Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Investor Day (May 2023)
150 slides from Host Hotels & Resorts's investor day presentation, May 23, 2023
Slide 1: Investor Day May 23, 2023
Investor Day May 23, 2023 FOUR SEASONS RESORT ORLANDO AT WALT DISNEY WORLD® RESORT
Slide 2: Jaime Marcus, Investor Relations
Jaime Marcus Senior Vice President Investor Relations FOUR SEASONS RESORT ORLANDO AT WALT DISNEY WORLD® RESORT 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements This investor presentation, and the related discussion, contains forward-looking statements. These include statements about Host Hotels & Resorts’ plans, strategies, financial performance, prospects or future events. Forward-looking statements are not guarantees of future
Slide 4: Jim Risoleo, President & CEO
Jim Risoleo President & Chief Executive Officer ALILA VENTANA BIG SUR 4
Slide 5: Welcome to Orlando
Welcome to Orlando 5
Slide 6: 2023 Host Hotels & Resorts, Inc.
2023 Host Hotels & Resorts, Inc. 6
Slide 7: Consistency is Host's Currency
Consistency is Host’s Currency Winning Track Record Elevated EBITDA Growth Profile Opportunistic & Offensive Positioning 2023 Host Hotels & Resorts, Inc. 7
Slide 8: Host's Competitive Advantage
Host’s Competitive Advantage Portfolio People Platform Reputation Size & Scale Independent Enterprise Analytics Access to Capital Fortress Balance Sheet 2023 Host Hotels & Resorts, Inc. HYATT REGENCY COCONUT POINT RESORT AND SPA 8
Slide 9: Host Hotels & Resorts Fact Sheet
Host Hotels & Resorts Fact Sheet S&P 500 ONLY SINCE 2007 INVESTMENT GRADE LODGING REIT(1) $11.9B $15.7B EQUITY MARKET CAP(2) ENTERPRISE VALUE(2) 2.2x $2.3B LEVERAGE(3) AVAILABLE LIQUIDITY(2) 1) A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision
Slide 10: Host Hotels & Resorts Fact Sheet
Host Hotels & Resorts Fact Sheet MANAGER CHAIN SCALE 77 41,900 (room count) (room count) HOTELS ROOMS 87% BRAND MANAGED 71% UPPER UPSCALE Top-10 Markets (2022 Total Revenue)(1) 26% LUXURY 1. Maui/Oahu 10% 13% INDEPENDENT 2% UPSCALE 2. San Diego 9% 1% MIDSCALE 3. Orlando 9% 4. Phoenix 8% BRANDS BUSIN
Slide 11: Winning Capital Allocation Track Record
Winning Capital Allocation Track Record EBITDA Multiples(1) 2018-2023 ACQUISITIONS 2021-2023 ACQUISITIONS $3.5B @14x $1.9B @13.1x 2018-2023 DISPOSITIONS 2021-2023 DISPOSITIONS $5.0B @17x $1.5B @17.5x 1) Disposition multiples are calculated as the ratio between the sales price (plus estimated avoided
Slide 12: Recent Capital Allocation Track Record
Recent Capital Allocation Track Record EBITDA Multiples(1) $1.9B @13.1x $1.5B @17.5x ACQUISITIONS DISPOSITIONS 2021-2023 2021-2023 ► Hyatt Regency Austin ► San Ramon Marriott (ground lease) ► Four Seasons Resort Orlando at Walt Disney World® Resort ► Westin LAX (ground lease) ► Baker’s Cay Resort Ke
Slide 13: 2021 – 2023 Hotel Acquisitions Summary
2021 – 2023 Hotel Acquisitions Summary Stabilized Stabilization Price EBITDA Multiple EBITDA per Off- Keys EBITDA Timeframe (millions) at Acquisition(1) Key(1) Market? Multiple(1) Target Hyatt Regency Austin $161 448 8.8x $40,700 7x – 9x 2024-2025 Yes Four Seasons Resort Orlando at $610 444 16.8x $8
Slide 14: Company Dashboard
Company Dashboard Since 2017, we have significantly improved revenue and profitability metrics for our iconic and irreplaceable portfolio. RevPAR Total RevPAR EBITDA/Key(2) Net Debt/EBITDA(3) +9% +15% +31% +0.2x $196 $320 $37,000 $28,000 2.4x $181 2.2x $278 2017(1) 2022(1) 2017(1) 2022(1) 2017(1) 20
Slide 15: Top-40 Hotels Improved Profitability Metrics
Top-40 Hotels Improved Profitability Metrics Our efforts to elevate the EBITDA growth profile of our assets and improve the quality of our cash flows is evident in the improved profitability of our top 40 hotels. RevPAR Total RevPAR EBITDA/Key(2) +16% +24% +50% $256 $437 $53,000 $351 $35,000 $221 20
Slide 16: Well Positioned Relative to Other Full-Service Lodging REITs
Well Positioned Relative to Other Full-Service Lodging REITs RevPAR Growth Total RevPAR Growth EBITDA/Key Growth(3) +9% +15% +31% TRACK +9% RECORD 2022 vs. 2017(1) +1% +3% Host Other(2) Host Other(2) Host Other(2) CapEx / Key Leverage(4) Weighted Maturity 2020 - 2022 Q1 2023 Q1 2023 $34,000 5.0x 5.0
Slide 17: Total Shareholder Returns
Total Shareholder Returns HST has delivered the #1 total shareholder returns (TSR) versus other full-service lodging REITs(1) over multiple periods over the past 10 years. +6% ANNUALIZED TSR OUTPERFORMANCE VS. TSR Rank (as of May 5, 1-Year 3-Year 5-Year 7-Year 10-Year OTHER FULL-SERVICE 2023) LODGIN
Slide 18: Macroeconomic Snapshot
Macroeconomic Snapshot TIGHTER LENDING STRONG LABOR MARKET STANDARDS LOW UNEMPLOYMENT CONSUMER BALANCE SHIFT TO SERVICES OVER SHEETS HEALTHY GOODS INBOUND INTERNATIONAL OCCUPANCY INCREASING INCREASING 2023 Host Hotels & Resorts, Inc. 18
Slide 19: Macroeconomic Overview – Supply Picture
Macroeconomic Overview – Supply Picture Host’s portfolio market-weighted supply growth through 2024 is approximately 1%, driven by very low growth rates in places like San Diego, Hawaii, and Seattle. OVERALL SUPPLY DOWN (8)% SINCE Q1 2020(1) OVERALL FORECAST SUPPLY BELOW HISTORIC AVERAGE(1) 300,000
