Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Q3 2020 Earnings Presentation
42 slides from Host Hotels & Resorts's earnings presentation, Nov 4, 2020
Slide 1: Supplemental Financial Information September 30, 2020
Supplemental Financial Information September 30, 2020 Exhibit 99.2
Slide 2: Table of Contents
Table of Contents OVERVIEW 03 About Host Hotels & Resorts 04 Analyst Coverage 05 Forward-Looking Statements 06 All Owned Hotel Operating Statistics and Non-GAAP Financial Measures 07 PROPERTY LEVEL DATA 08 Hotel Results by Location in Nominal US$ 09 Top 40 Domestic Hotels by Total RevPAR for the Yea
Slide 3: Overview
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION COVID-19 DATA NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 4: About Host Hotels & Resorts
About host Hotels & Resorts Premier US LODGING REIT LUXURY & UPPER UPSCALE CONSOLIDATED HOTELS PORTFOLIO 79 46,100 22 Hotels Rooms TOP US MARKETS S&P 500 $7.7 BILLION $11.0 BILLION COMPANY Market Cap(1) ENTERPRISE VALUE(1) Based on market cap as of September 30, 2020. See Comparative Capitalization
Slide 5: Analyst Coverage
Analyst Coverage The Company is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding the Company’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of the Company or its management. The Compa
Slide 6: Forward-Looking Statements
ABOUT HOST HOTELS & RESORTS Host Hotels& Resorts, Inc., herein referred to as “we,” “Host Inc.,” or the “Company,” is a self-managed and self-administered REIT that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resort
Slide 7: All Owned Hotel Operating Statistics and Non-GAAP Financial Measures
To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics and operating results for the periods included in this supplemental information on a comparable hotel basis. However, due to the COVID-19 pandemic and its effects on operations, there i
Slide 8: Property Level Data
Overview Property level data capitalization Covid-19 data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 9: Hotel Results by Location, Quarter ended September 30, 2020
Hotel Results by Location in Nominal US$ (unaudited, in millions, except hotel statistics and per room basis) Quarter ended September 30, 2020 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR(1) Total Revenues Total Revenues per Available Room(2) Hotel Ne
Slide 10: Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA, Q3 2020
Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA (unaudited, in millions, except hotel statistics) Quarter ended September 30, 2020 Location No. of Properties No. of Rooms Hotel Net Income (Loss) Plus: Depreciation Plus: Interest Expense Plus: Income
Slide 11: Hotel Results by Location, Quarter ended September 30, 2019
Hotel Results by Location in Nominal US$ (unaudited, in millions, except hotel statistics and per room basis) Quarter ended September 30, 2019 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues per Available Room Hotel Net Inco
Slide 12: Reconciliation of Hotel Net Income to Hotel EBITDA, Q3 2019
Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income to Hotel EBITDA (unaudited, in millions, except hotel statistics) Quarter ended September 30, 2019 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation Plus: Interest Expense Plus: Income Tax Pro forma
Slide 13: Hotel Results by Location, Year-to-date September 30, 2020
Hotel Results by Location in Nominal US$ (unaudited, in millions, except hotel statistics and per room basis) Year-to-date ended September 30, 2020 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues per Available Room Hotel Net
Slide 14: Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA, YTD 2020
Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA (unaudited, in millions, except hotel statistics) Year-to-date ended September 30, 2020 Location No. of Properties No. of Rooms Hotel Net Income (Loss) Plus: Depreciation Plus: Interest Expense Plus: I
Slide 15: Hotel Results by Location, Year-to-date September 30, 2019
Hotel Results by Location in Nominal US$ (unaudited, in millions, except hotel statistics and per room basis) Year-to-date ended September 30, 2019 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues per Available Room Hotel Net
Slide 16: Reconciliation of Hotel Net Income to Hotel EBITDA, YTD 2019
Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income to Hotel EBITDA (unaudited, in millions, except hotel statistics) Year-to-date ended September 30, 2019 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation Plus: Interest Expense Plus: Income Tax Pro
Slide 17: Top Domestic Hotels by Total RevPAR, Year ended December 31, 2019
Top 40 Domestic Hotels by Total RevPAR For the Year ended December 31, 2019 (unaudited, in millions, except hotel statistics and per room basis) Year ended December 31, 2019 Hotel Location No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues per Available
Slide 18: Top Domestic Hotels by Total RevPAR Reconciliation to Hotel EBITDA and EBITDAre
Top 40 Domestic Hotels by Total RevPAR Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA and EBITDAre (unaudited, in millions, except hotel statistics) Year ended December 31, 2019 Hotel Location No. of Rooms Hotel Net Income (Loss) Plus: Depreciation Plus: Interest Expense Plus: Income Tax
Slide 19: Capitalization
Overview Property level data Capitalization COVID-19 Data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 20: 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 2020 2020 2020 2019 2019 Common shares outstanding 705.3 705.2 704.9 713.4 718.5 Common shares outstanding as
Slide 21: Consolidated Debt Summary
Consolidated Debt Summary (in millions) Debt Senior debt Rate Maturity date September 30, 2020 December 31, 2019 Series C 4 3⁄4% 3/2023 86 447 Series D 3 3⁄4% 10/2023 399 398 Series E 4% 6/2025 497 497 Series F 4 1⁄2% 2/2026 397 397 Series G 3 7⁄8% 4/2024 397 397 Series H 3 ⅜% 12/2029 640 640 Series
Slide 22: Consolidated Debt Maturity as of September 30, 2020
Consolidated Debt Maturity as of September 30, 2020 The term loan and revolver under our credit facility that are due in 2024 have extension options that would extend maturity of both instruments to 2025, subject to meeting certain conditions, including payment of a fee.
