Document

EX-99.1 2 hst-ex991.htm EX-99.1 Document


						Exhibit 99.1

			SOURAV GHOSH Chief Financial Officer (240) 744-5267			JAIME MARCUS Investor Relations (240) 744-5117 ir@hosthotels.com

Host Hotels & Resorts, Inc. Reports Results for the Second Quarter 2024

Acquisitions of 1 Hotel Central Park and The Ritz-Carlton O’ahu, Turtle Bay

BETHESDA, Md; July 31, 2024 – Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the nation’s largest lodging real estate investment trust (“REIT”), today announced results for second quarter of 2024.

OPERATING RESULTS

(unaudited, in millions, except per share and hotel statistics)


	Quarter ended June 30,						Year-to-date ended June 30,
	2024		2023		Percent Change		2024		2023		Percent Change
Revenues	$	1,466	$	1,393	5.2	%	$	2,937	$	2,774	5.9	%
Comparable hotel revenues⁽¹⁾	1,415		1,409		0.4	%	2,830		2,797		1.2	%
Comparable hotel Total RevPAR⁽¹⁾	368.25		366.60		0.5	%	368.20		365.97		0.6	%
Comparable hotel RevPAR⁽¹⁾	224.29		224.02		0.1	%	219.40		220.65		(0.6	%)

Net income	$	242	$	214	13.1	%	$	514	$	505	1.8	%
EBITDAre⁽¹⁾	502		446		12.6	%	1,006		890		13.0	%
Adjusted EBITDAre⁽¹⁾	476		446		6.7	%	959		890		7.8	%

Diluted earnings per common share	$	0.34	$	0.29	17.2	%	$	0.72	$	0.70	2.9	%
NAREIT FFO per diluted share⁽¹⁾	0.57		0.53		7.5	%	1.17		1.07		9.3	%
Adjusted FFO per diluted share⁽¹⁾	0.57		0.53		7.5	%	1.17		1.08		8.3	%

*Additional detail on the Company’s results, including data for 23 domestic markets, is available in the Second Quarter 2024 Supplemental Financial Information on the Company’s website at www.hosthotels.com.

James F. Risoleo, President and Chief Executive Officer, said, “Host delivered comparable hotel Total RevPAR growth of 0.5% over the second quarter of 2023, as group business continued to drive increases in banquet and catering revenues. Comparable hotel RevPAR increased 0.1% for the quarter as a result of a slower-than-anticipated recovery in Maui and the current shift in leisure demand to international destinations. In addition, we delivered net income of $242 million, an increase of 13.1% compared to the second quarter of 2023, and Adjusted EBITDAre of $476 million, a 6.7% improvement over the second quarter of 2023."

Risoleo continued, “Subsequent to quarter end, we acquired the 1 Hotel Central Park, further diversifying our presence in New York City, one of the top performing RevPAR markets in the country this year. We also anticipate closing later today on the acquisition of The Ritz-Carlton O’ahu, Turtle Bay on the North Shore of Oahu, Hawaii, which includes a 49-acre land parcel entitled for development. During the quarter, we repurchased $50 million of common stock and completed several financing transactions, including the repayment of our Series G senior notes for $400 million and the issuance of $600 million of Series K senior notes at 5.7%. Thus far in 2024, we have acquired $1.5 billion of iconic and irreplaceable real estate, which we believe positions Host to deliver meaningful EBITDA growth.”

_______________________________

(1)NAREIT Funds From Operations (“FFO”) per diluted share, Adjusted FFO per diluted share, EBITDAre, Adjusted EBITDAre and comparable hotel revenues are non-GAAP (U.S. generally accepted accounting principles) financial measures within the meaning of the rules of the Securities and Exchange Commission (“SEC”). See the Notes to Financial Information on why the Company believes these supplemental measures are useful, reconciliations to the most directly comparable GAAP measure, and the limitations on the use of these supplemental measures. Additionally, comparable hotel results and statistics include adjustments for dispositions, acquisitions and non-comparable hotels. See Hotel Operating Data for RevPAR results of the portfolio based on the Company's ownership period without these adjustments.


HOST HOTELS & RESORTS, INC. NEWS RELEASE			July 31, 2024

HIGHLIGHTS:

•Comparable hotel Total RevPAR was $368.25 for the second quarter of 2024 and $368.20 year to date, representing an increase of 0.5% and 0.6%, respectively, compared to the same periods in 2023, due to the improvements in food & beverage revenues driven by group business.

•Comparable hotel RevPAR was $224.29 and $219.40 for the second quarter and year-to-date of 2024, respectively, representing an increase of 0.1% and a decrease of 0.6%, respectively, compared to the same periods in 2023. While group demand remained strong, a slower than expected recovery in Maui following the August 2023 wildfires and moderating domestic leisure demand hampered growth in the quarter.

•GAAP net income was $242 million for second quarter of 2024, reflecting a 13.1% increase compared to second quarter of 2023, and GAAP operating profit margin was 19.9%, an improvement of 200 basis points compared to the second quarter of 2023. Year-to-date GAAP net income was $514 million, a 1.8% increase compared to 2023, and operating profit margin was 19.9%, an improvement of 200 basis points compared to 2023. Gains on insurance settlements increased $53 million and $84 million for the quarter and year-to-date compared to 2023 and were a significant driver of the improvements in net income and operating profit margins.

•Comparable hotel EBITDA was $461 million for the second quarter of 2024, flat compared to the second quarter of 2023, leading to a comparable hotel EBITDA margin decline of 10 basis points to 32.6%. The decline for the quarter was driven by increased wages and higher insurance expenses in comparison to second quarter 2023, partially offset by the receipt of $21 million of business interruption proceeds in the quarter related to the Maui wildfires. Year-to-date, comparable hotel EBITDA was $904 million, a 1.2% decrease compared to 2023, leading to a comparable hotel EBITDA margin decline of 80 basis points to 31.9%.

•Adjusted EBITDAre was $476 million for the second quarter of 2024, exceeding 2023 by 6.7%. The increase was driven by operations from the recently acquired 1 Hotel Nashville and Embassy Suites by Hilton Nashville Downtown and The Ritz-Carlton, Naples, which was closed in the first half of 2023 due to Hurricane Ian. Year-to-date, Adjusted EBITDAre was $959 million, exceeding 2023 by 7.8%.

•Completed the final steps of the restoration efforts at The Ritz-Carlton, Naples following Hurricane Ian of bringing the permanent central energy plant online. The Company reached final settlement with its insurance carriers on covered costs related to damage and disruption caused by Hurricane Ian, for a total settlement of $308 million. To date, the Company has received $304 million of this amount. In the second quarter, the Company received $35 million, of which $9 million was recognized as a gain on business interruption. In total, $99 million of the insurance receipts were recognized as a gain on business interruption and the Company does not expect to recognize any additional gains on business interruption.

