Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — FY2021 Earnings Presentation
44 slides from Host Hotels & Resorts's earnings presentation, Feb 16, 2022
Slide 1: Supplemental Financial Information December 31, 2021
Supplemental Financial Information December 31, 2021 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 Pro Forma Operating Statistics and Results and Non-GAAP Financial Measures 07 PROPERTY LEVEL DATA 08 All Owned Hotels (Pro Forma) Results by Location in Nominal US$ 09 Top 4
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(2) 80 44,400 20 Hotels Rooms TOP US MARKETS S&P 500 $12.5 BILLION $16.8 BILLION COMPANY Market Cap(1) ENTERPRISE VALUE(1) Based on market cap as of December 31, 2021. See Comparative Capitalizati
Slide 5: Analyst Coverage
Analyst Coverage The Company is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding the Company’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of the Company or its management. The Compa
Slide 6: About Host Hotels & Resorts
ABOUT HOST HOTELS & RESORTS Host Hotels & Resorts, Inc., herein referred to as “we,” “Host Inc.,” or the “Company,” is a self-managed and self-administered real estate investment trust that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partners
Slide 7: All Owned Hotel Pro Forma Operating Statistics and Results
To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in this s
Slide 8: Property Level Data
Overview Property level data capitalization Covid-19 data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 9: All Owned Hotels (Pro Forma) Results by Location
All owned Hotels (pro forma) Results by Location in Nominal US$ (unaudited, in millions, except hotel statistics and per room basis) Quarter ended December 31, 2021 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR (1) Total revenues Total Revenues per Ava
Slide 10: All Owned Hotels (Pro Forma) Results by Location
All owned Hotels (pro forma) Results by Location in Nominal US$ (unaudited, in millions, except hotel statistics and per room basis) Quarter ended December 31, 2021 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation Plus: Interest Expense Plus: Income Tax Plus: Severance (re
Slide 11: All Owned Hotels (Pro Forma) Results by Location
All owned Hotels (pro forma) results by Location in Nominal US$ (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 th
Slide 12: All Owned Hotels (Pro Forma) Results by Location
All owned Hotels (pro forma) results by Location in Nominal US$ (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. Pro forma adjustments represent the following items: (i) the elimination of results of operations of our sold
Slide 13: All Owned Hotels (Pro Forma) Results by Location
All owned Hotels (pro forma) results by Location in Nominal US$ (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 th
Slide 14: All Owned Hotels (Pro Forma) Results by Location
All owned Hotels (pro forma) results by Location in Nominal US$ (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. Pro forma adjustments represent the following items: (i) the elimination of results of operations of our sold
Slide 15: All Owned Hotels (Pro Forma) Results by Location
All owned Hotels (pro forma) results by Location in Nominal US$ (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 th
Slide 16: All Owned Hotels (Pro Forma) Results by Location
All owned Hotels (pro forma) results by Location in Nominal US$ (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. Pro forma adjustments represent the following items: (i) the elimination of results of operations of our sold
Slide 17: Top Hotels (Pro Forma) by Total RevPAR
Top 40 Hotels (Pro Forma) by total RevPAR for year ended December 31, 2021 (unaudited, in millions, except hotel statistics and per room basis) (1) Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other e
Slide 18: Top Hotels (Pro Forma) by Total RevPAR Reconciliation
Top 40 Hotels (Pro Forma) by total RevPAR Reconciliation from hotel net income (loss) to hotel ebitda and ebitdare (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. The Hotel EBITDA results for the assets acquired in 2021 a
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 December 31, September 30, June 30, March 31, December 31, Shares/Units 2021 2021 2021 2021 2020 Common shares outstanding 714.1 714.0 713.9 706.1 705.4 Common shares outstanding ass
Slide 21: Consolidated Debt Summary
