Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Q1 2022 Earnings Presentation
40 slides from Host Hotels & Resorts's earnings presentation, May 4, 2022
Slide 1: Supplemental Financial Information March 31, 2022
Supplemental Financial Information March 31, 2022 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 Non-GAAP Financial Measures 07 PROPERTY LEVEL DATA 08 All Owned Hotels (Pro Forma) Results by Location 09 CAPITALIZATION 15 Comparative Capitalization 16 Consolidated Debt Summary as of Mar
Slide 3: Overview
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION Financial Covenants 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) 78 42,300 20 Hotels Rooms TOP US MARKETS S&P 500 $14.1 BILLION $18.2 BILLION COMPANY Market Cap(1) ENTERPRISE VALUE(1) Based on market cap as of March 31, 2022. See Comparative Capitalization
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 / Forward-Looking Statements
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: 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 the meaning of applicable SE
Slide 8: Property Level Data
Overview Property level data capitalization Financial Covenants NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 9: All Owned Hotels (Pro Forma) Results by Location, Q1 2022
All owned Hotels (pro forma) Results by Location (unaudited, in millions, except hotel statistics and per room basis) Quarter ended March 31, 2022 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR (1) Total revenues Total Revenues per Available Room ⁽²⁾ Ho
Slide 10: All Owned Hotels (Pro Forma) Results by Location, Q1 2022 EBITDA
All owned Hotels (pro forma) Results by Location (unaudited, in millions, except hotel statistics and per room basis) Quarter ended March 31, 2022 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation Plus: Interest Expense Plus: Income Tax Plus: Severance (reversal) at hotel p
Slide 11: All Owned Hotels (Pro Forma) Results by Location, Q1 2021
All owned Hotels (pro forma) Results by Location (unaudited, in millions, except hotel statistics and per room basis) Quarter ended March 31, 2021 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total revenues Total Revenues per Available Room Hotel Net
Slide 12: All Owned Hotels (Pro Forma) Results by Location, Q1 2021 EBITDA
All owned Hotels (pro forma) Results by Location (unaudited, in millions, except hotel statistics and per room basis) Quarter ended March 31, 2021 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation Plus: Interest Expense Plus: Income Tax Plus: Severance (reversal) at hotel p
Slide 13: All Owned Hotels (Pro Forma) Results by Location
All owned Hotels (pro forma) results by Location (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 the provision for
Slide 14: All Owned Hotels (Pro Forma) Results by Location, 2019
All owned Hotels (pro forma) results by Location (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 hotels sold or held
Slide 15: Capitalization
Overview Property level data Capitalization Financial Covenants NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 16: 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 2022 2021 2021 2021 2021 Common shares outstanding 714.8 714.1 714.0 713.9 706.1 Common shares outstanding assumi
Slide 17: Consolidated Debt Summary
Consolidated Debt Summary (in millions) There are no outstanding credit facility borrowings at March 31, 2022. Amount shown represents deferred financing costs related to the credit facility revolver. In accordance with GAAP, total debt includes the debt of entities that we consolidate, but of which
Slide 18: Consolidated Debt Maturity as of March 31, 2022
Consolidated Debt Maturity as of March 31, 2022 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. Mortgage and other debt excludes
Slide 19: 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 20: Property Transactions
Property TRANSACTIONS 2021-2022 dispositions include the sale of nine properties through May 4, 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 courses ac
Slide 21: Historical Pro Forma Results
HISTORICAL PRO-FORMA RESULTS Historical Pro forma Hotel Metrics – Hotels Owned as of March 31, 2022 (1) (2) Historical Pro Forma Hotel Revenues – Hotels Owned as of March 31, 2022 (1) (2) Three Months Ended Full Year Three Months Ended Full Year March 31, 2022 March 31, 2021 June 30, 2021 September
Slide 22: Historical Pro Forma Results Cont.
HISTORICAL PRO FORMA RESULTS CONT. Historical All Owned Hotels Pro Forma EBITDA – Hotels Owned as of March 31, 2022 (1) (2) Three Months Ended Full Year Three Months Ended Full Year March 31, 2022 March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 December 31, 2021 March 31, 2019 June
Slide 23: Historical Pro Forma Adjusted EBITDAre
HISTORICAL PRO-FORMA RESULTS Historical Pro forma Adjusted EBITDAre – Hotels Owned as of March 31, 2022 (1) (2) Three Months Ended Full Year Three Months Ended Full Year March 31, 2022 March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 December 31, 2021 March 31, 2019 June 30, 2019 Se
Slide 24: Financial Covenants
Overview Property Level Data Capitalization Financial Covenants NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 25: Financial Covenants: Credit Facility Amendments
financial Covenants: Credit Facility Amendments (unaudited, in millions, except ratios) Maximum Leverage Ratio 8.50x 8.00x 8.00x 7.50x 7.25x 1Q ’22 2Q ’22 3Q ‘22 4Q ‘22 Beyond During the third quarter 2021, we terminated the Credit Facility covenant waiver period prior to its scheduled expiration. W
Slide 26: Credit Facility and Senior Notes Financial Performance Tests
financial Covenants: Credit Facility and Senior Notes Financial Performance Tests (unaudited, in millions, except ratios) At March 31, 2022 Credit Facility Financial Performance Tests Permitted GAAP Ratio Covenant Ratio Leverage Ratio Maximum 7.25x 16.2x 4.6x Unsecured Interest Coverage Ratio Minimu
Slide 27: 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 28: 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 29: 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 30: Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Test
March 31, 2022 Total assets $11,829 Add: Accumulated depreciation 8,645 Add: Prior impairment of assets held 309 Add: Prior inventory impairment at unconsolidated investment 14 Less: Intangibles (10) Less: Right-of-use assets (563) Adjusted Total Assets per Senior Notes Indenture $20,224 Financial C
Slide 31: Reconciliation of GAAP Secured Indebtedness Test to Senior Notes Indenture
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 32: 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 33: Reconciliation of GAAP Assets 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 34: Notes to Supplemental Financial Information
Overview Property level data capitalization Financial Covenants NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION
Slide 35: 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 36: 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 37: Non-GAAP Financial Measures: Limitations on Use of EBITDA 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 38: 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 39: 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 40: Non-GAAP Financial Measures: Limitations on 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
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