Host Hotels & Resorts, Inc. Reports Strong Growth in Operating Results for the Fourth Quarter and Full Year 2007 and Announces $500 Million Stock Repurchase Program
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Host Hotels & Resorts, Inc. Reports Strong Growth in Operating Results for the Fourth Quarter and Full Year 2007 and Announces $500 Million Stock Repurchase Program
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Category: Worldwide
This is a press release selected by our editorial committee and published online for free on 2008-02-22
Host Hotels & Resorts, Inc. (NYSE: HST), the nation’s largest lodging real estate investment trust (REIT), today announced its results of operations for the fourth quarter and for the full year ended December 31, 2007.
-- Total revenue increased $99 million, or 5.8%, to $1,809 million for the
fourth quarter and $613 million, or 12.7%, to $5,426 million for full
year 2007. Excluding the revenues from the Starwood portfolio which was
purchased in April 2006, revenues increased 7.6% for the full year.
-- Net income increased $98 million to $294 million for the fourth quarter
and decreased $11 million to $727 million for full year 2007. Earnings
per diluted share increased $.18 to $.54 for the fourth quarter and
decreased $.15 to $1.33 for full year 2007.
Net income included a net gain of $24 million, or $.04 per diluted
share, for the fourth quarter and $114 million, or $.21 per diluted
share, for the full year from gains on hotel dispositions, partially
offset by debt repayment or refinancing costs. By comparison, the
fourth quarter and full year 2006, net income included a net gain of $8
million, or $.01 per diluted share, and $355 million, or $.73 per
diluted share, respectively, associated with similar transactions, as
well as costs associated with preferred stock redemptions and the
Starwood acquisition. For further detail, refer to the "Schedule of
Significant Transactions Affecting Earnings per Share and Funds From
Operations per Diluted Share" attached to this earnings release.
-- Funds From Operations (FFO) per diluted share increased 29.3% from $.58
to $.75 for the fourth quarter and 24.8% from $1.53 to $1.91 for full
year 2007. FFO per diluted share was reduced by $.08 for full year 2007
due to costs associated with debt repayments or refinancings. By
comparison, FFO per diluted share was reduced by $.03 and $.09 for the
fourth quarter and full year 2006, respectively, for costs associated
with similar transactions, as well as costs associated with preferred
stock redemptions and the Starwood acquisition. For further detail, see
the Schedule of Significant Transactions noted above. The Company's
results exceeded the high end of its diluted FFO per share guidance due
primarily to the settlement of the business interruption insurance
recovery for the New Orleans Marriott and lower than forecasted stock
compensation expense.
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