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Dec 31, 2023
Host Hotels Q4 2023 Earnings Report
Host Hotels' Q4 2023 financial performance reflected a slight increase in RevPAR and Total RevPAR, driven by rate increases and occupancy improvements, although net income decreased due to declines in comparable hotel EBITDA and taxes.
Key Takeaways
Host Hotels & Resorts reported a slight increase in RevPAR and Total RevPAR for Q4 2023, driven by rate increases and occupancy improvements. The company's net income decreased due to declines in comparable hotel EBITDA and taxes. Host Hotels repurchased $31 million of common stock and increased the quarterly cash dividend by 11% to $0.20 per share. The company provided 2024 RevPAR guidance of 2.5% to 5.5% growth over 2023.
Comparable hotel RevPAR grew 1.5% year-over-year to $202.92, driven by rate increases and occupancy improvements.
GAAP net income was $134 million, a decrease of 10.1% compared to Q4 2022.
Adjusted EBITDAre increased by 3.8% to $378 million, benefiting from business interruption proceeds.
The company repurchased $31 million of common stock and increased the quarterly cash dividend by 11% to $0.20 per share.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The 2024 guidance range contemplates a stable operating environment with a continued improvement in group business, a gradual recovery in business transient, steady leisure demand, and continued evolution of demand on Maui as the island recovers from the recent wildfires.
Positive Outlook
- Continued improvement in group business.
- Gradual recovery in business transient.
- Steady leisure demand.
- Continued evolution of demand on Maui as the island recovers from the recent wildfires.
- Operating profit margin in 2024 is expected to remain static to 2023.
Challenges Ahead
- Growth in the first half of 2024 is expected to be in the low single-digits.
- The first half of the year faces difficult comparisons to 2023.
- Comparable hotel EBITDA margins are expected to decline compared to 2023, due to the impacts from the Maui wildfires and continued growth in wages, real estate taxes and insurance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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