The following is a summary of the Host Hotels & Resorts, Inc. (HST) Q3 2024 Earnings Call Transcript:
Financial Performance:
Host Hotels & Resorts reported adjusted EBITDAre of $324 million and adjusted FFO per share of $0.36 for the third quarter.
Comparable hotel total RevPAR improved by 3.1%, while comparable hotel RevPAR was up 0.8%.
Year-over-year total RevPAR growth outpaced RevPAR growth, driven by significant out-of-room revenue.Group room night revenue increased by 1% driven by rate, while leisure rates remained resilient and up approximately 50% compared to 2019.
The company repurchased 3.5 million shares of stock at an average price of $16.33 per share.
Business Progress:
Host Hotels & Resorts has begun a 40-unit residential condo development at their Four Seasons Resort Orlando, with marketing efforts already underway and closings expected in Q4 2025.
The company has completed 24 transformational renovations since 2018 with average RevPAR index share gain exceeding targets.
Significant capital expenditures are planned, including investments in redevelopment, repositioning, ROI projects, and property damage reconstruction.
Opportunities:
Continued recovery in Maui and the promotion of tourism through the Ho'okipa marketing campaign are expected to bolster visitor numbers and RevPAR.
The company plans to leverage its investment grade balance sheet and geographically diversified portfolio to pursue further acquisitions of iconic real estate.
The development of residential units at the Four Seasons Resort Orlando and potential development at The Ritz-Carlton O'ahu, Turtle Bay offers additional revenue streams.
Risks:
The hurricanes Helene and Milton caused temporary closures of some properties and led to adjustments in financial projections, showing vulnerability to natural disasters.
The wildfires in Maui last year continue to impact the group segment recovery, with potential ongoing effects on future revenue.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
