This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Host Hotels & Resorts Management Discusses Q2 2012 Results - Earnings Call Transcript

With me on the call today is Ed Walter, our President and Chief Executive Officer; Larry Harvey, our Chief Financial Officer; and Gee Lingberg, our Vice President of Investor Relations.

This morning, Ed Walter will provide a brief overview of our second quarter results and then we'll describe the current operating environment as well as the company's outlook for the remainder of 2012. Larry Harvey will then provide greater detail on our second quarter results, including regional and market performance. Following their remarks, we will be available to respond to your questions. And now, here is Ed.

W. Edward Walter

Thanks, Greg, and good morning, everyone. Well, we are pleased to report another solid quarter of operating results, which were driven by substantial improvements in group demand and average rate growth. Strong F&B and other revenue growth, combined with improved flow-through, led to earnings results that exceeded consensus estimates. In addition, we just completed the acquisition of a great hotel and have taken advantage of our largely unsecured asset base to arrange a very attractively priced term loan, which Larry will talk about during his commentary.

First, let's review our results for the quarter. Our comparable hotel RevPAR for the second quarter increased 6.1%, driven by an improvement in our average rate of 3.7%, combined with an occupancy increase of 1.7 percentage points. Our comparable average rate was $195 and our average occupancy was 77.6%, which exceeded our portfolio's prior peak occupancy in the second quarter of 2007, the first time we have seen this happen since the start of the 2008 downturn. For the calendar quarter, our RevPAR growth was 6.8%. Comparable hotel food and beverage revenue growth of 5.7% was driven by a strong banquet and AV revenue and contributed to overall comparable revenue growth of 5.8% for the quarter. The increase in profitable banquet activity contributed to 120 basis-point improvement in our comparable hotel adjusted operating profit margins for the quarter, resulting in adjusted EBITDA of $348 million, an 11% increase over prior year.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,856.78 -278.94 -1.54%
S&P 500 2,071.26 -29.78 -1.42%
NASDAQ 4,927.37 -55.4390 -1.11%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs