Host Hotels & Resorts(US:HST) ZACKSยท2024-08-01 16:36Core Insights - Host Hotels & Resorts, Inc. reported second-quarter adjusted funds from operations (AFFO) per share of 57 cents, exceeding the Zacks Consensus Estimate by a penny and reflecting a 7.5% increase year-over-year [1] - The company generated total revenues of $1.47 billion, aligning with the Zacks Consensus Estimate and representing a 5.2% year-over-year growth [2] - The lodging real estate investment trust lowered its 2024 guidance for AFFO per share and comparable hotel RevPAR [9][10] Financial Performance - Comparable hotel RevPAR for the quarter was $224.29, a slight increase from $224.02 in the prior year, despite challenges in recovery in Maui and moderate domestic leisure demand [3] - Comparable hotel EBITDA remained unchanged at $461 million year-over-year [3] - The average room rate decreased to $301.52 from $301.70 in the previous year, while the occupancy rate increased to 74.4% from 74.3% [4] Business Segments - Transient room nights declined by 2.2% year-over-year, while group and contract businesses grew by 2.8% and 5.1%, respectively [5] - The transient, group, and contract businesses accounted for approximately 61%, 35%, and 4% of total room sales in 2023 [5] Balance Sheet and Capital Expenditure - As of the end of the second quarter, cash and cash equivalents were $805 million, down from $1.35 billion as of March 31, 2024 [6] - Total capital expenditure for the quarter was $224 million, with $77 million allocated to return on investment projects, $117 million for renewal and replacement, and $30 million for insurable reconstruction [8] 2024 Outlook - The company revised its full-year AFFO per share guidance to a range of $1.90-$1.98, down from $1.97-$2.05, indicating a 7-cent decrease at the midpoint [9] - Comparable hotel RevPAR projection for 2024 was adjusted to $208-$213 from $214-$218, and adjusted EBITDAre is now expected between $1.615 billion and $1.675 billion [10]