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Mar 31, 2022

Host Hotels Q1 2022 Earnings Report

Reported strong operating results for Q1 2022, surpassing 2019 room rates and accelerating lodging recovery. Announced doubling of quarterly dividend to $0.06 per share.

Key Takeaways

Host Hotels & Resorts reported strong first-quarter 2022 operating results, with RevPAR at $167, representing an 11% increase over the prior quarter. The company sold two hotels, bringing total dispositions to $1.4 billion since the beginning of 2021.

RevPAR continued to improve sequentially to $166.93 in the first quarter, driven by leisure travel and strong rates at resort properties, with average room rates of $305.63 for the quarter.

GAAP net income of $118 million was generated in the first quarter.

All Owned Hotel Pro Forma EBITDA of $330 million and Adjusted EBITDAre of $306 million were achieved, exceeding the Company's capital expenditures of $122 million in the quarter by $148 million.

The Sheraton Boston Hotel was sold for $233 million, and a 49% ownership interest was acquired in a joint venture with Noble Investment Group for $35 million of cash and approximately $56 million of Host L.P. OP units.

Total Revenue
$1.07B
Previous year: $399M
+169.2%
EPS
$0.39
Previous year: $0.01
+3800.0%
All Locations Total RevPAR
$276
Previous year: $95
+190.1%
All Locations RevPAR
$167
Previous year: $61.4
+171.7%
Gross Profit
$630M
Previous year: $194M
+224.7%
Cash and Equivalents
$266M
Previous year: $2.01B
-86.8%
Total Assets
$11.8B
Previous year: $12.7B
-7.0%

Host Hotels

Host Hotels

Host Hotels Revenue by Segment

Host Hotels Revenue by Geographic Location

Forward Guidance

The company anticipates that for the second quarter of 2022, as compared to the second quarter of 2021 and 2019, RevPAR will be in the range of $195 to $205.

Positive Outlook

  • RevPAR will increase 76% to 85% compared to second quarter 2021 for the low and high end of the forecast range.
  • Net income is expected to be between $147 million and $181 million.
  • Adjusted EBITDAre is anticipated to be between $375 million and $410 million.
  • Interest expense for full year 2022 is expected to be in the range of $153 million to $156 million.
  • Corporate and other expenses for full year 2022 will be in the range of $103 million to $106 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income