Slide 23: Ground Lease Summary as of December 31, 2019
Ground Lease Summary as of December 31, 2019 As of December 31, 2019 Hotel No. of rooms Lessor Institution Type Minimum rent Current expiration Expiration after all potential options (1) 1 Boston Marriott Copley Place 1,144 Public N/A (2) 12/13/2077 12/13/2077 2 Coronado Island Marriott Resort & Spa
Slide 24: Property Dispositions
Property Dispositions The table includes 14 properties sold in 2019 and one property sold in 2020. The cap rate is calculated as the ratio between the trailing twelve month net operating income (NOI) and the sales price plus avoided capital expenditures. However, due to the impact of the COVID-19 pa
Slide 25: COVID-19 Data
Overview Property Level Data Capitalization COVID-19 Data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 26: Credit Facility Amendment
Credit Facility Amendment(1) FINANCIAL COVENANTS Obtained waiver of existing quarterly-tested financial covenants beginning July 1, 2020 through July 1, 2021. Option to terminate the Covenant Relief Period early. Obtained a modification of the quarterly-tested leverage covenant and EBITDA calculatio
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) At September 30, 2020(1) Credit Facility Financial Performance Tests Permitted GAAP Ratio Covenant Ratio Leverage Ratio Maximum 7.25x (9.5x) 16.4x Unsecured Interest Coverage Rat
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 table presents the calculation of our leverage ratio as used in the financial covenants of the credit facility: The following presents the reconciliation
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 Indenture Indebtedness Test
September 30, 2020 Total assets $13,071 Add: Asset held-for-sale accumulated depreciation 122 Add: Accumulated depreciation 8,689 Add: Prior impairment of assets held 217 Add: Current year impairment of assets held 14 Less: Intangibles (22) Less: Right-of-use assets (600) Adjusted Total Assets per S
Slide 32: Reconciliation of GAAP Secured Indebtedness Test to Senior Notes Indenture 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 Ratio 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: Hotels with Suspended Operations
Hotels with Suspended Operations The following table consists of hotels with suspended operations as of November 4, 2020: Location Property # of Rooms 1 Boston Sheraton Boston Hotel 1,220 2 Chicago The Westin Chicago River North 445 3 Washington, D.C (CBD). Hyatt Regency Washington on Capitol Hill 8
Slide 36: Notes to Supplemental Financial Information
Overview Property level data capitalization Covid-19 data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 37: All Owned Hotel Operating Statistics and Results
All Owned Hotel Operating Statistics and Results To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics and operating results for the periods included in this presentation on a comparable hotel basis (discussed in “Comparable Hotel Operatin
Slide 38: Non-GAAP Financial Measures (continued): EBITDA and NOI
Non-GAAP financial measures (continued) EBITDA and NOI Earnings before Interest Expense, Income Taxes, Depreciation and Amortization (“EBITDA”) is a commonly used measure of performance in many industries. Management believes EBITDA provides useful information to investors regarding our results of o
Slide 39: Non-GAAP Financial Measures (continued)
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 believe they are not reflective of the ongoing pe
Slide 40: Non-GAAP Financial Measures (continued)
Non-GAAP financial measures (continued) Our consolidated statements of operations and consolidated statements of cash flows in the Company’s quarterly report on Form 10-Q (“Statements of Cash Flows”) include interest expense, capital expenditures, and other excluded items, all of which should be con
Slide 41: Non-GAAP Financial Measures (continued)
Non-GAAP financial measures (continued) Because of the elimination of corporate-level costs and expenses, gains or losses on disposition, certain severance expenses and depreciation and amortization expense, the hotel operating results we present do not represent our total revenues, expenses, operat
Slide 42: Non-GAAP Financial Measures (continued): Senior Notes Indenture Tests
Non-GAAP financial measures (continued) Senior Notes Indenture – Indebtedness Test, Secured Indebtedness to Total Assets Test, EBITDA-to-Interest Coverage Ratio and Ratio of Unencumbered Assets to Unsecured Indebtedness Host’s senior notes indentures contains certain financial covenants, including a
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