,682 |
|
Less: Partnership adjustments |
|
|
(144 |
) |
Less: Prior inventory impairment at unconsolidated investment |
|
|
(7 |
) |
Less: Encumbered Assets |
|
|
(253 |
) |
Unencumbered Assets |
|
$ |
20,278 |
|
(a) See reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test for reconciliation of GAAP Total Assets to Adjusted Total Assets per our senior notes indenture.
(2) The following presents the reconciliation of total debt to unsecured debt per the financial covenants of our senior notes indenture definition:
|
|
June 30, 2023 |
|
|
Adjusted Indebtedness (b) |
|
$ |
4,236 |
|
Less: Secured indebtedness (c) |
|
|
(104 |
) |
Unsecured Debt |
|
$ |
4,132 |
|
(b) See reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test for reconciliation of GAAP Total Debt to Adjusted Indebtedness per our senior notes indenture.
(c) See reconciliation of GAAP Secured Indebtedness Test to Senior Notes Indenture Secured Indebtedness Test for the reconciliation of mortgage and other secured debt to senior notes secured indebtedness.
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OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION Financial Covenants NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION |
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
FORECASTS
Our forecast of net income, earnings per diluted share, NAREIT and Adjusted FFO per diluted share, EBITDA, EBITDAre, Adjusted EBITDAre and comparable hotel results are forward-looking statements and are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause actual results and performance to differ materially from those expressed or implied by these forecasts. Although we believe the expectations reflected in the forecasts are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that the results will not be materially different. Risks that may affect these assumptions and forecasts include the following: potential changes in overall economic outlook make it inherently difficult to forecast the level of RevPAR; the amount and timing of debt payments may change significantly based on market conditions, which will directly affect the level of interest expense and net income; the amount and timing of transactions involving shares of our common stock may change based on market conditions; and other risks and uncertainties associated with our business described herein and in our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC.
COMPARABLE HOTEL OPERATING STATISTICS AND RESULTS
Effective January 1, 2023, the Company ceased presentation of All Owned Hotel results and returned to a comparable hotel presentation for its hotel level results. Management believes this provides investors with a better understanding of underlying growth trends for the Company’s current portfolio, without impact from properties that experienced closures due to renovations or property damage sustained.
To facilitate a year-to-year comparison of our operations, we 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 our reports on a comparable hotel basis in order to enable our investors to better evaluate our operating performance. We define our comparable hotels as those that: (i) are owned or leased by us as of the reporting date and are not classified as held-for-sale; and (ii) have not sustained substantial property damage or business interruption, or undergone large-scale capital projects in each case requiring closures lasting one month or longer (as further defined below) during the reporting periods being compared.
We make adjustments to include recent acquisitions to include results for periods prior to our ownership. For these hotels, since the year-over-year comparison includes periods prior to our ownership, the changes will not necessarily correspond to changes in our actual results. Additionally, operating results of hotels that we sell are excluded from the comparable hotel set once the transaction has closed or the hotel is classified as held-for-sale.
The hotel business is capital-intensive and renovations are a regular part of the business. Generally, hotels under renovation remain comparable hotels. A large-scale capital project would cause a hotel to be excluded from our comparable hotel set if it requires the entire property to be closed to hotel guests for one month or longer.
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NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
COMPARABLE HOTEL OPERATING STATISTICS AND RESULTS (continued)
Similarly, hotels are excluded from our comparable hotel set from the date that they sustain substantial property damage or business interruption if it requires the property to be closed to hotel guests for one month or longer. In each case, these hotels are returned to the comparable hotel set when the operations of the hotel have been included in our consolidated results for one full calendar year after the hotel has reopened. Often, related to events that cause property damage and the closure of a hotel, we will collect business interruption insurance proceeds for the near-term loss of business. These proceeds are included in gain on property insurance and business interruption settlements on our consolidated statements of operations. Business interruption insurance gains related to a hotel that was excluded from our comparable hotel set also will be excluded from the comparable hotel results.
