The advantages of Host Hotel & Resorts geographically diversified portfolio of iconic and irreplaceable hotels shows the scale and platform to drive internal and external growth. So says CEO Jim Risoleo on the firm’s Q2 earnings call. It shows the power and flexibility of the firm’s investment-grade balance sheet, he said.
On the operations front, performance this quarter was driven by 10 basis point increase in comparable total RevPAR to $305 which includes all hotel level revenues including food and beverage and other revenues.
“We had strong comparable hotel EBITDA margins despite flat revenues and pressure on wages and benefits. Our EBITDA margin declined 20 basis points, which included a 30 basis point negative impact related to the timing of the receipt of the New York Marriott Marquis tax rebate which we received in the second quarter of 2018 and six basis points related to severance from a planned operational restructuring at one of our properties this year,” he explained.
“We continue to focus on advancing our long-term strategic vision of owning iconic and irreplaceable properties in key markets with strong demand generators and high barriers to entry while divesting low RevPAR high capital expenditure assets through active portfolio management, ensuring that the company is well-positioned for continued growth.”
As reveled in the firm’s earnings press release, the board authorized an increase in our share repurchase program to $1 billion. “After taking into consideration, the $245 million brought back to-date, which includes amounts brought back in the second quarter and through the 10b5-1 program subsequent to quarter end, we have $755 million of capacity remaining. In addition, we further strengthened our balance sheet in the quarter by taking advantage of the strong bank debt markets. We refinanced our revolving credit facility in term loans, upsizing it from $2 billion to $2.5 billion.”