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Mar 31, 2023
Host Hotels Q1 2023 Earnings Report
Host Hotels & Resorts reported strong results, with RevPAR exceeding guidance and improved outlook leading to raised full-year RevPAR growth guidance.
Key Takeaways
Host Hotels & Resorts reported a strong first quarter of 2023, with comparable hotel RevPAR increasing by 31% over the first quarter of 2022, exceeding the high end of their guidance. The company raised its full-year RevPAR growth guidance to 7.5% to 10.5%.
Comparable hotel RevPAR increased 31% over the first quarter of 2022, exceeding the top end of guidance.
GAAP net income of $291 million was generated in the first quarter.
Comparable hotel Total RevPAR was $365.93 and comparable hotel RevPAR was $217.77 in the first quarter.
The Company announced plans to develop and sell 40 fee-simple condominiums on a five-acre development parcel at Golden Oak in Orlando.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company raised its full-year comparable hotel RevPAR growth guidance to 7.5% to 10.5%. Further improvement in operations will continue to depend on the broader macroeconomic environment.
Positive Outlook
- Comparable hotel RevPAR will increase 7.5% to 10.5% compared to 2022 for the low and high end of the forecast range.
- This reflects varying degrees of a slowdown in 2023, in which we expect year-over-year comparable hotel RevPAR percentage changes in the second half of the year to be up low-single digits at the midpoint of guidance.
- Comparable hotel EBITDA margins will decrease 200 to 130 basis points compared to 2022 for the low and high ends of the forecasted comparable hotel RevPAR range, respectively.
- We expect to spend approximately $600 million to $725 million on capital expenditures.
- Assumes no acquisitions and no additional dispositions during the year.
Challenges Ahead
- Potential changes in overall economic outlook make it inherently difficult to forecast the level of RevPAR.
- The amount and timing of debt payments may change significantly based on market conditions, which will directly affect the level of interest expense and net income.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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