Host Hotels & Resorts, Inc. Reports Third Quarter 2023 Results
Maintains Midpoint of Full Year RevPAR Growth Guidance
Repurchases $100 Million of Common Shares in Quarter
Announces Hyatt Transformational Capital Program
BETHESDA, Md., Nov. 01, 2023 (GLOBE NEWSWIRE) -- Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the nation’s largest lodging real estate investment trust (“REIT”), today announced results for third quarter of 2023.
*OPERATING RESULTS*
(unaudited, in millions, except per share and hotel statistics) *Quarter ended September 30,* *Year-to-date ended September 30,* *2023* *2022* *Percent Change * *2023* *2022* *Percent Change *
Revenues $ 1,214 $ 1,189 2.1 % $ 3,988 $ 3,644 9.4 %
Comparable hotel revenues⁽¹⁾ 1,181 1,188 (0.6 %) 3,909 3,522 11.0 %
Comparable hotel Total RevPAR⁽¹⁾ 312.35 314.25 (0.6 %) 348.41 313.90 11.0 %
Comparable hotel RevPAR⁽¹⁾ 201.32 197.76 1.8 % 214.67 194.49 10.4 %
Net income $ 113 $ 116 (2.6 %) $ 618 $ 494 25.1 %
EBITDAre⁽¹⁾ 361 328 10.1 % 1,251 1,140 9.7 %
Adjusted EBITDAre⁽¹⁾ 361 328 10.1 % 1,251 1,134 10.3 %
Diluted earnings per common share 0.16 0.16 — % 0.85 0.68 25.0 %
NAREIT FFO per diluted share⁽¹⁾ 0.41 0.38 7.9 % 1.48 1.35 9.6 %
Adjusted FFO per diluted share⁽¹⁾ 0.41 0.38 7.9 % 1.48 1.35 9.6 %
[* Additional detail on the Company’s results, including data for 22 domestic markets, is available in the Third Quarter 2023 Supplemental Financial Information on the Company’s website at www.hosthotels.com.]James F. Risoleo, President and Chief Executive Officer, said, “Host delivered comparable hotel RevPAR growth of 1.8% over the third quarter of 2022, driven by improvements in group business, which were offset by moderating rates at our resort properties. We continued to see positive operating trends at our convention and downtown hotels leading to an increase in occupancy of 150 basis points for the quarter.”
Risoleo continued, “We have also reached an agreement with Hyatt to complete transformational reinvestment capital projects at six properties as we build on our successful capital allocation strategy over the past few years. In addition, we repurchased approximately $100 million of our common stock and paid a third quarter dividend of $0.18 per share, a 20% increase over the second quarter dividend. Despite the impact of the wildfires in Maui, we maintained the midpoint of our previous full year comparable hotel RevPAR growth at 8% and tightened our full year guidance range to 7.25% to 8.75%, which remains relatively wide given the evolving nature of demand on Maui. We believe our strong balance sheet puts us in a position to execute on multiple fronts, and as a result, leaves Host well positioned for future growth.”
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[(1) NAREIT Funds From Operations (“FFO”) per diluted share, Adjusted FFO per diluted share, EBITDAre, Adjusted EBITDAre and comparable hotel revenues are non-GAAP (U.S. generally accepted accounting principles) financial measures within the meaning of the rules of the Securities and Exchange Commission (“SEC”). See the Notes to Financial Information on why the Company believes these supplemental measures are useful, reconciliations to the most directly comparable GAAP measure, and the limitations on the use of these supplemental measures. Additionally, comparable hotel results and statistics include adjustments for dispositions, acquisitions and non-comparable hotels. See Hotel Operating Data for RevPAR results of the portfolio based on the Company’s ownership period without these adjustments.]*HIGHLIGHTS:*
· Comparable hotel RevPAR was $201.32 in the third quarter and $214.67 year-to-date, representing an increase of 1.8% and 10.4%, respectively, compared to the same periods in 2022, primarily driven by an increase in occupancy for the quarter and growth in both occupancy and rate year-to-date. Continued growth in city-center markets fueled by improvements in group business led to the overall improvement, offsetting moderating rates at resorts in comparison to the third quarter of 2022.
· Comparable hotel Total RevPAR was $312.35 for the third quarter and $348.41 year-to-date, representing a decrease of 0.6% and an increase of 11.0%, respectively, compared to the same periods in 2022. The decrease for the quarter was driven by the impacts of the wildfires in Maui and lower attrition and cancelation fees and group spend in comparison to the third quarter of 2022.
· Generated GAAP net income of $113 million in the third quarter, a slight decrease compared to the third quarter of 2022, while GAAP operating profit margin was 12.9% for the quarter, an increase of 50 basis points compared to the third quarter of 2022. For the quarter, business interruption gains of $54 million were offset by the decline in comparable hotel EBITDA, discussed below, and taxes related to the business interruption gains. Year-to-date, GAAP net income of $618 million reflected an increase compared to 2022, primarily due to an increase in operating profit and gain on asset sales, while GAAP operating profit margin remained static compared to 2022 at 16.4%.
· Comparable hotel EBITDA was $314 million for the third quarter, representing a decline compared to third quarter 2022 results, and reflecting a decrease in comparable hotel EBITDA margin of 280 basis points to 26.6%. As expected, in addition to higher insurance and utility expenses, third quarter margin declines were driven by stabilized staffing levels in comparison to third quarter of 2022, and lower attrition and cancelation fees. Year-to-date, comparable hotel EBITDA was $1,202 million and comparable hotel EBITDA margin was 30.8%.
· Adjusted EBITDAre was $361 million for the third quarter and $1,251 million year-to-date, both exceeding the same periods in 2022 and benefiting from the business interruption proceeds discussed below.
· As of November 1, 2023, the Company has received insurance proceeds of $208 million out of the expected potential insurance recovery of approximately $310 million for covered costs related to damage and disruption caused by Hurricane Ian in September 2022. In the third quarter, $54 million of these proceeds were recognized as a gain on business interruption.
· Following the August wildfires in Maui, Hawaii, the Company’s three hotels in that region continue to provide food and shelter for employees, their families, and emergency response teams. The Hyatt Regency Maui Resort and Spa began welcoming back new guests on November 1. While there was not any reported property damage to the Company’s hotels or golf courses, the Company estimates that net income and Adjusted EBITDAre from its Maui hotels and joint venture timeshare were impacted by approximately $7 million in the third quarter, RevPAR was impacted by 60 basis points and Total RevPAR was impacted by 120 basis points.