•The Company achieved a new milestone in its sustainability efforts for renewable energy use and green building certifications, resulting in the maximum pricing benefit under its credit facility, for a total reduction of 5 basis points on the interest rate for the outstanding term loans and a 4 basis point reduction on the interest rate for revolver borrowings.

•On April 15, 2024, the Company completed the previously announced acquisition of the fee simple interest in the 215-room 1 Hotel Nashville and 506-room Embassy Suites by Hilton Nashville Downtown for a total purchase price of $530 million.

Subsequent Acquisitions

•Acquired the fee simple interest in the 234-room 1 Hotel Central Park for a purchase price of $265 million. The LEED Certified® hotel features 2,000 square feet of contiguous and flexible meeting space, a naturally lit fitness center and business center, and Jams, a three-meal restaurant and bar affiliated with James Beard award winner Jonathan Waxman.

•Anticipates later today closing on the previously announced acquisition of The Ritz-Carlton O’ahu, Turtle Bay for $680 million, net of key money to be received from Marriott International, and including a 49-acre land parcel entitled for development. Located on 1,180-acres on the North Shore of Oahu, the property features 450 rooms, all with ocean views, including 42 bungalows with direct beach access, a separate check-in, and a private pool. Other amenities include 18,000 square feet of indoor meeting space, a club


© Host Hotels & Resorts, Inc.			PAGE 2 OF 24


HOST HOTELS & RESORTS, INC. NEWS RELEASE			July 31, 2024

lounge, six food and beverage outlets, a spa, fitness center, two golf courses, seven beaches, four resort pools, and access to 12 miles of oceanfront trails. The Company has reached an agreement with Marriott International to transition management and convert the property to the Ritz-Carlton brand.

Maui Update

•Effects from the August 2023 wildfires in Maui, Hawaii continued into 2024. In the second quarter, the Company's Maui hotels and golf courses impacted RevPAR by 250 basis points. The impact in the quarter is understated, however, as the Company would have expected Maui to contribute 90 basis points to portfolio RevPAR growth in the second quarter given the renovation disruption at Fairmont Kea Lani in 2023. As a result, the total estimated impact of the wildfires on second quarter RevPAR is 340 basis points. Operating profit margin and comparable hotel EBITDA margin were impacted by Maui's operations by approximately 70 basis points and 60 basis points, respectively, for the second quarter.

•Recognized $21 million of insurance proceeds as a gain on business interruption in the second quarter, representing the full settlement amount for the event, which partially offset the impacts in Maui, and positively impacted operating profit margin by 130 basis points and comparable hotel EBITDA margin by 135 basis points for the quarter, resulting in a net benefit from Maui on operating profit margin of 60 basis points and on comparable hotel EBITDA margin of 80 basis points.

BALANCE SHEET

The Company maintains a robust balance sheet and completed several financing transactions in the second quarter of 2024 and subsequently. These transactions include:

•The repayment of the $400 million 3⅞% Series G senior notes at maturity on April 1, 2024.

•Issuance of $600 million of 5.700% Series K green bond senior notes due 2034 in an underwritten public offering for proceeds of $584 million, net of original issue discount, underwriting fees and expenses on May 10, 2024.

•Repayments of all amounts outstanding under the revolving credit facility following the issuance of the Series K senior notes.

•A draw of $525 million on the revolving credit facility subsequent to quarter end to facilitate the aforementioned hotel acquisitions.

•The second quarter dividend paid on common stock of $140 million in July 2024.

After adjusting for the above investing and financing activities completed after quarter end, the Company estimates that it has the following balances:

•Total assets of $12.8 billion.

•Debt balance of $4.9 billion, with a weighted average maturity of 4.7 years, a weighted average interest rate of 4.9%, and a balanced maturity schedule.

•Total available liquidity of approximately $1.4 billion, including furniture, fixtures and equipment escrow reserves of $242 million and $970 million available under the revolver portion of the credit facility, and an estimated adjusted cash balance as follows (in millions):


Cash and cash equivalents at June 30, 2024	$	805
Draw on revolver portion of credit facility, post-quarter end	525
Cash consideration for the acquisition of The Ritz-Carlton O'ahu, Turtle Bay(1)	(696)
Cash consideration for the acquisition of 1 Hotel Central Park(1)	(258)
Second quarter dividend paid on common stock	(140)
Cash and cash equivalents adjusted for subsequent transactions	$	236

____________________________

(1) Cash paid for acquisitions are net of deposits paid prior to June 30, 2024. The expected receipt of key money in connection with the management change for The Ritz-Carlton O’ahu, Turtle Bay is not reflected in these amounts.


© Host Hotels & Resorts, Inc.			PAGE 3 OF 24


HOST HOTELS & RESORTS, INC. NEWS RELEASE			July 31, 2024

SHARE REPURCHASES AND DIVIDENDS

During the second quarter of 2024, the Company repurchased 2.8 million shares of common stock at an average price of $17.81 per share, exclusive of commissions, through its common share repurchase program for a total of $50 million. The Company has approximately $742 million of remaining capacity under the repurchase program, pursuant to which its common stock may be purchased from time to time, depending upon market conditions.

The Company paid a second quarter common stock cash dividend of $0.20 per share on July 15, 2024 to stockholders of record on June 28, 2024. All future dividends, including any special dividends, are subject to approval by the Company’s Board of Directors.

HOTEL BUSINESS MIX UPDATE

The Company’s customers fall into three broad groups: transient, group and contract business, which accounted for approximately 61%, 35%, and 4%, respectively, of its full year 2023 room sales.

The following are the results for transient, group and contract business in comparison to 2023 performance, for the Company's current portfolio:


	Quarter ended June 30, 2024									Year-to-date ended June 30, 2024
	Transient			Group			Contract			Transient			Group			Contract
Room nights (in thousands)	1,518			1,155			186			2,855			2,278			359
Percent change in room nights vs. same period in 2023	(2.2		%)	2.8		%	5.1		%	(2.0		%)	3.4		%	6.2		%
Rooms revenues (in millions)	$	498		$	326		$	38		$	957		$	656		$	73
Percent change in revenues vs. same period in 2023	(5.0		%)	7.7		%	12.3		%	(4.9		%)	6.5		%	15.2		%

CAPITAL EXPENDITURES

The following presents the Company’s capital expenditures spend through the second quarter of 2024 and the forecast for full year 2024 (in millions):


	Year-to-date ended June 30, 2024		2024 Full Year Forecast

	Actual		Low-end of range		High-end of range
ROI - Marriott and Hyatt Transformational Capital Programs	$	33	$	125	$	140
All other return on investment ("ROI") projects	44		95		120
Total ROI Projects	77		220		260
Renewals and Replacements ("R&R")	117		250		300
R&R and ROI Capital expenditures	194		470		560
R&R - Insurable Reconstruction	30		30		40
Total Capital Expenditures	$	224	$	500	$	600

Inventory spend for condo development(1)	19		50		60
Total capital allocation	$	243	$	550	$	660

__________

(1)Represents construction costs for the development of condominium units on a land parcel adjacent to Four Seasons Resort Orlando at Walt Disney World® Resort. Under U.S. GAAP, costs to develop units for resale are considered an operating activity on the statement of cash flows, and categorized as inventory. This spend is separate from payments for capital expenditures, which are considered investing activities.


© Host Hotels & Resorts, Inc.			PAGE 4 OF 24


HOST HOTELS & RESORTS, INC. NEWS RELEASE			July 31, 2024

Under the Hyatt Transformational Capital Program, the Company received $2 million, of the expected full year $9 million, of operating guarantees in the second quarter of 2024 to offset business disruptions.

2024 OUTLOOK

The Company has reduced its full year guidance range as a result of a slower than expected recovery from the wildfires in Maui and moderating leisure transient demand, which is driven primarily by elevated international U.S. outbound travel relative to historic levels without a corresponding increase in international inbound travel.

Operating profit margin in 2024 is expected to be flat to 2023, while comparable hotel EBITDA margins are expected to decline compared to 2023, due to the impacts from the Maui wildfires and continued growth in wages, real estate taxes and insurance. At the midpoint of guidance, the impact from Maui operations is expected to be an approximate decline of 180 basis points in RevPAR and 120 basis points in Total RevPAR. When combined with the expected pre-wildfire Maui contribution, the total impact is estimated to be 250 basis points and 190 basis points, respectively. Net of the benefit of the business interruption gains relating to the wildfires, the year-over-year impact from Maui on net income and Adjusted EBITDAre for full year is expected to be a decline of $25 million, and on margins is expected to be a decline of approximately 20 basis points.

The guidance includes an estimated $12 million and $22 million of net income and Adjusted EBITDAre, respectively, which is expected from the recent acquisitions of 1 Hotel Central Park and The Ritz-Carlton O’ahu, Turtle Bay. Due to the timing of the acquisitions, the results for these two hotels will be included in the comparable hotel guidance starting in the third quarter. Alila Ventana Big Sur reopened on May 22, 2024, following its closure due to the collapse of a portion of Highway 1 in California in March 2024, but continues to be excluded from the comparable hotel set for 2024.

The Company anticipates its 2024 operating results as compared to 2023 will be in the following range:

Current Full Year 2024 Guidance

Current Full Year 2024 Guidance Change vs. 2023

Previous Full Year 2024 Guidance Change vs. 2023

Change in Full Year 2024 Guidance to the Mid-Point

Comparable hotel Total RevPAR

$344 to $351

0.2% to 2.1%

2.7% to 4.6%

(250) bps

Comparable hotel RevPAR

$208 to $213

(1.0)% to 1.0%

2.0% to 4.0%

(300) bps

Total revenues under GAAP (in millions)

$5,619 to $5,725

5.8% to 7.8%

6.4% to 8.3%

(60) bps

Operating profit margin under GAAP

15.3% to 16.0%

(30) bps to 40 bps

(20) bps to 50 bps

(10) bps

Comparable hotel EBITDA margin

29.1% to 29.6%

(110) bps to (60) bps

(80) bps to (30) bps

(30) bps

Based upon the above parameters, the Company estimates its 2024 guidance as follows:

Current Full Year 2024 Guidance

Previous Full Year 2024 Guidance

Change in Full Year 2024 Guidance to the Mid-Point

Net income (in millions)

$683 to $741

$719 to $775

$(35)

Adjusted EBITDAre (in millions)

$1,615 to $1,675

$1,640 to $1,700

$(25)

Diluted earnings per common share

$0.95 to $1.03

$1.00 to $1.08

$(0.05)

NAREIT and Adjusted FFO per diluted share

$1.90 to $1.98

$1.97 to $2.05

$(0.07)

See the 2024 Forecast Schedules and the Notes to Financial Information for items that may affect forecast results and the Second Quarter 2024 Supplemental Financial Information for additional detail on the mid-point of full year 2024 guidance.

ABOUT HOST HOTELS & RESORTS

Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 76 properties in the United States and five properties internationally totaling approximately 43,400 rooms. The Company also holds non-controlling interests in seven domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The Luxury Collection®,


© Host Hotels & Resorts, Inc.			PAGE 5 OF 24


HOST HOTELS & RESORTS, INC. NEWS RELEASE			July 31, 2024

Hyatt®, Fairmont®, 1 Hotels®, Hilton®, Four Seasons®, Swissôtel®, ibis® and Novotel®, as well as independent brands. For additional information, please visit the Company’s website at www.hosthotels.com.

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements which include, but may not be limited to, our expectations regarding the recovery of travel and the lodging industry, the impact of the Maui wildfires and 2024 estimates with respect to our business, including our anticipated capital expenditures and financial and operating results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to, those described in the Company’s annual report on Form 10-K and other filings with the SEC. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of July 31, 2024, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

*This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks has any responsibility or liability for any information contained in this press release.

*** Tables to Follow ***


© Host Hotels & Resorts, Inc.			PAGE 6 OF 24


HOST HOTELS & RESORTS, INC. NEWS RELEASE			July 31, 2024

Host Hotels & Resorts, Inc., herein referred to as “we,” “Host Inc.,” or the “Company,” is a self-managed and self-administered real estate investment trust that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resorts, L.P. (“Host LP”), of which we are the sole general partner. When distinguishing between Host Inc. and Host LP, the primary difference is approximately 1% of the partnership interests in Host LP held by outside partners as of June 30, 2024, which are non-controlling interests in Host LP in our consolidated balance sheets and are included in net (income) loss attributable to non-controlling interests in our condensed consolidated statements of operations. Readers are encouraged to find further detail regarding our organizational structure in our annual report on Form 10-K.


2024 OPERATING RESULTS			PAGE NO.

Condensed Consolidated Balance Sheets (unaudited) June 30, 2024 and December 31, 2023			8

Condensed Consolidated Statements of Operations (unaudited) Quarter and Year-to-date ended June 30, 2024 and 2023			9

Earnings per Common Share (unaudited) Quarter and Year-to-date ended June 30, 2024 and 2023			10

Hotel Operating Data
Hotel Operating Data for Consolidated Hotels (by Location)			11

Schedule of Comparable Hotel Results			15

Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre			17

Reconciliation of Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share			18

2024 FORECAST INFORMATION

Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre and Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share for Full Year 2024 Forecasts			19

Schedule of Comparable Hotel Results for Full Year 2024 Forecasts			20

Notes to Financial Information			21


© Host Hotels & Resorts, Inc.			PAGE 7 OF 24

HOST HOTELS & RESORTS, INC.

