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Host Hotels & Resorts, Inc. (HST - Free Report) came out with better-than-expected second-quarter results, in terms of adjusted funds from operations (FFO) per share and revenues. The hotel REIT reported second-quarter 2021 adjusted FFO per share of 12 cents, hugely surpassing the Zacks Consensus Estimate of 4 cents. It generated total revenues of $649 million, which surpassed the Zacks Consensus Estimate of $606.4 million.
Adjusted FFO per share also compares favorably with a loss of 26 cents per share reported in the prior-year quarter. The top line improved significantly year over year.
The company’s revenue per available room (RevPAR) witnessed a significant year-over-year rise in the reported quarter.
It acquired the fee-simple interest in the 444-room Four Seasons Resort Orlando at Walt Disney World Resort for $610 million, and the Royal Ka’anapali and Ka’anapali Kai Golf Courses for $28 million.
Behind the Headlines
In the reported quarter, all owned-hotel pro-forma RevPAR (on a constant-dollar basis) increased significantly year over year to $99.86. All owned-hotel pro-forma EBITDA was $126 million.
As of the second-quarter end, room revenues from the transient business were $357 million, indicating a plunge of 33% as compared with revenues in the same period in 2019. Room revenues from group and contract businesses declined 81.9% and 58.5% from second-quarter 2019 to $59 million and $14 million, respectively.
Moreover, room nights for its transient, group and contract businesses declined 30%, 74.5% and 34.3%, respectively, from the same period in 2019. The company’s transient, group and contract businesses accounted for roughly 61%, 35% and 4% of its 2019 room sales, respectively.
Balance Sheet Position
Host Hotels exited the second quarter with liquidity of $1.6 billion, including FF&E escrow reserves of $139 million. As of the same date, the company’s debt balance amounted to $5.5 billion. It has no maturities until 2023.
Capital Expenditure
In the first half of 2021, the company incurred around $180 million of capital expenditure. Of this, $117 million was return on investment capital projects spend, and $63 million was renewal and replacement project expenditure.
Remarkably, for 2021, it expects a capital expenditure of $400-$475 million.
Host Hotels & Resorts, Inc. Price, Consensus and EPS Surprise
We now look forward to the earnings releases of other REITs, including Regency Centers Corporation (REG - Free Report) , Lamar Advertising Company (LAMR - Free Report) and Iron Mountain Incorporated (IRM - Free Report) , which are slated to release results on Aug 5.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Host Hotels (HST) Q2 FFO Beats Estimates, RevPAR Rises Y/Y
Host Hotels & Resorts, Inc. (HST - Free Report) came out with better-than-expected second-quarter results, in terms of adjusted funds from operations (FFO) per share and revenues. The hotel REIT reported second-quarter 2021 adjusted FFO per share of 12 cents, hugely surpassing the Zacks Consensus Estimate of 4 cents. It generated total revenues of $649 million, which surpassed the Zacks Consensus Estimate of $606.4 million.
Adjusted FFO per share also compares favorably with a loss of 26 cents per share reported in the prior-year quarter. The top line improved significantly year over year.
The company’s revenue per available room (RevPAR) witnessed a significant year-over-year rise in the reported quarter.
It acquired the fee-simple interest in the 444-room Four Seasons Resort Orlando at Walt Disney World Resort for $610 million, and the Royal Ka’anapali and Ka’anapali Kai Golf Courses for $28 million.
Behind the Headlines
In the reported quarter, all owned-hotel pro-forma RevPAR (on a constant-dollar basis) increased significantly year over year to $99.86. All owned-hotel pro-forma EBITDA was $126 million.
As of the second-quarter end, room revenues from the transient business were $357 million, indicating a plunge of 33% as compared with revenues in the same period in 2019. Room revenues from group and contract businesses declined 81.9% and 58.5% from second-quarter 2019 to $59 million and $14 million, respectively.
Moreover, room nights for its transient, group and contract businesses declined 30%, 74.5% and 34.3%, respectively, from the same period in 2019. The company’s transient, group and contract businesses accounted for roughly 61%, 35% and 4% of its 2019 room sales, respectively.
Balance Sheet Position
Host Hotels exited the second quarter with liquidity of $1.6 billion, including FF&E escrow reserves of $139 million. As of the same date, the company’s debt balance amounted to $5.5 billion. It has no maturities until 2023.
Capital Expenditure
In the first half of 2021, the company incurred around $180 million of capital expenditure. Of this, $117 million was return on investment capital projects spend, and $63 million was renewal and replacement project expenditure.
Remarkably, for 2021, it expects a capital expenditure of $400-$475 million.
Host Hotels & Resorts, Inc. Price, Consensus and EPS Surprise
Host Hotels & Resorts, Inc. price-consensus-eps-surprise-chart | Host Hotels & Resorts, Inc. Quote
Host Hotels currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Release Dates of Other REITs
We now look forward to the earnings releases of other REITs, including Regency Centers Corporation (REG - Free Report) , Lamar Advertising Company (LAMR - Free Report) and Iron Mountain Incorporated (IRM - Free Report) , which are slated to release results on Aug 5.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.