Slide 20: Introduction & Opening Remarks
Introduction & Opening Remarks PRESENTERS Jim Risoleo Sourav Ghosh President, EVP, Chief Chief Executive Financial Officer Officer and Director 2023 Host Hotels & Resorts, Inc. 20
Slide 21: Sourav Ghosh, Chief Financial Officer
Sourav Ghosh Executive Vice President & Chief Financial Officer 1 HOTEL SOUTH BEACH 21
Slide 22: Operational Performance
Operational Performance RevPAR and Total RevPAR VS. 2019(1) RevPAR TRevPAR 7.4% 10.3% 3.5% 5.1% 2.9% 3.4% 2.7% 2.6% -18.1% -17.7% 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 TRANSIENT BUSINESS GROUP BUSINESS +13% Increase in transient revenue in Q1 2023 compared to Q1 2022, driven primarily by downtown
Slide 23: 2023 Operational Outlook
2023 Operational Outlook Subject to factors that may affect lodging demand Full Year 2023(1) Low High vs. 2022 Midpoint(1) vs. 2022 Comparable Hotel Total RevPAR $343 $352 +7.7% to +10.5% $347 +8.9% Comparable Hotel RevPAR $211 $216 +7.5% to +10.5% $214 +9.0% Comparable Hotel EBITDA Margin 29.8% 30.
Slide 24: Margin Performance
Margin Performance Through operational and portfolio improvements, our 2022 Comparable Hotel EBITDA margin meaningfully improved compared to 2019 despite lagging occupancy. We expect to exceed 2019 margins at all ranges of our guidance. COMPARABLE HOTEL EBITDA MARGINS(1) 29.8% LOW +25 bps 2019 29.55
Slide 25: Path Toward $2 Billion – Potential EBITDA Growth
Path Toward $2 Billion – Potential EBITDA Growth Our goal is to continue to meaningfully grow our EBITDA in the current lodging cycle through multiple internal and external growth drivers. BUILDING BLOCKS TO $2 BILLION(1) Adjusted EBITDAre in millions PORTFOLIO OPERATIONS EXTERNAL INVESTMENT REINVES
Slide 26: Path Toward $2 Billion – Potential EBITDA Growth Assumptions
Path Toward $2 Billion – Potential EBITDA Growth Assumptions Let’s assume the midpoint of our updated 2023 guidance range as a starting point(1)… OPERATIONS ► Two non-comparable hotels contribute an additional $71 million of EBITDA(2) ► Potential Business Interruption insurance proceeds are not incl
Slide 27: Host's Competitive Advantage
Host’s Competitive Advantage Portfolio People Platform Reputation Size & Scale Independent Enterprise Analytics Access to Capital Fortress Balance Sheet 2023 Host Hotels & Resorts, Inc. BAKER’S CAY RESORT KEY LARGO, CURIO COLLECTION BY HILTON 27
Slide 28: Why Own Host?
Why Own Host? Size & Scale Independent Enterprise Analytics Access to Capital Platform Reputation Fortress Balance Sheet 2023 Host Hotels & Resorts, Inc. 28
Slide 29: Consistency Is Our Currency
CONSISTENCY IS OUR CURRENCY 2023 Host Hotels & Resorts, Inc. 29
Slide 30: Michael Rock, Asset Management
Michael Rock Senior Vice President Asset Management HOTEL VAN ZANDT 30
Slide 31: Asset Management Philosophy
Asset Management Philosophy ROLE OF A RENOVATION / THE BUSINESS HOST ASSET MANAGER REINVESTMENT WE ARE IN ► Conduit for all aspects of Host ► Offense versus defense ► Real estate versus travel ► Performance improvement ► Multi-year plan/reposition when ► Every property visit you should ask business
Slide 32: Asset Management Panel
Asset Management Panel MODERATOR PANELISTS Michael Rock Kerry Gaber Travis Snyder Joe Tapley SVP, Asset Market VP, Asset Market VP, Asset VP, Asset Management Management Management Management 2023 Host Hotels & Resorts, Inc. 32
Slide 33: Mike Lentz, Development, Design & Construction
Mike Lentz Executive Vice President Development, Design & Construction Michael Chang Vice President Energy & Sustainability 2023 Host Hotels & Resorts, Inc. AC HOTEL SCOTTSDALE NORTH 33
Slide 34: 2023 Forecast CapEx Plan
2023 Forecast CapEx Plan RENEWALS & ROI PROJECTS INSURABLE REPLACEMENTS RECONSTRUCTION $250 - $250 - $100 - $300M $300M $125M ESCROW-FUNDED SUSTAINABILITY ROI RESTORATION AND RENOVATIONS AND PROJECTS, RE-PURPOSE RECONSTRUCTION OWNER-FUNDED UNDERUTILIZED SPACES, FOLLOWING BUILDING BRAND REINVESTMENT
Slide 35: Comprehensive Renovations
24 Comprehensive Renovations MTCP PROGRAM SUMMARY MTCP Status 8 Other Comprehensive Status Renovations Transform hotels with holistic renovation focused on Coronado Island Marriott April 2019 rolling out new Marriott Hotel brand standards at hotels Hyatt Regency Maui December 2020 with highest level
Slide 36: Orlando World Center Marriott – Guestrooms
Orlando World Center Marriott – Guestrooms After Before 2023 Host Hotels & Resorts, Inc. 36
Slide 37: Orlando World Center Marriott – Guestrooms
Orlando World Center Marriott – Guestrooms After Before 2023 Host Hotels & Resorts, Inc. 37
Slide 38: Orlando World Center Marriott – Lobby / Lobby Bar
Orlando World Center Marriott – Lobby / Lobby Bar 2023 Host Hotels & Resorts, Inc. 38
Slide 39: Orlando World Center Marriott – Waterpark Addition
