Host Hotels Q4 2021 Earnings Report
Key Takeaways
Host Hotels & Resorts reported a strong finish to 2021, with RevPAR increasing by 13% over the prior quarter to $148.46. The company executed its capital allocation strategy by acquiring $1.6 billion in assets and disposing of $1 billion since the start of 2021. A quarterly dividend of $0.03 per share was reinstated, reflecting optimism about the future of travel.
RevPAR reached $148.46 in Q4 2021, a 13% increase from the previous quarter.
Net income was $323 million in Q4 2021, driven by a $302 million gain from asset sales and improved operations.
The company acquired The Alida, Savannah and the Hotel Van Zandt in Austin, adding to $1.6 billion in acquisitions for 2021.
Host Hotels disposed of seven hotels for nearly $1 billion during the quarter and subsequent to year end.
Host Hotels
Host Hotels
Forward Guidance
Due to global economic uncertainty created by COVID-19, Host Hotels cannot provide specific guidance for its operations. January 2022 operations were negatively affected by the Omicron variant, but February trends indicate a return to the positive trajectory experienced in the second half of 2021.
Positive Outlook
- Continued recovery within the lodging industry is expected to be driven by the strength of the economy.
- Increased consumer confidence that the risks associated with travelling and contracting COVID-19 have been significantly reduced is anticipated.
- Return of business and group customers is expected to contribute to recovery.
- Trends in February indicate a return to the positive trajectory of recovery experienced in the second half of 2021.
- Company maintains a robust balance sheet.
Challenges Ahead
- Global economic uncertainty created by COVID-19 impacts the travel, airline, lodging, tourism, and event industries.
- Operations in January 2022 declined compared to the fourth quarter results due to the increase in COVID-19 cases from the Omicron variant.
- The company cannot fully estimate the effect of COVID-19 or its variants on its operations.
- Company is not providing guidance on operations at this time.
- Global economic uncertainty created by COVID-19 impacts the travel, airline, lodging, tourism, and event industries.