NASDAQ$HST

Host Hotels & Resorts Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Host Hotels & Resorts experienced a significant decline in revenue and profitability due to the COVID-19 pandemic, but took swift actions to reduce expenses and strengthen its liquidity position.

Host Hotels & Resorts reported a decrease in revenues to $1.052 billion for Q1 2020, compared to $1.390 billion in Q1 2019. The company experienced a net loss of $3 million, a sharp contrast to the net income of $189 million in the same quarter last year, driven by the impact of the COVID-19 pandemic. To mitigate the impact, Host Hotels has suspended operations at 35 hotels, reduced portfolio-wide operating costs, and increased liquidity by accessing $1.5 billion under its credit facility.

  • Suspended operations at 35 hotels as of May 6, 2020, and operating the remaining 45 hotels at reduced capacity.
  • Reduced portfolio-wide hotel operating costs by approximately 70% to 75% in April, compared to initial forecasts.
  • Increased liquidity by accessing $1.5 billion under the revolver portion of Host’s credit facility in March 2020.
  • Rebooked almost 12% of 2020 group revenue that had been canceled as of May 4, with the majority rescheduled for the second half of the year.

Headline financials

Total Revenue

$1.05B

Previous: $1.39B-24.3%
EPS (adj)

$0.23

Previous: $0.48-52.1%
All Locations RevPAR

$147.31

Previous: $192.03-23.3%
All Locations Total RevPAR

$245.75

Previous: $311.04-21.0%
Capital Expenditures

-$669M

Previous: -$593M-12.8%
Free Cash Flow

-$672M

Previous: -$407M-65.1%
Net Income

-$3M

Previous: $186M-101.6%
Operating Income

-$11M

Previous: $216M-105.1%
Gross Profit

-$93M

Previous: -$92M-1.1%
Cash & Equivalents

$2.8B

Previous: $1.08B+158.4%
Total Assets

$13.4B

Previous: $12.6B+6.9%

Revenue & EPS history

Host Hotels · Revenue · Quarterly

$1.05B

Q1 2020-24.3%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Host Hotels · $1.05B total across 3 segments · Q1 2020

  • Rooms
    $626M-27.0%
  • Food and beverage
    $330M-23.8%
  • Other
    $96M-4.0%

Forward guidance

Given the global economic uncertainty caused by COVID-19, the Company cannot provide full-year guidance for its operations and does not expect to see a material improvement until government restrictions have been lifted and travelers are comfortable traveling again.

Tailwinds

  • Implemented portfolio-wide cost reductions.
  • Collaborated with operators to implement innovations and standards that will help address customers’ heightened safety and hygiene concerns.
  • The Company's liquidity position and balance sheet position the Company to endure this crisis and capitalize on future opportunities to create long-term value.
  • Prioritized major capital projects in those assets and markets that are expected to recover faster, such as leisure and drive-to destinations.
  • Utilizing the low occupancy environment to accelerate certain projects and minimize future disruption.

Headwinds

  • Global economic uncertainty created by COVID-19.
  • Uncertainty of the depth and duration of the pandemic.
  • Possibility of further hotel closures and erosion in operations.
  • Near-term pace of group and transient business remains uncertain until the consumer feels comfortable travelling again.
  • Company cannot provide full-year guidance for its operations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.4%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.7%

Avg return

30 days after

51%

36 / 71 earnings

Positive

+8.3%

Q1 2023

Best reaction

-9.9%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.2%-0.7%+13.7%
Q4 2025-0.5%-1.8%-8.2%
Q3 2025+6.7%+10.7%+6.5%
Q1 2025+2.9%+2.5%+9.7%
Q4 2024-1.9%-6.2%-14.0%
Q3 2024+2.0%+2.3%+6.5%
Q2 2024-5.9%-10.6%-0.6%
Q1 2024-2.2%-0.5%-4.9%
Q4 2023+5.1%+2.0%+6.1%
Q3 2023+5.3%+7.7%+14.5%
Q2 2023-8.6%-8.7%-14.0%
Q1 2023+8.3%+9.0%+10.1%
Q4 2022-6.4%-8.6%-17.2%
Q3 2022-9.9%-9.0%-1.5%
Q2 2022+2.2%+4.7%-0.2%
Q1 2022-0.7%-3.9%+3.4%
Q4 2021+3.1%+2.1%+1.7%
Q3 2021+3.2%+5.8%-11.1%
Q2 2021-4.1%+2.2%+4.5%
Q1 2021-3.0%-2.7%-3.5%
Q4 2020+6.9%+5.9%+13.8%
Q3 2020-4.0%+19.9%+37.5%
Q2 2020-2.2%-1.0%+6.1%
Q1 2020+5.0%-6.6%+33.0%
Q4 2019+2.0%-2.5%-36.9%
Q3 2019+1.8%+0.2%+3.4%
Q2 2019+0.1%+0.2%+0.7%
Q1 2019+1.9%+3.3%-5.9%
Q4 2018+5.6%+8.0%+2.7%
Q3 2018-2.3%-3.2%-0.6%
Q2 2018-5.0%-6.3%-1.7%
Q1 2018-0.5%+3.0%+12.2%
Q4 2017-2.1%-2.6%-7.8%
Q3 2017-0.5%+1.2%-0.3%
Q2 2017+1.3%+1.2%-4.0%
Q1 2017-6.2%-5.4%-6.1%
Q4 2016-3.5%-2.6%-3.4%
Q3 2016-2.8%+2.9%+16.3%
Q2 2016+3.5%+1.6%+3.9%
Q1 2016+1.2%
Q4 2015+3.2%
Q3 2015+4.6%
Q2 2015-5.1%
Q1 2015+0.2%
Q4 2014-7.5%
Q3 2014+1.2%
Q2 2014-4.2%
Q1 2014+0.1%
Q4 2013+3.1%
Q3 2013-0.8%
Q2 2013-0.5%
Q1 2013+0.2%
Q4 2012-0.8%
Q3 2012+0.1%
Q2 2012-5.7%
Q1 2012+1.6%
Q4 2011+1.3%
Q3 2011+4.3%
Q2 2011-0.6%
Q1 2011-4.1%
Q4 2010+1.8%
Q3 2010+2.0%
Q2 2010-1.3%
Q1 2010+0.7%
Q4 2007+0.2%
Q4 2009+0.2%
Q3 2009-2.3%
Q3 2008-2.3%
Q2 2008-3.9%
Q4 2008-3.9%
Q2 2009-3.9%

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