Host Hotels & Resorts, Inc. (NYSE:HST) Q4 2014 Earnings Conference Call - Final Transcript
Feb 19, 2015 • 09:00 am ET
Good day and welcome to the Host Hotels & Resorts Incorporated Fourth Quarter and Full-Year 2014 Earnings Conference Call. Today's conference is being recorded.
At this time I would like to turn the conference over to Gee Lingberg, Vice President. Please go ahead ma'am.
Thanks, Tracy. Good morning everyone. Welcome to the Host Hotels & Resorts fourth quarter 2014 earnings call. Before we begin, I'd like to remind everyone that many of the comments made today are considered to be forward-looking statements under Federal Securities laws. As described in our filings with the SEC, these statements are subject to numerous risks and uncertainties that could cause future results to differ from those expressed and we're not obligated to publicly update or revise these forward-looking statements.
In addition, on today's call we will discuss certain non-GAAP financial information such as FFO, adjusted EBITDA and comparable hotel results. You can find this information together with reconciliations to the most directly comparable GAAP information in today's earnings press release, in our 8-K filed with the SEC and on our website at www.hosthotels.com. In our efforts to continually improve on our disclosures, we have added an EBITDA by market supplement to our website. You can find this information on our Investor Relations section of our website under financial information. We hope that this information is valuable in understanding and analyzing our Company.
Now with me on the call today is Ed Walter, our President and Chief Executive Officer and Greg Larson, our Chief Financial Officer. This morning, Ed will provide a brief overview of our fourth quarter results and then will describe the current operating environment as well as the Company's outlook for 2015. Greg, will then provide greater detail on our fourth quarter performance by market and discuss our margin results. Following the remarks, we will be available to respond to your questions.
And now, here's Ed.
W. Edward Walter
Thanks, Gee. Good morning, everyone. As we predicted in October, our fourth quarter results were impacted by a combination of weaker group activity and disruption from renovations. Overall, we were pleased to record another very positive year for our Company. Revenue growth was strong and superior cost controls led to another year of excellent margin improvement. In addition, we made significant progress on several value enhancement projects and on our asset sales initiative.
Before we get into the details, let's review our results for the quarter and the year. Adjusted EBITDA was $351 million for the quarter and $1.402 billion for the full-year, representing a 7.4% increase over the prior year. Our adjusted FFO per diluted share was $0.40 for the fourth quarter and $1.50 for the full-year exceeding consensus estimates and reflecting a 14.5% increase over 2013. These results were impacted by several factors.
For the full-year, our portfolio achieved a 77% average occupancy allowing our hotels to drive rate increases of nearly 5% resulting in an improvement in comparable hotel RevPAR of 5.7%. For the quarter comparable hotel RevPAR increased 3.2% due entirely to rate