We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Host Hotels & Resorts, Inc. (HST - Free Report) reported second-quarter adjusted funds from operations (AFFO) per share of 57 cents, surpassing the Zacks Consensus Estimate by a penny. Moreover, the figure increased 7.5% from the prior-year quarter.
Results reflect a year-over-year rise in revenues. Group and contract business witnessed growth in room revenues. However, the lodging real estate investment trust lowered its 2024 guidance.
Per James F. Risoleo, president and CEO of the company, “Host delivered comparable hotel Total RevPAR growth of 0.5% over the second quarter of 2023, as group business continued to drive increases in banquet and catering revenues. Comparable hotel RevPAR increased 0.1% for the quarter as a result of a slower-than-anticipated recovery in Maui and the current shift in leisure demand to international destinations. Thus far in 2024, we have acquired $1.5 billion of iconic and irreplaceable real estate, which we believe positions Host to deliver meaningful EBITDA growth.”
Host Hotels generated total revenues of $1.47 billion, which was in line with the Zacks Consensus Estimate. The top line rose 5.2% on a year-over-year basis.
Behind the Headlines
In the reported quarter, Host Hotels’ comparable hotel RevPAR was $224.29, rising marginally from the year-ago quarter’s $224.02. Though group demand remained strong, the growth was hindered by a slower-than-anticipated recovery in Maui and moderate domestic leisure demand.
Comparable hotel EBITDA came in at $461 million, which remain unchanged from the year-ago reported number.
The average room rate of $301.52 in the second quarter decreased from $301.70 reported in the year-ago quarter.
The comparable average occupancy percentage in the quarter was 74.4%, up from 74.3% reported in the prior-year quarter.
The room nights for its transient business declined 2.2% year over year. The group business and contract businesses witnessed growth of 2.8% and 5.1%, respectively, from the prior-year period. Host Hotels’ transient, group and contract businesses accounted for roughly 61%, 35% and 4% of its 2023 room sales, respectively.
Balance Sheet Position
Host Hotels exited the second quarter with cash and cash equivalents of $805 million, down from $1.35 billion as of Mar 31, 2024.
HST’s liquidity totaled $1.4 billion, including FF&E escrow reserves of $242 million as of Mar 31, 2024. It had $970 million available under the revolver portion of the credit facility as of the same date.
During the reported quarter, the company repurchased 2.8 million shares at an average price of $17.81 per share, exclusive of commissions, through its common share repurchase program for $50 million.
Capital Expenditure
As of Jun 30, 2024, Host Hotels’ capital expenditure aggregated $224 million. Of this, $77 million was the total return on investment project spend, $117 million was a renewal and replacement expenditure, and $30 million was a renewal and replacement insurable reconstruction.
2024 Outlook
Host Hotels lowered its full-year AFFO per share guidance to the range of $1.90-$1.98 from the prior-guided range of $1.97-$2.05. This suggests a 7-cent decrease at the midpoint. The Zacks Consensus Estimate is presently pegged at $2.01, which is above the guidance range.
The company revised its comparable hotel RevPAR projection for the current year to $208-$213 from $214-$218 estimated earlier.
The adjusted EBITDAre is now expected between $1.615 billion and $1.675 billion, down from $1.64 billion and $1.70 billion projected earlier.
For 2024, management revised its total capital expenditure guidance in the range of $500-$600 million compared with the prior guidance of $500-$605 million.
Welltower Inc.’s (WELL - Free Report) second-quarter 2024 normalized funds from operations (FFO) per share of $1.05 surpassed the Zacks Consensus Estimate of $1.00. The reported figure improved 16.7% year over year.
Results reflected a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating portfolio. WELL raised its guidance for 2024.
Cousins Properties’ (CUZ - Free Report) second-quarter 2024 FFO per share of 68 cents beat the Zacks Consensus Estimate of 66 cents. The figure remained unchanged on a year-over-year basis.
Results reflected decent leasing activity and better-than-anticipated revenues. However, rental property operating and interest expenses increased year over year. CUZ also raised its 2024 outlook for FFO per share.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Host Hotels (HST) Beats Q2 AFFO Estimates, Lowers '24 View
Host Hotels & Resorts, Inc. (HST - Free Report) reported second-quarter adjusted funds from operations (AFFO) per share of 57 cents, surpassing the Zacks Consensus Estimate by a penny. Moreover, the figure increased 7.5% from the prior-year quarter.
