Host Hotels & Resorts Reports Record Q2 Revenue and FFO, Beating Estimates by $70M and $0.06 Respectively
May 4, 2023
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The company reported record second quarter financial results outperforming analysts’ estimates. Host Hotels & Resorts ($NASDAQ:HST) reported funds from operations (FFO) of $0.54 per share, surpassing estimates by $0.06 per share. Revenue totaled $1.38 billion, exceeding expectations by $70 million. This signals a strong rebound from the negative impacts of the coronavirus pandemic and provides a positive outlook for the company going forward.
Price History
This caused the stock to open at $16.1 and close at $16.3, representing a 1.8% increase from the previous closing price of $16.0. The company attributes the success to the disciplined capital allocation strategies, as well as their commitment to creating and managing a large portfolio of hotels, resorts and residential properties around the world. Despite the challenges posed by the coronavirus, Host Hotels & Resorts has remained resilient and continued to deliver strong financial results. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for HST. More…
| Total Revenues | Net Income | Net Margin |
| 4.91k | 633 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for HST. More…
| Operations | Investing | Financing |
| 1.42k | -618 | -874 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for HST. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.27k | 5.39k | 9.41 |
Key Ratios Snapshot
Some of the financial key ratios for HST are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 15.4% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
GoodWhale recently conducted an analysis of HOST HOTELS & RESORTS’s wellbeing, which has categorized it as a ‘cow’ – a type of company with a track record of paying out consistent and sustainable dividends. This type of company is usually attractive to investors looking for steady income. Our analysis shows HOST HOTELS & RESORTS is strong in cashflow and debt, with a health score of 9/10. This is good news for investors as it is indicative of the company’s ability to sustain future operations in times of crisis. They are also medium in other areas such as asset management, dividend payout performance, growth and profitability. Overall, HOST HOTELS & RESORTS is a great choice for investors looking for reliable dividend income. More…
Peers
Host Hotels & Resorts, Inc. is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The company’s portfolio consists of 103 properties in the United States and 26 properties internationally totaling approximately 74,000 rooms. Host Hotels & Resorts, Inc. also holds non-controlling interests in two joint ventures that own 19 properties with approximately 11,000 rooms. The company’s competitors are Pebblebrook Hotel Trust, Sunstone Hotel Investors Inc, Diamondrock Hospitality Co.
– Pebblebrook Hotel Trust ($NYSE:PEB)
Pebblebrook Hotel Trust is a publicly traded real estate investment trust that invests primarily in upscale, full-service hotels located in major urban markets in the United States. The company’s portfolio includes properties in New York, Los Angeles, San Francisco, Washington, D.C., Seattle, Miami, Boston, and Philadelphia. Pebblebrook Hotel Trust is headquartered in Bethesda, Maryland.
– Sunstone Hotel Investors Inc ($NYSE:SHO)
Sunstone Hotel Investors Inc is a real estate investment trust that owns and operates hotels. The company has a market cap of 2.19B as of 2022. Sunstone Hotel Investors Inc owns and operates hotels across the United States. The company was founded in 1971 and is headquartered in Irvine, California.
– Diamondrock Hospitality Co ($NYSE:DRH)
Rock Hospitality Co is a real estate investment trust that primarily acquires, develops, owns and operates upscale full-service hotels. As of December 31, 2020, the Company’s portfolio consisted of 69 properties with a total of 12,876 rooms. The Company’s hotels are located in 26 states and the District of Columbia, as well as in Canada and the Caribbean.
Summary
Host Hotels & Resorts reported fourth quarter earnings of $0.54 per share, which beat analysts’ estimates by $0.06 per share. Revenue for the quarter was $1.38 billion, which beat analysts’ expectations by $70 million. The strong results were driven by an uptick in demand for hotels and resorts due to an improving economy and a surge in travel spending. The company has been able to capitalize on the increasing demand and benefit from higher occupancy rates and higher average daily room rates.
This has enabled the company to significantly increase its cash flow, which it is now using to invest in growth opportunities, such as new hotels and resorts, as well as renovations and acquisitions. Therefore, Host Hotels & Resorts is an attractive stock for investors looking for growth prospects in the industry.
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