BETHESDA, Md., May 01, 2024 (GLOBE NEWSWIRE) -- Host Hotels & Resorts, Inc. (NASDAQ:HST) (the "Company"), the nation's largest lodging real estate investment trust ("REIT"), today announced results for first quarter of 2024. OPERATING RESULTS(unaudited, in millions, except per share and hotel statistics)     Quarter ended March 31,           2024       2023     Percent Change Revenues   $ 1,471     $ 1,381     6.5 % Comparable hotel revenues⁽¹⁾     1,398       1,375     1.7 % Comparable hotel Total RevPAR⁽¹⁾     369.58       367.56     0.5 % Comparable hotel RevPAR⁽¹⁾     215.37       218.08     (1.2 %)               Net income   $ 272     $ 291     (6.5 %) EBITDAre⁽¹⁾     504       444     13.5 % Adjusted EBITDAre⁽¹⁾     483       444     8.8 %               Diluted earnings per common share     0.38       0.40     (5.0 %) NAREIT FFO per diluted share⁽¹⁾     0.60       0.54     11.1 % Adjusted FFO per diluted share⁽¹⁾     0.60       0.55     9.1 % Additional detail on the Company's results, including data for 22 domestic markets, is available in the First Quarter 2024 Supplemental Financial Information on the Company's website at www.hosthotels.com. James F. Risoleo, President and Chief Executive Officer, said, "Host delivered comparable hotel Total RevPAR growth of 0.5% over the first quarter of 2023, which is impressive given the challenging comparison of the prior year. Banquet revenues led our performance, driven by improvements in group business and continued strong demand in food and beverage. In addition, we delivered net income of $272 million, a decline of 6.5% compared to the first quarter of 2023, and Adjusted EBITDAre of $483 million, an 8.8% improvement over the first quarter of 2023. At the same time, comparable hotel RevPAR declined 1.2%, as a result of tough comparisons, the impact of Maui, and unseasonable weather in many markets that impacted short term leisure demand." Risoleo continued, "Subsequent to quarter end, we acquired the 1 Hotel Nashville and Embassy Suites by Hilton Nashville Downtown, underscoring the strength of our balance sheet and our strategic approach to capital allocation. This two-hotel complex further improves the quality of our portfolio and establishes a meaningful presence for Host in a top performing market. As a result of the acquisition, additional business interruption insurance gains and improving out-of-room spend, we kept our net income guidance flat to our previous forecast, while increasing the mid-point of our Adjusted EBITDAre guidance by 2%. We tightened our full year Total RevPAR growth guidance range to 2.7% to 4.6% and our RevPAR growth guidance range to 2.0% to 4.0%, based on our performance in the first quarter, the evolving nature of demand in Maui, and our expectations for growth in the second half of the year. Given our fortress balance sheet and successful capital allocation execution, we believe Host is well positioned to continue delivering EBITDA growth." _______________________________(1) NAREIT Funds From Operations ("FFO") per diluted share, Adjusted FFO per diluted share, EBITDAre, Adjusted EBITDAre and comparable hotel revenues 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. Additionally, comparable hotel results and statistics include adjustments for dispositions, acquisitions and non-comparable hotels. See Hotel Operating Data for RevPAR results of the portfolio based on the Company's ownership period without these adjustments. HIGHLIGHTS: Comparable hotel Total RevPAR was $369.58, representing an increase of 0.5% compared to first quarter of 2023, as strong contributions from group business led to an increase in food and beverage revenues, with banquet and catering revenues per group room night in excess of the prior peak reached in first quarter of 2023. Comparable hotel RevPAR was $215.37 for the first quarter of 2024, representing a decrease of 1.2% compared to first quarter of 2023, driven by the impacts of the Maui wildfires, unseasonable weather conditions in several markets, and unanticipated delays in renovation. In addition, there were difficult comparisons to first quarter of 2023, which had experienced elevated levels of leisure demand leading to significant RevPAR growth. GAAP net income was $272 million for first quarter of 2024, reflecting a 6.5% decrease compared to first quarter of 2023, primarily due to a decline in gain on asset sales, partially offset by gains on insurance settlements recognized in the first quarter. GAAP