Host Hotels & Resorts Inc (NAS:HST)
$ 18.18 0.32 (1.79%) Market Cap: 12.82 Bil Enterprise Value: 16.54 Bil PE Ratio: 17.82 PB Ratio: 1.90 GF Score: 79/100

Q1 2024 Host Hotels & Resorts Inc Earnings Call Transcript

May 02, 2024 / 03:00PM GMT
Release Date Price: $18.45 (-2.07%)

Key Points

Positve
  • Host Hotels & Resorts Inc reported a 7% increase in adjusted EBITDAre and an 8% increase in adjusted FFO per share compared to the first quarter of 2023, excluding business interruption proceeds.
  • The company achieved a year-over-year comparable hotel total RevPAR improvement of 50 basis points, highlighting the strength of out-of-room revenue.
  • Host Hotels & Resorts Inc successfully managed a significant acquisition, purchasing the fee simple interest in a 2-hotel complex in Nashville for approximately $530 million, expected to rank among their top 25 assets based on 2024 estimates.
  • The company has maintained a strong liquidity position with $1.7 billion total available and a low net leverage of 2.3x, enhancing its capacity for future acquisitions.
  • Host Hotels & Resorts Inc has completed several transformational renovations since 2018, with stabilized hotels showing an average RevPAR index share gain of 8.5 points, significantly above the targeted gain.
Negative
  • Comparable hotel RevPAR declined by 1.2% in the first quarter, facing headwinds from tough year-over-year comparisons, particularly in Maui due to the impact of wildfires.
  • Unseasonable weather in Florida, Arizona, and California, along with unanticipated renovation delays at the Singer Oceanfront Resort, negatively impacted first quarter RevPAR.
  • The closure of Alila Ventana Big Sur due to a highway collapse and its removal from the comparable hotel set for the remainder of the year could affect overall performance metrics.
  • The company faces ongoing challenges in Maui with evolving demand and reduced air capacity, which may continue to impact performance in the region.
  • Host Hotels & Resorts Inc's first quarter operations saw a decline in overall transient revenue per available room by 6% compared to the first quarter of 2023, driven by tough comparisons and other factors affecting transient RevPAR.
Operator

Good morning, and welcome to the Host Hotels & Resorts First Quarter 2024 Earnings Conference Call. Today's conference is being recorded.

At this time, I would like to turn the call over to Jaime Marcus, Senior Vice President of Investor of Investor Relations. You may begin.

Jaime N. Marcus
Host Hotels & Resorts, Inc. - SVP of IR

Thank you, and good morning, everyone. Before we begin, please note that many of the comments made today are considered to be forward-looking statements under federal securities laws. As described in our filings with the SEC, these statements are subject to numerous risks and uncertainties that could cause future results to differ from those expressed, and we are not obligated to publicly update or revise these forward-looking statements.

In addition, on today's call, we will discuss certain non-GAAP financial information, such as FFO, adjusted EBITDAre and comparable hotel level results. You can find this information together with reconciliations to the most directly comparable GAAP information in yesterday

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