BETHESDA, MARYLAND America’s largest hotel REIT reports encouraging second-quarter results, growing its RevPAR 8.1% for the period while increasing total revenue 6%. Host Hotels & Resorts Inc. also announces the purchase of The Westin Chicago River North for US$165 million.
Host reports that total revenue for the year-to-date is up 1%. On a quarterly basis, the company has dramatically outperformed its year-on-year results, turning a 2009 second-quarter loss of 12 cents per share into a 2010 quarterly profit of 2 cents per share.
Host’s average daily rate fell 0.7%, but its increase in RevPAR was significantly affected by an 8% increase in transient demand combined with a nearly 3% ADR improvement—the first such growth since the second quarter of 2008. Group demand increased 10%, though this was partially offset by a 4.7% decrease in rate. For year-to-date 2010, comparable RevPAR has increased 3.5%.
Going forward through the rest of this year, Host anticipates that RevPAR will increase 4% to 5.5%.
On Tuesday, Host reached an agreement to acquire the 424-key Westin Chicago River North. That acquisition, which is expected to close next month, comes less than a week after Host led a joint-venture acquisition of W Union Square in New York City.
As of June 18, Host had nearly US$1.2 billion of cash and cash equivalents and $600 million of available capacity under its credit facility.