Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Q3 2023 Earnings Presentation
43 slides from Host Hotels & Resorts's earnings presentation, Nov 2, 2023
Slide 1: Supplemental Financial Information
Supplemental Financial Information SEPTEMBER 30, 2023 FOUR SEASONS RESORT AND RESIDENCES JACKSON HOLE
Slide 2: Table of Contents
TABLE OF CONTENTS 3 OVERVIEW About Host Hotels & Resorts 4 Analyst Coverage 5 Forward-Looking Statements 6 Non-GAAP Financial Measures 7 8 PROPERTY LEVEL DATA Comparable Hotel Results by Location 9 Historical Comparable Hotel Results 17 The Phoenician, a luxury collection resort Comparable Hotel Res
Slide 3: Overview
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION HOST HOTELS & RESORTS CORPORATE HEADQUARTERS
Slide 4: About Host Hotels & Resorts
BAKER'S CAY RESORT KEY LARGO, CURIO COLLECTION BY HILTON About Host Hotels & Resorts PREMIER U.S. LODGING REIT S&P $11.5 $15.0 500 BILLION BILLION COMPANY MARKET CAP(1) ENTERPRISE VALUE(1) LUXURY & UPPER UPSCALE CONSOLIDATED HOTELS PORTFOLIO(2) 77 42,000 20 HOTELS ROOMS TOP U.S. MARKETS (1) Based on
Slide 5: Analyst Coverage
Analyst Coverage BAIRD EVERCORE ISI STIFEL, NICOLAUS & CO. Mike Bellisario Duane Pfennigwerth Simon Yarmak 414-298-6130 212-497-0817 443-224-1345 mbellisario@rwbaird.com duane.pfennigwerth@evercoreisi.com yarmaks@stifel.com BOFA SECURITIES, INC. GREEN STREET ADVISORS TRUIST Shaun Kelley Chris Darlin
Slide 6: Overview
Overview ABOUT HOST HOTELS & RESORTS 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
Slide 7: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Included in this supplemental information 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 (U.S. generally accepted accounting principles), within
Slide 8: Property Level Data
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION HOTEL VAN ZANDT
Slide 9: Comparable Hotel Results by Location
Comparable Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Quarter ended September 30, 2023 Total Average Revenues per No. of No. of Average Occupancy Total Available Hotel Net Location Properties Rooms Room Rate Percentage RevPAR (1) revenues Room (2)
Slide 10: Comparable Hotel Results by Location
Comparable Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Quarter ended September 30, 2023 Plus: Property No. of No. of Hotel Net Plus: Plus: Interest Plus: Income Transaction Equals: Hotel Location Properties Rooms Income (Loss) Depreciation Expense T
Slide 11: Comparable Hotel Results by Location
Comparable Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Quarter ended September 30, 2022 Total Average Revenues per No. of No. of Average Occupancy Total Available Hotel Net Location Properties Rooms Room Rate Percentage RevPAR revenues Room Income (
Slide 12: Comparable Hotel Results by Location
Comparable Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Quarter ended September 30, 2022 Plus: Severance Plus: Property No. of No. of Hotel Net Plus: Plus: Interest Plus: Income at hotel Transaction Equals: Hotel Location Properties Rooms Income (Los
Slide 13: Comparable Hotel Results by Location
Comparable Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Year-to-date ended September 30, 2023 Total Average Revenues per No. of No. of Average Occupancy Total Available Hotel Net Location Properties Rooms Room Rate Percentage RevPAR revenues Room Inc
Slide 14: Comparable Hotel Results by Location
Comparable Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Year-to-date ended September 30, 2023 Plus: Property No. of No. of Hotel Net Plus: Interest Plus: Income Transaction Equals: Hotel Location Properties Rooms Income (Loss) Plus: Depreciation Expe
Slide 15: Comparable Hotel Results by Location
Comparable Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Year-to-date ended September 30, 2022 Total Average Revenues per No. of No. of Average Occupancy Total Available Hotel Net Location Properties Rooms Room Rate Percentage RevPAR revenues Room Inc
Slide 16: Comparable Hotel Results by Location
Comparable Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Year-to-date ended September 30, 2022 Plus: Severance Plus: Property No. of No. of Hotel Net Plus: Plus: Interest Plus: Income at hotel Transaction Equals: Hotel Location Properties Rooms Income
Slide 17: Historical Comparable Hotel Results
Historical Comparable Hotel Results (unaudited, in millions, except hotel statistics) (1) Historical Comparable Hotel Metrics Three Months Ended Full Year Three Months Ended Full Year March 31, June 30, September March 31, June 30, September December December March 31, June 30, September December De
Slide 18: Comparable Hotel Results 2023 Forecast
Comparable Hotel Results 2023 Forecast (unaudited, in millions, except hotel statistics) 2023 Comparable Hotel Set 2023 Forecast(1) 2022 2019 Number of hotels 75 75 73 Number of rooms 41,031 41,031 40,643 Comparable hotel Total RevPAR $ 343.02 $ 318.25 $ 323.84 Comparable hotel RevPAR $ 211.55 $ 195
Slide 19: Comparable Hotel Results 2023 Forecast (cont.)
