Host Hotels & Resorts, Inc. (HST) Bundle
A Brief History of Host Hotels & Resorts, Inc.
Company Overview
Host Hotels & Resorts, Inc. is a publicly traded real estate investment trust (REIT) that primarily invests in luxury and upper-upscale hotels. As of September 30, 2024, Host Hotels operates a portfolio of 79 comparable hotels across various markets.
Financial Performance in 2024
For the third quarter ended September 30, 2024, Host Hotels reported a net income of $84 million, compared to $113 million in the same period of the previous year. Year-to-date net income for 2024 was $598 million, down from $618 million in 2023. The basic earnings per common share were $0.12 for Q3 2024, compared to $0.16 in Q3 2023.
| Metrics | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $84 | $113 | $598 | $618 |
| Basic EPS | $0.12 | $0.16 | $0.84 | $0.85 |
Revenue Breakdown
Total revenues for the third quarter of 2024 increased by 8.6% to $1.319 billion compared to $1.214 billion in Q3 2023. Year-to-date revenues reached $4.256 billion, a 6.7% increase from $3.988 billion in 2023. Room revenue was $825 million for Q3 2024, reflecting a 6.2% increase compared to Q3 2023.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Year-to-Date 2024 (in millions) | Year-to-Date 2023 (in millions) |
|---|---|---|---|---|
| Rooms | $825 | $777 | $2,563 | $2,447 |
| Food and Beverage | $365 | $328 | $1,285 | $1,174 |
| Other Revenue | $129 | $109 | $408 | $367 |
| Total Revenue | $1,319 | $1,214 | $4,256 | $3,988 |
Operational Highlights
Comparable hotel Total RevPAR (Revenue per Available Room) increased by 3.1% in Q3 2024, driven by strong group demand. The company completed significant acquisitions in 2024, including the 1 Hotel Nashville and The Ritz-Carlton O'ahu, contributing to revenue growth.
Capital Structure and Debt Management
As of September 30, 2024, Host Hotels had total debt of approximately $5.8 billion. In August 2024, the company issued $700 million of senior notes due in 2035, which were used to refinance existing debt and support acquisitions.
| Debt Metrics | Amount (in millions) |
|---|---|
| Total Debt | $5,800 |
| Senior Notes Issued | $700 |
| Debt Maturity in 2025 | $500 |
Shareholder Returns
Host Hotels declared distributions of $606 million on common OP units year-to-date 2024, compared to $426 million in 2023. The company also repurchased 3.5 million shares at an average price of $16.33 during Q3 2024.
Market Conditions and Future Outlook
The hospitality sector is gradually recovering from the impacts of the COVID-19 pandemic. Host Hotels continues to focus on enhancing operational efficiencies and expanding its portfolio through strategic acquisitions.
A Who Owns Host Hotels & Resorts, Inc. (HST)
Ownership Structure
As of September 30, 2024, Host Hotels & Resorts, Inc. (HST) is primarily owned by Host Hotels & Resorts, L.P. (Host L.P.), where Host Inc. holds approximately 99% of the common OP units. The remaining common OP units are owned by unaffiliated limited partners.
