Offering an early peek at third quarter numbers, officials with Host Hotels & Resorts said they’ve seen considerable revenue growth on a month-to-month basis.
BETHESDA, Md., Sept. 15, 2020 -- Host Hotels & Resorts, Inc. (NYSE: HST) (the “Company”), the nation’s largest lodging real estate investment trust (“REIT”), today provided an update on its hotel operations, including its preliminary top-line results for July and August 2020.1
Update on Third Quarter 2020 Business Trends
The following presents the monthly hotel operating results for the full portfolio and for the hotels without suspended operations during the periods presented:
- Reopened a total of 19 hotels in July and August and is currently operating with 70 of its 80 consolidated hotels open, or 88% of total room count, with no plans to open additional hotels in September
- Improved RevPAR by 10.4% in July and 33.7% in August, on a month-over-month basis, primarily due to average occupancy gains driven by an increase in leisure demand
- Improved total portfolio average occupancy by 220 basis points to 12.9% in July and by 600 basis points to 18.9% in August, on a month-over-month basis
- Expects to incur $60 to $70 million of severance expenses in the second half of the year due to its hotel operators executing permanent property-level staff reductions
- Expects to accrue approximately $22 to $24 million of fourth quarter furlough related healthcare benefits in the third quarter
- Issued $750 million of 3.5% Senior notes due 2030 and purchased 81% of $450 million principal amount of 4.750% Series C senior notes due 2023, thereby extending the Company’s weighted average debt maturity, maintaining its weighted average interest rate and further augmenting its cash position by $335 million
- Expects to end 2020 with approximately $2.2 billion of total available liquidity, assuming a continuation of second quarter operational performance for the second half of the year
James F. Risoleo, President and Chief Executive Officer, said, “We remain focused on using the current environment as an opportunity to redefine our operating model in a way that strengthens our business and positions Host for the long term. We are working with our operators to drive occupancy and increase revenues, reduce costs without impacting the guest experience, and generate higher levels of profitability at lower levels of occupancy. We are confident the steps we are taking will drive value for Host and our stakeholders through the recovery and beyond.”
Bank of America Merrill Lynch 2020 Global Real Estate Virtual Conference
Host will participate at the Bank of America Merrill Lynch Global Real Estate 2020 Virtual Conference on Wednesday, September 16, 2020.
Updated Investor Presentation
For additional information on business performance, including preliminary July and August top-line results, please refer to the September 2020 investor presentation located in the investor section of the Company’s website (www.hosthotels.com).
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