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Jun 30, 2020
Host Hotels Q2 2020 Earnings Report
Host Hotels & Resorts reported results for the second quarter of 2020, facing a challenging operating environment due to COVID-19, while focusing on cost reduction and liquidity preservation.
Key Takeaways
Host Hotels & Resorts reported a significant decrease in revenues and a net loss for the second quarter of 2020 due to the impact of the COVID-19 pandemic. The company focused on reducing operating costs, preserving liquidity, and working with operators to improve cash flow and achieve breakeven EBITDA at its hotels.
Reduced monthly hotel-level loss from April to June through expense control and reopening 19 hotels.
Grew average occupancy by 380 basis points and improved average room rates by over 50% from April through June.
Amended $2.5 billion credit agreement to preserve liquidity and retain flexibility for future investment opportunities.
Focused on improving cash flow and achieving breakeven EBITDA by driving occupancy, increasing revenues, and redefining the operating model.
Host Hotels
Host Hotels
Host Hotels Revenue by Segment
Revenue by Segment
Room Revenue
CapyFin.com Forward Guidance
Due to the global economic uncertainty created by COVID-19, the Company cannot provide full-year guidance for its operations or fully estimate the effect of COVID-19 on operations. The Company does not expect to see a material improvement in operations until government restrictions have been lifted and business and leisure travelers are comfortable that the risks associated with traveling and contracting COVID-19 are significantly reduced.
Positive Outlook
- N/A
Challenges Ahead
- Global economic uncertainty created by COVID-19.
- Impact on the demand for travel, transient and group business, and levels of consumer confidence.
- Actions governments, businesses and individuals take in response to the pandemic, including limiting or banning travel.
- Impact on global and regional economies, travel, and economic activity, including the duration and magnitude of its impact on unemployment rates, business investment and consumer discretionary spending.
- Pace of recovery when the COVID-19 pandemic subsides.