NASDAQ$HST

Host Hotels & Resorts Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Host Hotels' Q4 2022 earnings were reported, with RevPAR exceeding 2019 levels for the third consecutive quarter and full year performance finishing at the high end of Q3 guidance.

Host Hotels & Resorts reported strong operating improvements in Q4 2022, driven by continued rate strength across its portfolio. RevPAR increased by 0.6% compared to Q4 2019, and the company successfully allocated capital through acquisitions, dispositions, and reinvestment in its portfolio.

  • RevPAR was $197, a 0.6% increase over Q4 2019, driven by rate increases of 15.6% compared to the same period in 2019.
  • Successfully allocated capital through acquisitions, dispositions, and reinvestment in the portfolio.
  • Reinstated and twice increased the quarterly dividend, bringing the total dividends declared for the year to $0.53 per share.
  • Amended and restated the existing $2.5 billion credit facility to further enhance the strength and flexibility of the balance sheet.

Headline financials

Total Revenue

$1.26B

Previous: $998M+26.6%
EPS (adj)

$0.44

Previous: $0.29+51.7%
All Locations RevPAR

$196.82

Previous: $148.46+32.6%
All Locations Total RevPAR

$325.88

Previous: $237.98+36.9%
Net Income

$149M

Previous: $323M-53.9%
Operating Income

$177M

Previous: $79M+124.1%
Gross Profit

$748M

Previous: $574M+30.3%
Cash & Equivalents

$667M

Previous: $807M-17.3%
Total Assets

$12.3B

Previous: $12.4B-0.8%
Stock-Based Comp

$7M

Previous: $5M+40.0%

Revenue & EPS history

Host Hotels · Revenue · Quarterly

$1.26B

Q4 2022+26.6%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Host Hotels · $1.26B total across 3 segments · Q4 2022

  • Rooms
    $763M
  • Food and beverage
    $386M
  • Other
    $114M

Forward guidance

Current macroeconomic headwinds and concerns surrounding the potential for an economic slowdown are competing with a lodging recovery. Further improvement in operations will be dependent on the ability to maintain high-rated business in resort markets, as well as the continued improvement of group, business transient and international inbound travel.

Tailwinds

  • First quarter RevPAR growth is anticipated to be between 24% and 27%.
  • Comparable Hotel RevPAR will increase 2.0% to 8.0% compared to 2022 for the low and high end of the forecast range.
  • We expect to spend approximately $600 million to $725 million on capital expenditures.
  • Hyatt Regency Coconut Point Resort & Spa reopened to guests on November 7, 2022, as part of a phased reopening.
  • The Ritz-Carlton, Naples is targeting a phased reopening strategy beginning in summer 2023.

Headwinds

  • Significant uncertainty related to broader macroeconomic trends in the second half of 2023.
  • Margins are expected to decline in comparison to 2022 driven by wage inflation, closer to stable staffing levels, higher insurance and utility expenses, lower attrition and cancelation fees, and occupancy below 2019 levels.
  • Comparable Hotel EBITDA margins will decrease 360 to 210 basis points compared to 2022 for the low and high ends of the forecasted Comparable Hotel RevPAR range, respectively.
  • Hurricane Ian caused significant damage at The Ritz-Carlton, Naples and Hyatt Regency Coconut Point Resort and Spa.
  • It is possible that the insurance coverage may not be sufficient to cover the entirety of the business interruption caused by the storm.

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 Q4 2022

Historical avgQ4 2022

-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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