Web host Hotels Beats to both Traces

Web host Hotels & Accommodations, Incorporated. (HST), an actual estate investment believe in (: REIT), reported fourth quarter 2012 adjusted FFO (funds through operations) per share of 40 cents, beating the Zacks Consensus Estimation by 3 pennies. This also exceeded the year-ago adjusted FFO by 25 percent. The result came on the back of strong performance of the company’s operating attributes.

With regard to full year 2010, your core muscles FFO per reveal increased nineteen. 6% to $1. 10 through 92 cents in 2011. It was also advance of the Zacks Consensus Estimation of $1. 03.

Such as non-recurring products, FFO within the reported quarter had been $303 million or forty cents per share compared to $233 million or 31 cents. For 2012, it came in at $790 , 000, 000 or $1. apr per share compared to $658 million or 89 cents in 2011.

Beneath the Headlines

During the quarter, total revenue increased 6. 9% to $1, 746 , 000, 000 through $1, 634 , 000, 000 in the year-ago one fourth. The reported revenue substantially beat the particular Zacks Consensus Estimate of $1, 731 , 000, 000. For full season 2012, total profits hiked 7. 4% to $5, 286 , 000, 000 through $4, 924 , 000, 000 in 2011. This particular, however , missed the Zacks Consensus Estimation of $5, 293 , 000, 000.

The increases in quarterly and yearly revenues were powered by solid RevPAR (revenue per available room) increase in the company’s owned resorts. Notably, the particular full-year figure was mostly impacted by outcomes of the 10 resorts acquired during 2011 and Grand Hyatt Washington acquired during the second one fourth of 2010.

During the fourth one fourth, comparable hotel RevPAR climbed 5. 8% to $144. 09 through $136. 25, driven by a rise in guests and average daily rates. Average room rates increased 2 . 8% to $198. 53 through $193. 04 in prior-year quarter. However, guests rose twenty bps (basis points) to 72. 6% through 70. 6% within the year-ago time period.

Powered by considerable within revenues, equivalent hotel adjusted operating margin increased 80 bps to 24. 6% through 23. 8% within the year-ago time period. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) surged twenty two. 1% to $426 million through $349 million within the prior-year one fourth.

Investments

During the fourth one fourth, Host Hotels spent around $39 million on acquisition projects. Atone with the purchase of the property, the organization invested in enhancement plans to maximize success the property.

During the quarter, the organization completed the refurbishment close to 750 guestrooms and opened a new lay in the Harbor Tower of the Manchester Great Hyatt San Diego. Additionally, it commenced redevelopment of all the rooms of the Grand Hyatt Wa worth $23 , 000, 000.

Additionally, Host Hotels invested around $22 million within the fourth quarter towards redevelopment and roi projects, which are anticipated to enhance the company’s profitability amid the challenging market conditions.

Additionally, the company invested roughly $121 million throughout the quarter for restoration and replacement of attributes. Major renovation and replacement projects range from the renewal of 459 rooms in the Washington Marriott at kunne Metro Facility, 504-room North Tower of the Orlando Globe Center Marriott and 145, 000 sq ft of meeting room at The Westin Kierland Vacation resort & Health spa.

Composition

During the quarter, the organization sold its 94. 8% interest in the Toronto Airport Marriott (424-room) and generated a net proceed close to CAD32 , 000, 000 ($32 million).

After the end of the quarter, Web host Hotels sold the Altlanta ga Marriott Marquis (1, 663 rooms) with regard to $293 million. The organization will recognize an increase close to $21 million around the sale within the first quarter of 2013.

Other Notable Transactions

During the quarter, Web host Hotels entered into some pot endeavor (: JV) along with Hyatt Residential Group and an affiliate of Hyatt Hotels Company (H) and to develop and run a 131-unit vacation possession project in Boasts, Hawaii on Ka’anapali Beach. The project entitled “Hyatt Ka’anapali Seaside, a Hyatt Residence Club” is anticipated to open during past due 2014.

Additionally, Host Hotels acquired 5 hotels in European countries through a JOINT VENTURE, in which it holds a thirty-three. 4% ownership interest. The properties were purchased from Whitehall Real-estate Funds, a joint venture partner of The Goldman Sachs Group, Incorporated. (GS), to have an aggregate quantity of about €440 , 000, 000.

