BETHESDA, Md. (
Host Hotels & Resorts
said Wednesday that quarterly profit more than tripled as revenue jumped 17.1%, thanks to new hotel acquisitions and a healthy increase in room revenue.
Host earned $62 million, or 9 cents a share, more than triple year-earlier earnings of $13 million, or 2 cents a share. Second-quarter revenue increased 17.1% to $1.3 billion.
The results topped expectations for earnings of 9 cents a share on revenue of $1.27 billion.
Host attributed revenue growth to the acquisition of 14 new hotel properties, many in large gateway cities such as Washington, Paris, New York and Melbourne.
Host said revPAR -- or revenue per available room, a key metric in the hotel industry that multiplies a property's room rate by its occupancy rate -- increased 6.7% in the quarter.
Funds from operations jumped 39.1% year over year to $210 million, from $151 million. Funds from operations, or FFO, is a performance figure generally used by REITs to define cash flow from operations. FFO removes the profit-reducing effect of depreciation, a non-cash accounting item.
The hotel company said it expects 2011 revPAR growth between 6% and 7%. Host forecast full-year EPS in a range of a loss of 4 cents per share to flat, with net income in a range of a loss of $25 million to a gain of $4 million. Full-year FFO is expected in a range of 87 cents a share to 91 cents a share.
Analysts were looking for Host to book 2011 FFO of 93 cents a share, with earnings of $42.2 million, or 8 cents a share.
Host's stock was flat in premarket trading Wednesday after closing 0.1% higher at $16.51 in Tuesday's session.
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Written by Miriam Marcus Reimer in New York.
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