Orlando World Center Marriott – Waterpark Addition INVESTMENT SUMMARY Replace under-utilized adult quiet pool with dynamic, 2.5-acre River Falls waterpark, including: ► Lazy river ► Tube slides ► Kids wet-play structure ► Zero-entry pool ► Food trucks COMPLETED MARCH 2022 2023 Host Hotels & Resorts,
Slide 40: Orlando World Center Marriott – Meeting Space Expansion
Orlando World Center Marriott – Meeting Space Expansion INVESTMENT SUMMARY ► Modify golf holes—including dramatic new island green finishing hole ► Re-locate primary utilities ► Re-route entry road ► Construct 60,000 gross sq. ft. break-out meeting space adjacent to Cypress Ballroom COMPLETED MAY 20
Slide 41: MTCP CapEx Case Study
MTCP CapEx Case Study ORLANDO WORLD CENTER MARRIOTT OVERVIEW ► MTCP renovations began in April 2019 and finished in October 2021 ► Scope of renovations included: guestrooms/suites, re-concepted arrival experience and lobby/lobby-bar, and public space updates MARRIOTT CONTRIBUTION ► Operating Guarant
Slide 42: New York Marriott Marquis – Guestrooms
New York Marriott Marquis – Guestrooms After Before 2023 Host Hotels & Resorts, Inc. 42
Slide 43: New York Marriott Marquis – Broadway Lounge
New York Marriott Marquis – Broadway Lounge After Before 2023 Host Hotels & Resorts, Inc. 43
Slide 44: New York Marriott Marquis
New York Marriott Marquis 2023 Host Hotels & Resorts, Inc. 44
Slide 45: MTCP CapEx Case Study
MTCP CapEx Case Study NEW YORK MARRIOTT MARQUIS OVERVIEW ► MTCP renovations began in January 2019 and finished in August 2021 ► Scope of renovations included: guestrooms/suites, ballrooms, meeting space, new lobby-level M club lounge, re-concepted Broadway Lounge NEW M-CLUB LOUNGE and Revel & Rye Lo
Slide 46: Hyatt Regency Maui Resort and Spa – Guestrooms
Hyatt Regency Maui Resort and Spa – Guestrooms After Before 2023 Host Hotels & Resorts, Inc. 46
Slide 47: Hyatt Regency Maui Resort and Spa – Guestrooms
Hyatt Regency Maui Resort and Spa – Guestrooms After Before 2023 Host Hotels & Resorts, Inc. 47
Slide 48: Hyatt Regency Maui Resort and Spa – Construction
Hyatt Regency Maui Resort and Spa – Construction 2023 Host Hotels & Resorts, Inc. 48
Slide 49: Hyatt Regency Maui Resort and Spa – After
Hyatt Regency Maui Resort and Spa – After 2023 Host Hotels & Resorts, Inc. 49
Slide 50: Comprehensive Renovation Case Study
Comprehensive Renovation Case Study HYATT REGENCY MAUI RESORT AND SPA OVERVIEW ► Comprehensive renovations began in September 2019 and finished in December 2020 ► Scope of renovations included: guestrooms, suites, and a complete refresh of the lobby and arrival experience HYATT CONTRIBUTION ► Enhanc
Slide 51: Fairmont Kea Lani, Maui – Guestroom Renovation
Fairmont Kea Lani, Maui – Guestroom Renovation INVESTMENT SUMMARY ► Three phase extensive, repositioning renovation of all guestrooms (2- bays/key), multi-bay suites, and villas. ► New arrival experience including transformed lobby, new lobby bar and cultural hub ► Expect to close rate gap with Four
Slide 52: Fairmont Kea Lani, Maui – Guestrooms
Fairmont Kea Lani, Maui – Guestrooms After Before 2023 Host Hotels & Resorts, Inc. 52
Slide 53: Fairmont Kea Lani, Maui – Guestrooms
Fairmont Kea Lani, Maui – Guestrooms After Before 2023 Host Hotels & Resorts, Inc. 53
Slide 54: Fairmont Kea Lani, Maui – Guestrooms
Fairmont Kea Lani, Maui – Guestrooms After Before 2023 Host Hotels & Resorts, Inc. 54
Slide 55: Fairmont Kea Lani, Maui – Lobby
Fairmont Kea Lani, Maui – Lobby After Before 2023 Host Hotels & Resorts, Inc. 55
Slide 56: Fairmont Kea Lani, Maui – Lobby
Fairmont Kea Lani, Maui – Lobby After Before 2023 Host Hotels & Resorts, Inc. 56
Slide 57: ROI Development Projects
ROI Development Projects We have built a pipeline of development projects, leveraging excess or under-utilized real estate: ► Guestroom expansions ► Repositions ► Meeting space expansions ► Ground-up developments ► Amenities additions ► Land entitlements ORLANDO WORLD CENTER MARRIOTT
Slide 58: AC Hotel Scottsdale North
AC Hotel Scottsdale North INVESTMENT SUMMARY ► Completed Planned Unit Development (PUD) to free-up 2-acre development parking from excess parking ► Developed 165-key premium select service hotel as complement to Westin Kierland Resort COMPLETED CONSTRUCTION JUNE 2020 OPENED JANUARY 2021 2023 Host Ho
Slide 59: Andaz Maui at Wailea Resort, Ilikai Villas
Andaz Maui at Wailea Resort, Ilikai Villas INVESTMENT SUMMARY ► Transferred and extended expiring Special Management Area (SMA) permit ► Constructed 18 three-bedroom luxury villas and one four-bedroom grand villa ► Increased inventory of the resort’s ADR- leading villa product COMPLETED AND OPENED M
Slide 60: The Ritz-Carlton Naples, Tiburón – Aquatics Program
The Ritz-Carlton Naples, Tiburón – Aquatics Program INVESTMENT SUMMARY ► Added lazy river, tube and body slides, kid’s wet play structure, adult pool and cabanas ► Fitted-out underutilized pavilion with addition of poolside bar & grill (Riva) ► Installed synthetic turf event lawn ► Increase summer o
Slide 61: The Ritz-Carlton Naples, Tiburón – Aquatics Program
The Ritz-Carlton Naples, Tiburón – Aquatics Program 2023 Host Hotels & Resorts, Inc. 61