operating profit margin was 19.8%, an improvement of 180 basis points compared to the first quarter of 2023 due to the insurance gains. Comparable hotel EBITDA was $435 million for first quarter of 2024, a 2.9% decrease compared to first quarter of 2023, leading to a comparable hotel EBITDA margin decline of 140 basis points to 31.2%. The decline for the quarter was driven by increased wages and higher insurance expenses in comparison to first quarter 2023. Adjusted EBITDAre was $483 million for first quarter of 2024, exceeding 2023 by 8.8%, driven by strong operating performance at The Ritz-Carlton, Naples, which was closed in the first half of 2023 due to Hurricane Ian, and including the benefit of the business interruption gain. To date, the Company has received insurance proceeds of $263 million out of the expected potential insurance recovery of approximately $310 million for covered costs related to damage and disruption caused by Hurricane Ian. The Company received $31 million in the first quarter and $10 million of these proceeds were recognized as a gain on business interruption. Subsequent Acquisition On April 15, 2024, the Company acquired the fee simple interest in the 215-room 1 Hotel Nashville and 506-room Embassy Suites by Hilton Nashville Downtown for a total purchase price of $530 million. The LEED Silver® hotels comprise a two-hotel complex located in Nashville's famed Lower Broadway entertainment district across the street from Music City Convention Center and near other key points of interest, and feature seven food and beverage outlets, a spa, two fitness centers, a yoga studio and 33,000 square feet of shared meeting space. Maui Update Impacts from the August 2023 wildfires in Maui, Hawaii continued into 2024. In the first quarter, the Company's Maui hotels and golf courses impacted RevPAR by 170 basis points. Operating profit margin and comparable hotel EBITDA margin were impacted by approximately 50 basis points and 30 basis points, respectively, for the first quarter. The first quarter impact is understated, as the Company would have expected Maui to contribute 140 basis points to portfolio RevPAR growth in the first quarter given the renovation disruption at Fairmont Kea Lani in 2023. As a result, the total estimated impact of the wildfires on first quarter RevPAR is 310 basis points. BALANCE SHEET The Company maintains a robust balance sheet and completed several transactions in March and April of 2024. These transactions include: Net draws of $215 million on the revolving credit facility (including a $300 million draw in March, as well as a $65 million draw and $150 million repayment subsequent to quarter end). The aforementioned $530 million acquisition of the 1 Hotel Nashville and Embassy Suites by Hilton Nashville Downtown. The repayment of the $400 million 3⅞% Series G senior notes at maturity on April 1, 2024. The first quarter dividend paid on common stock of $141 million in April 2024. After adjusting for the above investing and financing activities completed after quarter end, the Company estimates that it has the following balances: Total assets of $11.8 billion. Debt balance of $4.0 billion, with a weighted average maturity of 4.3 years, a weighted average interest rate of 4.7%, and a balanced maturity schedule. Total available liquidity of approximately $1.7 billion, including furniture, fixtures and equipment escrow reserves of $231 million and $1.3 billion available under the revolver portion of the credit facility, and an estimated adjusted cash balance as follows (in millions): Cash and cash equivalents at March 31, 2024   $ 1,349   Repayment of Series G senior notes     (400 ) Net repayment on revolver portion of credit facility, post quarter-end     (85 ) Cash consideration for the acquisition of 1 Hotel and Embassy Suites Nashville     (530 ) First quarter dividend paid on common stock     (141 ) Cash and cash equivalents adjusted for subsequent transactions   $ 193     DIVIDENDS The Company paid a first quarter common stock cash dividend of $0.20 per share on April 15, 2024 to stockholders of record on March 28, 2024. All future dividends, including any special dividends, are subject to approval by the Company's Board of Directors. HOTEL BUSINESS MIX UPDATE The Company's customers fall into three broad groups: transient, group and contract business, which accounted for approximately 61%, 35%, and 4%, respectively, of its full year 2023 room sales. The following are