Major Shareholders
The following table summarizes the major shareholders of Host Hotels & Resorts, Inc. as of 2024:
| Shareholder Type | Ownership Percentage | Number of Shares/Units |
|---|---|---|
| Host Hotels & Resorts, Inc. | 99% | Approximately 695.5 million common OP units |
| Unaffiliated Limited Partners | 1% | Approximately 9.3 million common OP units |
Financial Overview
The financial performance of Host Hotels & Resorts, Inc. demonstrates the company's capacity to generate income and manage its resources effectively. The following financial metrics were reported for the year-to-date ended September 30, 2024:
| Metric | Value (in millions) |
|---|---|
| Net Income | $598 |
| Adjusted EBITDAre | $1,167 |
| Operating Profit Margin | 16.9% |
| Revenue | $4,256 |
| Cash Used in Investing Activities | $(1,851) |
Recent Acquisitions
Host Hotels & Resorts, Inc. has engaged in several acquisitions in 2024, which include:
| Transaction Date | Description | Investment (in millions) |
|---|---|---|
| April 2024 | Acquisition of 1 Hotel Nashville and Embassy Suites by Hilton Nashville Downtown | $530 |
| July 2024 | Acquisition of 1 Hotel Central Park | $265 |
| July 2024 | Acquisition of The Ritz-Carlton O'ahu, Turtle Bay | $680 |
| Total Acquisitions | — | $1,475 |
Share Repurchase Program
Host Hotels & Resorts, Inc. has also implemented a share repurchase program. The details for the recent repurchases are as follows:
| Period | Total Shares Purchased | Average Price Paid | Approximate Dollar Value of Shares Remaining |
|---|---|---|---|
| July 2024 | — | — | $742 million |
| August 2024 | 3,072,051 | $16.28 | $692 million |
| September 2024 | 432,260 | $16.68 | $685 million |
| Total | 3,504,311 | $16.33 | $685 million |
Debt and Equity Structure
As of September 30, 2024, the company has a structured debt profile with several key metrics:
| Debt Metric | Value (in millions) |
|---|---|
| Senior Notes Outstanding | $3,991 |
| Credit Facility | $991 |
| Mortgage Debt | $99 |
Host Hotels & Resorts, Inc. maintains a capital structure designed to balance cash, debt, and equity, allowing for financial flexibility amidst market volatility.
Host Hotels & Resorts, Inc. (HST) Mission Statement
Company Overview
Host Hotels & Resorts, Inc. (HST) is a leading lodging real estate investment trust (REIT) that focuses on acquiring and owning high-quality hotel properties. As of 2024, the company operates a portfolio of 79 hotels with a total of 42,856 rooms across various locations.
Mission Statement
The mission of Host Hotels & Resorts, Inc. is to maximize long-term value for shareholders by investing in and managing a diversified portfolio of high-quality hotel properties, leveraging its expertise in the hospitality sector, and maintaining a commitment to operational excellence and sustainability.
Financial Performance Overview
For the third quarter of 2024, Host Hotels reported total revenues of $1,319 million, representing an increase of 8.6% compared to $1,214 million in the same quarter of 2023. Year-to-date revenues reached $4,256 million, a 6.7% increase from $3,988 million in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $84 | $113 | $598 | $618 |
| Operating Profit (in millions) | $135 | $157 | $718 | $654 |
| EBITDAre (in millions) | $353 | $361 | $1,359 | $1,251 |
| Adjusted EBITDAre (in millions) | $324 | $361 | $1,283 | $1,251 |
| Diluted Earnings per Common Share | $0.12 | $0.16 | $0.84 | $0.85 |
| NAREIT FFO per Diluted Share | $0.36 | $0.41 | $1.53 | $1.48 |
| Adjusted FFO per Diluted Share | $0.36 | $0.41 | $1.53 | $1.48 |
Operational Highlights
Host Hotels operates a diversified portfolio that includes properties located in key markets. The company reported a comparable hotel Total RevPAR of $328.86 for the third quarter of 2024, reflecting a 3.1% increase from the previous year. Year-to-date, the comparable hotel RevPAR was $360.07, a 1.6% increase.
Market Performance
- Comparable hotel EBITDA margin was 25.3% for Q3 2024, down from 26.6% in Q3 2023.
- Comparable hotel revenue for Q3 2024 was $1,299 million, up 3.2% from $1,259 million in Q3 2023.
- Increased occupancy rates in markets such as New Orleans and Miami, with Total RevPAR growth of 35.2% and 15.7%, respectively.
| Geographic Performance | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) |
|---|---|---|
| San Diego | $138 | $134 |
| Florida Gulf Coast | $69 | $66 |
| Orlando | $96 | $95 |
| New York | $110 | $89 |
| San Francisco/San Jose | $85 | $92 |
| Maui | $83 | $92 |
Strategic Initiatives
In 2024, Host Hotels completed several key acquisitions, enhancing its portfolio:
- Acquisition of The Ritz-Carlton O'ahu, Turtle Bay for approximately $680 million.