· Reached an agreement with Hyatt to complete transformational reinvestment capital projects at six properties in the Company’s portfolio, the Grand Hyatt Atlanta in Buckhead, Grand Hyatt Washington, Manchester Grand Hyatt San Diego, Hyatt Regency Austin, Hyatt Regency Washington on Capitol Hill, and Hyatt Regency Reston. These investments are intended to position the targeted hotels to compete better in their respective markets while seeking to enhance long-term performance. The total investment is expected to be approximately $550-$600 million, two-thirds of which the Company was planning to invest as part of its capital plan over the next few years. The Company expects to invest $125-$200 million per year over the next three to four years on this program. Hyatt has agreed to provide additional priority returns on the agreed upon investments and operating profit guarantees totaling $40 million to offset expected business disruptions.
· Comparable hotel RevPAR for October is estimated to be $229, a 2.4% improvement over 2022.*BALANCE SHEET*
The Company maintains a robust balance sheet, with the following balances at September 30, 2023:
· Total assets of $12.3 billion.
· Debt balance of $4.2 billion, with a weighted average maturity of 4.5 years, a weighted average interest rate of 4.6%, and a balanced maturity schedule with the next significant maturity of $400 million due in April 2024.
· Total available liquidity of approximately $2.6 billion, including furniture, fixtures and equipment escrow reserves of $218 million and $1.5 billion available under the revolver portion of the credit facility.During the third quarter of 2023, the $163 million loan to the buyer of the Sheraton Boston Hotel was repaid in full.
*SHARE REPURCHASE PROGRAM AND DIVIDENDS*
During the third quarter of 2023, the Company repurchased 6.3 million shares at an average price of $15.90 per share through its common share repurchase program for a total of $100 million. Year-to-date in 2023, the Company repurchased 9.5 million shares at an average price of $15.82 per share for a total of $150 million. The Company has approximately $823 million of remaining capacity under the repurchase program, pursuant to which its common stock may be purchased from time to time, depending upon market conditions.
The Company paid a third quarter common stock cash dividend of $0.18 per share, an increase of $0.03, or 20%, over its second quarter dividend, on October 16, 2023 to stockholders of record on September 30, 2023. All future dividends, including any special dividends, are subject to approval by the Company’s Board of Directors.
*HOTEL BUSINESS MIX UPDATE*
The Company’s customers fall into three broad groups: transient, group and contract business, which accounted for approximately 65%, 32%, and 3%, respectively, of its full year 2022 room sales.
The following are the results for transient, group and contract business in comparison to 2022 performance, for the Company’s current portfolio:
*Quarter ended September 30, 2023* *Year-to-date ended September 30, 2023* *Transient * *Group * *Contract * *Transient * *Group * *Contract *
Room nights (in thousands) 1,526 990 201 4,375 3,112 533
Percent change in room nights vs. same period in 2022 0.4 % 1.8 % 20.7 % 2.5 % 15.0 % 15.1 %
Rooms revenues (in millions) $ 472 $ 252 $ 37 $ 1,465 $ 844 $ 99
Percent change in revenues vs. same period in 2022 (3.3 %) 9.8 % 24.9 % 3.0 % 23.7 % 28.2 %
*CAPITAL EXPENDITURES*
The following presents the Company’s capital expenditures spend through the third quarter of 2023 and the forecast for full year 2023 (in millions):
*Year-to-date ended September 30, 2023* *2023 Full Year Forecast* *Actual* *Low-end of range* *High-end of range*
ROI - Marriott Transformational Capital Program $ 22 $ 25 $ 30
All other return on investment ("ROI") projects 118 175 200
Total ROI Projects 140 200 230
Renewals and Replacements ("R&R") 194 265 290
R&R and ROI Capital expenditures 334 465 520
R&R - Insurable Reconstruction 138 150 175
Total Capital Expenditures $ 472 $ 615 $ 695
**2023 OUTLOOK**
Despite the impact of the wildfires in Maui, which is expected to continue into the fourth quarter, and continued macroeconomic concerns, the Company maintained the midpoint of its previous full year expected comparable hotel RevPAR growth at 8%, tightening its full year comparable hotel RevPAR guidance range to 7.25% to 8.75% growth over 2022. At the midpoint of guidance, the Company’s full year 2023 expected RevPAR is forecast to be 5.6% above 2019. The Company estimates that at the midpoint of guidance the wildfires in Maui will negatively impact its full year Total RevPAR by 70 basis points, RevPAR by 50 basis points, and net income and Adjusted EBITDAre by $30 million. For the fourth quarter, these impacts are expected to be a 160 basis points impact to Total RevPAR, a 150 basis point impact to RevPAR and a decrease to net income and Adjusted EBITDAre of $23 million.
In comparison to 2019, which the Company believes is the most relevant comparison, operating profit margins and comparable hotel EBITDA margins are expected to increase 110 basis points and 40 basis points, respectively, at the midpoint of guidance. However, as expected, margins for the full year are anticipated to decline in comparison to 2022, driven by closer to stable staffing levels, higher wages, insurance and utility expenses, lower attrition and cancelation fees, and occupancy below 2019 levels. The guidance range for net income and Adjusted EBITDAre includes an additional $26 million of gains from business interruption proceeds expected to be received in the fourth quarter related to Hurricane Ian, with any remaining proceeds expected to be received in 2024.
The Company anticipates its 2023 operating results as compared to 2022 will be in the following range:
*Current Full Year 2023 Guidance* *Current Full Year 2023 Guidance Change vs. 2022* *Previous Full Year 2023 Guidance Change vs. 2022* *Change in Full Year 2023 Guidance to the Mid-Point*
Comparable hotel Total RevPAR $341 to $345 7.1% to 8.5% 7.2% to 9.0% (30) bps
Comparable hotel RevPAR $210 to $213 7.25% to 8.75% 7.0% to 9.0% 0 bps
Total revenues under GAAP $5,248 to $5,321 6.9% to 8.4% 6.9% to 8.8% (10) bps
Operating profit margin under GAAP 15.4% to 16.0% (40) bps to (20) bps (170) bps to (100) bps 120 bps
Comparable hotel EBITDA margin 29.7% to 30.1% (210) bps to (170) bps (210) bps to (170) bps 0 bps
Based upon the above parameters, the Company estimates its 2023 guidance as follows:
*Current Full Year 2023 Guidance* *Previous Full Year 2023 Guidance* *Change in Full Year 2023 Guidance to the Mid-Point*
Net income (in millions) $741 to $781 $700 to $748 $ 36
Adjusted EBITDAre (in millions) $1,600 to $1,640 $1,535 to $1,585 $ 60
Diluted earnings per common share $1.02 to $1.08 $0.97 to $1.03 $ 0.05
NAREIT FFO per diluted share $1.89 to $1.95 $1.82 to $1.88 $ 0.07
Adjusted FFO per diluted share $1.90 to $1.95 $1.82 to $1.89 $ 0.06
See the 2023 Forecast Schedules and the Notes to Financial Information for items that may affect forecast results and the Third Quarter 2023 Supplemental Financial Information for additional detail on the mid-point of full year 2023 guidance.