Of the 77 hotels that we owned as of June 30, 2023, 75 have been classified as comparable hotels. The operating results of the following hotels that we owned as of June 30, 2023 are excluded from comparable hotel results for these periods, due to closure of the property:
NON-GAAP FINANCIAL MEASURES
Included in this supplemental information 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, (iv) Comparable Hotel Operating Statistics and Results, (v) Credit Facility Financial Performance Tests, and (vi) Senior Notes Financial Performance Tests. 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 certain real estate assets, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment expense of certain real estate assets and investments and adjustments for consolidated partially-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.
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NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP FINANCIAL MEASURES (continued)
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.
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:
Gains and Losses on the Extinguishment of Debt – We exclude the effect of finance charges and premiums associated with the extinguishment of debt, including the acceleration of the write-off of deferred financing costs from the original issuance of the debt being redeemed or retired and incremental interest expense incurred during the refinancing period. We also exclude the gains on debt repurchases and the original issuance costs associated with the retirement of preferred stock. We believe that these items are not reflective of our ongoing finance costs.
Acquisition Costs – Under GAAP, costs associated with completed property acquisitions that are considered business combinations are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company.
Litigation Gains and Losses – We exclude the effect of gains or losses associated with litigation recorded under GAAP that we consider outside the ordinary course of business. We believe that including these items is not consistent with our ongoing operating performance.
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NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP FINANCIAL MEASURES (continued)
Severance Expense –In certain circumstances, we will add back hotel-level severance expenses when we do not believe that such expenses are reflective of the ongoing operation of our properties. Situations that would result in a severance add-back include, but are not limited to, (i) costs incurred as part of a broad- based reconfiguration of the operating model with the specific hotel operator for a portfolio of hotels and (ii) costs incurred at a specific hotel due to a broad- based and significant reconfiguration of a hotel and/or its workforce. We do not add back corporate-level severance costs or severance costs at an individual hotel that we consider to be incurred in the normal course of business.
In unusual circumstances, we also may adjust NAREIT FFO for gains or losses that management believes are not representative of 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 EBITDA multiples (calculated as sales price divided by EBITDA) as one measure in determining the value of acquisitions and dispositions and, like Funds From Operations (“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 for depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustments to reflect the entity’s pro rata share of EBITDAre of unconsolidated affiliates.
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NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP FINANCIAL MEASURES (continued)
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 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.
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NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP FINANCIAL MEASURES (continued)
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 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 eight domestic and international partnerships that own a total of 33 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.
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NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP FINANCIAL MEASURES (continued)
COMPARABLE HOTEL PROPERTY LEVEL OPERATING RESULTS
We present certain operating results for our hotels, such as hotel revenues, expenses, food and beverage profit, and EBITDA (and the related margins), on a comparable hotel, or "same store," basis as supplemental information for our investors. Our comparable hotel results present operating results for our hotels without giving effect to dispositions or properties that experienced closures due to renovations or property damage, as discussed in “Comparable Hotel Operating Statistics and Results” above. We present comparable hotel EBITDA to help us and our investors evaluate the ongoing operating performance of our comparable 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 comparable hotels. Comparable hotel results are presented both by location and for the Company’s properties in the aggregate. We eliminate from our comparable 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 comparable hotel operating results we present do not represent our total revenues, expenses, operating profit or net income and should not be used to evaluate our performance as a whole. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our consolidated statements of operations include such amounts, all of which should be considered by investors when evaluating our performance.
