NASDAQ$HST

Host Hotels & Resorts Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Host Hotels' Q2 2023 results reflected comparable hotel RevPAR growth driven by group business and rate strength, but were negatively impacted by headwinds in San Francisco and Seattle and elevated international outbound travel.

Host Hotels & Resorts reported comparable hotel RevPAR growth of 2.7% and comparable hotel Total RevPAR growth of 3.8% for the second quarter of 2023. Net income was $214 million. The company tightened its full year RevPAR growth guidance range to 7.0% to 9.0%.

  • Comparable hotel Total RevPAR was $367.54, representing an increase of 3.8% compared to 2022.
  • Comparable hotel RevPAR was $225.12, representing an increase of 2.7% compared to 2022, primarily driven by an increase in average rate of 2.4%.
  • GAAP net income was $214 million, a decline compared to the second quarter of 2022.
  • Adjusted EBITDAre was $446 million, representing a decline compared to 2022 second quarter results.

Headline financials

Total Revenue

$1.39B

Previous: $1.38B+0.9%
EPS (adj)

$0.53

Previous: $0.58-8.6%
All Locations RevPAR

$225.12

Previous: $219.30+2.7%
All Locations Total RevPAR

$367.54

Previous: $355.88+3.3%
Capital Expenditures

-$97M

Previous: -$162M+40.1%
Free Cash Flow

$113M

Previous: $94M+20.2%
Net Income

$210M

Previous: $256M-18.0%
Operating Income

$249M

Previous: $327M-23.9%
Gross Profit

-$93M

Previous: -$78M-19.2%
Cash & Equivalents

$802M

Previous: $699M+14.7%
Total Assets

$12.4B

Previous: $12B+3.3%
Stock-Based Comp

$6M

Previous: $5M+20.0%

Revenue & EPS history

Host Hotels · Revenue · Quarterly

$1.39B

Q2 2023+0.9%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Host Hotels · $1.39B total across 3 segments · Q2 2023

  • Rooms
    $850M+0.0%
  • Food and beverage
    $415M+2.5%
  • Other
    $128M+1.6%

Forward guidance

Based on performance in the first half of the year and the macroeconomic backdrop for the second half, the Company tightened its full year comparable hotel RevPAR guidance range to 7.0% to 9.0% growth over 2022.

Tailwinds

  • Comparable hotel RevPAR will increase 7.0% to 9.0% compared to 2022 for the low and high end of the forecast range.
  • We expect to spend approximately $625 million to $725 million on capital expenditures.
  • Assumes no acquisitions and no additional dispositions during the year.

Headwinds

  • Comparable hotel EBITDA margins will decrease 210 to 170 basis points compared to 2022 for the low and high ends of the forecasted comparable hotel RevPAR range, respectively.

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 Q2 2023

Historical avgQ2 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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