Business
Host Hotels & Resorts Provides Update on Third Quarter 2020 Business Trends
Company to Participate in the Bank of America Merrill Lynch 2020 Global Real Estate Virtual Conference on Wednesday, September 16, 2020 BETHESDA, Md., Sept.
About this update from Host Hotels & Resorts, Inc.
[{"type":"text","content":"Company to Participate in the Bank of America Merrill Lynch 2020 Global Real Estate Virtual Conference on Wednesday, September 16, 2020\nBETHESDA, Md., Sept. 15, 2020 (GLOBE NEWSWIRE) -- Host Hotels & Resorts, Inc. (NYSE: HST) (the “Company”), the nation’s largest lodging real estate investment trust (“REIT”), today provided an update on its hotel operations, including its preliminary top-line results for July and August 2020.1\n Update on Third Quarter 2020 Business Trends The following presents the monthly hotel operating results for the full portfolio and for the hotels without suspended operations during the periods presented: Total Portfolio Open Hotels2 July Aug July Aug Number of hotels 80 80 57 66 Number of rooms 46,670 46,674 32,478 38,146 Average Occupancy Percentage 12.9% 18.9% 17.9% 22.0%Average Room Rate $177.76 $162.50 $178.56 $163.41 RevPAR $22.94 $30.67 $32.02 $35.88 RevPAR Year over Year Percent Change (87.9%) (82.6%) (82.5%) (78.5%)Total RevPAR $35.29 $46.81 $48.61 $54.71 Total RevPAR Year over Year Percent Change (87.5%) (82.1%) (82.0%) (78.0%)Total Revenue (in millions) $52 $69 Highlights: Reopened a total of 19 hotels in July and August and is currently operating with 70 of its 80 consolidated hotels open, or 88% of total room count, with no plans to open additional hotels in SeptemberImproved RevPAR by 10.4% in July and 33.7% in August, on a month-over-month basis, primarily due to average occupancy gains driven by an increase in leisure demandImproved total portfolio average occupancy by 220 basis points to 12.9% in July and by 600 basis points to 18.9% in August, on a month-over-month basisExpects to incur $60 to $70 million of severance expenses in the second half of the year due to its hotel operators executing permanent property-level staff reductionsExpects to accrue approximately $22 to $24 million of fourth quarter furlough related healthcare benefits in the third quarterIssued $750 million of 3.5% Senior notes due 2030 and purchased 81% of $450 million principal amount of 4.750% Series C senior notes due 2023, thereby extending the Company’s weighted average debt maturity, maintaining its weighted average interest rate and further augmenting its cash position by $335 millionExpects to end 2020 with approximately $2.2 billion of total available liquidity, assuming a continuation of second quarter op...