Host Hotels 2nd-Quarter FFO Rises 56%
Reuters:
Hotel real estate investment trust Host Hotels & Resorts Inc., which owns hotels under brand names including Ritz-Carlton, Westin and Hyatt, on Wednesday said funds from operations in the 2nd quarter rose 56% on higher room rates.
The company projected room revenue growth of as much as 10 percent for the full year and said it expects current trends to continue through 2007. ‘We think the stats all look pretty good,’ Chief Executive Christopher Nassetta said on a conference call, referring to economic indicators like corporate profits and employment growth. At the same time, the supply of hotel rooms ‘continues to be anemic for at least the next 2 to 3 years,’ he said.
Second-quarter funds from operations – a closely watched performance measure for real estate investment trusts – rose to $203 million, or 39 cents per share, from $130 million, or 31 cents a share, a year earlier. ‘It was a very solid quarter. They are really benefiting from getting a higher-quality mix of business, especially on the group side,’ said Chris Woronka, an analyst at Deutsche Bank.
Excluding financing charges, FFO was 43 cents a share, which beat the average analyst estimate of 38 cents per share, as compiled by Reuters Estimates. Continued…
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