Condensed Consolidated Balance Sheets

(unaudited, in millions, except shares and per share amounts)


	June 30, 2024		December 31, 2023

ASSETS
Property and equipment, net	$	10,017	$	9,624
Right-of-use assets	551		550

Due from managers	151		128
Advances to and investments in affiliates	156		126
Furniture, fixtures and equipment replacement fund	242		217
Notes receivable	72		72
Other	413		382
Cash and cash equivalents	805		1,144
Total assets	$	12,407	$	12,243

LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY
Debt⁽¹⁾
Senior notes	$	3,307	$	3,120
Credit facility, including the term loans of $997	990		989
Mortgage and other debt	99		100
Total debt	4,396		4,209
Lease liabilities	562		563
Accounts payable and accrued expenses	226		408
Due to managers	53		64

Other	181		173
Total liabilities	5,418		5,417

Redeemable non-controlling interests - Host Hotels & Resorts, L.P.	172		189

Host Hotels & Resorts, Inc. stockholders’ equity:
Common stock, par value $0.01, 1,050 million shares authorized, 702.3 million shares and 703.6 million shares issued and outstanding, respectively	7		7
Additional paid-in capital	7,500		7,535
Accumulated other comprehensive loss	(78)		(70)
Deficit	(615)		(839)
Total equity of Host Hotels & Resorts, Inc. stockholders	6,814		6,633
Non-redeemable non-controlling interests—other consolidated partnerships	3		4
Total equity	6,817		6,637
Total liabilities, non-controlling interests and equity	$	12,407	$	12,243

__________

(1)Please see our Second Quarter 2024 Supplemental Financial Information for more detail on our debt balances and financial covenant ratios under our credit facility and senior notes indentures.

PAGE 8 OF 24

HOST HOTELS & RESORTS, INC.

Condensed Consolidated Statements of Operations

(unaudited, in millions, except per share amounts)


	Quarter ended June 30,				Year-to-date ended June 30,
	2024		2023		2024		2023
Revenues
Rooms	$	885	$	850	$	1,738	$	1,670
Food and beverage	447		415		920		846
Other	134		128		279		258
Total revenues	1,466		1,393		2,937		2,774
Expenses
Rooms	214		201		416		394
Food and beverage	286		263		581		532
Other departmental and support expenses	343		323		677		638
Management fees	69		69		138		134
Other property-level expenses	101		93		205		184
Depreciation and amortization	188		168		368		337
Corporate and other expenses⁽¹⁾	29		30		56		61
Gain on insurance settlements	(56)		(3)		(87)		(3)
Total operating costs and expenses	1,174		1,144		2,354		2,277
Operating profit	292		249		583		497
Interest income	14		20		32		34
Interest expense	(50)		(45)		(97)		(94)
Other gains	—		—		—		69
Equity in earnings of affiliates	2		4		10		11
Income before income taxes	258		228		528		517
Provision for income taxes	(16)		(14)		(14)		(12)
Net income	242		214		514		505
Less: Net income attributable to non-controlling interests	(3)		(4)		(7)		(8)
Net income attributable to Host Inc.	$	239	$	210	$	507	$	497
Basic earnings per common share	$	0.34	$	0.30	$	0.72	$	0.70
Diluted earnings per common share	$	0.34	$	0.29	$	0.72	$	0.70

___________

(1)Corporate and other expenses include the following items:


	Quarter ended June 30,				Year-to-date ended June 30,
	2024		2023		2024		2023
General and administrative costs	$	24	$	20	$	45	$	41
Non-cash stock-based compensation expense	5		6		11		13
Litigation accruals	—		4		—		7
Total	$	29	$	30	$	56	$	61

PAGE 9 OF 24

HOST HOTELS & RESORTS, INC.

Earnings per Common Share

(unaudited, in millions, except per share amounts)


	Quarter ended June 30,				Year-to-date ended June 30,
	2024		2023		2024		2023
Net income	$	242	$	214	$	514	$	505
Less: Net income attributable to non-controlling interests	(3)		(4)		(7)		(8)
Net income attributable to Host Inc.	$	239	$	210	$	507	$	497

Basic weighted average shares outstanding	704.3		711.3		704.2		712.3
Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market	1.6		1.9		1.6		1.9
Diluted weighted average shares outstanding⁽¹⁾	705.9		713.2		705.8		714.2
Basic earnings per common share	$	0.34	$	0.30	$	0.72	$	0.70
Diluted earnings per common share	$	0.34	$	0.29	$	0.72	$	0.70

___________

(1)Dilutive securities may include shares granted under comprehensive stock plans, preferred operating partnership units (“OP Units”) held by non-controlling limited partners and other non-controlling interests that have the option to convert their limited partnership interests to common OP Units. No effect is shown for any securities that were anti-dilutive for the period.

PAGE 10 OF 24

HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels

Comparable Hotel Results by Location(1)