Results reflect a year-over-year rise in revenues. Group and contract business witnessed growth in room revenues. However, the lodging real estate investment trust lowered its 2024 guidance.
Per James F. Risoleo, president and CEO of the company, “Host delivered comparable hotel Total RevPAR growth of 0.5% over the second quarter of 2023, as group business continued to drive increases in banquet and catering revenues. Comparable hotel RevPAR increased 0.1% for the quarter as a result of a slower-than-anticipated recovery in Maui and the current shift in leisure demand to international destinations. Thus far in 2024, we have acquired $1.5 billion of iconic and irreplaceable real estate, which we believe positions Host to deliver meaningful EBITDA growth.”
Host Hotels generated total revenues of $1.47 billion, which was in line with the Zacks Consensus Estimate. The top line rose 5.2% on a year-over-year basis.
Behind the Headlines
In the reported quarter, Host Hotels’ comparable hotel RevPAR was $224.29, rising marginally from the year-ago quarter’s $224.02. Though group demand remained strong, the growth was hindered by a slower-than-anticipated recovery in Maui and moderate domestic leisure demand.
Comparable hotel EBITDA came in at $461 million, which remain unchanged from the year-ago reported number.
The average room rate of $301.52 in the second quarter decreased from $301.70 reported in the year-ago quarter.
The comparable average occupancy percentage in the quarter was 74.4%, up from 74.3% reported in the prior-year quarter.
The room nights for its transient business declined 2.2% year over year. The group business and contract businesses witnessed growth of 2.8% and 5.1%, respectively, from the prior-year period. Host Hotels’ transient, group and contract businesses accounted for roughly 61%, 35% and 4% of its 2023 room sales, respectively.
Balance Sheet Position
Host Hotels exited the second quarter with cash and cash equivalents of $805 million, down from $1.35 billion as of Mar 31, 2024.
HST’s liquidity totaled $1.4 billion, including FF&E escrow reserves of $242 million as of Mar 31, 2024. It had $970 million available under the revolver portion of the credit facility as of the same date.
During the reported quarter, the company repurchased 2.8 million shares at an average price of $17.81 per share, exclusive of commissions, through its common share repurchase program for $50 million.
Capital Expenditure
As of Jun 30, 2024, Host Hotels’ capital expenditure aggregated $224 million. Of this, $77 million was the total return on investment project spend, $117 million was a renewal and replacement expenditure, and $30 million was a renewal and replacement insurable reconstruction.
2024 Outlook
Host Hotels lowered its full-year AFFO per share guidance to the range of $1.90-$1.98 from the prior-guided range of $1.97-$2.05. This suggests a 7-cent decrease at the midpoint. The Zacks Consensus Estimate is presently pegged at $2.01, which is above the guidance range.
The company revised its comparable hotel RevPAR projection for the current year to $208-$213 from $214-$218 estimated earlier.
The adjusted EBITDAre is now expected between $1.615 billion and $1.675 billion, down from $1.64 billion and $1.70 billion projected earlier.
For 2024, management revised its total capital expenditure guidance in the range of $500-$600 million compared with the prior guidance 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.
Host Hotels & Resorts, Inc. Price, Consensus and EPS Surprise
Host Hotels & Resorts, Inc. price-consensus-eps-surprise-chart | Host Hotels & Resorts, Inc. Quote
Performance of Other REITs
Welltower Inc.’s (WELL - Free Report) second-quarter 2024 normalized funds from operations (FFO) per share of $1.05 surpassed the Zacks Consensus Estimate of $1.00. The reported figure improved 16.7% year over year.
Results reflected a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating portfolio. WELL raised its guidance for 2024.
Cousins Properties’ (CUZ - Free Report) second-quarter 2024 FFO per share of 68 cents beat the Zacks Consensus Estimate of 66 cents. The figure remained unchanged on a year-over-year basis.
Results reflected decent leasing activity and better-than-anticipated revenues. However, rental property operating and interest expenses increased year over year. CUZ also raised its 2024 outlook for FFO per share.
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.