We present these hotel operating results on a comparable hotel basis because we believe that doing so provides investors and management with useful information for evaluating the period-to-period performance of our hotels and facilitates comparisons with other hotel REITs and hotel owners. In particular, these measures assist management and investors in distinguishing whether increases or decreases in revenues and/or expenses are due to growth or decline of operations at comparable hotels (which represent the vast majority of our portfolio) or from other factors. While management believes that presentation of comparable 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 comparable hotel results in the aggregate. For these reasons, we believe comparable 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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NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP FINANCIAL MEASURES (continued)
CREDIT FACILITY – LEVERAGE, UNSECURED INTEREST COVERAGE AND CONSOLIDATED FIXED CHARGE COVERAGE RATIOS
Host’s credit facility contains certain financial covenants, including allowable leverage, unsecured interest coverage and fixed charge ratios, which are determined using EBITDA as calculated under the terms of our credit facility (“Adjusted Credit Facility EBITDA”). The leverage ratio is defined as net debt plus preferred equity to Adjusted Credit Facility EBITDA. The unsecured interest coverage ratio is defined as unencumbered Adjusted Credit Facility EBITDA to unsecured consolidated interest expense. The fixed charge coverage ratio is defined as Adjusted Credit Facility EBITDA divided by fixed charges, which include interest expense, required debt amortization payments, cash taxes and preferred stock payments. These calculations are based on pro forma results for the prior four fiscal quarters giving effect to transactions such as acquisitions, dispositions and financings as if they occurred at the beginning of the period. The credit facility also incorporates by reference the ratio of unencumbered assets to unsecured indebtedness test from our senior notes indentures, calculated in the same manner, and the covenant is discussed below with the senior notes covenants.
Additionally, total debt used in the calculation of our leverage ratio is based on a “net debt” concept, under which cash and cash equivalents in excess of $100 million are deducted from our total debt balance. Management believes these financial ratios provide useful information to investors regarding our compliance with the covenants in our credit facility and our ability to access the capital markets, in particular debt financing.
SENIOR NOTES INDENTURE – INDEBTEDNESS TEST, SECURED INDEBTEDNESS TO TOTAL ASSETS TEST, EBITDA-TO-INTEREST COVERAGE RATIO AND RATIO OF UNENCUMBERED ASSETS TO UNSECURED INDEBTEDNESS
Host’s senior notes indentures contains certain financial covenants, including allowable indebtedness, secured indebtedness to total assets, EBITDA-to-interest coverage and unencumbered assets to unsecured indebtedness. The indebtedness test is defined as adjusted indebtedness, which includes total debt adjusted for deferred financing costs, divided by adjusted total assets, which includes undepreciated real estate book values (“Adjusted Total Assets”). The secured indebtedness to total assets is defined as secured indebtedness, which includes mortgage debt and finance leases, divided by Adjusted Total Assets. The EBITDA- to-interest coverage ratio is defined as EBITDA as calculated under our senior notes indenture (“Adjusted Senior Notes EBITDA”) to interest expense as defined by our senior notes indenture. The ratio of unencumbered assets to unsecured indebtedness is defined as unencumbered adjusted assets, which includes Adjusted Total Assets less encumbered assets, divided by unsecured debt, which includes the aggregate principal amount of outstanding unsecured indebtedness plus contingent obligations.
Under the terms of the senior notes indentures, interest expense excludes items such as the gains and losses on the extinguishment of debt, deferred financing charges related to the senior notes or the credit facility, amortization of debt premiums or discounts that were recorded at issuance of a loan to establish its fair value and non-cash interest expense, all of which are included in interest expense on our consolidated statement of operations. As with the credit facility covenants, management believes these financial ratios provide useful information to investors regarding our compliance with the covenants in our senior notes indentures and our ability to access the capital markets, in particular debt financing.
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NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP FINANCIAL MEASURES (continued)
LIMITATIONS ON CREDIT FACILITY AND SENIOR NOTES CREDIT RATIOS
These metrics are useful in evaluating the Company’s compliance with the covenants contained in its credit facility and senior notes indentures. However, because of the various adjustments taken to the ratio components as a result of negotiations with the Company’s lenders and noteholders they should not be considered as an alternative to the same ratios determined in accordance with GAAP. For instance, interest expense as calculated under the credit facility and senior notes indenture excludes the items noted above such as deferred financing charges and amortization of debt premiums or discounts, all of which are included in interest expense on our consolidated statement of operations. 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 performance. In addition, because the credit facility and indenture ratio components are also based on pro forma results for the prior four fiscal quarters, giving effect to transactions such as acquisitions, dispositions and financings as if they occurred at the beginning of the period, they are not reflective of actual performance over the same period calculated in accordance with GAAP.
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