NASDAQ$HST

Host Hotels & Resorts Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Host Hotels & Resorts reported strong results, with RevPAR exceeding guidance and improved outlook leading to raised full-year RevPAR growth guidance.

Host Hotels & Resorts reported a strong first quarter of 2023, with comparable hotel RevPAR increasing by 31% over the first quarter of 2022, exceeding the high end of their guidance. The company raised its full-year RevPAR growth guidance to 7.5% to 10.5%.

  • Comparable hotel RevPAR increased 31% over the first quarter of 2022, exceeding the top end of guidance.
  • GAAP net income of $291 million was generated in the first quarter.
  • Comparable hotel Total RevPAR was $365.93 and comparable hotel RevPAR was $217.77 in the first quarter.
  • The Company announced plans to develop and sell 40 fee-simple condominiums on a five-acre development parcel at Golden Oak in Orlando.

Headline financials

Total Revenue

$1.38B

Previous: $1.07B+28.6%
EPS (adj)

$0.55

Previous: $0.39+41.0%
All Locations RevPAR

$217.77

Previous: $166.93+30.5%
All Locations Total RevPAR

$365.93

Previous: $275.55+32.8%
Operating profit margin

18.0%

No prior period
Food and beverage profit margin

37.6%

No prior period
Capital Expenditures

-$51M

Previous: -$83M+38.6%
Free Cash Flow

$236M

Previous: $33M+615.2%
Net Income

$287M

Previous: $116M+147.4%
Operating Income

$248M

Previous: $122M+103.3%
Gross Profit

-$91M

Previous: -$84M-8.3%
Cash & Equivalents

$563M

Previous: $266M+111.7%
Total Assets

$12.2B

Previous: $11.8B+3.3%
Stock-Based Comp

$7M

Previous: $5M+40.0%

Revenue & EPS history

Host Hotels · Revenue · Quarterly

$1.38B

Q1 2023+28.6%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Host Hotels · $1.38B total across 3 segments · Q1 2023

  • Rooms
    $820M+25.2%
  • Food and beverage
    $431M+45.1%
  • Other
    $130M+6.6%

Forward guidance

The Company raised its full-year comparable hotel RevPAR growth guidance to 7.5% to 10.5%. Further improvement in operations will continue to depend on the broader macroeconomic environment.

Tailwinds

  • Comparable hotel RevPAR will increase 7.5% to 10.5% compared to 2022 for the low and high end of the forecast range.
  • This reflects varying degrees of a slowdown in 2023, in which we expect year-over-year comparable hotel RevPAR percentage changes in the second half of the year to be up low-single digits at the midpoint of guidance.
  • Comparable hotel EBITDA margins will decrease 200 to 130 basis points compared to 2022 for the low and high ends of the forecasted comparable hotel RevPAR range, respectively.
  • We expect to spend approximately $600 million to $725 million on capital expenditures.
  • Assumes no acquisitions and no additional dispositions during the year.

Headwinds

  • Potential changes in overall economic outlook make it inherently difficult to forecast the level of RevPAR.
  • The amount and timing of debt payments may change significantly based on market conditions, which will directly affect the level of interest expense and net income.
  • The amount and timing of transactions involving shares of our common stock may change based on market conditions.
  • The Ritz-Carlton, Naples will remain closed due to Hurricane Ian through the second quarter.
  • Margins are expected to decline in comparison to 2022 driven by closer to stable staffing levels, higher wages, insurance and utility expenses, lower attrition and cancelation fees, and occupancy below 2019 levels.

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 2023

Historical avgQ1 2023

-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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