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Host Hotels
🇺🇸 NASDAQ:HST
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Mar 31, 2024

Host Hotels Q1 2024 Earnings Report

Host Hotels & Resorts reported first quarter results, which included comparable hotel Total RevPAR growth and the acquisition of two Nashville hotels.

Key Takeaways

Host Hotels & Resorts reported a mixed first quarter, with comparable hotel Total RevPAR growth of 0.5% driven by banquet revenues and improvements in group business. Net income declined by 6.5% to $272 million, while Adjusted EBITDAre improved by 8.8% to $483 million. The company also acquired the 1 Hotel Nashville and Embassy Suites by Hilton Nashville Downtown.

Comparable hotel Total RevPAR increased by 0.5% compared to the first quarter of 2023, driven by strong group business and food and beverage revenues.

Comparable hotel RevPAR decreased by 1.2% compared to the first quarter of 2023, impacted by Maui wildfires, weather, and renovation delays.

Net income was $272 million, a 6.5% decrease compared to the first quarter of 2023, while Adjusted EBITDAre increased by 8.8% to $483 million.

The company acquired the 1 Hotel Nashville and Embassy Suites by Hilton Nashville Downtown for $530 million.

Total Revenue
$1.47B
Previous year: $1.38B
+6.5%
EPS
$0.6
Previous year: $0.55
+9.1%
All Locations Total RevPAR
$370
Previous year: $366
+1.0%
All Locations RevPAR
$215
Previous year: $218
-1.1%
Domestic RevPAR
$220
Gross Profit
$287M
Previous year: $828M
-65.3%
Cash and Equivalents
$1.35B
Previous year: $563M
+139.6%
Total Assets
$12.5B
Previous year: $12.2B
+2.0%

Host Hotels

Host Hotels

Host Hotels Revenue by Segment

Host Hotels Revenue by Geographic Location

Forward Guidance

The company anticipates steady demand in travel and low supply growth for 2024. Growth in the first half of 2024 is expected to be flat to low single-digits, while the second half of the year is expected to have stronger year-over-year improvements.

Positive Outlook

  • Steady demand in travel and low supply growth are expected.
  • Continued improvement in group business is anticipated.
  • A gradual recovery in business transient demand is expected.
  • Second half of the year is expected to have stronger year-over-year improvements due to better group booking pace.
  • Less renovation disruption compared to the second half of 2023 is anticipated.

Challenges Ahead

  • Softer short term leisure transient demand is expected.
  • The evolution of demand on Maui as the island recovers from the recent wildfires will impact results.
  • Operating profit margin in 2024 is expected to increase slightly to 2023.
  • Comparable hotel EBITDA margins are expected to decline compared to 2023, due to the impacts from the Maui wildfires.
  • Continued growth in wages, real estate taxes and insurance is expected.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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