- Acquisition of 1 Hotel Central Park for $265 million.
- Acquisition of 1 Hotel Nashville and Embassy Suites by Hilton Nashville Downtown for $530 million.
Debt and Liquidity Position
As of September 30, 2024, Host Hotels had total debt of $5.1 billion with a weighted average interest rate of 4.8%. The company has successfully managed its debt profile, with 80% of its debt at fixed rates, mitigating risks associated with interest rate fluctuations.
| Debt Metrics | Amount (in millions) | Weighted Average Interest Rate | Weighted Average Maturity (Years) |
|---|---|---|---|
| Total Debt | $5,100 | 4.8% | 5.5 |
How Host Hotels & Resorts, Inc. (HST) Works
Company Overview
Host Hotels & Resorts, Inc. operates as a real estate investment trust (REIT) that invests primarily in luxury and upper-upscale hotels. As of September 30, 2024, the company owned 79 hotels with a total of 42,856 rooms.
Financial Performance
For the third quarter of 2024, Host Hotels reported:
- Total revenues: $1,319 million
- Net income: $84 million
- EBITDA: $353 million
- Adjusted EBITDA: $324 million
- Diluted earnings per common share: $0.12
Year-to-date (YTD) results as of September 30, 2024:
- Total revenues: $4,256 million
- Net income: $598 million
- Adjusted EBITDA: $1,283 million
- Diluted earnings per common share: $0.84
Revenue Breakdown
The following table summarizes the revenue breakdown for the third quarter of 2024:
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Rooms | $825 | $777 | 6.2% |
| Food and Beverage | $365 | $328 | 11.3% |
| Other | $129 | $109 | 18.3% |
| Total Revenues | $1,319 | $1,214 | 8.6% |
Comparable Hotel Performance
For the third quarter of 2024, comparable hotel metrics included:
- Comparable hotel revenues: $1,299 million
- Comparable hotel EBITDA: $329 million
- Comparable hotel EBITDA margin: 25.3%
- Comparable hotel RevPAR (Revenue per Available Room): $328.86
Comparative results for the year-to-date period:
- Comparable hotel revenues: $4,235 million
- Comparable hotel EBITDA: $1,261 million
- Comparable hotel EBITDA margin: 29.8%
- Comparable hotel RevPAR: $360.07
Debt and Financing Activities
As of September 30, 2024, Host Hotels had:
- Total debt: $5.1 billion
- Weighted average interest rate: 4.8%
- Weighted average maturity: 5.5 years
- 80% of debt with fixed rates
The company executed significant debt issuances in 2024:
| Transaction Date | Description | Net Proceeds (in millions) |
|---|---|---|
| August 2024 | Issuance of $700 million 5.5% Series L senior notes | $683 |
| May 2024 | Issuance of $600 million 5.7% Series K senior notes | $584 |
| Total Issuances | $1,267 |
Cash Flow Summary
For the year-to-date ended September 30, 2024, the cash flow activities were reported as follows:
| Activity | Cash Flow (in millions) |
|---|---|
| Net cash provided by operating activities | $1,167 |
| Net cash used in investing activities | ($1,851) |
| Net cash provided by financing activities | $129 |
Market and Operational Challenges
The company faced challenges such as:
- Slow recovery from the wildfires in Maui impacting revenues.
- Moderating domestic leisure demand due to increased competition from international destinations.
- Increased interest expenses due to 2024 senior notes issuances.
Outlook
Host Hotels anticipates that comparable hotel RevPAR will remain flat to prior year, with expected impacts from recent hurricanes on various properties, projected to negatively affect net income and Adjusted EBITDA by approximately $15 million in 2024.
