Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — FY2022 Earnings Presentation
54 slides from Host Hotels & Resorts's earnings presentation, Feb 15, 2023
Slide 1: Supplemental Financial Information December 31, 2022
Supplemental Financial Information December 31, 2022 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 Non-GAAP Financial Measures 07 PROPERTY LEVEL DATA 08 All Owned Hotel Results by Location 09 Top 40 Hotels by Total RevPAR 21 Historical All Owned Hotel Results 23 Comparable Hotel Results
Slide 3: Overview
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION Financial Covenants 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(2) 78 42,200 20 Hotels Rooms TOP US MARKETS S&P 500 $11.6 BILLION $15.4 BILLION COMPANY Market Cap(1) ENTERPRISE VALUE(1) Based on market cap as of December 31, 2022. See Comparative Capitalizati
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 real estate investment trust that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partners
Slide 7: 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 the meaning of applicable SE
Slide 8: Property Level Data
Overview Property level data capitalization Financial Covenants NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 9: All Owned Hotel Results by Location
All owned Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) RevPAR is the product of the average daily room rate charged and the average daily occupancy achieved. Total Revenues per Available Room (“Total RevPAR”) is a summary measure of hotel results cal
Slide 10: All Owned Hotel Results by Location
All owned Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases. All Owned Hotel adjustments represent the following items: (i) the elimin
Slide 11: All Owned Hotel Results by Location
All owned Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Certain Items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses, and the provision for income taxes
Slide 12: All Owned Hotel Results by Location
All owned Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases. All Owned Hotel adjustments represent the following items: (i) the elimin
Slide 13: All Owned Hotel Results by Location
All owned Hotel results by Location (unaudited, in millions, except hotel statistics and per room basis) Certain Items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses, and the provision for income taxes
Slide 14: All Owned Hotel Results by Location
All owned Hotel results by Location (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases. All Owned Hotel adjustments represent the following items: (i) the elimin
Slide 15: All Owned Hotel Results by Location
All owned Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) RevPAR is the product of the average daily room rate charged and the average daily occupancy achieved. Total Revenues per Available Room (“Total RevPAR”) is a summary measure of hotel results cal
Slide 16: All Owned Hotel Results by Location
All owned Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases. All Owned Hotel adjustments represent the following items: (i) the elimin
Slide 17: All Owned Hotel Results by Location
All owned Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Certain Items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses, and the provision for income taxes
Slide 18: All Owned Hotel Results by Location
All owned Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases. All Owned Hotel adjustments represent the following items: (i) the elimin
Slide 19: All Owned Hotel Results by Location
All owned Hotel results by Location (unaudited, in millions, except hotel statistics and per room basis) Certain Items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses, and the provision for income taxes
Slide 20: All Owned Hotel Results by Location
All owned Hotel results by Location (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues and related expenses, as well as non-income taxes on TRS leases. All Owned Hotel adjustments represent the following items: (i) the elimin
Slide 21: Top Hotels by Total RevPAR
Top 40 Hotels by total RevPAR for year ended December 31, 2022 (2) (unaudited, in millions, except hotel statistics and per room basis) Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses, and
Slide 22: Top Hotels by Total RevPAR: Reconciliation to Hotel EBITDA
Top 40 Hotels by total RevPAR Reconciliation from hotel net income (loss) to hotel ebitda and ebitdare (1) (unaudited, in millions, except hotel statistics and per room basis) The Hotel EBITDA results for the assets acquired in 2022 includes operating results assuming the hotel was owned as of Janua
Slide 23: Historical All Owned Hotel Results
HISTORICAL All Owned Hotel RESULTS (unaudited, in millions, except hotel statistics) Historical All Owned Hotel Metrics – Hotels Owned as of December 31, 2022 (1) (2) Historical All Owned Hotel Revenues – Hotels Owned as of December 31, 2022 (1) (2) Three Months Ended Full Year Three Months Ended Fu
Slide 24: Historical All Owned Hotel Results Cont.
HISTORICAL All Owned Hotel RESULTS CONT. (unaudited, in millions, except hotel statistics) Historical All Owned Hotel EBITDA – Hotels Owned as of December 31, 2022 (1) (2) Three Months Ended Full Year Three Months Ended Full Year March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 Dece
Slide 25: Historical All Owned Hotel Results Cont.