ABOUT HOST HOTELS & RESORTS
Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 72 properties in the United States and five properties internationally totaling approximately 42,000 rooms. The Company also holds non-controlling interests in seven domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott^®, Ritz-Carlton^®, Westin^®, Sheraton^®, W^®, St. Regis^®, The Luxury Collection^®, Hyatt^®, Fairmont^®, Hilton^®, Four Seasons^®, Swissôtel^®, ibis^® and Novotel^®, as well as independent brands. For additional information, please visit the Company’s website at www.hosthotels.com.
Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements 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 release is as of November 1, 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.
[* This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks has any responsibility or liability for any information contained in this press release.]*** Tables to Follow ***
Host Hotels & Resorts, Inc., herein referred to as “we,” “Host Inc.,” or the “Company,” is a self-managed and self-administered real estate investment trust that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resorts, L.P. (“Host LP”), of which we are the sole general partner. When distinguishing between Host Inc. and Host LP, the primary difference is approximately 1% of the partnership interests in Host LP held by outside partners as of September 30, 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 condensed consolidated statements of operations. Readers are encouraged to find further detail regarding our organizational structure in our annual report on Form 10-K.
*HOST HOTELS & RESORTS, INC.*
*Condensed Consolidated Balance Sheets*
(unaudited, in millions, except shares and per share amounts) *September 30,
2023* *December 31,
2022*
*ASSETS*
Property and equipment, net $ 9,679 $ 9,748
Right-of-use assets 553 556
Due from managers 78 94
Advances to and investments in affiliates 139 132
Furniture, fixtures and equipment replacement fund 218 200
Notes receivable 322 413
Other 387 459
Cash and cash equivalents 916 667
Total assets $ 12,292 $ 12,269
*LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY*
Debt⁽¹⁾
Senior notes $ 3,119 $ 3,115
Credit facility, including the term loans of $997 and $998, respectively 988 994
Mortgage and other debt 105 106
Total debt 4,212 4,215
Lease liabilities 565 568
Accounts payable and accrued expenses 228 372
Due to managers 72 67
Other 184 168
Total liabilities 5,261 5,390
Redeemable non-controlling interests - Host Hotels & Resorts, L.P. 157 164
Host Hotels & Resorts, Inc. stockholders’ equity:
Common stock, par value $0.01, 1,050 million shares authorized, 705.4 million shares and 713.4 million shares issued and outstanding, respectively 7 7
Additional paid-in capital 7,588 7,717
Accumulated other comprehensive loss (73 ) (75 )
Deficit (652 ) (939 )
Total equity of Host Hotels & Resorts, Inc. stockholders 6,870 6,710
Non-redeemable non-controlling interests—other consolidated partnerships 4 5
Total equity 6,874 6,715
Total liabilities, non-controlling interests and equity $ 12,292 $ 12,269
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[(1) Please see our Third Quarter 2023 Supplemental Financial Information for more detail on our debt balances and financial covenant ratios under our credit facility and senior notes indentures.]
*HOST HOTELS & RESORTS, INC.*
*Condensed Consolidated Statements of Operations*
(unaudited, in millions, except per share amounts) *Quarter ended
September 30,* *Year-to-date ended *
*September 30,* *2023* *2022* *2023* *2022*
*Revenues*
Rooms $ 777 $ 746 $ 2,447 $ 2,251
Food and beverage 328 330 1,174 1,032
Other 109 113 367 361
Total revenues 1,214 1,189 3,988 3,644
*Expenses*
Rooms 196 190 590 539
Food and beverage 241 230 773 675
Other departmental and support expenses 314 300 952 873
Management fees 51 48 185 150
Other property-level expenses 106 90 290 252
Depreciation and amortization 174 164 511 498
Corporate and other expenses⁽¹⁾ 29 29 90 77
Gain on insurance and business interruption settlements (54 ) (10 ) (57 ) (17 )
Total operating costs and expenses 1,057 1,041 3,334 3,047
*Operating profit* 157 148 654 597
Interest income 22 10 56 17
Interest expense (48 ) (40 ) (142 ) (113 )
Other gains 1 5 70 19
Equity in earnings (losses) of affiliates (4 ) (1 ) 7 3
*Income before income taxes* 128 122 645 523
Provision for income taxes (15 ) (6 ) (27 ) (29 )
*Net income* 113 116 618 494
Less: Net income attributable to non-controlling interests (2 ) (2 ) (10 ) (8 )
