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Sep 30, 2023
Host Hotels Q3 2023 Earnings Report
Host Hotels & Resorts reported comparable hotel RevPAR growth, driven by group business improvements, offset by moderating resort rates.
Key Takeaways
Host Hotels & Resorts, Inc. announced its Q3 2023 results, showcasing a comparable hotel RevPAR growth of 1.8%. The company maintained the midpoint of its full-year RevPAR growth guidance at 8% despite the impact of Maui wildfires. Strategic capital allocation continues with transformational reinvestment projects and share repurchases.
Comparable hotel RevPAR increased by 1.8% in Q3 2023, driven by occupancy improvements.
Comparable hotel Total RevPAR decreased by 0.6% due to Maui wildfires and lower group spend.
GAAP net income was $113 million, with an operating profit margin of 12.9%.
Adjusted EBITDAre reached $361 million, benefiting from business interruption proceeds.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company maintained its full-year RevPAR growth guidance midpoint at 8%, tightening the range to 7.25%-8.75%. Wildfires in Maui are expected to negatively impact full-year Total RevPAR by 70 basis points, RevPAR by 50 basis points, and net income and Adjusted EBITDAre by $30 million.
Positive Outlook
- Comparable hotel RevPAR is expected to grow between 7.25% and 8.75% for the full year 2023.
- Operating profit margins and comparable hotel EBITDA margins are expected to increase compared to 2019.
- An additional $26 million of gains from business interruption proceeds are expected in Q4.
- The company anticipates $1.89 to $1.95 NAREIT FFO per diluted share.
- The company anticipates $1.90 to $1.95 Adjusted FFO per diluted share.
Challenges Ahead
- Wildfires in Maui are expected to continue impacting results into Q4.
- Full-year margins are anticipated to decline compared to 2022 due to various factors.
- Wildfires in Maui are expected to negatively impact full-year Total RevPAR by 70 basis points.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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