
Host Hotels & Resorts, Inc. announced results of operations for the third quarter ended September 9, 2011.
-* Owned hotel revenues increased 15% to $1.085 billion for the third quarter of 2011 and increased 12% to $3.166 billion for year-to-date 2011. Revenues for the Company's comparable properties increased 5.3% for both periods. The 14 hotels acquired since July 2010 contributed revenues of $99 million and $213 million for the third quarter and year-to-date, respectively. Total revenues increased 14% for both the third quarter and year-to-date 2011 to $1.142 billion and $3.340 billion, respectively, reflecting the performance of the Company's owned hotels and the inclusion of property-level revenues for 53 leased, select-service hotels for which the Company previously recorded rental income.Comparable hotel RevPAR increased 6.4% for the third quarter, as a result of the improvement of average room rate of 3.7%, combined with an increase in occupancy of 1.9 percentage points to 75.8%. For year-to-date 2011, comparable hotel RevPAR increased 6.3%, with the majority of the increase driven by rate improvement of 4.5%, combined with an increase in occupancy of 1.2 percentage points to 73.1%. Comparable hotel adjusted operating profit margins increased 110 basis points and 80 basis points for the third quarter and year-to-date 2011, respectively.-* Net loss was $35 million, or $.05 per diluted share, for the third quarter of 2011 compared to net loss of $61 million, or $.09 per diluted share, for the third quarter of 2010. For year-to-date 2011, net loss was $32 million, or $.05 per diluted share, compared to a net loss of $126 million, or $.20 per diluted share, for year-to-date 2010. The Company's operating results include transactions, such as losses on debt extinguishments, litigation costs, acquisition costs and non-cash impairment charges that can affect earnings and Funds From Operations ("FFO") per diluted share. The net effect of these items was a decrease in earnings per diluted share of $.01 and $.02 in the third quarter of 2011 and 2010, respectively, and $.03 and $.04 for year-to-date 2011 and 2010, respectively.-* FFO was $112 million, or $.16 per diluted share, for the third quarter of 2011 compared to $75 million, or $.11 per diluted share, for the third quarter of 2010. FFO was $399 million, or $.57 per diluted share, and $275 million, or $.42 per diluted share, for year-to-date 2011 and 2010, respectively. There was no FFO per share impact from the above transactions affecting operating results for the third quarter of 2011, but they did decrease FFO per diluted share by $.02 in the third quarter of 2010 and $.03 and $.04 for year-to-date 2011 and 2010, respectively. Adjusted EBITDA, which is Earnings before Interest Expense, Income Taxes, Depreciation, Amortization and other items, increased 27.7% to $212 million for the quarter and 23.2% to $669 million for year-to-date 2011.OPERATING RESULTSComparable hotel RevPAR increased 6.4% for the third quarter, as a result of the improvement of average room rate of 3.7%, combined with an increase in occupancy of 1.9 percentage points to 75.8%. For year-to-date 2011, comparable hotel RevPAR increased 6.3%, with the majority of the increase driven by rate improvement of 4.5%, combined with an increase in occupancy of 1.2 percentage points to 73.1%. Comparable hotel adjusted operating profit margins increased 110 basis points and 80 basis points for the third quarter and year-to-date 2011, respectively.