Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Q2 2023 Earnings Presentation
44 slides from Host Hotels & Resorts's earnings presentation, Aug 3, 2023
Slide 1: Supplemental Financial Information June 30, 2023
SUPPLEMENTAL FINANCIAL INFORMATION June 30, 2023
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 7 8 PROPERTY LEVEL DATA Comparable Hotel Results by Location 9 Historical Comparable Hotel Results 17 Comparable Hotel Results 2023 Forecast 18 Reconciliation of Net
Slide 3: Overview
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION AN ZANDT
Slide 4: About Host Hotels & Resorts
ABOUT HOST HOTELS & RESORTS PREMIER U.S. LODGING REIT S&P 500 $12.1B $15.7B COMPANY MARKET CAP(1) ENTERPRISE VALUE(1) LUXURY & UPPER UPSCALE CONSOLIDATED HOTELS PORTFOLIO(2) 77 41,900 20 HOTELS ROOMS TOP U.S. MARKETS (1) Based on market cap as of June 30, 2023. See Comparative Capitalization for cal
Slide 5: Analyst Coverage
ANALYST COVERAGE BAIRD DEUTSCHE BANK SECURITIES OPPENHEIMER & CO. INC. Mike Bellisario Chris Woronka Tyler Batory 414-298-6130 212-250-9376 212-667-7230 mbellisario@rwbaird.com chris.woronka@db.com tyler.batory@opco.com BOFA SECURITIES, INC. EVERCORE ISI RAYMOND JAMES & ASSOCIATES Shaun Kelley Duane
Slide 6: Overview: Forward-Looking Statements
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
Slide 9: Comparable Hotel Results by Location, Q2 2023
COMPARABLE HOTEL RESULTS BY LOCATION (UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS AND PER ROOM BASIS) Quarter ended June 30, 2023 Average Total Revenues No. of No. of Average Occupancy per Available Hotel Net Location Properties Rooms Room Rate Percentage RevPAR (1) Total revenues Room (2) Incom
Slide 10: Comparable Hotel Results by Location, Q2 2023 EBITDA
COMPARABLE HOTEL RESULTS BY LOCATION (UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS AND PER ROOM BASIS) Quarter ended June 30, 2023 No. of No. of Plus: Interest Equals: Hotel Location Properties Rooms Hotel Net Income Plus: Depreciation Expense Plus: Income Tax EBITDA Maui/Oahu 4 2,006 $ 27.5 $ 16
Slide 11: Comparable Hotel Results by Location, Q2 2022
COMPARABLE HOTEL RESULTS BY LOCATION (UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS AND PER ROOM BASIS) Quarter ended June 30, 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, Q2 2022 EBITDA
COMPARABLE HOTEL RESULTS BY LOCATION (UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS AND PER ROOM BASIS) Quarter ended June 30, 2022 Plus: Property No. of No. of Plus: Interest Transaction Equals: Hotel Location Properties Rooms Hotel Net Income Plus: Depreciation Expense Plus: Income Tax Adjustmen
Slide 13: Comparable Hotel Results by Location, YTD 2023
COMPARABLE HOTEL RESULTS BY LOCATION (UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS AND PER ROOM BASIS) Year-to-Date ended June 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 H
Slide 14: Comparable Hotel Results by Location, YTD 2023 EBITDA
COMPARABLE HOTEL RESULTS BY LOCATION (UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS AND PER ROOM BASIS) Year-to-Date ended June 30, 2023 Plus: Property No. of No. of Plus: Interest Transaction Equals: Hotel Location Properties Rooms Hotel Net Income Plus: Depreciation Expense Plus: Income Tax Adju
Slide 15: Comparable Hotel Results by Location, YTD 2022
COMPARABLE HOTEL RESULTS BY LOCATION (UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS AND PER ROOM BASIS) Year-to-Date ended June 30, 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 H
Slide 16: Comparable Hotel Results by Location, YTD 2022 EBITDA
COMPARABLE HOTEL RESULTS BY LOCATION (UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS AND PER ROOM BASIS) Year-to-Date ended June 30, 2022 Plus: Property No. of No. of Hotel Net Plus: Interest Plus: Income Plus: Severance at Transaction Equals: Hotel Location Properties Rooms Income Plus: Depreciati
Slide 17: 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, June 30, March 31, June 30, September December December March 31, June 30, September December December 2023
Slide 18: 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 41,031 41,031 40,643 Comparable hotel Total RevPAR $ 343.88 $ 318.25 $ 323.84 Comparable hotel RevPAR 211.59 195.87
Slide 19: Comparable Hotel Results 2023 Forecast
COMPARABLE HOTEL RESULTS 2023 FORECAST (UNAUDITED, IN MILLIONS, EXCEPT HOTEL STATISTICS) Forecast Year ended December 31, 2023 Year ended December 31, 2022 Year ended December 31, 2019 Adjustments Adjustments Adjustments Hotel Non- Non- severance, Non- comparable Depreciation comparable Depreciation
Slide 20: Reconciliation of Net Income to EBITDA and FFO, 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 $ 725 In
Slide 21: 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) 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 22: Capitalization
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 23: Comparative Capitalization
COMPARATIVE CAPITALIZATION (IN MILLIONS, EXCEPT SECURITY PRICING AND PER SHARE AMOUNTS) As of As of As of As of As of June 30, March 31, December 31, September 30, June 30, Shares/Units 2023 2023 2022 2022 2022 Common shares outstanding 711.4 711.2 713.4 714.9 714.9 Common shares outstanding assumin
Slide 24: Consolidated Debt Summary
CONSOLIDATED DEBT SUMMARY (IN MILLIONS) Debt Senior debt Rate Maturity date June 30, 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 3⁄8% 12/2029 642 642 Series I 3 1⁄2% 9/2030 737 736 Series J 2.9% 12/2031 441 440 2027 C
Slide 25: Consolidated Debt Maturity as of June 30, 2023
CONSOLIDATED DEBT MATURITY AS OF JUNE 30, 2023 (1) The first term loan under our credit facility that is due in 2027 has an extension option that would extend maturity of the instrument to 2028, subject to meeting certain conditions, including payment of a fee. The second term loan tranche that is d
Slide 26: Financial Covenants
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 27: 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 28: 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 presents the calculation of our leverage ratio using GAAP measures and as used in the financial covenants of the credit facility: Leverage Ratio p
Slide 29: Reconciliation of GAAP Interest Coverage 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 30: Reconciliation to Credit Facility 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 31: 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 32: 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 33: Reconciliation to Senior Notes 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 34: Reconciliation to Unencumbered Assets to Unsecured 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 35: Notes to Supplemental Financial Information
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 36: Notes: 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 37: Notes: 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 38: Notes: 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 39: Notes: Non-GAAP Financial Measures (Severance Expense)
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 40: Notes: Adjusted EBITDAre
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 41: Notes: Limitations on Use of FFO and EBITDA Measures
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 42: Notes: Comparable Hotel Property Level Operating Results
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 43: Notes: Credit Facility Leverage and Coverage Ratios
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 44: Notes: Limitations on Credit Ratios
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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