Comparable Hotel Results 2023 Forecast (cont.) (unaudited, in millions) Forecast Year ended December 31, 2023 Year ended December 31, 2022 Year ended December 31, 2019 Adjustments Adjustments Adjustments Non- Non- Non- Hotel comparable severance, Depreciation Property comparable Depreciation Compara
Slide 20: Reconciliation of Net Income to EBITDA, EBITDAre and FFO 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 (1) (unaudited, in millions, except per share amounts) Full Year 2023 Mid-point Net income $ 761 In
Slide 21: Ground Lease Summary as of December 31, 2022
Ground Lease Summary as of December 31, 2022 As of December 31, 2022 Lessor Institution Expiration after all No. of rooms Type Minimum rent Current expiration potential options (1) 1 Boston Marriott Copley Place 1,145 Public N/A (2) 12/13/2077 12/13/2077 2 Coronado Island Marriott Resort & Spa 300 P
Slide 22: Capitalization
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION SAN FRANCISCO MARRIOTT MARQUIS
Slide 23: Comparative Capitalization
Comparative Capitalization (in millions, except security pricing and per share amounts) As of As of As of As of As of September 30, June 30, March 31, December 31, September 30, Shares/Units 2023 2023 2023 2022 2022 Common shares outstanding 705.4 711.4 711.2 713.4 714.9 Common shares outstanding as
Slide 24: Consolidated Debt Summary
Consolidated Debt Summary (in millions) Debt Senior debt Rate Maturity date September 30, 2023 December 31, 2022 Series E 4% 6/2025 $ 499 $ 499 Series F 4 ½% 2/2026 399 399 Series G 3 ⅞% 4/2024 400 399 Series H 3 ⅜% 12/2029 643 642 Series I 3 ½% 9/2030 737 736 Series J 2.9 % 12/2031 441 440 2027 Cre
Slide 25: Consolidated Debt Maturity as of September 30, 2023
Consolidated Debt Maturity as of September 30, 2023 $1,000 $750 Debt Balance (in Millions) 90 $500 5 750 650 $250 500 500 500 450 400 400 $0 2023 2024 2025 2026 2027 2028 2029 2030 2031 Senior Notes Term Loan (1) Mortgage and Other Debt (2) (1) The first term loan under our credit facility that is d
Slide 26: Financial Covenants
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 1 HOTEL SOUTH BEACH
Slide 27: Credit Facility and Senior Notes Financial Performance Tests
Financial Covenants: Credit Facility and Senior Notes Financial Performance Tests (unaudited, in millions, except ratios) On January 4, 2023, we amended our Credit Facility agreement. The covenant requirements are consistent with previous amendment covenant levels: Leverage Ratio Maximum 7.25x Fixed
Slide 28: Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio
Financial Covenants: Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio (unaudited, in millions, except ratios) The following tables present the calculation of our leverage ratio using GAAP measures and as used in the financial covenants of the credit facility: Leverage Ratio pe
Slide 29: Reconciliation of GAAP Interest Coverage Ratio to Unsecured Interest Coverage Ratio
Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio (unaudited, in millions, except ratios) The following tables present the calculation of our unsecured interest coverage ratio using GAAP measures and as used in the financial cove
Slide 30: Reconciliation of GAAP Interest Coverage Ratio to Fixed Charge Coverage Ratio
Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Fixed Charge Coverage Ratio (unaudited, in millions, except ratios) The following tables present the calculation of our GAAP Interest coverage ratio and our fixed charge coverage ratio as used in the financial cov
Slide 31: Reconciliation of GAAP Indebtedness Test to Senior Notes Indebtedness Test
Financial Covenants: Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test (unaudited, in millions, except ratios) The following tables present the calculation of our total indebtedness to total assets using GAAP measures and as used in the financial covenants of our s
