Good day, ladies and gentlemen, and welcome to the Host Hotels & Resorts, Incorporated First Quarter 2018 Earnings Call. As a reminder, today's conference is being recorded. And at this time, I'd like to turn the floor over to Ms. Gee Lingberg, Vice President. Please go ahead, ma'am.
Thanks, Greg. Good morning, everyone. Welcome to the Host Hotels & Resorts first quarter 2018 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 are 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 EBITDAre, 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 the supplemental financial information on our website at hosthotels.com.
This morning, Jim Risoleo, our President and Chief Executive Officer, will provide an overview of our first quarter results and our outlook for 2018. Michael Bluhm, our Chief Financial Officer, will then provide details on our first quarter performance by markets, discuss margins, and the balance sheet. Following their remarks, we will be available to respond to your questions.
And now, I'd like to turn the call over to Jim.
James F. Risoleo
Thank you, Gee, and thanks everyone for joining us this morning. We are pleased to report a quarter that materially exceeded our internal expectations on the top and bottom line, and beat consensus estimates for adjusted EBITDAre and adjusted FFO per diluted share. Based on this performance, we are raising our full-year guidance for RevPAR, adjusted EBITDAre and adjusted FFO per share. For the full-year, we have increased the midpoint of our comparable RevPAR guidance 50 basis points to 2%, increased the midpoint of adjusted EBITDAre by $25 million to $1.525 billion, and increased the midpoint of adjusted FFO per share by $0.05 to $1.70.
These results continue to demonstrate the benefits of our geographically-diversified portfolio of iconic and irreplaceable hotels, our unprecedented scale and platform to drive internal and external growth, and the power and flexibility of our investment-grade balance sheet. Together, these key pillars formed the foundation of Host, the premier lodging REIT.
As mentioned in our press release, we closed on the previously-discussed three-hotel portfolio of iconic Hyatt properties on March 29. Recycling out of low RevPAR, low growth, and high CapEx assets into these high RevPAR, high growth, and low CapEx hotels at roughly the same cap rate with an outstanding use of capital and instantly upgraded the overall portfolio. Although still early in our ownership, the Hyatt portfolio is performing above our initial underwriting. Keep in mind, this is before we begin implementing many of the value enhancement
James F. Risoleo
President and Chief Executive Officer
Michael D. Bluhm
Chief Financial Officer
Anthony F. Powell
We are pleased that you like our content! Sign Up now to access premium content for free, a very limited time offer.
Welcome! Create your account
You are successfully registered!
An activation link has been sent to your mail. Please activate and login.