*Net income attributable to Host Inc.* $ 111 $ 114 $ 608 $ 486
*Basic and diluted earnings per common share* $ 0.16 $ 0.16 $ 0.85 $ 0.68
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[(1) Corporate and other expenses include the following items:] *Quarter ended
September 30,* *Year-to-date ended
September 30,* *2023* *2022* *2023* *2022*
General and administrative costs $ 20 $ 20 $ 61 $ 58
Non-cash stock-based compensation expense 6 9 19 19
Litigation accruals 3 — 10 —
Total $ 29 $ 29 $ 90 $ 77
*HOST HOTELS & RESORTS, INC.*
*Earnings per Common Share*
(unaudited, in millions, except per share amounts) *Quarter ended
September 30,* *Year-to-date ended
September 30,* *2023* *2022* *2023* *2022*
Net income $ 113 $ 116 $ 618 $ 494
Less: Net income attributable to non-controlling interests (2 ) (2 ) (10 ) (8 )
Net income attributable to Host Inc. $ 111 $ 114 $ 608 $ 486
Basic weighted average shares outstanding 709.7 714.9 711.4 714.7
Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market 2.2 2.7 2.2 2.7
Diluted weighted average shares outstanding⁽¹⁾ 711.9 717.6 713.6 717.4
Basic and diluted earnings per common share $ 0.16 $ 0.16 $ 0.85 $ 0.68
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[(1) Dilutive securities may include shares granted under comprehensive stock plans, preferred operating partnership units (“OP Units”) held by non-controlling limited partners and other non-controlling interests that have the option to convert their limited partnership interests to common OP Units. No effect is shown for any securities that were anti-dilutive for the period.]*HOST HOTELS & RESORTS, INC.*
*Hotel Operating Data for Consolidated Hotels*
*Comparable Hotel Results by Location*^*(1)*
As of September 30, 2023 Quarter ended September 30, 2023 Quarter ended September 30, 2022
*Location* No. of
Properties No. of
Rooms Average
Room Rate Average
Occupancy
Percentage RevPAR Total RevPAR Average
Room Rate Average
Occupancy
Percentage RevPAR Total RevPAR Percent
Change in
RevPAR Percent
Change in
Total RevPAR
Maui/Oahu 4 2,006 $ 565.03 69.7 % $ 393.67 $ 549.52 $ 565.30 73.6 % $ 416.12 $ 643.57 (5.4 )% (14.6 )%
Jacksonville 1 446 479.33 69.2 331.47 726.78 487.53 67.0 326.67 707.75 1.5 2.7
Miami 2 1,033 377.39 50.3 189.66 358.25 457.43 50.2 229.66 427.55 (17.4 ) (16.2 )
Florida Gulf Coast 3 941 309.76 62.7 194.17 381.17 327.19 62.2 203.68 386.66 (4.7 ) (1.4 )
Phoenix 3 1,545 263.79 59.6 157.18 368.20 264.31 58.4 154.24 408.94 1.9 (10.0 )
Orlando 2 2,448 309.53 64.9 200.78 419.73 327.78 61.4 201.23 427.58 (0.2 ) (1.8 )
New York 2 2,486 334.84 87.0 291.33 387.71 309.77 84.3 260.99 351.90 11.6 10.2
Los Angeles/Orange County 3 1,067 314.25 85.9 269.85 375.29 303.74 86.4 262.42 373.36 2.8 0.5
San Diego 3 3,294 295.59 83.5 246.81 441.94 292.38 85.4 249.83 440.67 (1.2 ) 0.3
Boston 2 1,496 273.06 83.8 228.75 291.12 263.46 63.8 167.99 223.00 36.2 30.5
Washington, D.C. (CBD) 5 3,240 244.50 71.5 174.94 248.36 237.56 65.7 156.01 223.72 12.1 11.0
Philadelphia 2 810 231.09 82.6 190.83 288.59 221.65 85.9 190.48 286.56 0.2 0.7
Austin 2 767 225.87 59.0 133.29 242.58 233.32 68.3 159.46 289.77 (16.4 ) (16.3 )
Northern Virginia 2 916 233.30 72.0 168.00 250.70 214.33 67.2 144.06 219.78 16.6 14.1
San Francisco/San Jose 6 4,162 241.34 72.8 175.71 241.07 244.45 71.3 174.35 250.97 0.8 (3.9 )
Chicago 3 1,562 253.34 79.5 201.35 280.27 263.27 79.3 208.86 286.41 (3.6 ) (2.1 )
Seattle 2 1,315 271.12 81.0 219.56 285.88 264.88 81.9 216.97 274.62 1.2 4.1
Atlanta 2 810 182.03 75.0 136.49 210.62 183.46 72.8 133.57 199.97 2.2 5.3
Houston 5 1,942 191.21 66.3 126.73 172.15 176.72 62.1 109.74 149.01 15.5 15.5
San Antonio 2 1,512 194.04 53.5 103.87 167.34 190.72 64.5 122.96 194.39 (15.5 ) (13.9 )
New Orleans 1 1,333 147.45 58.9 86.87 133.83 163.33 63.6 103.87 158.20 (16.4 ) (15.4 )
Denver 3 1,340 204.48 79.9 163.34 235.48 197.50 76.5 151.18 214.65 8.0 9.7
Other 10 3,061 326.91 68.5 223.86 333.59 347.16 64.3 223.09 332.55 0.3 0.3
Domestic 70 39,532 283.04 72.1 203.98 317.54 283.94 70.6 200.53 319.95 1.7 (0.8 )
International 5 1,499 199.27 65.7 130.95 174.16 200.98 62.0 124.66 162.44 5.0 7.2
All Locations 75 41,031 280.24 71.8 201.32 312.35 281.27 70.3 197.76 314.25 1.8 (0.6 )
*
Comparable Hotel Results by Location*^*(1)*
As of September 30, 2023 Year-to-date ended September 30, 2023 Year-to-date ended September 30, 2022
*Location* No. of
Properties No. of
Rooms Average
Room Rate Average
Occupancy
Percentage RevPAR Total RevPAR Average
Room Rate Average
Occupancy
Percentage RevPAR Total RevPAR Percent
Change in
RevPAR Percent
