Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
$HST experienced strong growth in comparable food and beverage revenue with an increase of 6.5% in 3Q15 and 4.8% YTD. While approx. 280 and 290 BPs of the increase can be attributed to the implementation of USALI for the quarter and YTD, respectively.
$HST's BoD authorized a regular quarterly cash dividend of $0.20 per share and a special dividend of $0.05 per share, bringing the total dividends declared for the year to $0.85 per share. The dividend is payable on Jan. 15, 2018, to stockholders of record on Dec. 29, 2017.
$HST's BoD authorized a regular quarterly cash dividend of $0.20 per share on its common stock, representing an annual dividend yield of about 4% on last Friday's closing stock price. The dividend is payable on Oct. 16, 2017, to stockholders of record on Sept. 29, 2017.
$HST announced that Gregory J. Larson will retire in November as EVP & CFO. The company has named Michael D. Bluhm as his successor. Mr. Bluhm joins $HST from Morgan Stanley. $HST also announced that Nathan S. Tyrrell, EVP, Investments, has been promoted to EVP & Chief Investment Officer. He will report to CEO James F. Risoleo.
$HST appointed Mary Hogan Preusse to its board of directors. Now, Host Hotels’ board has ten members, including eight independent members. Most recently, Hogan Preusse served as MD and co-head of Americas Real Estate. She also served on the firm’s executive board from 2008 to 2017.
$HST amended and extended its existing $1Bil senior unsecured revolver scheduled to mature in 2018 and its $500MM term loan scheduled to mature in 2017. The amended facility will extend the maturity for both the revolver and term loan to 2022. $HST's separate $500MM 2015 term loan was not modified and will remain outstanding, maturing in 2020.
For FY17, $HST expects to invest a total of about $90-115MM in redevelopment projects and ROI capital expenditures, and another $275-300MM in renewal and replacement capital expenditures. HST sees net income at $557-621MM or $0.73-0.81 per diluted share, on total revenues that are expected to slip 1.8% on lower end or grow 0.1% on the higher end.
In 1Q17, $HST's comparable hotel revenues improved 3.1% to $1.21Bil. Host Hotels & Resorts deployed about $64MM in the quarter in renewal and replacement capital expenditures. Total debt as of March 31, 2017, was $4.0Bil, with an average maturity of 5.1 years and an average interest rate of 3.8%.
$HST's total revenues inched 0.7% up to $1.35Bil in 1Q17, as it posted a 12.5% drop in net income to $161MM from last year's $184MM. Earnings fell to $0.21 per diluted share from $0.24 per share a year ago, primarily due to a $42MM cut in gain on sale of assets, as only one hotel was sold this quarter vs. three a year ago.
$HST stated that it will not buy assets just for the sake of buying and will look for transactions that create shareholder value. With regards to disposition, the company is not implementing a systematic sales program in 2017. If $HST gets an offer that adds value, then it would sell an asset from its portfolio.
$HST said that the new administration's pursuit of growth policies led to the appreciation of the dollar. This could potentially impact international demand to gateway US destinations. $HST estimates to face potential demand shortfalls from the negative sentiments from the new administration's proposed travel ban.
$HST said that the continued weakness in corporate business travel resulted in a negative mix shift with operators. The company hopes for a positive long-term trend if the new administration can follow through on its proposals for lower taxes, reduced regulation and infrastructure spending.
$HST believes to be more active on investments in 2017 than the prior year. Lodging fundamentals continue to decline in 2017 as supply continue to increase. Group booking pace and RevPAR continue to decelerate. The turnaround in the stock market and economic sentiment has not yet translated into consistently improved results for the hotel business.
$HST said that it will be open to investing outside its historical top 10 to 12 markets and to pursue accretive acquisitions where it can add value. If the economy and market goes down and stock trades in the downward direction at last year levels, the company expects to repurchase shares. $HST announced a new $500MM repurchase program today.
$HST's BoD authorized a regular quarterly cash dividend of $0.20 per share on its common stock. The dividend will be paid on April 17, 2017 to stockholders of record on March 31, 2017. In addition, the BoD authorized a new program to repurchase up to $500MM of common stock.
$HST purchased on Feb. 16 the Don CeSar and Beach House Suites complex in St. Pete Beach, Florida for $214MM. The Don CeSar will be operated as an independent hotel and managed by Davidson Hotels & Resorts. $HST continued to strategically dispose of assets where it expects lower growth and/or higher capital expenditures requirements.
$HST invested about $39MM and $226MM in 4Q16 and full-year 2016 on redevelopment and ROI capital expenditures. For the full-year 2017, the company expects to invest a total of about $90-115MM in redevelopment projects and ROI capital expenditures.