the results for transient, group and contract business in comparison to 2023 performance, for the Company's current portfolio:   Quarter ended March 31, 2024   Transient   Group   Contract Room nights (in thousands)   1,314       1,103       172   Percent change in room nights vs. same period in 2023   (1.9 %)     4.1 %     7.5 % Rooms revenues (in millions) $ 456     $ 324     $ 35   Percent change in revenues vs. same period in 2023   (4.7 %)     5.3 %     18.2 %                         CAPITAL EXPENDITURES The following presents the Company's capital expenditures spend through the first quarter of 2024 and the forecast for full year 2024 (in millions):   Quarter ended March 31, 2024   2024 Full Year Forecast               Actual   Low-end of range   High-end of range ROI - Marriott and Hyatt Transformational Capital Programs $ 13     $ 125     $ 150   All other return on investment ("ROI") projects   20       100       130   Total ROI Projects   33       225       280   Renewals and Replacements ("R&R")   58       250       300   R&R and ROI Capital expenditures   91       475       580   R&R - Insurable Reconstruction   12       25       25   Total Capital Expenditures $ 103     $ 500     $ 605               Inventory spend for condo development(1)   6       50       70   Total capital allocation $ 109     $ 550     $ 675   __________(1) Represents construction costs for the development of condominium units on a land parcel adjacent to Four Seasons Resort Orlando at Walt Disney World® Resort. Under U.S. GAAP, costs to develop units for resale are considered an operating activity on the statement of cash flows, and categorized as inventory. This spend is separate from payments for capital expenditures, which are considered investing activities. Under the Hyatt Transformational Capital Program, the Company received $2 million, of the expected full year $9 million, of operating guarantees in the first quarter of 2024 to offset business disruptions. 2024 OUTLOOK The 2024 guidance range continues to contemplate steady demand in travel and low supply growth. In addition, the range incorporates continued improvement in group business, a gradual recovery in business transient demand, softer short term leisure transient demand, and the evolution of demand on Maui as the island recovers from the recent wildfires. Growth in the first half of 2024 is expected to be flat to low single-digits, while the second half of the year is expected to have stronger year-over-year improvements due to better group booking pace, less renovation disruption compared to the second half of 2023 and diminishing impacts from the wildfire event in Maui, which occurred in early August of 2023. Operating profit margin in 2024 is expected to increase slightly compared to 2023, while 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. At the midpoint of guidance, the impact from the Maui wildfires is expected to be an approximate decline of 130 basis points in RevPAR, 90 basis points in Total RevPAR and 20 basis points in margins. At the midpoint, in comparison to 2019, operating profit margin is expected to increase 110 basis points and comparable hotel EBITDA margins are expected to increase 10 basis points, as portfolio-wide cost reductions continue to curb inflation and benefiting from business interruption gains. The guidance range for net income and Adjusted EBITDAre includes an additional $28 million of gains from business interruption proceeds compared to prior forecast comprised of $8 million related to Hurricane Ian and based on an estimated range of $18 million to $22 million related to the Maui wildfires, which is expected to be received during the remainder of 2024. The guidance also includes an estimated $17 million and $29 million of net income and Adjusted EBITDAre, respectively, which is expected from the recent acquisition of the 1 Hotel Nashville and Embassy Suites by Hilton Nashville Downtown. Due to the timing of the acquisition, the results for these two hotels will be included in the comparable hotel guidance starting in the second quarter. Additionally, following the collapse of a portion of Highway 1 in California in March 2024, Alila Ventana Big Sur temporarily closed on March 30, 2024 and will be removed from the forecast comparable hotel set for full year 2024. The Company anticipates its 2024 operating results as compared to 2023 will be in the following range:   Current Full Year 2024 Guidance   Current Full Year 2024 