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Host Hotels
🇺🇸 NASDAQ:HST
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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.

Total Revenue
$1.21B
Previous year: $1.19B
+2.1%
EPS
$0.41
Previous year: $0.38
+7.9%
All Locations Total RevPAR
$312
Previous year: $306
+2.0%
All Locations RevPAR
$201
Previous year: $192
+4.8%
Domestic RevPAR
$204
Gross Profit
$777M
Previous year: $679M
+14.4%
Cash and Equivalents
$916M
Previous year: $883M
+3.7%
Total Assets
$12.3B
Previous year: $12.2B
+0.8%

Host Hotels

Host Hotels

Host Hotels Revenue by Segment

Host Hotels 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.
  • Wildfires in Maui are expected to negatively impact full-year RevPAR by 50 basis points.
  • Wildfires in Maui are expected to negatively impact full-year net income and Adjusted EBITDAre by $30 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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