Lodging real estate investment trust Host Hotels & Resorts, Inc. (HST) reported Wednesday a narrower first-quarter loss and higher Funds from operations or FFO, as revenues increased about 10 percent helped by improved comparable hotel operations. The company also lifted its full year 2012 view.
Comparable hotel revenue per available room, as well as average room rate, performance metrics in the hotel industry, improved from the prior year. Occupancy was higher and food and beverage revenues recorded a growth in the quarter.
FFO is a standard of cash flow from operations for real estate investment trusts and FFO per share was $0.14, up from $0.11 per share reported last year. Adjusted FFO per share increased to $0.14 from $0.12 per share a year ago, which reflect improved comparable hotel operations.
On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $0.13 per share for the quarter. Analysts' estimates typically exclude special items.
Comparable hotel RevPAR improved 6.1 percent to $126.21 million. This reflects a 2.9 percent increase in average room rate, combined with a rise in occupancy of 2.1 percentage points. Comparable hotel revenues also include food and beverage revenue growth of 5.9 percent in the first quarter.
Quarterly net loss available to common shareholders was $2 million or breakeven per share, compared to a loss of $60 million or $0.09 per share a year ago.
Total revenues for the quarter grew 10.3 percent to $985 million from $893 million in the prior-year quarter. Analysts estimated revenues of $1.01 billion.
The increase in total revenues reflects the improved performance of the company's owned hotels and includes the ten hotels acquired in 2011, which increased revenues by $43 million for the first quarter of 2012.
Looking ahead to the full year 2012, the company now expects adjusted FFO per share to be about $1.01 to $1.08, up from the prior forecast of nearly $0.97 to $1.04. Analysts are looking foe adjusted FFO per share of $1.03 per share for the year.
Earnings per share is expected to be about $0.14 to $0.21, up from the previous outlook of about $0.08 to $0.15 per share.
The company anticipates comparable hotel RevPAR to increase 5 to 7 percent in the year. HST closed Tuesday's regular trading at $16.78 on the NYSE.
For comments and feedback contact: editorial@rttnews.com
Business News
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.