Guidance Change vs. 2023   Previous Full Year 2024 Guidance Change vs. 2023   Change in Full Year 2024 Guidance to the Mid-Point Comparable hotel Total RevPAR $352 to $359   2.7% to 4.6%   2.9% to 5.8%   (60) bps Comparable hotel RevPAR $214 to $218   2.0% to 4.0%   2.5% to 5.5%   (100) bps Total revenues under GAAP (in millions) $5,650 to $5,753   6.4% to 8.3%   5.2% to 8.1%   80 bps Operating profit margin under GAAP 15.4% to 16.1%   (20) bps to 50 bps   (40) bps to 70 bps   (10) bps Comparable hotel EBITDA margin 29.3% to 29.8%   (80) bps to (30) bps   (120) bps to (40) bps   30 bps                 Based upon the above parameters, the Company estimates its 2024 guidance as follows:   Current Full Year 2024 Guidance   Previous Full Year 2024 Guidance   Change in Full Year 2024 Guidance to the Mid-Point Net income (in millions) $719 to $775   $708 to $794   $(4) Adjusted EBITDAre (in millions) $1,640 to $1,700   $1,590 to $1,680   $35 Diluted earnings per common share $1.00 to $1.08   $.99 to $1.11   $(0.01) NAREIT and Adjusted FFO per diluted share $1.97 to $2.05   $1.92 to $2.04   $0.03               See the 2024 Forecast Schedules and the Notes to Financial Information for items that may affect forecast results and the First Quarter 2024 Supplemental Financial Information for additional detail on the mid-point of full year 2024 guidance. ABOUT HOST HOTELS & RESORTS Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 74 properties in the United States and five properties internationally totaling approximately 42,700 rooms. The Company also holds non-controlling interests in seven domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The Luxury Collection®, Hyatt®, Fairmont®, 1 Hotels®, Hilton®, Four Seasons®, Swissôtel®, ibis® and Novotel®, as well as independent brands. For additional information, please visit the Company's website at www.hosthotels.com. Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements which include, but may not be limited to, our expectations regarding the recovery of travel and the lodging industry, the impact of the Maui wildfires and 2024 estimates with respect to our business, including our anticipated capital expenditures and financial and operating results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to, those described in the Company's annual report on Form 10-K and other filings with the SEC. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of May 1, 2024, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks has any responsibility or liability for any information contained in this press release. *** Tables to Follow *** Host Hotels & Resorts, Inc., herein referred to as "we," "Host Inc.," or the "Company," is a self-managed and self-administered real estate investment trust that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resorts, L.P. ("Host LP"), of which we are the sole general partner. When distinguishing between Host Inc. and Host LP, the primary difference is approximately 1% of the partnership interests in Host LP held by outside partners as of March 31, 2024, which are non-controlling interests in Host LP in our consolidated balance sheets and are included in net (income) loss attributable to non-controlling interests in our condensed consolidated statements of operations. Readers are encouraged to find further detail regarding our organizational structure in our annual report on Form 10-K. HOST HOTELS & RESORTS, INC. Condensed Consolidated Balance Sheets(unaudited, in millions, except shares and per share amounts)       March 31,2024   December 31,2023           ASSETS Property and equipment, net   $ 9,565     $ 9,624   Right-of-use assets     551       550   Due from managers     158       128   Advances to and investments in affiliates     147       126   Furniture, fixtures and equipment replacement fund     231       217   Notes receivable     72       72   Other     391       382   Cash and cash equivalents     1,349       1,144   Total assets   $ 12,464     $ 12,243             LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY Debt⁽¹⁾         Senior notes   $ 3,121     $ 3,120   Credit facility, including the term loans of $997     1,290       989   Mortgage and other debt     99       100   Total debt     4,510       4,209   Lease liabilities     564       563   Accounts payable and accrued expenses     237       408   Due to managers     37       64   Other     176       173   Total liabilities     5,524       5,417             