Business
Host Hotels & Resorts Provides Update on Full-Year 2020 Guidance
BETHESDA, Md., March 09, 2020 (GLOBE NEWSWIRE) -- BETHESDA, Md., Mar 9, 2020 -- Host Hotels & Resorts, Inc. (NYSE: HST), the nation's largest lodging real
About this update from Host Hotels & Resorts, Inc.
[{"type":"text","content":"BETHESDA, Md., March 09, 2020 (GLOBE NEWSWIRE) -- BETHESDA, Md., Mar 9, 2020 -- Host Hotels & Resorts, Inc. (NYSE: HST), the nation's largest lodging real estate investment trust (the \"Company\"), today announced it is withdrawing its full-year 2020 guidance due to the ongoing financial impact of reduced travel demand as a result of the global coronavirus (COVID-19) outbreak.\n Jim Risoleo, President and Chief Executive Officer, said, “Given the global economic uncertainty COVID-19 has created for the travel, airline, lodging and tourism and event industries, among others, we are limited in our ability to accurately predict what the financial impact to Host will be in 2020. In the spirit of being prudent and responsible financial stewards, we believe it is currently appropriate to withdraw financial guidance for the year. Importantly, Host has been a leader in lodging since 1993 and has a strong track record of successfully navigating significant global events that have impacted lodging demand.” Mr. Risoleo continued, “While we cannot predict how long this situation will last, we have a strong balance sheet with the capacity and flexibility to sustain prolonged disruption and create long-term value for our shareholders through prudent and disciplined capital allocation. Our hotels benefit from world-class operators, including Marriott, Hyatt and Hilton, all of which are committed to protecting the safety of guests, employees and other partners, and have announced new policies and procedures with this in mind. In addition, we are working closely with our operators to implement contingency plans that will reduce Host’s operating costs through this period of uncertainty.” To date, the Company’s total revenues, net income and adjusted EBITDAre have been negatively impacted by approximately $97 million, $48 million and $48 million respectively, excluding the collection of approximately $16 million of cancellation fees. Of note: Several groups who have cancelled their event have expressed a desire to rebook their event at our properties later this year;Group business cancellations have accounted for the majority of the impact on total revenues, with California markets accounting for approximately 58% of the group business cancellations;Group cancellation fee revenues are expected to partially mitigate the expected losses to date, and...