Host Hotels & Resorts (HST) Reports In-Line Q2 FFO
Host Hotels & Resorts (NYSE: HST) reported Q2 FFO of $0.49, in-line with the analyst estimate of $0.49. Revenue for the quarter came in at $1.46 billion versus the consensus estimate of $1.47 billion.
2016 OUTLOOK
Due to the uncertain economic outlook, the Company has lowered its expected range for RevPAR growth for comparable properties by 100 basis points. However, based on the success of its cost control initiatives the Company expects operating margin to remain strong and improve compared to our prior forecast. Additionally, the anticipated sale of the two New Zealand hotels is expected to have minimal effect on guidance for net income and a decrease of $1.5 million for Adjusted EBITDA. No additional disposition or acquisition activity has been included in the full year forecast results. Accordingly, the Company anticipates that its 2016 operating results will be in the following range:
| Full Year 2016 | ||||||||
| Low-endof range | High-endof range | |||||||
| Total comparable hotel RevPAR - Constant US$ | 2.0 | % | 3.0 | % | ||||
| Total revenues under GAAP | 1.0 | % | 1.9 | % | ||||
| Operating profit margin under GAAP | 50 bps | 90 bps | ||||||
| Comparable hotel EBITDA margins | 40 bps | 70 bps | ||||||
Based upon the above parameters, the Company estimates its 2016 guidance as follows (in millions, except per share amounts):
| Full Year 2016 | ||||||||
| Low-endof range | High-endof range | |||||||
| Earnings per diluted share | $ | .97 | $ | 1.01 | ||||
| Net income | 732 | 762 | ||||||
| NAREIT and Adjusted FFO per diluted share | 1.63 | 1.67 | ||||||
| Adjusted EBITDA | 1,435 | 1,465 | ||||||
For earnings history and earnings-related data on Host Hotels & Resorts (HST) click here.