Redeemable non-controlling interests - Host Hotels & Resorts, L.P.     200       189             Host Hotels & Resorts, Inc. stockholders' equity:         Common stock, par value $0.01, 1,050 million shares authorized, 705.0 million shares and 703.6 million shares issued and outstanding, respectively     7       7   Additional paid-in capital     7,514       7,535   Accumulated other comprehensive loss     (73 )     (70 ) Deficit     (712 )     (839 ) Total equity of Host Hotels & Resorts, Inc. stockholders     6,736       6,633   Non-redeemable non-controlling interests—other consolidated partnerships     4       4   Total equity     6,740       6,637   Total liabilities, non-controlling interests and equity   $ 12,464     $ 12,243   __________ (1) Please see our First Quarter 2024 Supplemental Financial Information for more detail on our debt balances and financial covenant ratios under our credit facility and senior notes indentures. HOST HOTELS & RESORTS, INC.Condensed Consolidated Statements of Operations(unaudited, in millions, except per share amounts)       Quarter endedMarch 31,       2024       2023   Revenues         Rooms   $ 853     $ 820   Food and beverage     473       431   Other     145       130   Total revenues     1,471       1,381   Expenses         Rooms     202       193   Food and beverage     295       269   Other departmental and support expenses     334       315   Management fees     69       65   Other property-level expenses     104       91   Depreciation and amortization     180       169   Corporate and other expenses⁽¹⁾     27       31   Gain on insurance settlements     (31 )     —   Total operating costs and expenses     1,180       1,133   Operating profit     291       248   Interest income     18       14   Interest expense     (47 )     (49 ) Other gains     —       69   Equity in earnings of affiliates     8       7   Income before income taxes     270       289   Benefit for income taxes     2       2   Net income     272       291   Less: Net income attributable to non-controlling interests     (4 )     (4 ) Net income attributable to Host Inc.   $ 268     $ 287   Basic and diluted earnings per common share   $ 0.38     $ 0.40   ___________ (1) Corporate and other expenses include the following items:     Quarter endedMarch 31,       2024       2023   General and administrative costs   $ 21     $ 21   Non-cash stock-based compensation expense     6       7   Litigation accruals     —       3   Total   $ 27     $ 31   HOST HOTELS & RESORTS, INC.Earnings per Common Share(unaudited, in millions, except per share amounts)       Quarter ended March 31,       2024       2023   Net income   $ 272     $ 291   Less: Net income attributable to non-controlling interests     (4 )     (4 ) Net income attributable to Host Inc.   $ 268     $ 287             Basic weighted average shares outstanding     704.0       713.4   Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market     1.5       1.5   Diluted weighted average shares outstanding⁽¹⁾     705.5       714.9   Basic and diluted earnings per common share   $ 0.38     $ 0.40   ___________(1) Dilutive securities may include shares granted under comprehensive stock plans, preferred operating partnership units ("OP Units") held by non-controlling limited partners and other non-controlling interests that have the option to convert their limited partnership interests to common OP Units. No effect is shown for any securities that were anti-dilutive for the period. HOST HOTELS & RESORTS, INC.Hotel Operating Data for Consolidated Hotels   Comparable Hotel Results by Location(1)     As of March 31, 2024   Quarter ended March 31, 2024   Quarter ended March 31, 2023         Location No. ofProperties   No. ofRooms   AverageRoom Rate   AverageOccupancyPercentage   RevPAR   Total RevPAR   AverageRoom Rate   AverageOccupancyPercentage   RevPAR   Total RevPAR   PercentChange inRevPAR   PercentChange inTotal RevPAR Miami 2   1,038   $ 635.30   82.0 %   $ 520.71   $ 867.57   $ 643.96   77.9 %   $ 501.89   $ 862.22   3.7 %   0.6 % Phoenix 3   1,545     490.11   81.3 %     398.36     854.54     529.55   82.5 %     436.73     878.14   (8.8 %)   (2.7 %) Maui/Oahu 4   2,006     539.98   72.6 %     391.83     631.50     605.58   76.2 %     461.65     700.34   (15.1 %)   (9.8 %) Florida Gulf Coast 4   1,403     436.83   80.1 %     350.05     739.96     435.39   80.2 %     349.32     760.63   0.2 %   (2.7 %) Jacksonville 1   446     528.66   64.6 %     341.31