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Dec 31, 2019
Host Hotels Q4 2019 Earnings Report
Host Hotels' Q4 2019 earnings were reported, showing a decrease in net income but an increase in comparable hotel Total RevPAR.
Key Takeaways
Host Hotels & Resorts reported a decrease in net income for Q4 2019, but experienced an increase in comparable hotel Total RevPAR. The company executed strategic asset sales and repurchased shares, while also acquiring the 1 Hotel South Beach in Miami.
Comparable hotel Total RevPAR increased by 1.9% for the quarter on a constant dollar basis.
The company repurchased approximately 35 million shares for $609 million from May 2019 through February 18, 2020.
Strategic asset sales of 14 properties were executed for $1.3 billion.
The 1 Hotel South Beach, Miami was acquired for $610 million.
Host Hotels
Host Hotels
Host Hotels Revenue by Segment
Revenue by Segment
Room Revenue
CapyFin.com Forward Guidance
For 2020, the Company expects slight improvement in year-over-year comparable hotel RevPAR driven by increased group revenues as its portfolio is expected to benefit from a more favorable citywide convention calendar. The Company expects leisure travel to support transient revenues as consumer confidence remains strong and the labor market is healthy, while business travel is expected to remain subdued given macroeconomic uncertainties.
Positive Outlook
- Slight improvement in year-over-year comparable hotel RevPAR is expected.
- Increased group revenues are anticipated due to a favorable citywide convention calendar.
- Leisure travel is expected to support transient revenues due to strong consumer confidence.
- Healthy labor market is expected to contribute to transient revenues.
- The 1 Hotel South Beach will be included in the comparable hotel set for the year ended December 31, 2020.
Challenges Ahead
- Business travel is expected to remain subdued given macroeconomic uncertainties.
- Above inflationary growth in hotel-level operating expenses is expected.
- Operating margins are expected to be lower.
- Comparable hotel EBITDA margins are expected to decrease.
- Total revenues under GAAP are expected to decrease.