Slide 62: The Ritz-Carlton, Naples – Comprehensive Renovation & Expansion
The Ritz-Carlton, Naples – Comprehensive Renovation & Expansion INVESTMENT SUMMARY Create meaningful long-term value by repositioning the resort to meet today’s luxury standards, including: ► Increase suite mix from <8% to almost 20% ► Expand Club Lounge, eliminating capacity constraint on upsells ►
Slide 63: The Ritz-Carlton, Naples – Hurricane Ian
The Ritz-Carlton, Naples – Hurricane Ian 2023 Host Hotels & Resorts, Inc. 63
Slide 64: The Ritz-Carlton, Naples
The Ritz-Carlton, Naples 2023 Host Hotels & Resorts, Inc. 64
Slide 65: The Ritz-Carlton, Naples – Lobby
The Ritz-Carlton, Naples – Lobby 2023 Host Hotels & Resorts, Inc. 65
Slide 66: The Ritz-Carlton, Naples – Club Lounge
The Ritz-Carlton, Naples – Club Lounge 2023 Host Hotels & Resorts, Inc. 66
Slide 67: The Ritz-Carlton, Naples - Guestrooms
The Ritz-Carlton, Naples - Guestrooms 2023 Host Hotels & Resorts, Inc. 67
Slide 68: Hilton Singer Island Reposition
Hilton Singer Island Reposition REPOSITIONING OVERVIEW ► Reposition to create an independent lifestyle oceanfront resort ► Address outstanding needs of the building, create new profit-generating outlets and redesign all guest-facing areas of the property ► Expected mid-teens cash-on-cash return on i
Slide 69: Phoenician Resort – Villas at Canyon Suites
Phoenician Resort – Villas at Canyon Suites DEVELOPMENT OVERVIEW ► 2-acre development parcel entitled as part of 2019 master plan PUD ► 8-luxury villas ranging from 2-bedroom (2,450 sq. ft.) to 4-bedroom (3,450 sq. ft.), with lock-offs for a total 20 new keys ► Private pool, pool bar, area developme
Slide 70: Four Seasons Resort Orlando at Walt Disney World® Resort
Four Seasons Resort Orlando at Walt Disney World® Resort DEVELOPMENT OVERVIEW ► 5-acre development parcel in unincorporated Orange County ► 40 fee-simple condominiums, Four Seasons-branded and managed, with membership in Disney’s Golden Oak private residence club TARGET SCHEDULE Marketing Launch 1H
Slide 71: Four Seasons Resort Orlando at Walt Disney World® Resort
Four Seasons Resort Orlando at Walt Disney World® Resort 2023 Host Hotels & Resorts, Inc. 71
Slide 72: Four Seasons Resort Orlando at Walt Disney World® Resort
Four Seasons Resort Orlando at Walt Disney World® Resort 2023 Host Hotels & Resorts, Inc. 72
Slide 73: Value creation through responsible investment
Value creation through responsible investment Our Corporate Responsibility program is centered around the concept of responsible investment—an overarching strategy that guides our focus and actions across our three main themes: ENVIRONMENTAL SOCIAL GOVERNANCE STEWARDSHIP RESPONSIBILITY ESG HIGHLIGHT
Slide 74: ESG Leadership
ESG Leadership BARRON’S DJSI WORLD & NORTH 2022 CLIMATE CHANGE INDUSTRY LEADER TOP 10 MOST AMERICA LISTED LEADERSHIP LEVEL (TOP 10%) SUSTAINABLE REITs “A” RATING PRIME CORPORATE LOW ESG RISK RATING RATING S&P Global Sustainability Yearbook Member 2023 NEWSWEEK ONE OF THE WORLD’S MOST TOP 13% OF ALL
Slide 75: Corporate Responsibility Evolution
Corporate Responsibility Evolution Host’s CR program spans 15 years, demonstrating our commitment to a holistic and pragmatic approach to integrating ESG into our business, to meeting environmental and financial expectations, and to achieving industry leading results and recognition. FIRST LEED FIRS
Slide 76: Net Positive: Our 2050 Vision
Net Positive: Our 2050 Vision We are currently working to attain our 2025 performance targets across environmental and social targets in addition to determining the key interim performance targets that will serve as the roadmap to achieving our 2050 vision. ASPIRE TO NET POSITIVE BU ILD ONE OF THE S
Slide 77: Responsible Investments
Responsible Investments We are investing in solutions that conserve and restore natural capital to assist Host in mitigating climate change and biodiversity impacts, with the goal of achieving best-in-class returns. 2018-2022 RETURN ON SUSTAINABILITY INVESTMENTS 620 SUSTAINABILITY $20M EXPECTED 15-2
Slide 78: New York Marriott Marquis – Cogeneration Plant
New York Marriott Marquis – Cogeneration Plant Increasing Resilience and Asset Value ► A cogeneration plant, also known as a combined heat and power (CHP) plant, is a facility that generates both electricity and heat simultaneously. ► Cogeneration can provide environmental, resiliency and financial
Slide 79: New York Marriott Marquis – Cogeneration Plant
New York Marriott Marquis – Cogeneration Plant CUSTOM MODULAR SKID OF PUMPS, PIPING, AND HEAT EXCHANGES 700-TON ABSORPTION 1.4 MW ENGINE (1 OF 3) 1.1 MWH BATTERY CHILLER 2023 Host Hotels & Resorts, Inc. 79
Slide 80: Innovation & Climate Tech
Innovation & Climate Tech Innovation and technology plays a key role to achieving our 2050 vision and asset value creation. RESPONSIBLE INVESTMENTS NEW TECHNOLOGY INITIATIVES Track and monitor GHG, energy & water Real time utility monitoring & commissioning 100% LED Lighting Robotic cleaning & deliv
