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Host Hotels' Sparkling Balance Sheet

Alan Woinski and Kim Woinski
May 4th, 2023 at 4:23 PM EDT

Skift Take

  • The earnings calendar accelerated in both the REIT and C-Corp section in the past 24 hours. Hyatt received the most attention with a clean beat but then some concerns creeping in.
  • Host Hotels had a lousy two days to issue a great report with a clean and positive beat and raise.
  • Summit Hotels came in just under consensus even with a strong top-line performance as higher hotel-level expenses hurt results.

The DJIA dropped 286 points, while Nasdaq was down 58, the S&P 500 fell 29 points, and 10-year treasury was up .02 at 3.36%. The Dow Jones U.S. Travel & Tourism Total Stock Market Index was down 1.3 percent.

The earnings calendar accelerated in both the REIT and C-Corp section in the past 24 hours. Hyatt received the most attention with a clean beat but then some concerns creeping in, resulting in a reaction by investors that was not as bad as Hilton but not pleasant. One thing that was pointed out was H had no asset sales and still has two hotels listed for sale. Others were not that thrilled with the legacy business performance. They did discuss the limited visibility which in a renewed jittery market is not always taken the right way. H bought back $106 million worth of stock at an average price of $104 a share.

Alan is traveling on Sunday so there will be no Daily Lodging Report on Sunday, May 7.

Host Hotels had a lousy two days to issue a great report with a clean and positive beat and raise. They bought back $50 million worth of stock in the quarter, and sold the Camby, Autograph Collection hotel in Phoenix for $110 million. It continues to have one of the best balance sheets, if not the best, in the Lodging REIT space.

Summit Hotels came in just under consensus even with a strong top-line performance as higher hotel-level expenses hurt results. RevPAR growth was 19.3% with ADR up 11.2%. The sale of six hotels from INN is still scheduled to close by the end of this current quarter. Ryman Hospitality pre-announced so the earnings beat was not a surprise. They upped their guidance to account for the beat. RHP upped their quarterly dividend to $1 a share from $0.75. Braemar Hotels & Resorts beat 1Q estimates as their urban portfolio recovery continues. RevPAR for their six urban hotels was up 60% year over year. All eyes seem to be on BHR’s debt maturities. The company said they are evaluating a corporate-level financing. They recently obtained mortgage loan extensions to give them time to complete the task. Chatham L