Demo
HST Nasdaq· Host Hotels & Resorts Inc
FundamentalsNews digest Peer analysis
Login
HST Nasdaq· Host Hotels & Resorts Inc
Earnings report Q3 2023

HST Reports Solid Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, HST reported total revenues of $1.21 billion, representing a 2.1% increase compared to the same quarter in the previous year. The company's revenue growth was primarily driven by improvements in group business, with increases in occupancy and room rates. Additionally, the recovery in business transient demand, particularly from small and medium-sized businesses, contributed to the overall revenue growth. However, the wildfires in Maui and moderating transient rates at resort hotels resulted in a decrease in overall transient revenue for the quarter.

Strengths

HST demonstrated strength in its revenue performance, with a 2.1% increase in total revenues compared to the same quarter last year. The increase in group business, driven by higher occupancy and room rates, played a significant role in driving the revenue growth. The recovery in business transient demand, particularly from small and medium-sized businesses, also contributed to the positive revenue performance. Furthermore, the company highlighted that resort transient rates remained more than 50% above 2019 levels, indicating a strong recovery in this segment.

Challenges

Despite the overall revenue growth, HST faced challenges in the transient segment during the quarter. The wildfires in Maui and moderating transient rates at resort hotels resulted in a decrease in transient revenue. Additionally, the company noted that elevated international outbound travel without a corresponding increase in international inbound travel had a negative impact on total revenue growth.

Noteworthy

HST's revenue growth in the third quarter was partially driven by the acquisition of the Four Seasons Resort and Residences Jackson Hole in November 2022. The reopening of The Ritz-Carlton, Naples in July 2023 also contributed to the positive revenue performance. However, the year-to-date results were negatively impacted by the closure of The Ritz-Carlton, Naples during the first half of the year.

Summary

HST reported solid revenue growth in the latest quarter, with total revenues increasing by 2.1% compared to the same quarter last year. The company benefited from improvements in group business, driven by higher occupancy and room rates, as well as the recovery in business transient demand from small and medium-sized businesses. However, challenges in the transient segment, including the wildfires in Maui and moderating transient rates at resort hotels, resulted in a decrease in overall transient revenue. Despite these challenges, HST's revenue performance remained strong, with resort transient rates remaining significantly above pre-pandemic levels. The acquisition of Four Seasons Resort and Residences Jackson Hole and the reopening of The Ritz-Carlton, Naples also contributed to the positive revenue growth.

Source documents

Form 10-Q  filed on Nov 06, 2023
79 pages scanned

Reference data

Company financials Q3 revenue 1.32B
Analyst estimates Q3 EPS missed by -1.04%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.