Slide 81: Driving ESG through Sustainable Financing
Driving ESG through Sustainable Financing We have an aggregate total of $4.35B of financing with sustainability attributes, demonstrating our ESG commitment and leadership by being the first lodging REIT to issue Green Bonds and link two-way pricing incentives to initiatives that contribute to our S
Slide 82: Commitment to Green Building Certification
Commitment to Green Building Certification LEED GOLD LEED SILVER LEED CERTIFIED TARGET 38% hotels with green building certification by 2027 HYATT REGENCY MAUI RESORT AND SPA HYATT REGENCY SAN FRANCISCO AIRPORT 1 HOTEL SOUTH BEACH AC HOTEL SCOTTSDALE NORTH ANDAZ MAUI AT WAILEA RESORT GRAND HYATT WASH
Slide 83: Commitment to Renewable Energy
Commitment to Renewable Energy TARGET 38% electricity from renewable sources by 2027 SOLAR INVESTMENTS ► Over a decade of experience implementing on-site Solar PV ANDAZ MAUI AT WAILEA RESORT projects ► 12% electricity from renewable sources in 2022 ► 11 hotels with on-site solar PV (2 of which are s
Slide 84: Focus on Climate Resiliency
Focus on Climate Resiliency We will integrate climate risk analytics with our extensive internal historical data and knowledge of assets, as well as incorporating models from insurance providers and flood maps, to develop a comprehensive approach to mitigating climate risk in our portfolio. PORTFOLI
Slide 85: Net Positive: Our 2050 Vision
Net Positive: Our 2050 Vision ASPIRE TO NET POSITIVE BU ILD ONE OF THE SAFEST, BE A C ATALYST FOR POSITIVE IMPAC T THROU G HOU T OU R MOST DIVERSE AND MOST SOC IAL IMPAC T IN OU R VALU E C HAIN RESPONSIBLE SU PPLY C HAINS INDU STRY AND C OMMU NITIES OW N ONE OF THE MOST BE AN EMPLOYER OF C HOIC E AN
Slide 86: Nate Tyrrell, Chief Investment Officer
Nate Tyrrell Executive Vice President Chief Investment Officer Raj Contractor Senior Vice President Investments BAKER’S CAY RESORT KEY LARGO, CURIO COLLECTION BY HILTON86
Slide 87: Investments Team
Investments Team INVESTMENTS ENTERPRISE ANALYTICS ASSET MANAGEMENT LEGAL DESIGN & INVESTOR RELATIONS CONSTRUCTION FINANCE & HUMAN RESOURCES ACCOUNTING 2023 Host Hotels & Resorts, Inc. 87
Slide 88: Investments Strategy
Investments Strategy Raise the EBITDA growth profile of the portfolio through: ACQUISITIONS DISPOSITIONS REPOSITIONS 2023 Host Hotels & Resorts, Inc. 88
Slide 89: Long Term Secular Demand Growth
Long Term Secular Demand Growth More Wallet-Share + More People + More Flexibility = Extraordinary Future Demand For Travel and Hotel Room Nights OVER 3x CONSUMER WALLET-SHARE TO PEOPLE IN KEY SPENDING 38M 1 DAY PER WEEK OF LOCATIONAL HOTELS OVER THIRTY YEARS DEMOGRAPHICS SINCE 2010 FLEXIBILITY POST
Slide 90: Illiquid Capital Market and Owners
Illiquid Capital Market and Owners LODGING DEBT ISSUANCE(1) $ in billions CMBS Bank Insurance Others Total $83 $76 $77 $25 $17 $63 $22 $58 $18 $46 $48 $20 $41 $32 $32 $12 $26 $7 $18 $20 $16 $18 $2 $2 $17 $2 $3 $12 $14 $2 $2 $2 $2 $27 $11 $8 $3 $22 $25 $26 $17 $17 $3 $2 $4 $14 $16 $2 $1 $6 $4 $5 $2 2
Slide 91: Host Platform
Host Platform Size & Scale Independent Enterprise Analytics Access to Capital Platform Reputation Fortress Balance Sheet 2023 Host Hotels & Resorts, Inc. 91
Slide 92: Historical Perspective and Performance Highlights
Historical Perspective and Performance Highlights $3.5B @14x $5.0B @17x 2018-2023 ACQUISITIONS(1) 2018-2023 DISPOSITIONS(1) Bought relevant, Sold assets with high experiential assets capital requirements Portfolio in high-growth and lower profits Transformation markets 1) See slide 11 for more infor
Slide 93: 1 Hotel South Beach
1 HOTEL SOUTH BEACH 93
Slide 94: Hotel Van Zandt
HOTEL VAN ZANDT 94
Slide 95: The Don CeSar
THE DON CESAR 95
Slide 96: Hyatt Regency Austin
2023 Host Hotels & Resorts, Inc. HYATT REGENCY AUSTIN 96
Slide 97: Alila Ventana Big Sur
ALILA VENTANA BIG SUR 97
Slide 98: The Laura Hotel, Houston Downtown
THE LAURA HOTEL, HOUSTON DOWNTOWN, AUTOGRAPH COLLECTION 98
Slide 99: Four Seasons Resort and Residences Jackson Hole
FOUR SEASONS RESORT AND RESIDENCES JACKSON HOLE 99
Slide 100: Investments
Investments PRESENTERS Nate Tyrrell Raj Contractor EVP, Chief SVP, Investment Officer Investments 2023 Host Hotels & Resorts, Inc. 100
Slide 101: Deanne Brand, Strategy, Analytics & Treasurer
Deanne Brand Senior Vice President Strategy, Analytics, & Treasurer FAIRMONT KEA LANI, MAUI 101
Slide 102: Enterprise Analytics Team
Enterprise Analytics Team Strategic Operations Feasibility Corporate Insight Analytics Finance Business Intelligence Revenue Management Capital Financial Services 2023 Host Hotels & Resorts, Inc. 102
Slide 103: Enterprise Analytics Mission Statement
Enterprise Analytics Mission Statement Leverage the best talent, analytics and technology to drive superior performance, illuminate key insights, and facilitate disciplined capital allocation decisions. Strive to be a best-in-class team by focusing on innovation, cross-functional collaboration and s
Slide 104: Enterprise Analytics: Differentiators