Change in
Total RevPAR
Maui/Oahu 4 2,006 $ 588.70 73.2 % $ 430.85 $ 642.10 $ 559.15 76.0 % $ 424.91 $ 658.15 1.4 % (2.4 %)
Jacksonville 1 446 515.29 72.8 375.31 823.23 533.33 69.5 370.85 799.91 1.2 2.9
Miami 2 1,033 538.29 65.8 354.38 620.61 618.23 62.8 388.09 647.24 (8.7 ) (4.1 )
Florida Gulf Coast 3 941 398.34 74.3 295.96 624.60 403.93 73.7 297.56 594.22 (0.5 ) 5.1
Phoenix 3 1,545 401.67 71.8 288.45 630.82 392.14 69.3 271.69 608.49 6.2 3.7
Orlando 2 2,448 369.46 71.4 263.81 533.70 395.30 64.4 254.71 498.62 3.6 7.0
New York 2 2,486 323.10 81.6 263.58 375.42 305.98 68.8 210.55 297.35 25.2 26.3
Los Angeles/Orange County 3 1,067 303.01 82.8 250.80 360.45 290.28 79.6 231.14 332.23 8.5 8.5
San Diego 3 3,294 286.71 81.2 232.85 432.14 275.85 76.1 209.91 376.43 10.9 14.8
Boston 2 1,496 262.27 78.7 206.41 272.25 246.01 57.4 141.27 186.74 46.1 45.8
Washington, D.C. (CBD) 5 3,240 276.94 71.3 197.40 285.28 258.02 60.5 156.14 222.68 26.4 28.1
Philadelphia 2 810 230.17 80.1 184.43 285.52 212.19 79.8 169.40 258.46 8.9 10.5
Austin 2 767 259.09 66.6 172.50 309.26 261.29 70.3 183.71 319.55 (6.1 ) (3.2 )
Northern Virginia 2 916 241.35 70.5 170.04 256.35 215.60 65.3 140.83 212.13 20.7 20.8
San Francisco/San Jose 6 4,162 254.24 66.8 169.73 246.35 230.51 63.1 145.43 209.56 16.7 17.6
Chicago 3 1,562 244.43 69.2 169.15 240.13 238.34 64.8 154.44 212.39 9.5 13.1
Seattle 2 1,315 242.11 69.1 167.33 226.93 234.51 64.1 150.37 194.36 11.3 16.8
Atlanta 2 810 190.91 75.0 143.15 230.87 181.26 72.2 130.94 204.64 9.3 12.8
Houston 5 1,942 201.57 70.6 142.37 196.37 180.33 63.4 114.29 158.00 24.6 24.3
San Antonio 2 1,512 217.64 62.4 135.91 217.29 194.11 67.3 130.73 201.94 4.0 7.6
New Orleans 1 1,333 195.70 68.9 134.85 204.28 196.59 65.3 128.42 187.76 5.0 8.8
Denver 3 1,340 193.63 65.0 125.92 180.78 183.44 63.9 117.14 169.54 7.5 6.6
Other 10 3,061 322.01 65.5 210.89 320.75 332.09 60.8 201.98 300.75 4.4 6.6
Domestic 70 39,532 303.99 71.8 218.31 355.19 297.46 66.8 198.61 321.16 9.9 10.6
International 5 1,499 188.41 62.9 118.58 168.30 159.59 53.6 85.55 120.75 38.6 39.4
All Locations 75 41,031 300.28 71.5 214.67 348.41 293.40 66.3 194.49 313.90 10.4 11.0
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[(1) See the Notes to Financial Information for a discussion of comparable hotel operating statistics. CBD of a location refers to the central business district. Hotel RevPAR is calculated as room revenues divided by the available room nights. Hotel Total RevPAR is calculated by dividing the sum of rooms, food and beverage and other revenues by the available room nights.]*Results by Location - actual, based on ownership period*^*(1)*
As of September 30, 2023 2022 Quarter ended September 30, 2023 Quarter ended September 30, 2022
*Location* No. of
Properties No. of
Properties Average
Room Rate Average
Occupancy
Percentage RevPAR Total RevPAR Average
Room Rate Average
Occupancy
Percentage RevPAR Total RevPAR Percent
Change in
RevPAR Percent
Change in
Total RevPAR
Maui/Oahu 4 4 $ 565.03 69.7 % $ 393.67 $ 549.52 $ 565.30 73.6 % $ 416.12 $ 643.57 (5.4 )% (14.6 )%
Jacksonville 1 1 479.33 69.2 331.47 726.78 487.53 67.0 326.67 707.75 1.5 2.7
Miami 2 2 377.39 50.3 189.66 358.25 457.43 50.2 229.66 427.55 (17.4 ) (16.2 )
Florida Gulf Coast 5 5 328.97 58.5 192.44 384.90 330.56 53.9 178.01 344.04 8.1 11.9
Phoenix 3 4 263.79 59.6 157.18 368.20 251.77 58.1 146.25 372.05 7.5 (1.0 )
Orlando 2 2 309.53 64.9 200.78 419.73 327.78 61.4 201.23 427.58 (0.2 ) (1.8 )
New York 2 2 334.84 87.0 291.33 387.71 309.77 84.3 260.99 351.90 11.6 10.2
Los Angeles/Orange County 3 3 314.25 85.9 269.85 375.29 303.74 86.4 262.42 373.36 2.8 0.5
San Diego 3 3 295.59 83.5 246.81 441.94 292.38 85.4 249.83 440.67 (1.2 ) 0.3
Boston 2 2 273.06 83.8 228.75 291.12 263.46 63.8 167.99 223.00 36.2 30.5
Washington, D.C. (CBD) 5 5 244.50 71.5 174.94 248.36 237.56 65.7 156.01 223.72 12.1 11.0
Philadelphia 2 2 231.09 82.6 190.83 288.59 221.65 85.9 190.48 286.56 0.2 0.7
Austin 2 2 225.87 59.0 133.29 242.58 233.32 68.3 159.46 289.77 (16.4 ) (16.3 )
Northern Virginia 2 2 233.30 72.0 168.00 250.70 214.33 67.2 144.06 219.78 16.6 14.1
San Francisco/San Jose 6 6 241.34 72.8 175.71 241.07 244.45 71.3 174.35 250.97 0.8 (3.9 )
Chicago 3 3 253.34 79.5 201.35 280.27 253.75 77.8 197.54 269.26 1.9 4.1
Seattle 2 2 271.12 81.0 219.56 285.88 264.88 81.9 216.97 274.62 1.2 4.1
Atlanta 2 2 182.03 75.0 136.49 210.62 183.46 72.8 133.57 199.97 2.2 5.3
Houston 5 5 191.21 66.3 126.73 172.15 176.72 62.1 109.74 149.01 15.5 15.5
San Antonio 2 2 194.04 53.5 103.87 167.34 190.72 64.5 122.96 194.39 (15.5 ) (13.9 )