How Host Hotels & Resorts, Inc. (HST) Makes Money
Revenue Sources
Host Hotels & Resorts, Inc. generates revenue primarily from three segments: rooms, food and beverage, and other revenues. As of September 30, 2024, total revenues reached $1,319 million for the quarter, reflecting an 8.6% increase compared to the same period in 2023. Year-to-date revenues totaled $4,256 million, up 6.7% from the previous year.
| Revenue Source | Quarter Ended September 30, 2024 (in millions) | Quarter Ended September 30, 2023 (in millions) | Year-to-Date 2024 (in millions) | Year-to-Date 2023 (in millions) |
|---|---|---|---|---|
| Rooms | 825 | 777 | 2,563 | 2,447 |
| Food and Beverage | 365 | 328 | 1,285 | 1,174 |
| Other | 129 | 109 | 408 | 367 |
| Total Revenues | 1,319 | 1,214 | 4,256 | 3,988 |
Room Revenue
Room revenue is the largest contributor to Host Hotels’ income. For the third quarter of 2024, room revenues increased by $48 million, or 6.2%, compared to 2023. This growth is attributed to the operations of newly acquired hotels, including the 1 Hotel Nashville and Embassy Suites by Hilton Nashville Downtown.
Food and Beverage Revenue
Food and beverage revenue also showed significant growth, increasing by $37 million, or 11.3%, in Q3 2024 compared to Q3 2023. This increase can be linked to strong group business demand and the reopening of The Ritz-Carlton, Naples, which had been closed due to Hurricane Ian in 2023.
Other Revenues
Other revenues rose by $20 million, or 18.3%, in Q3 2024 against the previous year. This segment includes ancillary services and activities at the hotels, which have benefited from the acquisitions made in 2024.
Operating Expenses
Host Hotels’ operating expenses have also increased, driven primarily by the rise in revenues. For the third quarter of 2024, total property-level operating expenses were $1,188 million, a 9.8% increase compared to Q3 2023.
| Expense Category | Quarter Ended September 30, 2024 (in millions) | Quarter Ended September 30, 2023 (in millions) |
|---|---|---|
| Rooms | 216 | 196 |
| Food and Beverage | 267 | 241 |
| Other Departmental and Support Expenses | 345 | 314 |
| Management Fees | 55 | 51 |
| Other Property-Level Expenses | 108 | 106 |
| Total Operating Expenses | 1,188 | 1,082 |
Net Income and Profit Margins
For the third quarter of 2024, net income attributable to Host Hotels was $82 million, down from $111 million in 2023, reflecting a decrease in gains on insurance settlements. Operating profit for the quarter was $135 million, resulting in an operating profit margin of 10.2%.
| Financial Metric | Quarter Ended September 30, 2024 | Quarter Ended September 30, 2023 |
|---|---|---|
| Net Income (in millions) | 82 | 111 |
| Operating Profit (in millions) | 135 | 157 |
| Operating Profit Margin | 10.2% | 12.9% |
Cash Flow and Financing Activities
Net cash provided by operating activities for the year-to-date in 2024 was $1,167 million, compared to $1,134 million in 2023. In terms of investing activities, Host Hotels utilized $1,851 million in 2024, primarily for acquisitions and capital expenditures, compared to $263 million in 2023.
| Cash Flow Activity | Year-to-Date 2024 (in millions) | Year-to-Date 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | 1,167 | 1,134 |
| Net Cash Used in Investing Activities | (1,851) | (263) |
Market Trends and Outlook
Comparable hotel total revenue per available room (RevPAR) increased by 3.1% for the third quarter of 2024, indicating a continued recovery in demand. The company anticipates that the average rates will remain elevated, although they have moderated from post-pandemic highs. However, challenges remain due to varying recovery rates across different markets, especially in regions affected by recent disasters.
| Market Performance | Quarter Ended September 30, 2024 | Quarter Ended September 30, 2023 |
|---|---|---|
| Comparable Hotel Total RevPAR (in dollars) | 328.86 | 319.01 |
| Comparable Hotel RevPAR (in dollars) | 206.21 | 204.56 |
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Resources:
- Host Hotels & Resorts, Inc. (HST) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Host Hotels & Resorts, Inc. (HST)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Host Hotels & Resorts, Inc. (HST)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.