HISTORICAL All Owned Hotel RESULTS CONT. (unaudited, in millions, except hotel statistics) Historical All Owned Hotel Adjusted EBITDAre – Hotels Owned as of December 31, 2022 (1) (2) (1) The tables above include All Owned Hotel adjustments for one asset acquired in 2022, four assets sold in 2022, ei
Slide 26: Comparable Hotel Results 2023 Forecast
Comparable hotel results 2023 Forecast (unaudited, in millions, except hotel statistics) See "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" for
Slide 27: 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 GAAP Results Non-Comparable Hotel Results, net(b) Depreciation and corporate level items Comparabl
Slide 28: Reconciliation of Net Income to EBITDA 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 $569 Int
Slide 29: Ground Lease Summary as of December 31, 2022
Ground Lease Summary as of December 31, 2022 As of December 31, 2022 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 300 P
Slide 30: Capitalization
Overview Property level data Capitalization Financial Covenants NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 31: Comparative Capitalization
Comparative Capitalization (in millions, except security pricing and per share amounts) Each OP Unit is redeemable for cash or, at our option, for 1.021494 common shares of Host Inc. At December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, there were 10.0 milli
Slide 32: Consolidated Debt Summary
Consolidated Debt Summary (in millions) There are no outstanding credit facility borrowings at December 31, 2022. Amount shown represents deferred financing costs related to the credit facility revolver. In accordance with GAAP, total debt includes the debt of entities that we consolidate, but of wh
Slide 33: Consolidated Debt Maturity as of December 31, 2022
Consolidated Debt Maturity as of December 31, 2022 Maturity dates related to the outstanding credit facility term loans reflect the extensions provided by the amended and restated credit facility agreement effective January 4, 2023. The first term loan under our credit facility that is due in 2027 h
Slide 34: Property Transactions
Property TRANSACTIONS Disposition Transaction Metrics Sales Price (in millions) Net income Cap Rate (6) Cap Rate (4) Net income multiple (6) EBITDA multiple (5) 2021-2022 completed sales (1) $1,420 2.8% 4.5% 35.5x 17.7x Acquisition Transaction Metrics at Underwriting Sales Price (in millions) Net in
Slide 35: Property Transactions Cont.
Property TRANSACTIONs CONT. Disposition Transaction Metrics Total Revenues RevPAR Total RevPAR Hotel Net Income Plus: Depreciation Equals: Hotel EBITDA Renewal & Replacement funding Hotel Net Operating Income 2021-2022 completed sales $542.6 $171.18 $242.71 $40.0 $65.4 $105.4 ($25.3) $80.1 Acquisiti
Slide 36: Financial Covenants
Overview Property Level Data Capitalization Financial Covenants NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 37: Credit Facility and Senior Notes Financial Performance Tests
financial Covenants: Credit Facility and Senior Notes Financial Performance Tests (unaudited, in millions, except ratios) Covenant ratios are calculated using Host’s credit facility and senior notes definitions. See the subsequent pages for a reconciliation of the equivalent GAAP measure. The GAAP r
Slide 38: 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 39: 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 40: 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 41: 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 42: 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 43: Reconciliation of GAAP Interest Coverage Ratio to Senior Notes EBITDA-to-Interest Ratio
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 44: 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 45: Notes to Supplemental Financial Information
Overview Property level data capitalization Financial Covenants NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 46: Forecasts
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 unknown risks, uncertainties
Slide 47: Comparable Hotel Results Definition for Periods Starting on or After January 1, 2023
Comparable hotel results definition for Periods Starting on or After January 1, 2023 (continued) To facilitate a year-to-year comparison of our operations, we will present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (reven
Slide 48: Non-GAAP Financial Measures: NAREIT FFO
Non-GAAP financial measures (continued) NAREIT FFO AND NAREIT FFO PER DILUTED SHARE We present NAREIT FFO and NAREIT FFO per diluted share as non-GAAP measures of our performance in addition to our earnings per share (calculated in accordance with GAAP). We calculate NAREIT FFO per diluted share as
Slide 49: 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 50: Non-GAAP Financial Measures: EBITDAre and Adjusted EBITDAre
Non-GAAP financial measures (continued) 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
Slide 51: Limitations on the Use of FFO and EBITDA Measures
Non-GAAP financial measures (continued) Limitations on the Use of NAREIT FFO per Diluted Share, Adjusted FFO per Diluted Share, EBITDA, EBITDAre and Adjusted EBITDAre We calculate EBITDAre and NAREIT FFO per diluted share in accordance with standards established by NAREIT, which may not be comparabl
Slide 52: Non-GAAP Financial Measures: Hotel Property Level Operating Results
Non-GAAP financial measures (continued) Hotel Property Level Operating Results We present certain operating results for our hotels, such as hotel revenues, expenses, food and beverage profit, and EBITDA (and the related margins), on a hotel-level basis as supplemental information for our investors.
Slide 53: Credit Facility Leverage, Interest Coverage and Fixed Charge Ratios
Non-GAAP financial measures (continued) Credit Facility – Leverage, Unsecured Interest Coverage and Consolidated Fixed Charge Coverage Ratios Host’s credit facility contains certain financial covenants, including allowable leverage, unsecured interest coverage and fixed charge ratios, which are dete
Slide 54: Limitations on Credit Facility and Senior Notes Credit Ratios
Non-GAAP financial measures (continued) Limitations on Credit Facility and Senior Notes Credit Ratios These metrics are useful in evaluating the Company’s compliance with the covenants contained in its credit facility and senior notes indentures. However, because of the various adjustments taken to