New Orleans 1 1 147.45 58.9 86.87 133.83 163.33 63.6 103.87 158.20 (16.4 ) (15.4 )
Denver 3 3 204.48 79.9 163.34 235.48 197.50 76.5 151.18 214.65 8.0 9.7
Other 10 9 326.91 68.5 223.86 333.59 261.04 63.6 166.04 240.26 34.8 38.8
Domestic 72 72 284.23 71.7 203.67 319.19 277.68 69.9 194.13 310.91 4.9 2.7
International 5 5 199.27 65.7 130.95 174.16 200.98 62.0 124.66 162.44 5.0 7.2
All Locations 77 77 281.45 71.4 201.08 314.05 275.25 69.6 191.66 305.69 4.9 2.7
*
*
*Results by Location - actual, based on ownership period*^*(1)*
As of September 30, 2023 2022 Year-to-date ended September 30, 2023 Year-to-date ended September 30, 2022
*Location* No. of
Properties No. of
Properties Average
Room Rate Average
Occupancy
Percentage RevPAR Total RevPAR Average
Room Rate Average
Occupancy
Percentage RevPAR Total RevPAR Percent
Change in
RevPAR Percent
Change in
Total RevPAR
Maui/Oahu 4 4 $ 588.70 73.2 % $ 430.85 $ 642.10 $ 559.15 76.0 % $ 424.91 $ 658.15 1.4 % (2.4 %)
Jacksonville 1 1 515.29 72.8 375.31 823.23 533.33 69.5 370.85 799.91 1.2 2.9
Miami 2 2 538.29 65.8 354.38 620.61 573.01 64.5 369.80 609.25 (4.2 ) 1.9
Florida Gulf Coast 5 5 371.22 58.6 217.52 459.32 442.56 65.9 291.82 574.12 (25.5 ) (20.0 )
Phoenix 3 4 398.12 72.1 286.88 619.02 366.88 69.1 253.45 551.73 13.2 12.2
Orlando 2 2 369.46 71.4 263.81 533.70 395.30 64.4 254.71 498.62 3.6 7.0
New York 2 2 323.10 81.6 263.58 375.42 288.08 63.5 182.96 256.78 44.1 46.2
Los Angeles/Orange County 3 3 303.01 82.8 250.80 360.45 290.28 79.6 231.14 332.23 8.5 8.5
San Diego 3 3 286.71 81.2 232.85 432.14 275.85 76.1 209.91 376.43 10.9 14.8
Boston 2 2 262.27 78.7 206.41 272.25 240.93 55.5 133.65 175.93 54.4 54.8
Washington, D.C. (CBD) 5 5 276.94 71.3 197.40 285.28 258.02 60.5 156.14 222.68 26.4 28.1
Philadelphia 2 2 230.17 80.1 184.43 285.52 212.19 79.8 169.40 258.46 8.9 10.5
Austin 2 2 259.09 66.6 172.50 309.26 261.29 70.3 183.71 319.55 (6.1 ) (3.2 )
Northern Virginia 2 2 241.35 70.5 170.04 256.35 215.60 65.3 140.83 212.13 20.7 20.8
San Francisco/San Jose 6 6 254.24 66.8 169.73 246.35 230.51 63.1 145.43 209.56 16.7 17.6
Chicago 3 3 244.43 69.2 169.15 240.13 227.82 63.1 143.86 196.43 17.6 22.2
Seattle 2 2 242.11 69.1 167.33 226.93 234.51 64.1 150.37 194.36 11.3 16.8
Atlanta 2 2 190.91 75.0 143.15 230.87 181.26 72.2 130.94 204.64 9.3 12.8
Houston 5 5 201.57 70.6 142.37 196.37 180.33 63.4 114.29 158.00 24.6 24.3
San Antonio 2 2 217.64 62.4 135.91 217.29 194.11 67.3 130.73 201.94 4.0 7.6
New Orleans 1 1 195.70 68.9 134.85 204.28 196.59 65.3 128.42 187.76 5.0 8.8
Denver 3 3 193.63 65.0 125.92 180.78 183.44 63.9 117.14 169.54 7.5 6.6
Other 10 9 322.01 65.5 210.89 320.75 264.87 61.2 162.17 233.33 30.0 37.5
Domestic 72 72 304.28 71.2 216.53 353.71 293.77 66.1 194.23 315.02 11.5 12.3
International 5 5 188.41 62.9 118.58 168.30 159.59 53.6 85.55 120.75 38.6 39.4
All Locations 77 77 300.61 70.9 213.04 347.14 289.98 65.7 190.46 308.35 11.9 12.6
*___________*
[(1) Represents the results of the portfolio for the time period of our ownership, including the results of non-comparable properties, dispositions through their date of disposal and acquisitions beginning as of the date of acquisition.]
*HOST HOTELS & RESORTS, INC.*
*Schedule of Comparable Hotel Results ^(1)*
(unaudited, in millions, except hotel statistics) *Quarter ended
September 30,* *Year-to-date ended
September 30,* *2023* *2022* *2023* *2022*
Number of hotels 75 75 75 75
Number of rooms 41,031 41,031 41,031 41,031
Change in comparable hotel Total RevPAR (0.6 %) — 11.0 % —
Change in comparable hotel RevPAR 1.8 % — 10.4 % —
Operating profit margin⁽²⁾ 12.9 % 12.4 % 16.4 % 16.4 %
Comparable hotel EBITDA margin⁽²⁾ 26.6 % 29.4 % 30.8 % 32.5 %
Food and beverage profit margin⁽²⁾ 26.5 % 30.3 % 34.2 % 34.6 %
Comparable hotel food and beverage profit margin⁽²⁾ 27.6 % 31.0 % 34.6 % 35.1 %
*Net income* $ 113 $ 116 $ 618 $ 494
Depreciation and amortization 174 164 511 498
Interest expense 48 40 142 113
Provision for income taxes 15 6 27 29
Gain on sale of property and corporate level income/expense 10 15 (43 ) 32
Severance expense at hotel properties — — — 2
Property transaction adjustments⁽³⁾ — 8 (3 ) 24
Non-comparable hotel results, net⁽⁴⁾ (46 ) — (50 ) (48 )
*Comparable hotel EBITDA⁽¹⁾* $ 314 $ 349 $ 1,202 $ 1,144
___________
[(1) See the Notes to Financial Information for a discussion of comparable hotel results, which are non-GAAP measures, and the limitations on their use. For additional information on comparable hotel EBITDA by location, see the Third Quarter 2023 Supplemental Financial Information posted on our website.]
