BETHESDA, Md. (AP) - Host Hotels & Resorts Inc., the nation's largest lodging real estate investment trust, said Wednesday its third-quarter funds from operations improved as room rates and occupancy rose.
FFO increased to $210 million, or 38 cents per share, from $152 million, or 28 cents per share, in the previous year.
Analysts polled by Thomson Financial expected FFO of 33 cents per share.
FFO adds such items as amortization and depreciation back to net income. It's considered a key measure of REIT strength because it gives a more accurate picture of cash performance.
Earnings after preferred dividends for the period ended Sept. 7 more than doubled to $95 million, or 18 cents per share, compared with $38 million, or 7 cents per share, in the prior year.
Income from continuing operations surged to $93 million, or 17 cents per share, from $30 million, or 5 cents per share.
Revenue for the quarter rose 9 percent to $1.21 billion from $1.11 billion a year ago on increased room and food and beverage sales. Analysts expected $1.19 billion.
Comparable hotel revenue per available room (RevPAR), including the Starwood portfolio acquired in April 2006, climbed 7.2 percent on a 5.1 percent increase in average room rates and improved occupancy. Excluding the Starwood portfolio, comparable hotel RevPAR rose 6.7 percent.
RevPAR is a key measurement of performance in the hotel industry.
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