Friday, February 25, 2011

Host Hotels 4Q Loss Narrows On Fewer Charges, Higher Occupancy

Host Hotels 4Q Loss Narrows On Fewer Charges, Higher Occupancy

Host Hotels 4Q Loss Narrows On Fewer Charges, Higher Occupancy

Posted: 15 Feb 2011 04:33 AM PST

Host Hotels & Resorts Inc.'s (HST) fourth-quarter loss narrowed as the lodging company saw fewer charges, as well as improved revenue and occupancies.

For the year, the company forecast funds from operations, a key measure of performance for real-estate investment trusts, of 87 cents to 92 cents a share. Analysts polled by Thomson Reuters most recently expected 97 cents.

The REIT, with a portfolio leaning toward higher-priced hotels, has seen demand improve recently amid uneven lodging sector recovery. It has been in acquisition mode, seeking bargains from the fallout of the battering the sector took during the downturn.

Last month, Host Hotels confirmed it agreed to pay $313.5 million to buy the New York Helmsley hotel, a 775-room property in midtown Manhattan.

Host Hotels owns 113 properties worldwide and hires operating companies such as Marriott International Inc. (MAR) or Blackstone Group LP's (BX) Hilton Worldwide to manage them.

The real-estate investment trust reported a loss of $6 million, or a penny a share, from a year earlier loss of $73 million, or 12 cents a share, a year earlier. The latest period included a net $14 million in losses on debt extinguishments and acquisition costs. The prior year included $41 million in potential litigation-related costs.

Funds from operations grew to 26 cents from 18 cents. Revenue increased 13% to $1.5 billion.

Analysts polled by Thomson Reuters forecast break-even earnings, FFO of 27 cents a share and revenue of $1.45 billion.

Revenue per available room rose 6.2% from a year earlier, and occupancy rates were up at 68% from 65.2%. Average room rates increased 5.3%.

Shares of Host Hotels closed Monday at $19.66 and were inactive premarket.

Copyright © 2011 Dow Jones Newswires

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