[(2) Profit margins are calculated by dividing the applicable operating profit by the related revenue amount. GAAP profit margins are calculated using amounts presented in the unaudited condensed consolidated statements of operations. Comparable hotel margins are calculated using amounts presented in the following tables, which include reconciliations to the applicable GAAP results:]
*Quarter ended September 30, 2023* *Quarter ended September 30, 2022* *Adjustments * *Adjustments * *GAAP Results * Non-comparable hotel results,
net ⁽⁴⁾ Depreciation and corporate level
items *Comparable Hotel Results * *GAAP Results * Property transaction adjustments
⁽³⁾ Non-comparable hotel results,
net ⁽⁴⁾ Depreciation and corporate level
items *Comparable Hotel Results *
*Revenues*
Room $ 777 $ (16 ) $ — $ 761 $ 746 $ 15 $ (13 ) $ — $ 748
Food and beverage 328 (13 ) — 315 330 5 (9 ) — 326
Other 109 (4 ) — 105 113 4 (3 ) — 114
Total revenues 1,214 (33 ) — 1,181 1,189 24 (25 ) — 1,188
*Expenses*
Room 196 (5 ) — 191 190 2 (4 ) — 188
Food and beverage 241 (13 ) — 228 230 4 (9 ) — 225
Other 471 (18 ) — 453 438 10 (12 ) — 436
Depreciation and amortization 174 — (174 ) — 164 — — (164 ) —
Corporate and other expenses 29 — (29 ) — 29 — — (29 ) —
Gain on insurance and business interruption settlements (54 ) 49 — (5 ) (10 ) — — — (10 )
Total expenses 1,057 13 (203 ) 867 1,041 16 (25 ) (193 ) 839
*Operating Profit - Comparable hotel EBITDA* $ 157 $ (46 ) $ 203 $ 314 $ 148 $ 8 $ — $ 193 $ 349
*Year-to-date ended September 30, 2023* *Year-to-date ended September 30, 2022* *Adjustments * *Adjustments * *GAAP Results * Property transaction
adjustments ⁽³⁾ Non-comparable hotel
results, net ⁽⁴⁾ Depreciation and
corporate level items *Comparable hotel*
*Results * *GAAP Results * Severance at hotel
properties Property transaction
adjustments ⁽³⁾ Non-comparable hotel
results, net ⁽⁴⁾ Depreciation and
corporate level items *Comparable hotel*
*Results *
*Revenues*
Room $ 2,447 $ (5 ) $ (34 ) $ — $ 2,408 $ 2,251 $ — $ 2 $ (71 ) $ — $ 2,182
Food and beverage 1,174 (2 ) (31 ) — 1,141 1,032 — 5 (51 ) — 986
Other 367 — (7 ) — 360 361 — 8 (15 ) — 354
Total revenues 3,988 (7 ) (72 ) — 3,909 3,644 — 15 (137 ) — 3,522
*Expenses*
Room 590 (1 ) (9 ) — 580 539 — (10 ) (13 ) — 516
Food and beverage 773 (1 ) (26 ) — 746 675 — (1 ) (34 ) — 640
Other 1,427 (2 ) (36 ) — 1,389 1,275 (2 ) 2 (42 ) — 1,233
Depreciation and amortization 511 — — (511 ) — 498 — — — (498 ) —
Corporate and other expenses 90 — — (90 ) — 77 — — — (77 ) —
Gain on insurance and business interruption settlements (57 ) — 49 — (8 ) (17 ) — — — 6 (11 )
Total expenses 3,334 (4 ) (22 ) (601 ) 2,707 3,047 (2 ) (9 ) (89 ) (569 ) 2,378
*Operating Profit - Comparable hotel EBITDA* $ 654 $ (3 ) $ (50 ) $ 601 $ 1,202 $ 597 $ 2 $ 24 $ (48 ) $ 569 $ 1,144
[(3) Property transaction adjustments represent the following items: (i) the elimination of results of operations of our hotels sold or held-for-sale as of the reporting date, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations, and (ii) the addition of results for periods prior to our ownership for hotels acquired as of the reporting date.]
[(4) Non-comparable hotel results, net, includes the following items: (i) the results of operations of our non-comparable hotels, which operations are included in our consolidated statements of operations as continuing operations, and (ii) gains on business interruption proceeds relating to events that occurred while the hotels were classified as non-comparable. ]
*HOST HOTELS & RESORTS, INC.*
*Reconciliation of Net Income to*
*EBITDA, EBITDAre and Adjusted EBITDAre ^(1)*
(unaudited, in millions) *Quarter ended
September 30,* *Year-to-date ended
September 30,* *2023* *2022* *2023* *2022*
*Net income* $ 113 $ 116 $ 618 $ 494
Interest expense 48 40 142 113
Depreciation and amortization 174 164 511 498
Income taxes 15 6 27 29
*EBITDA* 350 326 1,298 1,134
Gain on dispositions⁽²⁾ — (5 ) (69 ) (18 )
Equity investment adjustments:
Equity in (earnings) losses of affiliates 4 1 (7 ) (3 )
Pro rata EBITDAre of equity investments⁽³⁾ 7 6 29 27
*EBITDA**re* 361 328 1,251 1,140
Adjustments to EBITDAre:
Gain on property insurance settlement — — — (6 )
*Adjusted EBITDA**re* $ 361 $ 328 $ 1,251 $ 1,134
___________
[(1) See the Notes to Financial Information for discussion of non-GAAP measures.]
[(2) Reflects the sale of one hotel in 2023 and four hotels in 2022.]
[(3) Unrealized gains of our unconsolidated investments are not recognized in our EBITDAre, Adjusted EBITDAre, NAREIT FFO or Adjusted FFO until they have been realized by the unconsolidated partnership.]
*HOST HOTELS & RESORTS, INC.*
*Reconciliation of Diluted Earnings per Common Share to*
*NAREIT and Adjusted Funds From Operations per Diluted Share ^(1)*
(unaudited, in millions, except per share amounts) *Quarter ended
September 30,* *Year-to-date ended
September 30,* *2023* *2022* *2023* *2022*
*Net income* $ 113 $ 116 $ 618 $ 494
Less: Net income attributable to non-controlling interests (2 ) (2 ) (10 ) (8 )
*Net income attributable to Host Inc.* 111 114 608 486
Adjustments:
Gain on dispositions⁽²⁾ — (5 ) (69 ) (18 )
Gain on property insurance settlement — — — (6 )
Depreciation and amortization 174 164 510 497
Equity investment adjustments:
Equity in (earnings) losses of affiliates 4 1 (7 ) (3 )
Pro rata FFO of equity investments⁽³⁾ 4 4 20 21
Consolidated partnership adjustments:
FFO adjustment for non-controlling
partnerships (1 ) (1 ) (1 ) (1 )
FFO adjustments for non-controlling interests of Host L.P. (2 ) (2 ) (6 ) (6 )
*NAREIT FFO* 290 275 1,055 970
Adjustments to NAREIT FFO:
Loss on debt extinguishment — — 4 —
*Adjusted FFO* $ 290 $ 275 $ 1,059 $ 970
*For calculation on a per share basis:⁽⁴⁾*
*Diluted weighted average shares outstanding - EPS, NAREIT FFO and Adjusted FFO* 711.9 717.6 713.6 717.4
*Diluted earnings per common share* $ 0.16 $ 0.16 $ 0.85 $ 0.68
*NAREIT FFO per diluted share* $ 0.41 $ 0.38 $ 1.48 $ 1.35
*Adjusted FFO per diluted share* $ 0.41 $ 0.38 $ 1.48 $ 1.35
___________
[(1-3) Refer to corresponding footnote on the Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre. ]
[(4) Diluted earnings per common share, NAREIT FFO per diluted share and Adjusted FFO per diluted share are adjusted for the effects of dilutive securities. Dilutive securities may include shares granted under comprehensive stock plans, preferred OP units held by non-controlling limited partners and other non-controlling interests that have the option to convert their limited partnership interests to common OP units. No effect is shown for securities if they are anti-dilutive.]