Enterprise Analytics: Differentiators People Process Scale Technology 2023 Host Hotels & Resorts, Inc. 104
Slide 105: Tying it All Together
Tying it All Together Right asset and market… …at the right price… …and the right time. Strategic Insight Operations Analytics Corporate Finance Feasibility 2023 Host Hotels & Resorts, Inc. 105
Slide 106: Enterprise Analytics Panel
Enterprise Analytics Panel MODERATOR PANELISTS Deanne Brand Mark Biondi Erich Jankowski Karina Parker SVP, Strategy & VP, Operations VP, Revenue VP, Feasibility & Analytics Strategy & Analytics Management Investment Analysis and Treasurer 2023 Host Hotels & Resorts, Inc. 106
Slide 107: Q&A Session
Q&A Session MODERATOR PANELISTS Jim Risoleo Julie Aslaksen Sourav Ghosh President, EVP, EVP, Chief Chief Executive General Counsel Financial Officer Officer & Director and Secretary Jaime Marcus SVP, Investor Relations Mike Lentz Mari Sifo Nate Tyrrell EVP, Development, EVP, Chief Human EVP, Chief D
Slide 108: Thank You
Thank You ORLANDO WORLD CENTER MARRIOTT 108
Slide 109: Appendix
Appendix Key Terms and Statistics A-1 • Defined Terms A-1 • Non-GAAP Financial Measures A-2 • Items that may Affect Forecast Results, Projections and Other Estimates A-11 Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio A-12 Reconciliation of Net Income to Hotel EBITDA for Ren
Slide 110: Key Terms and Statistics
Key Terms and Statistics Defined Terms • Cap Rate – Capitalization Rate, calculated as Net Operating Income (NOI) divided by sales price. The corresponding metric using GAAP measures is net income divided by sales price. • EBITDA Multiple – Sales price divided by EBITDA. The corresponding metric usi
Slide 111: Key Terms and Statistics
Key Terms and Statistics Non-GAAP Financial Measures Included in this presentation are certain “non-GAAP financial measures,” which are measures of our historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules
Slide 112: Key Terms and Statistics
Key Terms and Statistics Adjusted FFO per Diluted Share We also present Adjusted FFO per diluted share when evaluating our performance because management believes that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoin
Slide 113: Key Terms and Statistics
Key Terms and Statistics In unusual circumstances, we also may adjust NAREIT FFO for gains or losses that management believes are not representative of the Company’s current operating performance. For example, in 2017, as a result of the reduction of the U.S. federal corporate income tax rate from 3
Slide 114: Key Terms and Statistics
Key Terms and Statistics EBITDAre and Adjusted EBITDAre We present EBITDAre in accordance with NAREIT guidelines, as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate,” to provide an additional performance measure to facilitate
Slide 115: Key Terms and Statistics
Key Terms and Statistics In unusual circumstances, we also may adjust EBITDAre for gains or losses that management believes are not representative of the Company’s current operating performance. The last adjustment of this nature was a 2013 exclusion of a gain from an eminent domain claim. Limitatio
Slide 116: Key Terms and Statistics
Key Terms and Statistics Similarly, EBITDAre, Adjusted EBITDAre, NAREIT FFO and Adjusted FFO per diluted share include adjustments for the pro rata share of our equity investments and NAREIT FFO and Adjusted FFO per diluted share include adjustments for the pro rata share of non-controlling partners
Slide 117: Key Terms and Statistics
Key Terms and Statistics The hotel business is capital-intensive and renovations are a regular part of the business. Generally, hotels under renovation remain comparable hotels. A large scale capital project would cause a hotel to be excluded from our comparable hotel set if it requires the entire p
Slide 118: Key Terms and Statistics
Key Terms and Statistics All Owned Hotel Operating Statistics and Results To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expense
Slide 119: Key Terms and Statistics
Key Terms and Statistics Credit Facility – Leverage Ratio Host’s credit facility contains certain financial covenants, including allowable leverage, which is determined using earnings before interest expense, income taxes, depreciation and amortization (“EBITDA”) as calculated under the terms of our
Slide 120: Key Terms and Statistics
Key Terms and Statistics 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 unk
Slide 121: Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio
Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio The following tables present the calculation of Host’s leverage ratio using GAAP measures and as used in the financial covenants of the credit facility (in millions, except ratios): GAAP Leverage Ratio - As Reported at Trailing
Slide 122: Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio
Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio 1) The following presents the reconciliation of debt to net debt per our credit facility definition (in millions): March 31, 2023 December 31, 2022 December 31, 2019 December 31, 2017 Debt $ 4,208 $ 4,215 $ 3,794 $ 3,954 Deferre