	As of June 30, 2024		Quarter ended June 30, 2024								Quarter ended June 30, 2023
Location	No. of Properties	No. of Rooms	Average Room Rate		Average Occupancy Percentage		RevPAR		Total RevPAR		Average Room Rate		Average Occupancy Percentage		RevPAR		Total RevPAR		Percent Change in RevPAR		Percent Change in Total RevPAR
Miami	2	1,038	$	519.87	69.5	%	$	361.34	$	629.52	$	538.70	69.6	%	$	374.98	$	646.85	(3.6	%)	(2.7	%)
Jacksonville	1	446	550.05		86.4	%	475.21		1,051.33		549.95		82.1	%	451.53		974.60		5.2	%	7.9	%
Maui/Oahu	4	2,006	528.77		63.9	%	338.11		532.71		594.07		73.7	%	437.96		678.06		(22.8	%)	(21.4	%)
Phoenix	3	1,545	381.00		73.9	%	281.53		672.33		372.81		73.6	%	274.51		651.73		2.6	%	3.2	%
Florida Gulf Coast	4	1,403	343.63		73.3	%	251.90		546.59		347.67		74.5	%	258.88		548.82		(2.7	%)	(0.4	%)
Nashville	2	721	372.01		87.9	%	327.05		513.45		372.17		79.4	%	295.66		441.87		10.6	%	16.2	%
Orlando	2	2,448	362.78		70.4	%	255.42		520.59		363.44		73.4	%	266.90		542.00		(4.3	%)	(4.0	%)
New York	2	2,486	362.54		86.9	%	315.07		456.84		346.21		84.3	%	291.87		423.84		7.9	%	7.8	%
San Diego	3	3,294	294.68		83.0	%	244.53		448.79		281.16		83.1	%	233.70		432.22		4.6	%	3.8	%
Los Angeles/Orange County	3	1,067	289.81		80.4	%	233.00		347.78		297.22		82.4	%	245.01		352.37		(4.9	%)	(1.3	%)
Washington, D.C. (CBD)	5	3,245	325.59		77.2	%	251.26		358.58		312.23		78.0	%	243.43		346.51		3.2	%	3.5	%
Boston	2	1,496	304.22		87.2	%	265.32		338.20		293.70		83.0	%	243.74		311.38		8.9	%	8.6	%
Northern Virginia	2	916	274.53		77.0	%	211.30		323.51		261.74		73.7	%	192.88		292.30		9.6	%	10.7	%
Philadelphia	2	810	258.20		85.1	%	219.67		331.95		249.51		83.5	%	208.44		327.91		5.4	%	1.2	%
Austin	2	767	256.35		73.4	%	188.25		328.50		257.48		70.8	%	182.18		327.53		3.3	%	0.3	%
San Francisco/San Jose	6	4,162	228.30		69.3	%	158.29		230.28		235.44		66.6	%	156.72		230.73		1.0	%	(0.2	%)
Houston	5	1,942	214.28		71.7	%	153.58		211.57		208.54		72.3	%	150.82		207.78		1.8	%	1.8	%
Chicago	3	1,562	279.14		76.4	%	213.15		300.37		278.93		76.2	%	212.54		303.24		0.3	%	(0.9	%)
New Orleans	1	1,333	198.40		73.9	%	146.60		223.37		208.75		75.0	%	156.55		241.38		(6.4	%)	(7.5	%)
Seattle	2	1,315	256.89		74.5	%	191.36		258.07		241.55		72.9	%	176.09		237.33		8.7	%	8.7	%
San Antonio	2	1,512	217.72		61.9	%	134.72		211.25		214.90		63.9	%	137.37		219.40		(1.9	%)	(3.7	%)
Atlanta	2	810	206.36		60.3	%	124.39		214.15		194.10		76.0	%	147.44		239.70		(15.6	%)	(10.7	%)
Denver	3	1,342	206.20		74.1	%	152.71		233.83		196.19		66.2	%	129.88		190.82		17.6	%	22.5	%
Other	9	3,007	251.87		69.8	%	175.89		269.14		251.67		69.3	%	174.36		268.05		0.9	%	0.4	%
Domestic	72	40,673	304.69		74.7	%	227.62		373.93		305.05		74.7	%	227.80		373.25		(0.1	%)	0.2	%

International	5	1,499	203.66		65.8	%	133.98		212.97		193.42		62.7	%	121.31		184.99		10.4	%	15.1	%
All Locations	77	42,172	$	301.52	74.4	%	$	224.29	$	368.25	$	301.70	74.3	%	$	224.02	$	366.60	0.1	%	0.5	%

___________

(1)See the Notes to Financial Information for a discussion of comparable hotel operating statistics. CBD of a location refers to the central business district. Hotel RevPAR is calculated as room revenues divided by the available room nights. Hotel Total RevPAR is calculated by dividing the sum of rooms, food and beverage and other revenues by the available room nights.

PAGE 11 OF 24

HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels (cont.)

Comparable Hotel Results by Location(1)


	As of June 30, 2024		Year-to-date ended June 30, 2024								Year-to-date ended June 30, 2023
Location	No. of Properties	No. of Rooms	Average Room Rate		Average Occupancy Percentage		RevPAR		Total RevPAR		Average Room Rate		Average Occupancy Percentage		RevPAR		Total RevPAR		Percent Change in RevPAR		Percent Change in Total RevPAR
Miami	2	1,038	$	582.35	75.7	%	$	441.05	$	748.58	$	594.02	73.8	%	$	438.09	$	753.95	0.7	%	(0.7	%)
Jacksonville	1	446	540.90		75.5	%	408.26		912.76		532.21		74.7	%	397.60		872.26		2.7	%	4.6	%
Maui/Oahu	4	2,006	534.73		68.3	%	364.97		582.11		599.89		75.0	%	449.74		689.14		(18.8	%)	(15.5	%)
Phoenix	3	1,545	438.15		77.6	%	339.94		763.44		455.18		78.0	%	355.17		764.31		(4.3	%)	(0.1	%)
Florida Gulf Coast	4	1,403	392.30		76.7	%	300.97		643.27		392.92		77.3	%	303.85		654.14		(0.9	%)	(1.7	%)
Nashville	2	721	343.99		80.9	%	278.21		449.95		343.90		74.8	%	257.36		380.80		8.1	%	18.2	%
Orlando	2	2,448	385.51		72.3	%	278.78		579.09		395.90		74.7	%	295.85		591.62		(5.8	%)	(2.1	%)
New York	2	2,486	328.99		80.5	%	264.68		387.16		316.51		78.8	%	249.47		369.18		6.1	%	4.9	%
San Diego	3	3,294	294.48		80.2	%	236.10		450.75		282.01		80.1	%	225.75		427.16		4.6	%	5.5	%
Los Angeles/Orange County	3	1,067	294.25		77.6	%	228.40		341.24		296.97		81.2	%	241.12		352.91		(5.3	%)	(3.3	%)
Washington, D.C. (CBD)	5	3,245	302.50		72.0	%	217.86		314.69		293.53		71.1	%	208.82		304.05		4.3	%	3.5	%
Boston	2	1,496	269.16		77.5	%	208.70		279.99		256.23		76.1	%	195.06		262.66		7.0	%	6.6	%
Northern Virginia	2	916	260.28		72.4	%	188.42		294.70		245.58		69.7	%	171.08		259.21		10.1	%	13.7	%
Philadelphia	2	810	232.64		78.9	%	183.63		280.42		229.68		78.9	%	181.17		283.96		1.4	%	(1.2	%)
Austin	2	767	265.62		69.1	%	183.49		326.16		273.23		70.4	%	192.43		343.15		(4.6	%)	(5.0	%)
San Francisco/San Jose	6	4,162	257.95		66.7	%	171.98		255.34		261.73		63.7	%	166.68		249.04		3.2	%	2.5	%
Houston	5	1,942	218.79		73.1	%	160.01		221.44		206.36		72.8	%	150.32		208.68		6.4	%	6.1	%
Chicago	3	1,562	237.03		66.0	%	156.45		222.96		238.80		64.0	%	152.79		219.73		2.4	%	1.5	%
New Orleans	1	1,333	204.89		74.2	%	152.12		238.46		215.24		74.0	%	159.23		240.08		(4.5	%)	(0.7	%)
Seattle	2	1,315	237.85		63.6	%	151.21		210.28		223.18		63.1	%	140.79		196.97		7.4	%	6.8	%
San Antonio	2	1,512	223.81		64.0	%	143.24		231.99		227.23		67.0	%	152.20		242.68		(5.9	%)	(4.4	%)
Atlanta	2	810	210.00		61.0	%	128.02		220.97		195.42		75.0	%	146.53		241.17		(12.6	%)	(8.4	%)
Denver	3	1,342	193.88		64.7	%	125.38		196.68		185.96		57.5	%	106.90		152.98		17.3	%	28.6	%
Other	9	3,007	285.81		63.9	%	182.66		282.56		291.21		63.6	%	185.23		284.76		(1.4	%)	(0.8	%)
Domestic	72	40,673	310.69		71.8	%	223.21		375.23		313.20		71.7	%	224.64		373.32		(0.6	%)	0.5	%