Consolidated Debt Summary (in millions) The interest rate shown is the rate of the outstanding credit facility revolver borrowings at December 31, 2021, based on LIBOR plus 110 basis points. Depending on Host L.P.’s unsecured long-term debt rating, interest on revolver borrowings is equal to LIBOR p
Slide 22: Consolidated Debt Maturity as of December 31, 2021
Consolidated Debt Maturity as of December 31, 2021 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. In February 2022, we repaid t
Slide 23: Ground Lease Summary as of December 31, 2021
Ground Lease Summary as of December 31, 2021 As of December 31, 2021 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 24: Property Transactions
Property TRANSACTIONS 2021-2022 dispositions include the sale of seven properties through February 16, 2022. The 2021-2022 dispositions use 2019 full year results as the trailing twelve months is not representative of normalized operations. 2021 acquisitions include seven properties and two golf cou
Slide 25: Historical Pro Forma Results
HISTORICAL PRO-FORMA RESULTS Historical Pro forma Hotel Metrics – Hotels Owned as of December 31, 2021 (1) (2) Historical Pro Forma Hotel Revenues – Hotels Owned as of December 31, 2021 (1) (2) Three Months Ended Full Year Three Months Ended Full Year March 31, 2021 June 30, 2021 September 30, 2021
Slide 26: Historical Pro Forma Adjusted EBITDAre
HISTORICAL PRO-FORMA RESULTS Historical Pro forma Adjusted EBITDAre – Hotels Owned as of December 31, 2021 (1) (2) Three Months Ended Full Year Three Months Ended Full Year March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 December 31, 2021 March 31, 2020 June 30, 2020 September 30,
Slide 27: Historical Pro Forma Results Cont.
HISTORICAL PRO FORMA RESULTS CONT. Historical All Owned Hotels Pro Forma EBITDA – Hotels Owned as of December 31, 2021 (1) (2) The tables above include pro forma adjustments for eight assets acquired in 2021, six properties sold in 2021, one property sold in 2020, 14 properties sold in 2019 and one
Slide 28: Financial Covenants
Overview Property Level Data Capitalization Financial Covenants NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 29: Financial Covenants: Credit Facility Amendments
financial Covenants: Credit Facility Amendments (unaudited, in millions, except ratios) Maximum Leverage Ratio 8.50x 8.50x 8.00x 8.00x 7.50x 7.25x Q4 ‘21 1Q ’22 2Q ’22 3Q ‘22 4Q ‘22 Beyond During the third quarter, we terminated the Credit Facility covenant waiver period prior to its scheduled expir
Slide 30: Credit Facility and Senior Notes Financial Performance Tests
financial Covenants: Credit Facility and Senior Notes Financial Performance Tests (unaudited, in millions, except ratios) At December 31, 2021 Credit Facility Financial Performance Tests Permitted GAAP Ratio Covenant Ratio Leverage Ratio Maximum 7.25x (444.6x) 7.18x Unsecured Interest Coverage Ratio
Slide 31: 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 32: 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 33: 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 34: Reconciliation of GAAP Indebtedness Test to Senior Notes Indebtedness Test
December 31, 2021 Total assets $12,352 Add: Accumulated depreciation 8,683 Add: Prior impairment of assets held 217 Add: Current impairment of assets held 92 Add: Prior year inventory impairment at unconsolidated investment 14 Less: Intangibles (10) Less: Right-of-use assets (551) Adjusted Total Ass
Slide 35: 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 36: 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 37: 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 38: Notes to Supplemental Financial Information
Overview Property level data capitalization Covid-19 data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 39: All Owned Hotel Pro Forma Operating Statistics and Results
All Owned Hotel Pro Forma Operating Statistics and Results To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA
Slide 40: 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 41: Limitations on the Use of EBITDA, EBITDAre, Adjusted EBITDAre and NOI
Non-GAAP financial measures (continued) Limitations on the Use of EBITDA, EBITDAre, Adjusted EBITDAre and NOI EBITDA, EBITDAre, Adjusted EBITDAre, and NOI, as presented, may not be comparable to measures calculated by other companies. We calculate EBITDAre in accordance with standards established by
Slide 42: 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 pro forma basis as supplemental information for our i
Slide 43: Non-GAAP Financial Measures: Credit Facility Leverage and Coverage 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 44: 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