*HOST HOTELS & RESORTS, INC.*
*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) *Full Year **2023* *Low-end of range * *High-end of range *
*Net income* $ 741 $ 781
Interest expense 189 189
Depreciation and amortization 683 683
Income taxes 31 31
*EBITDA* 1,644 1,684
Gain on dispositions (69 ) (69 )
Equity investment adjustments:
Equity in earnings of affiliates (9 ) (9 )
Pro rata EBITDAre of equity investments 36 36
*EBITDA**re* 1,602 1,642
Adjustments to EBITDAre:
Gain on property insurance settlement (2 ) (2 )
*Adjusted EBITDA**re* $ 1,600 $ 1,640
*Full Year **2023* *Low-end of range * *High-end of range *
*Net income * $ 741 $ 781
Less: Net income attributable to non-controlling interests (12 ) (12 )
*Net income attributable to Host Inc. * 729 769
Adjustments:
Gain on dispositions (69 ) (69 )
Gain on property insurance settlement (2 ) (2 )
Depreciation and amortization 682 682
Equity investment adjustments:
Equity in earnings of affiliates (9 ) (9 )
Pro rata FFO of equity investments 25 25
Consolidated partnership adjustments:
FFO adjustment for non-controlling partnerships (1 ) (1 )
FFO adjustment for non-controlling interests of Host LP (9 ) (9 )
*NAREIT FFO* 1,346 1,386
Adjustments to NAREIT FFO:
Loss on extinguishment of debt 4 4
*Adjusted FFO * $ 1,350 $ 1,390
*Diluted weighted average shares outstanding - EPS, NAREIT FFO and Adjusted FFO* 712.1 712.1
*Diluted earnings per common share * $ 1.02 $ 1.08
*NAREIT FFO per diluted share * $ 1.89 $ 1.95
*Adjusted FFO per diluted share * $ 1.90 $ 1.95
_______________
[(1) The Forecasts are based on the below assumptions:]
[• Comparable hotel RevPAR will increase 7.25% to 8.75% compared to 2022 for the low and high end of the forecast range.]
[• Comparable hotel EBITDA margins will decrease 210 basis points to 170 basis points compared to 2022 for the low and high ends of the forecasted comparable hotel RevPAR range, respectively.]
[• We expect to spend approximately $615 million to $695 million on capital expenditures.
• Assumes no acquisitions and no additional dispositions during the year.
• Assumes the receipt of an additional $26 million of business interruption proceeds in the fourth quarter.
]
[For a discussion of items that may affect forecast results, see the Notes to Financial Information.]
*HOST HOTELS & RESORTS, INC.*
*Schedule of Comparable Hotel Results for Full Year 2023 Forecasts ^(1)*
(unaudited, in millions) *Full Year **2023* *Low-end of range * *High-end of range *
Operating profit margin ^(2) 15.4 % 16.0 %
Comparable hotel EBITDA margin ^(2) 29.7 % 30.1 %
*Net income* $ 741 $ 781
Depreciation and amortization 683 683
Interest expense 189 189
Provision for income taxes 31 31
Gain on sale of property and corporate level income/expense (31 ) (31 )
Property transaction adjustments⁽³⁾ (3 ) (3 )
Non-comparable hotel results, net⁽⁴⁾ (90 ) (92 )
*Comparable hotel EBITDA*^*(1)* $ 1,520 $ 1,558
___________
[(1) See “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” for other forecast assumptions. Forecast comparable hotel results include 75 hotels (of our 77 hotels owned at September 30, 2023) that we have assumed will be classified as comparable as of December 31, 2023. ]
[(2) Profit margins are calculated by dividing the applicable operating profit by the related revenue amount. GAAP profit margins are calculated using amounts presented in the unaudited condensed consolidated statements of operations. Comparable hotel margins are calculated using amounts presented in the following tables, which include reconciliations to the applicable GAAP results:]
*Low-end of range * *High-end of range * *Adjustments * *Adjustments * *GAAP Results * Property transaction
adjustments Non-comparable hotel
results, net Depreciation and
corporate level items *Comparable hotel*
*Results * *GAAP Results * Property transaction
adjustments Non-comparable hotel
results, net Depreciation and
corporate level items *Comparable hotel*
*Results *
*Revenues*
Rooms $ 3,220 $ (5 ) $ (64 ) $ — $ 3,151 $ 3,266 $ (5 ) $ (66 ) $ — $ 3,195
Food and beverage 1,550 (2 ) (52 ) — 1,496 1,575 (2 ) (54 ) — 1,519
Other 478 — (13 ) — 465 480 — (13 ) — 467
Total revenues 5,248 (7 ) (129 ) — 5,112 5,321 (7 ) (133 ) — 5,181
*Expenses*
Hotel expenses 3,718 (4 ) (114 ) — 3,600 3,751 (4 ) (116 ) — 3,631
Depreciation and amortization 683 — — (683 ) — 683 — — (683 ) —
Corporate and other expenses 123 — — (123 ) — 123 — — (123 ) —
Gain on insurance and business interruption settlements (85 ) — 75 2 (8 ) (85 ) — 75 2 (8 )
Total expenses 4,439 (4 ) (39 ) (804 ) 3,592 4,472 (4 ) (41 ) (804 ) 3,623
*Operating Profit - Comparable hotel EBITDA* $ 809 $ (3 ) $ (90 ) $ 804 $ 1,520 $ 849 $ (3 ) $ (92 ) $ 804 $ 1,558
[(3) Property transaction adjustments represent the following items: (i) the elimination of results of operations of our hotels sold or held-for-sale as of the reporting date, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations and (ii) the addition of results for periods prior to our ownership for hotels acquired as of the reporting date.]
[(4) Non-comparable hotel results, net, includes the following items: (i) the results of operations of our non-comparable hotels, which operations are included in our consolidated statements of operations as continuing operations, and (ii) gains on business interruption proceeds relating to events that occurred while the hotels were classified as non-comparable. The following hotels are expected to be non-comparable for full year 2023:]
[• Hyatt Regency Coconut Point Resort & Spa (business disruption due to Hurricane Ian beginning in September 2022, reopened in November 2022); and
• The Ritz-Carlton, Naples (business disruption due to Hurricane Ian beginning in September 2022, reopened in July 2023).]
*HOST HOTELS & RESORTS, INC.*
*Notes to 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