Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Q1 2024 Earnings Presentation
40 slides from Host Hotels & Resorts's earnings presentation, May 2, 2024
Slide 1: Supplemental Financial Information
Supplemental Financial Information MARCH 31, 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 Comparable Hotel Results by Location 8 Comparable Hotel Results vs. 2019 12 The Phoenician, a luxury collection resort Comparable Hotel Resul
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 $14.8 $18.2 500 BILLION BILLION COMPANY MARKET CAP(1) ENTERPRISE VALUE(1) LUXURY & UPPER UPSCALE CONSOLIDATED HOTELS PORTFOLIO(2) 79 42,700 21 HOTELS ROOMS TOP U.S. MARKETS (1) Based on
Slide 5: Analyst Coverage
Analyst Coverage BAIRD EVERCORE ISI RAYMOND JAMES & ASSOCIATES Mike Bellisario Duane Pfennigwerth Bill Crow 414-298-6130 212-497-0817 727-567-2594 mbellisario@rwbaird.com duane.pfennigwerth@evercoreisi.com bill.crow@raymondjames.com BOFA SECURITIES, INC. GREEN STREET ADVISORS STIFEL, NICOLAUS & CO.
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
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION HOTEL VAN ZANDT
Slide 8: Comparable Hotel Results by Location
Comparable Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Quarter ended March 31, 2024 Average Total Revenues No. of No. of Average Occupancy per Available Hotel Net Location Properties Rooms Room Rate Percentage RevPAR Total revenues Room Income (Loss
Slide 9: Comparable Hotel Results by Location
Comparable Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Quarter ended March 31, 2024 No. of No. of Hotel Net Income Plus: Interest Equals: Hotel Location Properties Rooms (Loss) Plus: Depreciation Expense Plus: Income Tax EBITDA Miami 2 1,038 $ 26.4
Slide 10: Comparable Hotel Results by Location
Comparable Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Quarter ended March 31, 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 (Loss
Slide 11: Comparable Hotel Results by Location
Comparable Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Quarter ended March 31, 2023 Plus: Property No. of No. of Hotel Net Income Plus: Plus: Interest Transaction Equals: Hotel Location Properties Rooms (Loss) Depreciation Expense Plus: Income Tax A
Slide 12: Comparable Hotel Results vs. 2019
Comparable Hotel Results vs. 2019 (unaudited, in millions, except hotel statistics) Q1 2024 Comparable Hotel Set(1) Quarter ended Quarter ended March 31, 2024 March 31, 2019 Number of hotels 76 74 Number of rooms 41,505 41,117 Operating profit margin⁽4⁾ 19.8% 15.5% Comparable hotel EBITDA margin(4⁾
Slide 13: Comparable Hotel Results vs. 2019 (cont.)
Comparable Hotel Results vs. 2019 (cont.) (unaudited, in millions) Quarter ended March 31, 2024 Quarter ended March 31, 2019 Adjustments Adjustments Depreciation and Property Depreciation and Non-comparable corporate level Comparable transaction Non-comparable corporate level Comparable GAAP Results
Slide 14: Comparable Hotel Results 2024 Forecast
Comparable Hotel Results 2024 Forecast (unaudited, in millions, except hotel statistics) 2024 Comparable Hotel Set 2024 Forecast(1) 2023 2019 Number of hotels 75 75 73 Number of rooms 41,451 41,451 41,063 Comparable hotel Total RevPAR $ 355.36 $ 342.82 $ 322.72 Comparable hotel RevPAR $ 215.90 $ 209
Slide 15: Comparable Hotel Results 2024 Forecast (cont.)
Comparable Hotel Results 2024 Forecast (cont.) (unaudited, in millions) Forecast Year ended December 31, 2024 Year ended December 31, 2023 Year ended December 31, 2019 Adjustments Adjustments Adjustments Forecast Non- Non- Non- Depreciation Depreciation results for comparable and Comparable Property
Slide 16: Reconciliation of Net Income to EBITDA, EBITDAre and FFO for 2024 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 2024 Forecasts (1) (unaudited, in millions, except per share amounts) Full Year 2024 Mid-point Net income $ 747 In
Slide 17: Ground Lease Summary as of December 31, 2023
Ground Lease Summary as of December 31, 2023 As of December 31, 2023 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 18: Capitalization
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION SAN FRANCISCO MARRIOTT MARQUIS
Slide 19: Comparative Capitalization
Comparative Capitalization (in millions, except security pricing and per share amounts) As of As of As of As of As of March 31, December 31, September 30, June 30, March 31, Shares/Units 2024 2023 2023 2023 2023 Common shares outstanding 705.0 703.6 705.4 711.4 711.2 Common shares outstanding assumi
Slide 20: Consolidated Debt Summary
Consolidated Debt Summary (in millions) Debt Senior debt Rate Maturity date May 1, 2024 (4) March 31, 2024 December 31, 2023 Series E 4% 6/2025 $ 499 $ 499 $ 499 Series F 4 ½% 2/2026 399 399 399 Series G 3 ⅞% 4/2024 — 400 400 Series H 3 ⅜% 12/2029 643 643 643 Series I 3 ½% 9/2030 738 738 738 Series
Slide 21: Consolidated Debt Maturity
Consolidated Debt Maturity as of May 1, 2024(3) $1,000 90 $750 Debt Balance (in Millions) $500 750 650 $250 500 500 500 450 400 215 $0 2024 (3) 2025 2026 2027 2028 2029 2030 2031 Senior Notes Revolver (1) Term Loan (1) Mortgage and Other Debt (2) (1) The revolver and the first term loan under our cr
Slide 22: Property Transactions
Property Transactions The following tables reconcile net income to Hotel EBITDA for the 2018-2024 acquisitions and dispositions (in millions, except for room count and multiples): No. of Hotel Net Plus: Plus: Interest E quals: Hotel Net income E BITD A Hotel R ooms Price Income(3) D epreciation E xp
Slide 23: Financial Covenants
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 1 HOTEL SOUTH BEACH
Slide 24: 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 25: 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. In addition, for
Slide 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: Notes to Supplemental Financial Information
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION GRAND HYATT WASHINGTON
Slide 33: 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 34: 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 March 31, 2024, 76 have been classified as comparable hotels. The operating results of the following properties that we owned as of March 31, 2024 are exclud
Slide 35: Non-GAAP Financial Measures (continued)
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 36: Non-GAAP Financial Measures (continued)
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 37: Non-GAAP Financial Measures (continued)
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 38: Non-GAAP Financial Measures (continued)
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 39: Non-GAAP Financial Measures (continued)
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 40: Non-GAAP Financial Measures (continued)
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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