Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Q2 2024 Earnings Presentation
43 slides from Host Hotels & Resorts's earnings presentation, Aug 1, 2024
Slide 1: Supplemental Financial Information
Supplemental Financial Information JUNE 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 12 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 $12.8 $16.6 500 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 Bill Crow 414-298-6130 949-640-8780 727-567-2594 mbellisario@rwbaird.com cdarling@greenst.com bill.crow@raymondjames.com BOFA SECURITIES, INC. HSBC SECURITIES (USA) INC. STIFEL, NICOLAUS & CO. Shaun
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 (Q2 2024)
Comparable Hotel Results by Location (1) (unaudited, in millions, except hotel statistics and per room basis) Quarter ended June 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 Income (L
Slide 9: Comparable Hotel Results by Location (Q2 2024 EBITDA)
Comparable Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Quarter ended June 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 Tax Ad
Slide 10: 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 Total revenues Room Income (Loss)
Slide 11: 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 Plus: Property No. of No. of Hotel Net Plus: Plus: Interest Transaction Equals: Hotel Location Properties Rooms Income (Loss) Depreciation Expense Plus: Income Tax Ad
Slide 12: Comparable Hotel Results by Location (YTD 2024)
Comparable Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Year-to-date ended June 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 Income (
Slide 13: Comparable Hotel Results by Location (YTD 2024 EBITDA)
Comparable Hotel Results by Location (unaudited, in millions, except hotel statistics and per room basis) Year-to-date ended June 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 14: 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 (
Slide 15: 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 Hotel Net Income Plus: Plus: Interest Transaction Equals: Hotel Location Properties Rooms (Loss) Depreciation Expense Plus: Income T
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 77 77 Number of rooms 42,172 42,172 Comparable hotel Total RevPAR $ 347.72 $ 343.73 Comparable hotel RevPAR $ 210.50 $ 210.51 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 Property Depreciation and Property Depreciation and Forecast results for transaction Non-comparable corporate level Co
Slide 18: Reconciliation of Net Income to EBITDA and FFO, Full Year 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 $ 712 In
Slide 19: Reconciliation of Net Income to EBITDA and FFO, Full Year 2023 and 2019
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 and 2019 (unaudited, in millions, except per share amounts) Full Year 2023 Full Year 2019 Net income $ 752 $
Slide 20: Ground Lease Summary as of June 30, 2024
Ground Lease Summary as of June 30, 2024 As of June 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 Public 1,
Slide 21: Capitalization
OVERVIEW PROPERTY LEVEL DATA AND CORPORATE MEASURES CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION SAN FRANCISCO MARRIOTT MARQUIS
Slide 22: 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 2024 2024 2023 2023 2023 Common shares outstanding 702.3 705.0 703.6 705.4 711.4 Common shares outstanding assumin
Slide 23: Consolidated Debt Summary
Consolidated Debt Summary (in millions) Debt Senior debt Rate Maturity date June 30, 2024 December 31, 2023 Series E 4% 6/2025 $ 499 $ 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 5.7% 7/
Slide 24: Consolidated Debt Maturity as of July 31, 2024
Consolidated Debt Maturity as of July 31, 2024(3) $1,250 90 $1,000 Debt Balance (in Millions) $750 500 $500 750 650 600 $250 500 525 500 450 400 $0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Senior Notes Revolver (1) Term Loan (1) Mortgage and Other Debt (2) (1) The revolver and the firs
Slide 25: 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 Equals: Hotel Net income EBITDA Hotel Rooms Price(3) Income(4) Depreciation Expens
Slide 26: Financial Covenants
OVERVIEW PROPERTY LEVEL DATA AND CORPORATE MEASURES CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 1 HOTEL SOUTH BEACH
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 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 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 of GAAP Interest Coverage 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 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 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 33: 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 34: 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 35: Notes to Supplemental Financial Information
OVERVIEW PROPERTY LEVEL DATA AND CORPORATE MEASURES CAPITALIZATION FINANCIAL COVENANTS NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION GRAND HYATT WASHINGTON
Slide 36: 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 37: Notes: Comparable Hotel Operating Statistics and Results
NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION COMPARABLE HOTEL OPERATING STATISTICS AND RESULTS (continued) Of the 79 hotels that we owned as of June 30, 2024, 77 have been classified as comparable hotels. The operating results of the following properties that we owned as of June 30, 2024 are excluded
Slide 38: Notes: 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 39: Notes: 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 40: Notes: 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 41: Notes: 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 42: Notes: 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 43: Notes: 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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