The acquired portfolio includes the particular 757-room Paris Marriott Hive Gauche Hotel & Conference Facility, the particular 402-room Renaissance Amsterdam Hotel, the particular 327-room Renaissance Paris Una Defense Hotel, the particular 150-room Courtyard Paris Una Defense West — Colombes as well as the 97-room Renaissance Paris, france Vendome Hotel.

Liquidity

Web host Hotels also aimed to lessen its price of debt and prolong its debt maturities to excercise its balance page. Year-to-date, the organization has given $1. 5 billion dollars of debt with a weighted average interest rate of 4. 7% and has utilized the proceeds to repay $1. 10 billion of debt with a weighted average interest rate of 6. 7%.

By Dec 31, 2012, Web host Hotels had $417 , 000, 000 worth of cash and cash equivalents and $737 million available under its credit center.

Dividend

On Feb nineteen, 2013, Web host Hotels announced a dividend of 10 cents for each share on its common stock. This symbolized a quarterly dividend boost of 11% from your earlier dividend of 9 cents. The brand new dividend is going to be paid on Apr 15, 2013 to stockholders of record as of Mar 28, 2013.

2013 Outlook

With regard to 2013, Host Hotels expects its adjusted FFO per share to come in the product range of $1. 19–$1. 27 per reveal.

The Perspective

Substantial acquisitions and JV deals have been continuously increasing the company’s performance with regard to quite a long time. Additionally, the company’s luxury and upper upscale resorts across hard-to-replicate areas possess the potential for important capital appreciation.

Furthermore, Host Hotels has been consistently making concerted efforts towards increasing shareholders’ wealth, which is also noteworthy. We expect all these to provide an upside potential for the organization moving forward.

Web host Hotels currently holds the Zacks Rank #3 (Hold). One more REIT, Simon Property Group Incorporated. (SPG) is far more favorably placed and holds a Zacks Rank #2 (Buy).

Note: FFO, the widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and also other non-cash expenses to net gain.

Look at the Full Research Report on HST

Look at the Full Research Report on SPG

Look at the Full Research Report on H

Look at the Full Research Report on GS

Zacks Expenditure Research

Much more From Zacks. com

  • Look at the analyst report on HST, SPG, H, GS


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Web host Hotels & Accommodations, Incorporated. (HST), an actual estate investment believe in (: REIT), reported fourth quarter 2012 adjusted FFO (funds through operations) per share of 40 cents, beating the Zacks Consensus Estimation by 3 pennies. This also exceeded the year-ago adjusted FFO by 25 percent. The result came on the back of strong performance of the company’s operating attributes.

With regard to full year 2010, your core muscles FFO per reveal increased nineteen. 6% to $1. 10 through 92 cents in 2011. It was also advance of the Zacks Consensus Estimation of $1. 03.

Such as non-recurring products, FFO within the reported quarter had been $303 million or forty cents per share compared to $233 million or 31 cents. For 2012, it came in at $790 , 000, 000 or $1. apr per share compared to $658 million or 89 cents in 2011.

Beneath the Headlines

During the quarter, total revenue increased 6. 9% to $1, 746 , 000, 000 through $1, 634 , 000, 000 in the year-ago one fourth. The reported revenue substantially beat the particular Zacks Consensus Estimate of $1, 731 , 000, 000. For full season 2012, total profits hiked 7. 4% to $5, 286 , 000, 000 through $4, 924 , 000, 000 in 2011. This particular, however , missed the Zacks Consensus Estimation of $5, 293 , 000, 000.

The increases in quarterly and yearly revenues were powered by solid RevPAR (revenue per available room) increase in the company’s owned resorts. Notably, the particular full-year figure was mostly impacted by outcomes of the 10 resorts acquired during 2011 and Grand Hyatt Washington acquired during the second one fourth of 2010.

During the fourth one fourth, comparable hotel RevPAR climbed 5. 8% to $144. 09 through $136. 25, driven by a rise in guests and average daily rates. Average room rates increased 2 . 8% to $198. 53 through $193. 04 in prior-year quarter. However, guests rose twenty bps (basis points) to 72. 6% through 70. 6% within the year-ago time period.

Powered by considerable within revenues, equivalent hotel adjusted operating margin increased 80 bps to 24. 6% through 23. 8% within the year-ago time period. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) surged twenty two. 1% to $426 million through $349 million within the prior-year one fourth.

