Host Hotels (HST) Exceed Third Quarter FFO Estimates, RevPAR Increases YoY – November 4, 2021


Host Hotels & Resorts, Inc. (HST Free Report) released better-than-expected third quarter 2021 results in terms of adjusted operating funds (FFO) per share and income. Hotel REIT reported an adjusted FFO per share of 20 cents, beating the Zacks consensus estimate of 14 cents.

It generated total revenue of $ 844 million, far exceeding Zacks’ consensus estimate of $ 801 million.

The adjusted FFO per share also compares favorably with the loss of 11 cents per share recorded in the quarter of the previous year. Sales also improved significantly from $ 198 million last year.

The company’s revenue per Available Room (RevPAR) was $ 129 for the current quarter, reflecting a 26% increase from the prior quarter.

Host Hotels acquired Baker’s Cay Resort Key Largo, Curio Collection, a 223-room luxury hotel in downtown Houston and the Alila Ventana Big Sur for a total investment of $ 415 million during the period July- September.

Behind the headlines

During the current quarter, the pro forma RevPAR of all owned hotels (in constant dollars) increased significantly year over year to reach $ 129. The pro forma EBITDA of all owned hotels was $ 196 million.

At the end of the third quarter, revenue from transitional business chambers was $ 424 million, a decrease of 19.6% compared to the same period revenue in 2019. Business chambers revenue group and contracts were down 54% and 40.5% from the third quarter. – Quarter 2019 at $ 114 million and $ 26 million, respectively.

In addition, overnight stays for its transitional, group and contractual activities decreased by 23.3%, 47.8% and 9.9% respectively compared to the same period in 2019. Transitional, group and contractual activities of the company accounted for about 61%, 35% and 4%. of its room sales in 2019, respectively.

Balance sheet position

Host hotels came out of the third quarter with cash of $ 1.2 billion, including FF&E escrow reserves of $ 138 million. As of the same date, the company’s debt balance stood at $ 5.5 billion. It does not have a deadline until October 2023.

Capital expenditure

From the start of the year through September 30, the company has incurred approximately $ 293 million in capital expenditures. Of this amount, $ 201 million was investment project return on investment expense and $ 92 million was renewal and replacement project expense.

Remarkably, for 2021 he expects a capital expenditure of $ 410 million to $ 465 million.

Host hotels currently have Zacks Rank 3 (pending). You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Publication dates of earnings of other REITs

We now look forward to the release of results from other REITs, including Outfront Media Inc. (OUTSIDE Free report), Welltower Inc. (GOOD Free report) and Federal Real Estate Investment Trust (FRT Free Report), scheduled for release today.

To note: Everything related to earnings presented in this valuation represents funds from operations (FFOs) – a measure widely used to assess the performance of REITs.

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