Slide 123: Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio
Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio 2) The following presents the reconciliation of net income (loss) to EBITDA, EBITDAre, Adjusted EBITDAre and EBITDA per our credit facility definition in determining leverage ratio (in millions): Trailing Twelve Months Year ende
Slide 124: Reconciliation of Net Income to Hotel EBITDA for Renovation and Development Projects
Reconciliation of Net Income to Hotel EBITDA for Renovation and Development Projects The following reconciles Hotel Net Income to Hotel-level EBITDA for the targeted incremental growth at stabilization for twenty-four hotel renovations & four ROI development projects either completed or under develo
Slide 125: Reconciliation of Net Income to Hotel EBITDA for Renovation and Development Projects
Reconciliation of Net Income to Hotel EBITDA for Renovation and Development Projects The following table reconciles net income to Hotel EBITDA for Hyatt Regency Maui (in millions, except margins): Q1 2023 TTM 2019 Hotel net income $ 60.2 $ 38.1 Depreciation 24.1 14.5 Hotel EBITDA $ 84.3 $ 52.6 Total
Slide 126: Reconciliation of Net Income to Hotel EBITDA for Renovation and Development Projects
Reconciliation of Net Income to Hotel EBITDA for Renovation and Development Projects The following tables reconcile net income to hotel EBITDA for Orlando World Center Marriott (in millions, except margins): 2022 2019 Hotel net income $ 57.2 $ 47.9 Depreciation 33.0 23.1 Hotel EBITDA $ 90.2 $ 71.0 Q
Slide 127: Schedule of All Owned Hotel Results for 2022 and 2017
Schedule of All Owned Hotel Results for 2022 and 2017 (in millions, except hotel statistics) Year ended December 31, 2022 2017 December 31, 2022 Portfolio December 31, 2017 Portfolio Number of hotels 78 94 Number of rooms 42,209 52,560 All Owned Hotel Total RevPAR $ 320.39 $ 278.15 All Owned Hotel R
Slide 128: Schedule of All Owned Hotel Results for 2022 and 2017
Schedule of All Owned Hotel Results for 2022 and 2017 (in millions, except hotel statistics) Year ended December 31, 2022 2017 December 31, 2022 Portfolio December 31, 2017 Portfolio Total Revenues $ 4,907 $ 5,387 All Owned Hotel adjustments (2) 37 $ (29) Corporate level items (3) - $ (10) Revenues
Slide 129: Schedule of All Owned Hotel Results for 2022 and 2017
Schedule of All Owned Hotel Results for 2022 and 2017 (in millions, except hotel statistics) The following tables present the calculations of per key amounts for the full Host portfolio: 2022 2022 December 31, 2022 Portfolio Net income (in millions) $ 643 All Owned Hotel EBITDA (in millions) $ 1,573
Slide 130: Top 40 Hotels by Total RevPAR for Years Ended December 31, 2022 and 2017
Top 40 Hotels by Total RevPAR for Years Ended December 31, 2022 and 2017 The following tables reconcile net income to Hotel EBITDA for our Top 40 Hotels by Total RevPAR as of December 31, 2022 (in millions, except hotel statistics and per room basis): Year ended December 31, 2022 Average Average Occ
Slide 131: Top 40 Hotels by Total RevPAR for Years Ended December 31, 2022 and 2017
Top 40 Hotels by Total RevPAR for Years Ended December 31, 2022 and 2017 The following tables reconcile net income to Hotel EBITDA for our Top 40 Hotels by Total RevPAR as of December 31, 2022 (in millions, except hotel statistics and per room basis): Year ended December 31, 2022 Hotel Net Plus: Plu
Slide 132: Top 40 Hotels by Total RevPAR for Years Ended December 31, 2022 and 2017
Top 40 Hotels by Total RevPAR for Years Ended December 31, 2022 and 2017 The following tables reconcile net income to Hotel EBITDA for All Owned Hotels as of December 31, 2017 (in millions, except hotel statistics and per room basis): Year ended December 31, 2017 Average Room Average Occupancy Total
Slide 133: Top 40 Hotels by Total RevPAR for Years Ended December 31, 2022 and 2017
Top 40 Hotels by Total RevPAR for Years Ended December 31, 2022 and 2017 The following tables reconcile net income to Hotel EBITDA for All Owned Hotels as of December 31, 2017 (in millions, except hotel statistics and per room basis): Year ended December 31, 2017 Plus: Equity Hotel Net Income Plus:
Slide 134: Top 40 Hotels by Total RevPAR for Years Ended December 31, 2022 and 2017
Top 40 Hotels by Total RevPAR for Years Ended December 31, 2022 and 2017 The following tables present the calculations of per key amounts for the Top 40 Host portfolio: 2022 2022 December 31, 2022 Top 40 Net Income (in millions) $ 722 Hotel EBITDA (in millions) $ 1,226 Number of rooms 23,193 Number
Slide 135: Reconciliations for Other Full-Service Lodging REITs
Reconciliations for Other Full-Service Lodging REITs Lodging REITs in the other full-service lodging REIT group are based on the next six largest lodging REITs by market capitalization (excluding APLE and SVC, which have a high portfolio concentration of limited service hotels, and RHP, which is a h
