This Day On The Street
Continue to site
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

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

Our adjusted FFO per diluted share was $0.34 in the second quarter, an increase of nearly 10%. On a year-to-date basis, comparable hotel RevPAR increased 6.1%, driven by a 3.3% increase in average rate and a 1.9 percentage-point improvement in occupancy. Total year-to-date comparable revenue growth of 6%, combined with an adjusted operating profit margin setting increased 110 basis points, resulted in year-to-date adjusted EBITDA of $523 million. This represented an increase of more than 14% over the prior year and generated adjusted FFO per diluted share of $0.49.

Overall, we are extremely pleased with our operating results and the progress we are seeing in lodging fundamentals. The key driver of our second quarter results was the strong increase in demand in our group business, especially in the higher-priced segments. The favorable trends that we noted in group demand since Q4 of 2011 continued to accelerate in the second quarter as our overall group occupancy increased more than 5%. The demand improvement was evident in all of our group segments led by a more than 9% increase in our higher-rated association business and a 5.5% increase in our Corporate business.

Overall, combining the demand improvement with the rate increase that exceeded 1.5%, resulted in improved group revenue of nearly 7%, which exceeded our transient revenue growth for the first time in over a year. As we had anticipated, one major benefit of the significant increase in group demand was our managers were able to focus on driving rate in our transient segments, which became the primary factor behind our transient revenue growth in this quarter. Rate growth in each of our major segments exceeded 5%, led by a 6% increase in our Special Corporate rate. On the demand side, as might be expected, our government transient business, which represents about 3% of overall demand, declined by less than 3%. The strong increase in group business we experienced did result in a slight decline in transient room volume as midweek availability was constrained. As a result, overall transient revenue increased slightly less than 5%.

Read the rest of this transcript for free on seekingalpha.com

3 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
Only $9.95
14-Days Free
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
SYM TRADE IT LAST %CHG

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs