Host Hotels & Resorts Maintains Guidance Range and Provides Update on the Impact of Coronavirus
March 02 2020 - 8:15AM
Host Hotels & Resorts, Inc. (NYSE: HST), the nation's largest
lodging real estate investment trust (the "Company"), today
announced that, to date, Coronavirus (COVID-19) has negatively
impacted its total revenues by approximately $14 million, net
income by approximately $7 million and adjusted EBITDA by
approximately $7 million, which amounts to a decrease of 0.5% at
the mid-point of the Company’s 2020 adjusted EBITDA guidance range
of $1,360 to $1,405 million.
This current impact does not materially affect
the Company’s previously announced 2020 guidance, which remains
unchanged as of the date of this release. The current decline in
operations has primarily been group business cancellations,
particularly in California, and the Company is working closely with
the operators of its properties as the COVID-19 situation continues
to evolve.
Due to the uncertainty regarding the duration
and extent of the COVID-19 outbreak, the Company cannot provide
further assurances regarding future cancellations or their effect
on the Company’s results and the Company does not intend to provide
further updates unless deemed appropriate.
About Host Hotels &
Resorts
Host Hotels & Resorts, Inc. is an S&P
500 company and is the largest lodging real estate investment trust
and one of the largest owners of luxury and upper-upscale hotels.
The Company currently owns 75 properties in the United States and
five properties internationally totaling approximately 46,500
rooms. The Company also holds non-controlling interests in six
domestic and one international joint ventures. Guided by a
disciplined approach to capital allocation and aggressive asset
management, the Company partners with premium brands such as
Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The
Luxury Collection®, Hyatt®, Fairmont®, Hilton®, Swissôtel®, ibis®
and Novotel®, as well as independent brands. For additional
information, please visit the Company’s website at
www.hosthotels.com.
* This press release contains registered
trademarks that are the exclusive property of their respective
owners. None of the owners of these trademarks has any
responsibility or liability for any information contained in this
press release.
Note: This press release contains
forward-looking statements within the meaning of federal securities
regulations. These forward-looking statements include forecast
results and are identified by their use of terms and phrases such
as “anticipate,” “believe,” “could,” “estimate,” “expect,”
“intend,” “may,” “should,” “plan,” “predict,” “project,” “will,”
“continue” and other similar terms and phrases. Forward-looking
statements are not guarantees of future performance and involve
known and unknown risks, uncertainties and other factors which may
cause the actual results to differ materially from those
anticipated at the time the forward-looking statements are made.
These risks include, but are not limited to: changes in national
and local economic and business conditions and other factors such
as natural disasters, pandemics and weather that will affect
occupancy rates at our hotels and the demand for hotel products and
services; the impact of geopolitical developments outside the U.S.
on lodging demand; volatility in global financial and credit
markets; operating risks associated with the hotel business; risks
and limitations in our operating flexibility associated with the
level of our indebtedness and our ability to meet covenants in our
debt agreements; risks associated with our relationships with
property managers and joint venture partners; our ability to
maintain our properties in a first-class manner, including meeting
capital expenditure requirements; the effects of hotel renovations
on our hotel occupancy and financial results; our ability to
compete effectively in areas such as access, location, quality of
accommodations and room rate structures; risks associated with our
ability to complete acquisitions and dispositions and develop new
properties and the risks that acquisitions and new developments may
not perform in accordance with our expectations; our ability to
continue to satisfy complex rules in order for us to remain a REIT
for federal income tax purposes; risks associated with our ability
to effectuate our dividend policy, including factors such as
operating results and the economic outlook influencing our board’s
decision whether to pay further dividends at levels previously
disclosed or to use available cash to make special dividends; and
other risks and uncertainties associated with our business
described in the Company’s annual report on Form 10-K, quarterly
reports on Form 10-Q and current reports on Form 8-K filed with
the SEC. Although the Company believes the expectations
reflected in such forward-looking statements are based upon
reasonable assumptions, it can give no assurance that the
expectations will be attained or that any deviation will not be
material. All information in this release is as of the date of this
release, and the Company undertakes no obligation to update any
forward-looking statement to conform the statement to actual
results or changes in the Company’s expectations.
Tejal EngmanVice President240.744.5116
Host Hotels and Resorts (NYSE:HST)
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