Slide 136: Reconciliations for Other Full-Service Lodging REITs
Reconciliations for Other Full-Service Lodging REITs The following table presents the EBITDA per key growth compared to other Full-Service Lodging REITs as of: December 31, 2022 December 31, 2017 EBITDA (1) EBITDA (1) Full-Service Lodging REITs No. of rooms (in millions) EBITDA per key No. of rooms
Slide 137: Reconciliations for Other Full-Service Lodging REITs
Reconciliations for Other Full-Service Lodging REITs The following table presents the Net Debt to EBITDA Ratio compared to other Full-Service Lodging REITs as of (in millions, except ratios): Trailing Twelve Months March 31, 2023 Full-Service Lodging REITs Net Debt Adjusted EBITDA Leverage Ratio Hos
Slide 138: Reconciliations for Other Full-Service Lodging REITs
Reconciliations for Other Full-Service Lodging REITs The following tables presents the Average Weighted Maturity compared to other Full-Service Lodging REITs as of: Full-Service Lodging REITs March 31, 2023 Host Hotels & Resorts, Inc. (HST) 5.0 years Diamondrock Hospitality Co. (DRH) 3.2 years Pebbl
Slide 139: Reconciliations for Other Full-Service Lodging REITs
Reconciliations for Other Full-Service Lodging REITs The following tables presents RevPAR compared to other Full-Service Lodging REITs for the year ended December 31(1): Full-Service Lodging REITs 2022 2017 Change Host Hotels & Resorts, Inc. (HST) $ 196 $ 181 9% Diamondrock Hospitality Co. (DRH) $ 1
Slide 140: Reconciliations for Other Full-Service Lodging REITs
Reconciliations for Other Full-Service Lodging REITs The following tables presents Total RevPAR compared to other Full-Service Lodging REITs for the year ended December 31(1): Full-Service Lodging REITs 2022 2017 Change Host Hotels & Resorts, Inc. (HST) $ 320 $ 278 15% Diamondrock Hospitality Co. (D
Slide 141: Acquisitions & Dispositions Metrics
Acquisitions & Dispositions Metrics The following table reconciles net income to Hotel EBITDA for the 2021-2023 hotel acquisitions, as well as the per key amounts (in millions, except for room count, multiples and per key): Acquisition Transaction Metrics at Underwriting Plus: Hotel Net Depreciation
Slide 142: Acquisitions & Dispositions Metrics
Acquisitions & Dispositions Metrics The following table reconciles net income to Hotel EBITDA for the 2021-2023 hotel acquisitions, as well as the per key amounts (in millions, except for room count, multiples and per key): Acquisition Transaction Metrics - Stabilization Plus: Hotel Net Depreciation
Slide 143: Acquisitions & Dispositions Metrics
Acquisitions & Dispositions Metrics The following tables reconcile net income to Hotel EBITDA for the 2018-2023 acquisitions and dispositions (in millions, except for room count and multiples): Hotel Net Plus: Plus: Interest Equals: Hotel Net income Hotel No. of Rooms Price Income(3) Depreciation Ex
Slide 144: Acquisitions & Dispositions Metrics
Acquisitions & Dispositions Metrics The following table reconciles Hotel Net Income to Hotel-level EBITDA from $3 billion of potential net acquisitions at a 14x EBITDA multiple (in millions, except multiples): Plus: Depreciation/ Equals: Hotel Hotel Price Hotel Net Income Interest EBITDA Net income
Slide 145: Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre for 2023 Forecasts
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 The following table reconciles net income to EBITDA, EBITDAre, and Adjusted EBITDAre for the full y
Slide 146: Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre for 2023 Forecasts
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 The following table reconciles diluted earnings per common share to NAREIT and Adjusted Funds From
Slide 147: Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre for 2023 Forecasts
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 The Forecasts are based on the below assumptions: • Comparable RevPAR will increase 7.5% to 10.5% c
Slide 148: Schedule of Comparable Hotel Results for Full Year 2023 Forecast
Schedule of Comparable Hotel Results for Full Year 2023 Forecast The following table reconciles the full year 2023 forecast GAAP results to Comparable hotel EBITDA results (in millions, except margins) (1): Full Year 2023 Low-end of range Mid-point of range High-end of range Operating profit margin⁽
Slide 149: Schedule of Comparable Hotel Results for Full Year 2023 Forecast
Schedule of Comparable Hotel Results for Full Year 2023 Forecast Low-end of range Mid-point of range High-end of range Adjustments Adjustments Non- Depreciation Non- Depreciation Non- Depreciation Property Comparable and Property Comparable and Property Comparable and Comparable GAAP Transaction Hot
Slide 150: Schedule of Comparable Hotel Results for Full Year 2023 Forecast
Schedule of Comparable Hotel Results for Full Year 2023 Forecast The following table reconciles the year ended December 31, 2019 GAAP results to Comparable Hotel results using the 2023 comparable hotel set (in millions): 2023 Comparable Hotel Set Year ended December 31, 2019 Adjustments Property Tra