International	5	1,499	189.84		61.0	%	115.73		176.21		182.51		61.5	%	112.29		165.31		3.1	%	6.6	%
All Locations	77	42,172	$	307.04	71.5	%	$	219.40	$	368.20	$	309.20	71.4	%	$	220.65	$	365.97	(0.6	%)	0.6	%

___________

PAGE 12 OF 24

HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels (cont.)

Results by Location - actual, based on ownership period(1)


	As of June 30,
	2024	2023	Quarter ended June 30, 2024								Quarter ended June 30, 2023
Location	No. of Properties	No. of Properties	Average Room Rate		Average Occupancy Percentage		RevPAR		Total RevPAR		Average Room Rate		Average Occupancy Percentage		RevPAR		Total RevPAR		Percent Change in RevPAR		Percent Change in Total RevPAR
Miami	2	2	$	519.87	69.5	%	$	361.34	$	629.52	$	538.70	69.6	%	$	374.98	$	646.85	(3.6	%)	(2.7	%)
Jacksonville	1	1	550.05		86.4	%	475.21		1,051.33		549.95		82.1	%	451.53		974.60		5.2	%	7.9	%
Maui/Oahu	4	4	528.77		63.9	%	338.11		532.71		594.07		73.7	%	437.96		678.06		(22.8	%)	(21.4	%)
Phoenix	3	3	381.00		73.9	%	281.53		672.33		372.81		73.6	%	274.51		651.73		2.6	%	3.2	%
Florida Gulf Coast	5	5	441.33		72.2	%	318.58		699.93		347.63		56.5	%	196.31		418.47		62.3	%	67.3	%
Nashville	2	—	377.43		88.2	%	332.78		520.89		—		—	%	—		—		—	%	—	%
Orlando	2	2	362.78		70.4	%	255.42		520.59		363.44		73.4	%	266.90		542.00		(4.3	%)	(4.0	%)
New York	2	2	362.54		86.9	%	315.07		456.84		346.21		84.3	%	291.87		423.84		7.9	%	7.8	%
San Diego	3	3	294.68		83.0	%	244.53		448.79		281.16		83.1	%	233.70		432.22		4.6	%	3.8	%
Los Angeles/Orange County	3	3	289.81		80.4	%	233.00		347.78		297.22		82.4	%	245.01		352.37		(4.9	%)	(1.3	%)
Washington, D.C. (CBD)	5	5	325.59		77.2	%	251.26		358.58		312.23		78.0	%	243.43		346.51		3.2	%	3.5	%
Boston	2	2	304.22		87.2	%	265.32		338.20		293.70		83.0	%	243.74		311.38		8.9	%	8.6	%
Northern Virginia	2	2	274.53		77.0	%	211.30		323.51		261.74		73.7	%	192.88		292.30		9.6	%	10.7	%
Philadelphia	2	2	258.20		85.1	%	219.67		331.95		249.51		83.5	%	208.44		327.91		5.4	%	1.2	%
Austin	2	2	256.35		73.4	%	188.25		328.50		257.48		70.8	%	182.18		327.53		3.3	%	0.3	%
San Francisco/San Jose	6	6	228.30		69.3	%	158.29		230.28		235.44		66.6	%	156.72		230.73		1.0	%	(0.2	%)
Houston	5	5	214.28		71.7	%	153.58		211.57		208.54		72.3	%	150.82		207.78		1.8	%	1.8	%
Chicago	3	3	279.14		76.4	%	213.15		300.37		278.93		76.2	%	212.54		303.24		0.3	%	(0.9	%)
New Orleans	1	1	198.40		73.9	%	146.60		223.37		208.75		75.0	%	156.55		241.38		(6.4	%)	(7.5	%)
Seattle	2	2	256.89		74.5	%	191.36		258.07		241.55		72.9	%	176.09		237.33		8.7	%	8.7	%
San Antonio	2	2	217.72		61.9	%	134.72		211.25		214.90		63.9	%	137.37		219.40		(1.9	%)	(3.7	%)
Atlanta	2	2	206.36		60.3	%	124.39		214.15		194.10		76.0	%	147.44		239.70		(15.6	%)	(10.7	%)
Denver	3	3	206.20		74.1	%	152.71		233.83		196.19		66.2	%	129.88		190.82		17.6	%	22.5	%
Other	10	10	267.11		69.3	%	185.14		283.33		287.69		69.7	%	200.45		306.65		(7.6	%)	(7.6	%)
Domestic	74	72	310.33		74.6	%	231.38		383.57		306.27		73.8	%	226.00		370.82		2.4	%	3.4	%

International	5	5	203.66		65.8	%	133.98		212.97		193.42		62.7	%	121.31		184.99		10.4	%	15.1	%
All Locations	79	77	$	307.00	74.3	%	$	227.95	$	377.61	$	302.82	73.4	%	$	222.26	$	364.22	2.6	%	3.7	%

___________

(1)Represents the results of the portfolio for the time period of our ownership, including the results of non-comparable properties, dispositions through their date of disposal and acquisitions beginning as of the date of acquisition.

PAGE 13 OF 24

HOST HOTELS & RESORTS, INC.

Hotel Operating Data for Consolidated Hotels (cont.)