Investments

During the fourth one fourth, Host Hotels spent around $39 million on acquisition projects. Atone with the purchase of the property, the organization invested in enhancement plans to maximize success the property.

During the quarter, the organization completed the refurbishment close to 750 guestrooms and opened a new lay in the Harbor Tower of the Manchester Great Hyatt San Diego. Additionally, it commenced redevelopment of all the rooms of the Grand Hyatt Wa worth $23 , 000, 000.

Additionally, Host Hotels invested around $22 million within the fourth quarter towards redevelopment and roi projects, which are anticipated to enhance the company’s profitability amid the challenging market conditions.

Additionally, the company invested roughly $121 million throughout the quarter for restoration and replacement of attributes. Major renovation and replacement projects range from the renewal of 459 rooms in the Washington Marriott at kunne Metro Facility, 504-room North Tower of the Orlando Globe Center Marriott and 145, 000 sq ft of meeting room at The Westin Kierland Vacation resort & Health spa.

Composition

During the quarter, the organization sold its 94. 8% interest in the Toronto Airport Marriott (424-room) and generated a net proceed close to CAD32 , 000, 000 ($32 million).

After the end of the quarter, Web host Hotels sold the Altlanta ga Marriott Marquis (1, 663 rooms) with regard to $293 million. The organization will recognize an increase close to $21 million around the sale within the first quarter of 2013.

Other Notable Transactions

During the quarter, Web host Hotels entered into some pot endeavor (: JV) along with Hyatt Residential Group and an affiliate of Hyatt Hotels Company (H) and to develop and run a 131-unit vacation possession project in Boasts, Hawaii on Ka’anapali Beach. The project entitled “Hyatt Ka’anapali Seaside, a Hyatt Residence Club” is anticipated to open during past due 2014.

Additionally, Host Hotels acquired 5 hotels in European countries through a JOINT VENTURE, in which it holds a thirty-three. 4% ownership interest. The properties were purchased from Whitehall Real-estate Funds, a joint venture partner of The Goldman Sachs Group, Incorporated. (GS), to have an aggregate quantity of about €440 , 000, 000.

The acquired portfolio includes the particular 757-room Paris Marriott Hive Gauche Hotel & Conference Facility, the particular 402-room Renaissance Amsterdam Hotel, the particular 327-room Renaissance Paris Una Defense Hotel, the particular 150-room Courtyard Paris Una Defense West — Colombes as well as the 97-room Renaissance Paris, france Vendome Hotel.

Liquidity

Web host Hotels also aimed to lessen its price of debt and prolong its debt maturities to excercise its balance page. Year-to-date, the organization has given $1. 5 billion dollars of debt with a weighted average interest rate of 4. 7% and has utilized the proceeds to repay $1. 10 billion of debt with a weighted average interest rate of 6. 7%.

By Dec 31, 2012, Web host Hotels had $417 , 000, 000 worth of cash and cash equivalents and $737 million available under its credit center.

Dividend

On Feb nineteen, 2013, Web host Hotels announced a dividend of 10 cents for each share on its common stock. This symbolized a quarterly dividend boost of 11% from your earlier dividend of 9 cents. The brand new dividend is going to be paid on Apr 15, 2013 to stockholders of record as of Mar 28, 2013.

2013 Outlook

With regard to 2013, Host Hotels expects its adjusted FFO per share to come in the product range of $1. 19–$1. 27 per reveal.

The Perspective

Substantial acquisitions and JV deals have been continuously increasing the company’s performance with regard to quite a long time. Additionally, the company’s luxury and upper upscale resorts across hard-to-replicate areas possess the potential for important capital appreciation.

Furthermore, Host Hotels has been consistently making concerted efforts towards increasing shareholders’ wealth, which is also noteworthy. We expect all these to provide an upside potential for the organization moving forward.

Web host Hotels currently holds the Zacks Rank #3 (Hold). One more REIT, Simon Property Group Incorporated. (SPG) is far more favorably placed and holds a Zacks Rank #2 (Buy).

Note: FFO, the widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and also other non-cash expenses to net gain.

Look at the Full Research Report on HST

Look at the Full Research Report on SPG

Look at the Full Research Report on H

Look at the Full Research Report on GS

Zacks Expenditure Research

Much more From Zacks. com

  • Look at the analyst report on HST, SPG, H, GS

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