Slide 32: Reconciliation of GAAP Secured Indebtedness Test to Senior Notes Test
Financial Covenants: Reconciliation of GAAP Secured Indebtedness Test to Senior Notes Indenture Secured Indebtedness Test (unaudited, in millions, except ratios) The following table presents the calculation of our secured indebtedness using GAAP measures and as used in the financial covenants of our
Slide 33: Reconciliation of GAAP Interest Coverage to Senior Notes EBITDA-to-Interest Coverage
Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Senior Notes Indenture EBITDA-to-Interest Coverage Ratio (unaudited, in millions, except ratios) The following tables present the calculation of our interest coverage ratio using our GAAP measures and as used in the financial cov
Slide 34: Reconciliation of GAAP Assets to Indebtedness Test to Unencumbered Assets Test
Financial Covenants: Reconciliation of GAAP Assets to Indebtedness Test to Senior Notes Unencumbered Assets to Unsecured Indebtedness Test (unaudited, in millions, except ratios) The following tables present the calculation of our total assets to total debt using GAAP measures and unencumbered asset
Slide 35: Notes to Supplemental Financial Information
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION GRAND HYATT WASHINGTON
Slide 36: Notes to Supplemental Financial Information: Forecasts
NOTES TO SUPPLEMENTAL 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 i
Slide 37: Notes: Comparable Hotel Operating Statistics and Results
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION COMPARABLE HOTEL OPERATING STATISTICS AND RESULTS (continued) Of the 77 hotels that we owned as of September 30, 2023, 75 have been classified as comparable hotels. The operating results of the following hotels that we owned as of September 30, 2023 are ex
Slide 38: Notes: Non-GAAP Financial Measures
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION NON-GAAP FINANCIAL MEASURES (continued) We believe that NAREIT FFO per diluted share is a useful supplemental measure of our operating performance and that the presentation of NAREIT FFO per diluted share, when combined with the primary GAAP presentation o
Slide 39: Notes: Non-GAAP Financial Measures
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION NON-GAAP FINANCIAL MEASURES (continued) 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 red
Slide 40: Notes: Non-GAAP Financial Measures
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION NON-GAAP FINANCIAL MEASURES (continued) • Acquisition Costs – Under GAAP, costs associated with completed property acquisitions that are considered business combinations are expensed in the year incurred. We exclude the effect of these costs because we bel
Slide 41: Notes: Non-GAAP Financial Measures
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION NON-GAAP FINANCIAL MEASURES (continued) 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 adj
Slide 42: Notes: Non-GAAP Financial Measures
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION NON-GAAP FINANCIAL MEASURES (continued) We present these hotel operating results on a comparable hotel basis because we believe that doing so provides investors and management with useful information for evaluating the period-to-period performance of our h
Slide 43: Notes: Non-GAAP Financial Measures
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION NON-GAAP FINANCIAL MEASURES (continued) Under the terms of the senior notes indentures, interest expense excludes items such as the gains and losses on the extinguishment of debt, deferred financing charges related to the senior notes or the credit facilit
Host Hotels & Resorts — Q3 2023 Earnings Presentation on 6ix