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Host Hotels & Resorts, Inc.’s (HST - Free Report) first-quarter 2024 adjusted funds from operations (AFFO) per share of 60 cents outpaced the Zacks Consensus Estimate of 54 cents. Total revenues of $1.47 billion beat the Zacks Consensus Estimate of $1.43 billion.
On a year-over-year basis, AFFO per share reported a 9.1% increase, while the top line rose 6.5%.
Host Hotels & Resorts, Inc. Price, Consensus and EPS Surprise
Increase in Room & F&B Revenues Boosts Total Revenues
HST’s room revenues grew 4% year over year to $853 million in the first quarter of 2024. The figure was ahead of our estimate of $839.9 million.
Food and beverage revenues increased 9.7% year over year to $473 million. The figure was higher than our estimate of $450.2 million.
Other revenues were $145 million, which rose 11.5% year over year. The figure came in above our estimate of $134.1 million.
Occupancy Stable, RevPAR & Room Rate Fall
In the reported quarter, the average occupancy percentage was 68.4%, unchanged from the prior-year quarter. The occupancy was lower than our estimate of 68.6%.
Moreover, revenue per available room (RevPAR) was $215.37 as of Mar 31, 2024, down 1.2% from $218.08 as of Mar 31, 2023. The fall was mainly due to the impacts of the Maui wildfires, unseasonable weather conditions in several markets and unanticipated delays in renovation in the quarter. The figure was lower than our estimate of $221.62.
The company reported an average room rate of $314.65 in the quarter. It decreased from $318.75 in the prior-year quarter. The figure was lower than our estimate of $323.02 million.
Financial Position
Host Hotels exited the first quarter with cash and cash equivalents of $1.35 billion, up from $1.14 billion as of Dec 31, 2023.
HST’s liquidity totaled $1.7 billion, including FF&E escrow reserves of $231 million as of Mar 31, 2024. It had $1.3 billion available under the revolver portion of the credit facility as of the same date.
2024 Outlook
Host Hotels raised its full-year AFFO per share guidance to the range of $1.97-$2.05 from the prior-guided range of $1.92-$2.04. This suggests a 3-cent increase at the midpoint. The Zacks Consensus Estimate is presently pegged at $1.97.
The company revised its comparable hotel RevPAR projection for the current year to $214-$218 from $217-$223 estimated earlier.
The adjusted EBITDAre is now expected between $1.64 billion and $1.70 billion, up from $1.59 billion and $1.68 billion projected earlier.
For 2024, management kept its total capital expenditure guidance unrevised in the range of $500-$605 million.
American Tower Corporation (AMT - Free Report) reported first-quarter 2024 AFFO per share, attributable to AMT common stockholders, of $2.79, beating the Zacks Consensus Estimate of $2.55 and climbing 9.8% year over year.
Results reflected better-than-anticipated revenues, aided by revenue growth across its Property segment. American Tower recorded healthy year-over-year organic tenant billings growth of 5.4% and total tenant billings growth of 6.3%. AMT has also raised its 2024 outlook.
SBA Communications Corporation (SBAC - Free Report) reported first-quarter 2024 AFFO per share of $3.29, which lagged the Zacks Consensus Estimate of $3.30. Nonetheless, the figure reflects a rise of 5.1% from the prior-year quarter.
Results were affected by lower site development revenues. However, SBAC witnessed an improvement in site leasing revenues, which supported the results to some extent. It continues to benefit from the addition of sites to its portfolio. SBAC lowered its 2024 outlook.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Host Hotels' (HST) Q1 AFFO Beat, Room & F&B Revenues Rise
Host Hotels & Resorts, Inc.’s (HST - Free Report) first-quarter 2024 adjusted funds from operations (AFFO) per share of 60 cents outpaced the Zacks Consensus Estimate of 54 cents. Total revenues of $1.47 billion beat the Zacks Consensus Estimate of $1.43 billion.
On a year-over-year basis, AFFO per share reported a 9.1% increase, while the top line rose 6.5%.
Host Hotels & Resorts, Inc. Price, Consensus and EPS Surprise
Host Hotels & Resorts, Inc. price-consensus-eps-surprise-chart | Host Hotels & Resorts, Inc. Quote
Increase in Room & F&B Revenues Boosts Total Revenues
HST’s room revenues grew 4% year over year to $853 million in the first quarter of 2024. The figure was ahead of our estimate of $839.9 million.
Food and beverage revenues increased 9.7% year over year to $473 million. The figure was higher than our estimate of $450.2 million.
Other revenues were $145 million, which rose 11.5% year over year. The figure came in above our estimate of $134.1 million.
Occupancy Stable, RevPAR & Room Rate Fall
In the reported quarter, the average occupancy percentage was 68.4%, unchanged from the prior-year quarter. The occupancy was lower than our estimate of 68.6%.
Moreover, revenue per available room (RevPAR) was $215.37 as of Mar 31, 2024, down 1.2% from $218.08 as of Mar 31, 2023. The fall was mainly due to the impacts of the Maui wildfires, unseasonable weather conditions in several markets and unanticipated delays in renovation in the quarter. The figure was lower than our estimate of $221.62.
The company reported an average room rate of $314.65 in the quarter. It decreased from $318.75 in the prior-year quarter. The figure was lower than our estimate of $323.02 million.
Financial Position
Host Hotels exited the first quarter with cash and cash equivalents of $1.35 billion, up from $1.14 billion as of Dec 31, 2023.
HST’s liquidity totaled $1.7 billion, including FF&E escrow reserves of $231 million as of Mar 31, 2024. It had $1.3 billion available under the revolver portion of the credit facility as of the same date.
2024 Outlook
Host Hotels raised its full-year AFFO per share guidance to the range of $1.97-$2.05 from the prior-guided range of $1.92-$2.04. This suggests a 3-cent increase at the midpoint. The Zacks Consensus Estimate is presently pegged at $1.97.
The company revised its comparable hotel RevPAR projection for the current year to $214-$218 from $217-$223 estimated earlier.
The adjusted EBITDAre is now expected between $1.64 billion and $1.70 billion, up from $1.59 billion and $1.68 billion projected earlier.
For 2024, management kept its total capital expenditure guidance unrevised in the range of $500-$605 million.
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.
Performance of Other REITs
American Tower Corporation (AMT - Free Report) reported first-quarter 2024 AFFO per share, attributable to AMT common stockholders, of $2.79, beating the Zacks Consensus Estimate of $2.55 and climbing 9.8% year over year.
Results reflected better-than-anticipated revenues, aided by revenue growth across its Property segment. American Tower recorded healthy year-over-year organic tenant billings growth of 5.4% and total tenant billings growth of 6.3%. AMT has also raised its 2024 outlook.
SBA Communications Corporation (SBAC - Free Report) reported first-quarter 2024 AFFO per share of $3.29, which lagged the Zacks Consensus Estimate of $3.30. Nonetheless, the figure reflects a rise of 5.1% from the prior-year quarter.
Results were affected by lower site development revenues. However, SBAC witnessed an improvement in site leasing revenues, which supported the results to some extent. It continues to benefit from the addition of sites to its portfolio. SBAC lowered its 2024 outlook.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.