Results by Location - actual, based on ownership period(1)


	As of June 30,
	2024	2023	Year-to-date ended June 30, 2024								Year-to-date ended June 30, 2023
Location	No. of Properties	No. of Properties	Average Room Rate		Average Occupancy Percentage		RevPAR		Total RevPAR		Average Room Rate		Average Occupancy Percentage		RevPAR		Total RevPAR		Percent Change in RevPAR		Percent Change in Total RevPAR
Miami	2	2	$	582.35	75.7	%	$	441.05	$	748.58	$	594.02	73.8	%	$	438.09	$	753.95	0.7	%	(0.7	%)
Jacksonville	1	1	540.90		75.5	%	408.26		912.76		532.21		74.7	%	397.60		872.26		2.7	%	4.6	%
Maui/Oahu	4	4	534.73		68.3	%	364.97		582.11		599.89		75.0	%	449.74		689.14		(18.8	%)	(15.5	%)
Phoenix	3	3	438.15		77.6	%	339.94		763.44		446.98		78.0	%	348.64		738.46		(2.5	%)	3.4	%
Florida Gulf Coast	5	5	527.47		76.5	%	403.65		841.52		392.96		58.6	%	230.46		497.70		75.2	%	69.1	%
Nashville	2	—	377.43		88.2	%	332.78		520.89		—		—	%	—		—		—	%	—	%
Orlando	2	2	385.51		72.3	%	278.78		579.09		395.90		74.7	%	295.85		591.62		(5.8	%)	(2.1	%)
New York	2	2	328.99		80.5	%	264.68		387.16		316.51		78.8	%	249.47		369.18		6.1	%	4.9	%
San Diego	3	3	294.48		80.2	%	236.10		450.75		282.01		80.1	%	225.75		427.16		4.6	%	5.5	%
Los Angeles/Orange County	3	3	294.25		77.6	%	228.40		341.24		296.97		81.2	%	241.12		352.91		(5.3	%)	(3.3	%)
Washington, D.C. (CBD)	5	5	302.50		72.0	%	217.86		314.69		293.53		71.1	%	208.82		304.05		4.3	%	3.5	%
Boston	2	2	269.16		77.5	%	208.70		279.99		256.23		76.1	%	195.06		262.66		7.0	%	6.6	%
Northern Virginia	2	2	260.28		72.4	%	188.42		294.70		245.58		69.7	%	171.08		259.21		10.1	%	13.7	%
Philadelphia	2	2	232.64		78.9	%	183.63		280.42		229.68		78.9	%	181.17		283.96		1.4	%	(1.2	%)
Austin	2	2	265.62		69.1	%	183.49		326.16		273.23		70.4	%	192.43		343.15		(4.6	%)	(5.0	%)
San Francisco/San Jose	6	6	257.95		66.7	%	171.98		255.34		261.73		63.7	%	166.68		249.04		3.2	%	2.5	%
Houston	5	5	218.79		73.1	%	160.01		221.44		206.36		72.8	%	150.32		208.68		6.4	%	6.1	%
Chicago	3	3	237.03		66.0	%	156.45		222.96		238.80		64.0	%	152.79		219.73		2.4	%	1.5	%
New Orleans	1	1	204.89		74.2	%	152.12		238.46		215.24		74.0	%	159.23		240.08		(4.5	%)	(0.7	%)
Seattle	2	2	237.85		63.6	%	151.21		210.28		223.18		63.1	%	140.79		196.97		7.4	%	6.8	%
San Antonio	2	2	223.81		64.0	%	143.24		231.99		227.23		67.0	%	152.20		242.68		(5.9	%)	(4.4	%)
Atlanta	2	2	210.00		61.0	%	128.02		220.97		195.42		75.0	%	146.53		241.17		(12.6	%)	(8.4	%)
Denver	3	3	193.88		64.7	%	125.38		196.68		185.96		57.5	%	106.90		152.98		17.3	%	28.6	%
Other	10	10	305.62		63.8	%	195.13		302.05		319.34		64.0	%	204.29		314.22		(4.5	%)	(3.9	%)
Domestic	74	72	319.57		71.8	%	229.57		388.56		314.56		70.9	%	223.06		371.23		2.9	%	4.7	%

International	5	5	189.84		61.0	%	115.73		176.21		182.51		61.5	%	112.29		165.31		3.1	%	6.6	%
All Locations	79	77	$	315.65	71.5	%	$	225.54	$	381.09	$	310.46	70.6	%	$	219.11	$	363.94	2.9	%	4.7	%

___________

PAGE 14 OF 24

HOST HOTELS & RESORTS, INC.

Schedule of Comparable Hotel Results (1)

(unaudited, in millions, except hotel statistics)


	Quarter ended June 30,						Year-to-date ended June 30,
	2024			2023			2024			2023
Number of hotels	77			77			77			77
Number of rooms	42,172			42,172			42,172			42,172
Change in comparable hotel Total RevPAR	0.5		%	—			0.6		%	—
Change in comparable hotel RevPAR	0.1		%	—			(0.6		%)	—
Operating profit margin⁽²⁾	19.9		%	17.9		%	19.9		%	17.9		%
Comparable hotel EBITDA margin⁽²⁾	32.6		%	32.7		%	31.9		%	32.7		%
Food and beverage profit margin⁽²⁾	36.0		%	36.6		%	36.8		%	37.1		%
Comparable hotel food and beverage profit margin⁽²⁾	36.5		%	36.9		%	37.0		%	37.4		%

Net income	$	242		$	214		$	514		$	505
Depreciation and amortization	188			168			368			337
Interest expense	50			45			97			94
Provision for income taxes	16			14			14			12
Gain on sale of property and corporate level income/expense	(13)			6			(33)			(53)
Property transaction adjustments⁽³⁾	1			12			10			15
Non-comparable hotel results, net⁽⁴⁾	(23)			2			(66)			5
Comparable hotel EBITDA⁽¹⁾	$	461		$	461		$	904		$	915

___________

(1)See the Notes to Financial Information for a discussion of comparable hotel results, which are non-GAAP measures, and the limitations on their use. For additional information on comparable hotel EBITDA by location, see the Second Quarter 2024 Supplemental Financial Information posted on our website.

(2)Profit margins are calculated by dividing the applicable operating profit by the related revenue amount. GAAP profit margins are calculated using amounts presented in the unaudited condensed consolidated statements of operations. Comparable hotel margins are calculated using amounts presented in the following tables, which include reconciliations to the applicable GAAP results:


	Quarter ended June 30, 2024										Quarter ended June 30, 2023
			Adjustments										Adjustments
	GAAP Results		Property transaction adjustments ⁽³⁾		Non-comparable hotel results, net ⁽⁴⁾		Depreciation and corporate level items		Comparable hotel Results		GAAP Results		Property transaction adjustments (3)		Non-comparable hotel results, net ⁽⁴⁾		Depreciation and corporate level items		Comparable hotel Results
Revenues
Room	$	885	$	3	$	(26)	$	—	$	862	$	850	$	19	$	(8)	$	—	$	861
Food and beverage	447		2		(23)		—		426		415		8		(3)		—		420
Other	134		—		(7)		—		127		128		2		(2)		—		128
Total revenues	1,466		5		(56)		—		1,415		1,393		29		(13)		—		1,409
Expenses
Room	214		1		(6)		—		209		201		4		(2)		—		203
Food and beverage	286		1		(17)		—		270		263		5		(3)		—		265
Other	513		2		(19)		—		496		485		8		(10)		—		483
Depreciation and amortization	188		—		—		(188)		—		168		—		—		(168)		—
Corporate and other expenses	29		—		—		(29)		—		30		—		—		(30)		—
Gain on insurance settlements	(56)		—		9		26		(21)		(3)		—		—		—		(3)
Total expenses	1,174		4		(33)		(191)		954		1,144		17		(15)		(198)		948
Operating Profit - Comparable hotel EBITDA	$	292	$	1	$	(23)	$	191	$	461	$	249	$	12	$	2	$	198	$	461

PAGE 15 OF 24

HOST HOTELS & RESORTS, INC.

