Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Q1 2023 Earnings Presentation
41 slides from Host Hotels & Resorts's earnings presentation, May 4, 2023
Slide 1: Supplemental Financial Information
THE PHOENICIAN, A LUXURY COLLECTION RESORT Supplemental Financial Information MARCH 31, 2023
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 Comparable Hotel Results by Location 09 Historical Comparable Hotel Results 13 Comparable Hotel Results 2023 Forecast 14 Reconciliation
Slide 3: Overview
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION HOST HOTELS & RESORTS, CORPORATE HEADQUARTERS 3
Slide 4: About Host Hotels & Resorts
ANDAZ MAUI AT WAILEA RESORT ABOUT HOST HOTELS & RESORTS PREMIER US LODGING REIT S&P $11.9 $15.7 500 BILLION BILLION COMPANY MARKET CAP(1) ENTERPRISE VALUE(1) LUXURY & UPPER UPSCALE CONSOLIDATED HOTELS PORTFOLIO(2) 77 41,900 20 HOTELS ROOMS TOP US MARKETS (1) Based on market cap as of March 31, 2023.
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 SMBC NIKKO SECURITIES A
Slide 6: Overview: About Host Hotels & Resorts
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 THE RITZ-CARLTON, AMELIA ISLAND 8
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, 2023 Average Total Revenues No. of No. of Average Occupancy per Available Hotel Net Location Properties Rooms Room Rate Percentage RevPAR (2) Total revenues Room (3) Inco
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 Plus: Property No. of No. of Plus: Interest Transaction Equals: Hotel Location Properties Rooms Hotel Net Income Plus: Depreciation Expense Plus: Income Tax Adjustme
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, 2022 Average Total Revenues No. of No. of Average Occupancy per Available Hotel Net Location Properties Rooms Room Rate Percentage RevPAR Total revenues Room Income Hotel
Slide 12: Comparable Hotel Results by Location
COMPARABLE HOTEL RESULTS BY LOCATION (UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS AND PER ROOM BASIS) Quarter ended March 31, 2022 Plus: Property No. of No. of Hotel Net Plus: Interest Plus: Income Plus: Severance at Transaction Equals: Hotel Location Properties Rooms Income Plus: Depreciation E
Slide 13: Historical Comparable Hotel Results
HISTORICAL COMPARABLE HOTEL RESULTS (UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS) Historical Comparable Hotel Metrics (1) Three Months Ended Full Year Three Months Ended Full Year March 31, March 31, September December December March 31, June 30, September December December 2023 2022 June 30, 20
Slide 14: 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 41,029 41,029 40,641 Comparable hotel Total RevPAR $346.72 $318.25 $323.84 Comparable hotel RevPAR 213.55 195.87 200
Slide 15: 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 Hotel Non- Non- severance, Non- Property comparable Depreciation Property comparable Depreciation
Slide 16: Reconciliation of Net Income to EBITDA and 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 $753 Int
Slide 17: Ground Lease Summary as of December 31, 2022
GROUND LEASE SUMMARY AS OF DECEMBER 31, 2022 As of December 31, 2022 Expiration after Lessor Institution Current all potential No. of rooms Type Minimum rent expiration options (1) 1Boston Marriott Copley Place 1,145 Public N/A (2) 12/13/2077 12/13/2077 2Coronado Island Marriott Resort & Spa 300 Pub
Slide 18: Capitalization
1 HOTEL SOUTH BEACH OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 18
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 2023 2022 2022 2022 2022 Common shares outstanding 711.2 713.4 714.9 714.9 714.8 Common shares outstanding assumi
Slide 20: Consolidated Debt Summary
CONSOLIDATED DEBT SUMMARY (IN MILLIONS) Debt Senior debt Rate Maturity date March 31, 2023 December 31, 2022 Series E 4% 6/2025 $499 $499 Series F 4 1 ⁄2 % 2/2026 399 399 Series G 3 7 ⁄8 % 4/2024 399 399 Series H 3 ⅜% 12/2029 642 642 Series I 3 1 ⁄2 % 9/2030 737 736 Series J 2.9% 12/2031 440 440 202
Slide 21: Consolidated Debt Maturity as of March 31, 2023
CONSOLIDATED DEBT MATURITY AS OF MARCH 31, 2023 DEBT BALANCE (IN MILLIONS) $1,000 $750 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 due i
Slide 22: 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 $1,420 2.8% 4.5% 35.5x 17.7x The Camby, Autograph Collection $110 5.2% 6.5% 19.5x 14.3x 2021-2023 completed sales
Slide 23: Financial Covenants
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION FAIRMONT KEA LANI, MAUI 23
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 table presents the calculation of our leverage ratio using (2) The following presents the reconciliation of net income to EBITDA, GAAP measures: EBITDAre
Slide 26: Reconciliation of GAAP Interest Coverage to Unsecured Interest Coverage
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 to Fixed Charge Coverage
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 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
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 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 co
Slide 31: Reconciliation of Assets to Indebtedness 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 NEW YORK MARRIOTT MARQUIS 32
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 in
Slide 34: Comparable Hotel Operating Statistics and Results
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION COMPARABLE HOTEL OPERATING STATISTICS AND RESULTS (continued) Similarly, hotels are excluded from our comparable hotel set from the date that they sustain substantial property damage or business interruption if it requires the property to be closed to hote
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) Severance Expense – In certain circumstances, we will add back hotel-level severance expenses when we do not believe that such expenses are reflective of the ongoing operation of our properties. Situations that would
Slide 37: Non-GAAP Financial Measures (continued)
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION NON-GAAP FINANCIAL MEASURES (continued) We make additional adjustments to EBITDAre when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regar
Slide 38: Non-GAAP Financial Measures (continued)
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 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 estab
Slide 39: Non-GAAP Financial Measures (continued)
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION NON-GAAP FINANCIAL MEASURES (continued) COMPARABLE 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 comparable
Slide 40: Non-GAAP Financial Measures (continued)
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 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 cove
Slide 41: Non-GAAP Financial Measures (continued)
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 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,
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