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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.
Host Hotels
Host Hotels
Host Hotels Revenue by Segment
Host Hotels Revenue by Geographic Location
Revenue by Segment
Room Revenue
CapyFin.comRevenue by Geographic Location
U.S. Operations Revenue
CapyFin.comIntl. Operations Revenue
CapyFin.com 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.