BETHESDA, Md. – August 9, 2021 – Host Hotels & Resorts, Inc., the nation’s largest lodging real estate investment trust (“REIT”), today announced results for second quarter 2021.
OPERATING RESULTS
(unaudited, in millions, except per share and hotel statistics)
| Quarter ended June 30, | Percent Change | Percent Change | Year-to-date ended June 30, | Percent Change | Percent Change | ||||||||||||||||||||||||
| 2021 | 2020 | vs. Q2 2020 |
vs. Q2 2019(2) |
2021 | 2020 | vs. Q2 2020 |
vs. Q2 2019(2) |
||||||||||||||||||||||
| Revenues | $ | 649 | $ | 103 | 530.1 | % | (56.2 | )% | $ | 1,048 | $ | 1,155 | (9.3 | )% | (63.5 | )% | |||||||||||||
| All owned hotel revenues (pro forma) (1) | 659 | 104 | 533.7 | % | (54.2 | )% | 1,088 | 1,196 | (9.0 | )% | (61.1 | )% | |||||||||||||||||
| All owned hotel (pro forma) Total RevPAR – Constant US$ | 152.84 | 23.86 | 540.7 | % | (54.4 | )% | 126.83 | 139.05 | (8.8 | )% | (61.3 | )% | |||||||||||||||||
| All owned hotel (pro forma) RevPAR – Constant US$ | 99.86 | 14.12 | 607.0 | % | (52.0 | )% | 82.28 | 82.57 | (0.3 | )% | (59.3 | )% | |||||||||||||||||
| Quarter ended June 30, | Percent | Year-to-date ended June 30, | Percent | ||||||||||||||||||||||||||
| 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||
| Net loss | (61 | ) | (356 | ) | 82.9 | % | $ | (214 | ) | $ | (359 | ) | 40.4 | % | |||||||||||||||
| EBITDAre (1) | 111 | (190 | ) | N/M | 116 | (26 | ) | N/M | |||||||||||||||||||||
| Adjusted EBITDAre (1) | 110 | (189 | ) | N/M | 113 | (25 | ) | N/M | |||||||||||||||||||||
| Diluted loss per common share | (0.09 | ) | (0.50 | ) | 82.0 | % | (0.30 | ) | (0.50 | ) | 40.0 | % | |||||||||||||||||
| NAREIT FFO per diluted share (1) | 0.12 | (0.26 | ) | N/M | 0.13 | (0.03 | ) | N/M | |||||||||||||||||||||
| Adjusted FFO per diluted share (1) | 0.12 | (0.26 | ) | N/M | 0.13 | (0.03 | ) | N/M | |||||||||||||||||||||
* Additional detail on the Company’s results, including data for 21 domestic markets, is available in the Second Quarter 2021 Supplemental Financial Information available on the Company’s website at www.hosthotels.com.
James F. Risoleo, President and Chief Executive Officer, said, “During the second quarter, we were extremely encouraged to see positive trends across the lodging industry and our portfolio, as our hotel operations continued to exceed our expectations. RevPAR reached nearly $100 for the quarter, which dramatically outperformed consensus RevPAR, with average room rates only 8.4% below our 2019 second quarter rates. These RevPAR gains have translated into significant sequential improvements in our bottom line as expense saving initiatives have been implemented by our managers, supplemented in part by the challenging labor environment.”
Risoleo continued, “Subsequent to quarter end, we completed two additional opportunistic acquisitions – Baker’s Cay Resort in Key Largo and a luxury hotel in downtown Houston. We believe these assets will provide meaningful opportunities for EBITDA growth and continue to improve the quality of our portfolio. Thus far in 2021, we have invested $1.1 billion in new assets. Additionally, we opportunistically issued 7.8 million shares of common stock through our “at-the-market” program at an average price of approximately $18 per share for total net proceeds of $138 million, which further strengthened our balance sheet. We remain encouraged by the continued improvement in lodging fundamentals and we believe our strong capital allocation decisions over the past few years will drive stockholder value through the upcoming lodging cycle.”
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(1) NAREIT Funds From Operations (“FFO”) per diluted share, Adjusted FFO per diluted share, EBITDAre, Adjusted EBITDAre and all owned hotel results (pro forma) are non-GAAP (U.S. generally accepted accounting principles) financial measures within the meaning of the rules of the Securities and Exchange Commission (“SEC”). See the Notes to Financial Information on why the Company believes these supplemental measures are useful, reconciliations to the most directly comparable GAAP measure, and the limitations on the use of these supplemental measures.
(2) Presentation includes comparisons to 2019 operating results so investors can better understand the trajectory and timing of any recovery from the COVID-19 impacts on hotel operations.
N/M = Not Meaningful
HIGHLIGHTS:
Results for Second Quarter 2021
- Improved GAAP net loss by $92 million to $61 million in the second quarter compared to the first quarter of 2021, reflecting sequential improvement in operations.
- Achieved positive cash provided by operating activities in the second quarter of 2021, fueled by All Owned Hotel Pro Forma EBITDA of $126 million, due to sequential improvement in RevPAR and operations. This included break-even or positive hotel-level operating profit at 52 of the Company’s hotels, representing 56% of rooms, an increase from 31 hotels, representing 31% of rooms, achieved in the first quarter of 2021.
- Acquired the fee simple interest in the 444-room Four Seasons Resort Orlando at Walt Disney World® Resort for $610 million and acquired the Royal Ka’anapali and Ka’anapali Kai Golf Courses for $28 million.
- Completed the development of a new waterpark at The Ritz-Carlton Golf Resort, Naples and additional villas at the Andaz Maui at Wailea Resort. The 19 two-bedroom luxury villas achieved occupancy of 73% in the first full month of operations at an average rate of $1,626.
- Ended the quarter with total available liquidity of approximately $1.6 billion, including FF&E escrow reserves of $139 million. Following the property transactions completed subsequent to quarter end noted below, the Company’s total available liquidity was approximately $1.3 billion, including the FF&E escrow reserves.
Subsequent Events
- Acquired the 200-room Baker’s Cay Resort Key Largo, Curio Collection by Hilton for $200 million.
- Acquired a 223-room luxury downtown Houston hotel, formerly operated as the Hotel Alessandra, for $65 million.
- Preliminary forecast July RevPAR is expected to be $134.
View full results here.
