Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Q3 2024 Earnings Presentation
41 slides from Host Hotels & Resorts's earnings presentation, Nov 7, 2024
Slide 1: Supplemental Financial Information
Supplemental Financial Information SEPTEMBER 30, 2024 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 6 7 PROPERTY LEVEL DATA AND CORPORATE MEASURES Comparable Hotel Results by Location 8 Comparable Hotel Results 2024 Forecast and Full Year 2023 16 The Phoenician, a
Slide 3: Overview
OVERVIEW PROPERTY LEVEL DATA AND CORPORATE MEASURES 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 $12.5 $17.2 500 BILLION BILLION COMPANY MARKET CAP(1) ENTERPRISE VALUE(1) LUXURY & UPPER UPSCALE CONSOLIDATED HOTELS PORTFOLIO(2) 81 43,400 21 HOTELS ROOMS TOP U.S. MARKETS (1) Based on
Slide 5: Analyst Coverage
Analyst Coverage BAIRD GREEN STREET ADVISORS RAYMOND JAMES & ASSOCIATES Mike Bellisario Chris Darling RJ Milligan 414-298-6130 949-640-8780 727-567-2585 mbellisario@rwbaird.com cdarling@greenst.com rjmilligan@raymondjames.com BOFA SECURITIES, INC. HSBC SECURITIES (USA) INC. STIFEL, NICOLAUS & CO. Sh
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: Property Level Data and Corporate Measures
OVERVIEW PROPERTY LEVEL DATA AND CORPORATE MEASURES CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 1 HOTEL NASHVILLE
Slide 8: Comparable Hotel Results by Location
Comparable Hotel Results by Location (1) (unaudited, in millions, except hotel statistics and per room basis) Quarter ended September 30, 2024 Average Total Revenues No. of No. of Average Occupancy per Available Hotel Net Location Properties Rooms Room Rate Percentage RevPAR Total revenues Room Inco
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, 2024 Plus: Property No. of No. of Hotel Net Plus: Plus: Interest Transaction Equals: Hotel Location Properties Rooms Income (Loss) Depreciation Expense Plus: Income T
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 Average Total Revenues No. of No. of Average Occupancy per Available Hotel Net Location Properties Rooms Room Rate Percentage RevPAR Total revenues Room Income (
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, 2023 Plus: Property No. of No. of Hotel Net Plus: Plus: Interest Transaction Equals: Hotel Location Properties Rooms Income (Loss) Depreciation Expense Plus: Income T
Slide 12: 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, 2024 Average Total Revenues No. of No. of Average Occupancy per Available Hotel Net Location Properties Rooms Room Rate Percentage RevPAR Total revenues Room Inc
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, 2024 Plus: Property No. of No. of Hotel Net Plus: Plus: Interest Transaction Equals: Hotel Location Properties Rooms Income (Loss) Depreciation Expense Plus: 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 Average Total Revenues No. of No. of Average Occupancy per Available Hotel Net Location Properties Rooms Room Rate Percentage RevPAR Total revenues Room Inc
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, 2023 Plus: Property No. of No. of Hotel Net Income Plus: Plus: Interest Transaction Equals: Hotel Location Properties Rooms (Loss) Depreciation Expense Plus: Inc
Slide 16: Comparable Hotel Results 2024 Forecast and Full Year 2023
Comparable Hotel Results 2024 Forecast and Full Year 2023 (unaudited, in millions, except hotel statistics) 2024 Comparable Hotel Set 2024 Forecast(1) 2023 Number of hotels 78 78 Number of rooms 42,508 42,508 Comparable hotel Total RevPAR $ 353.04 $ 348.70 Comparable hotel RevPAR $ 214.68 $ 214.15 O
Slide 17: Comparable Hotel Results 2024 Forecast and Full Year 2023 (cont.)
Comparable Hotel Results 2024 Forecast and Full Year 2023 (cont.) (unaudited, in millions) Forecast Year ended December 31, 2024 Year ended December 31, 2023 Adjustments Adjustments Non- Non- Property comparable Depreciation Property comparable Depreciation transaction hotel results, and corporate C
Slide 18: Ground Lease Summary as of September 30, 2024
Ground Lease Summary as of September 30, 2024 As of September 30, 2024 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
Slide 19: Capitalization
OVERVIEW PROPERTY LEVEL DATA AND CORPORATE MEASURES CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION SAN FRANCISCO MARRIOTT MARQUIS
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 2024 2024 2024 2023 2023 Common shares outstanding 699.0 702.3 705.0 703.6 705.4 Common shares outstanding as
Slide 21: Consolidated Debt Summary
Consolidated Debt Summary (in millions) Debt Senior debt Rate Maturity date September 30, 2024 December 31, 2023 Series E 4% 6/2025 $ 500 $ 499 Series F 4 ½% 2/2026 399 399 Series G 3 ⅞% 4/2024 — 400 Series H 3 ⅜% 12/2029 644 643 Series I 3 ½% 9/2030 739 738 Series J 2.9% 12/2031 442 441 Series K 5.
Slide 22: Consolidated Debt Maturity as of September 30, 2024
Consolidated Debt Maturity as of September 30, 2024 $1,250 $1,000 Debt Balance (in Millions) $750 90 $500 750 700 650 600 $250 500 500 500 450 400 $0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Senior Notes Term Loan (1) Mortgage and Other Debt (2) (1) The first term loan that is due
Slide 23: Property Transactions
Property Transactions The following table reconciles net income to Hotel EBITDA for the 2024 acquisitions (in millions, except for room count and multiples): No. of Hotel Net Plus: Plus: Interest Equals: Hotel Net income Rooms Price(2) Income(3) Depreciation Expense EBITDA multiple EBITDA multiple (
Slide 24: Financial Covenants
OVERVIEW PROPERTY LEVEL DATA AND CORPORATE MEASURES CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 1 HOTEL SOUTH BEACH
Slide 25: 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 26: 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 27: 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 28: 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 29: Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture 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 30: 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 31: Reconciliation of GAAP Interest Coverage Ratio to EBITDA-to-Interest Coverage 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 32: 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 33: Notes to Supplemental Financial Information
OVERVIEW PROPERTY LEVEL DATA AND CORPORATE MEASURES CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION GRAND HYATT WASHINGTON
Slide 34: 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 35: Notes to Supplemental Financial Information
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION COMPARABLE HOTEL OPERATING STATISTICS AND RESULTS (continued) Of the 81 hotels that we owned as of September 30, 2024, 79 have been classified as comparable hotels. The operating results of the following properties that we owned as of September 30, 2024 ar
Slide 36: Notes to Supplemental Financial Information: 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 37: Notes to Supplemental Financial Information: 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 38: Notes to Supplemental Financial Information: 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 39: Notes to Supplemental Financial Information: 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 ad
Slide 40: Notes to Supplemental Financial Information: 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 41: Notes to Supplemental Financial Information: 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
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