LONDON, UK / ACCESSWIRE / December 12, 2017 / Active-Investors free earnings report on Host Hotels & Resorts, Inc. (NYSE: HST) ("Host Hotels") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/'symbol=HST. The Company reported its third quarter fiscal 2017 operating results on November 01, 2017. The United States' largest lodging real estate investment trust declared that revenue per available room (RevPAR) for Q3 2017 matched its expectations despite the impact of Hurricanes Harvey and Irma. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Host Hotels & Resorts most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
www.active-investors.com/registration-sg/'symbol=HST
Earnings Highlights and Summary
For the quarter ended September 30, 2017, Host Hotels' total revenues decreased 3.2% to $1.25 billion compared to $1.30 billion in Q3 2016, primarily due to a decrease of $39 million as a result of lost revenues from the sale of 14 hotels in 2016 and 2017. Additionally, Hurricanes Harvey and Irma are estimated to have negatively affected the Company's total revenues by approximately $12 million in the reported quarter. Host Hotels' revenue numbers fell short of analysts' expectations of $1.27 billion.
For Q3 2017, Host Hotels' net income decreased $3 million to $105 million, due to a decline in operating profit of 11.8%, partially offset by the increase in gain on the sale of assets. The Company's diluted earnings per share (EPS) remained consistent at $0.14 per share for the reported quarter.
Host Hotels' adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) fell 7.3% to $317 million on a y-o-y basis versus $342 million in Q3 2016. The Company estimated that the impact of the hurricanes was approximately $7 million for both net income and adjusted EBITDA in the reported quarter.
During Q3 2017, Host Hotels' NARIET and adjusted funds from operations (AFFO) per diluted share decreased 10.8% to $0.33 per diluted share compared to $0.37 per diluted share in the year ago same period, and which was in-line with Wall Street's estimates of $0.33 per share.
Operating Metrics
During Q3 2017, Host Hotels' comparable RevPAR on a constant dollar basis decreased 1.8% on a y-o-y basis, due to a 1.5% decrease in average room rate, and a 30-basis point decrease in occupancy to 81.1%. The Company's comparable RevPAR was negatively impacted by 110 basis points for the reported quarter, as a result of difficult y-o-y comparisons in Brazil, which hosted the 2016 Summer Olympics. Furthermore, Hurricanes Harvey and Irma are estimated to have negatively affected comparable RevPAR by 45 basis points for Q3 2017.
Host Hotels' Rooms segment's revenue totaled $860 million for Q3 2017 compared to $879 million in Q3 2016. The Company's Food and Beverage segment's revenue totaled $314 million for the reported quarter versus $336 million in the year ago comparable period.
Capital Allocation
Redevelopment and Return on Investment Capital Projects
During Q3 2017, Host Hotels deployed approximately $21 million on redevelopment and return on investment (ROI) capital expenditure. During the reported quarter, the Company completed the pool renovation and restaurant repositioning at The Phoenician as part of a multi-year project, as well as the redesign of restaurant and meeting space at The Ritz-Carlton, Buckhead.
For the full year 2017, the Company expects to invest a total of approximately $90 million to $100 million in redevelopment projects and ROI capital expenditure.
Renewal and Replacement Expenditures
Host Hotels deployed approximately $44 million for renewal and replacement capital expenditure in Q3 2017. During the reported quarter, projects completed included the renovation of the 48,000-square foot ballroom at the New Orleans Marriott, as well as ballroom renovations at the JW Marriott Hotel Mexico City, the JW Marriott Atlanta Buckhead, and The Ritz-Carlton, Naples.
For 2017, the Company expects to invest a total of $270 million to $300 million in renewal and replacement capital expenditure, which includes additional expected spend related to replacements for hurricane damage.
Balance Sheet
At September 30, 2017, Host Hotels had approximately $789 million of unrestricted cash and $807 million of available capacity remaining under the revolver portion of its credit facility. During the reported quarter, the Company repaid A$50 million ($39 million) on the revolver portion of its credit facility, and the A$86 million ($69 million) mortgage loan in connection with the sale of the Hilton Melbourne South Wharf.
Host Hotels' total debt was $4.0 billion as of September 30, 2017, with an average maturity of 5.4 years and an average interest rate of 3.9%. The Company did not repurchase any shares in 2017 and has $500 million of capacity available under its current repurchase program.
Stock Performance Snapshot
December 11, 2017 - At Monday's closing bell, Host Hotels & Resorts' stock marginally dropped 0.05%, ending the trading session at $19.83.
Volume traded for the day: 4.50 million shares.
Stock performance in the last three-month - up 7.89%; previous six-month period - up 6.04%; past twelve-month period - up 3.66%; and year-to-date - up 5.25%
After yesterday's close, Host Hotels & Resorts' market cap was at $14.65 billion.
Price to Earnings (P/E) ratio was at 24.51.
The stock has a dividend yield of 4.03%.
The stock is part of the Financial sector, categorized under the REIT - Hotel/Motel industry. This sector was flat at the end of the session.
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