Schedule of Comparable Hotel Results (1) (cont.)

(unaudited, in millions, except hotel statistics)


	Year-to-date ended June 30, 2024										Year-to-date ended June 30, 2023
			Adjustments										Adjustments
	GAAP Results		Property transaction adjustments ⁽³⁾		Non-comparable hotel results, net ⁽⁴⁾		Depreciation and corporate level items		Comparable hotel Results		GAAP Results		Property transaction adjustments (3)		Non-comparable hotel results, net ⁽⁴⁾		Depreciation and corporate level items		Comparable hotel Results
Revenues
Room	$	1,738	$	18	$	(70)	$	—	$	1,686	$	1,670	$	29	$	(13)	$	—	$	1,686
Food and beverage	920		10		(54)		—		876		846		11		(5)		—		852
Other	279		2		(13)		—		268		258		3		(2)		—		259
Total revenues	2,937		30		(137)		—		2,830		2,774		43		(20)		—		2,797
Expenses
Room	416		4		(12)		—		408		394		7		(4)		—		397
Food and beverage	581		7		(36)		—		552		532		8		(7)		—		533
Other	1,020		9		(42)		—		987		956		13		(14)		—		955
Depreciation and amortization	368		—		—		(368)		—		337		—		—		(337)		—
Corporate and other expenses	56		—		—		(56)		—		61		—		—		(61)		—
Gain on insurance settlements	(87)		—		19		47		(21)		(3)		—		—		—		(3)
Total expenses	2,354		20		(71)		(377)		1,926		2,277		28		(25)		(398)		1,882
Operating Profit - Comparable hotel EBITDA	$	583	$	10	$	(66)	$	377	$	904	$	497	$	15	$	5	$	398	$	915

(3)Property transaction adjustments represent the following items: (i) the elimination of results of operations of hotels sold or held-for-sale as of the reporting date, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations, and (ii) the addition of results for periods prior to our ownership for hotels acquired as of the reporting date.

(4)Non-comparable hotel results, net, includes the following items: (i) the results of operations of our non-comparable hotels, which operations are included in our condensed consolidated statements of operations as continuing operations, and (ii) gains on business interruption proceeds covering lost revenues while the property was considered non-comparable. 

PAGE 16 OF 24

HOST HOTELS & RESORTS, INC.

Reconciliation of Net Income to

EBITDA, EBITDAre and Adjusted EBITDAre (1)

(unaudited, in millions)


	Quarter ended June 30,				Year-to-date ended June 30,
	2024		2023		2024		2023
Net income	$	242	$	214	$	514	$	505
Interest expense	50		45		97		94
Depreciation and amortization	188		168		368		337
Income taxes	16		14		14		12
EBITDA	496		441		993		948
Gain on dispositions⁽²⁾	—		—		—		(69)

Equity investment adjustments:
Equity in earnings of affiliates	(2)		(4)		(10)		(11)
Pro rata EBITDAre of equity investments(3)	8		9		23		22
EBITDAre	502		446		1,006		890
Adjustments to EBITDAre:

Gain on property insurance settlement	(26)		—		(47)		—

Adjusted EBITDAre	$	476	$	446	$	959	$	890

___________

(1)See the Notes to Financial Information for discussion of non-GAAP measures.

(2)Reflects the sale of one hotel in 2023.

(3)Unrealized gains of our unconsolidated investments are not recognized in our EBITDAre, Adjusted EBITDAre, NAREIT FFO or Adjusted FFO until they have been realized by the unconsolidated partnership.

PAGE 17 OF 24

HOST HOTELS & RESORTS, INC.

Reconciliation of Diluted Earnings per Common Share to

NAREIT and Adjusted Funds From Operations per Diluted Share (1)

(unaudited, in millions, except per share amounts)


	Quarter ended June 30,				Year-to-date ended June 30,
	2024		2023		2024		2023
Net income	$	242	$	214	$	514	$	505
Less: Net income attributable to non-controlling interests	(3)		(4)		(7)		(8)
Net income attributable to Host Inc.	239		210		507		497
Adjustments:
Gain on dispositions⁽²⁾	—		—		—		(69)
Gain on property insurance settlement	(26)		—		(47)		—
Depreciation and amortization	187		168		367		336
Equity investment adjustments:
Equity in earnings of affiliates	(2)		(4)		(10)		(11)
Pro rata FFO of equity investments(3)	4		6		13		16
Consolidated partnership adjustments:
FFO adjustments for non-controlling interests of Host L.P.	(3)		(3)		(5)		(4)
NAREIT FFO	399		377		825		765
Adjustments to NAREIT FFO:
Loss on debt extinguishment	—		—		—		4
Adjusted FFO	$	399	$	377	$	825	$	769

For calculation on a per share basis:⁽⁴⁾

Diluted weighted average shares outstanding - EPS, NAREIT FFO and Adjusted FFO	705.9		713.2		705.8		714.2
Diluted earnings per common share	$	0.34	$	0.29	$	0.72	$	0.70
NAREIT FFO per diluted share	$	0.57	$	0.53	$	1.17	$	1.07
Adjusted FFO per diluted share	$	0.57	$	0.53	$	1.17	$	1.08

___________

(1-3)Refer to the corresponding footnote on the Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre.

(4)Diluted earnings per common share, NAREIT FFO per diluted share and Adjusted FFO per diluted share are adjusted for the effects of dilutive securities. Dilutive securities may include shares granted under comprehensive stock plans, preferred OP units held by non-controlling limited partners and other non-controlling interests that have the option to convert their limited partner interests to common OP units. No effect is shown for securities if they are anti-dilutive.

PAGE 18 OF 24

HOST HOTELS & RESORTS, INC.

Reconciliation of Net Income to

EBITDA, EBITDAre and Adjusted EBITDAre and Diluted Earnings per Common Share to

NAREIT and Adjusted Funds From Operations per Diluted Share for Full Year 2024 Forecasts (1)

(unaudited, in millions)


	Full Year 2024
	Low-end of range		High-end of range
Net income	$	683	$	741
Interest expense	216		216
Depreciation and amortization	742		742
Income taxes	20		22
EBITDA	1,661		1,721


Equity investment adjustments:
Equity in earnings of affiliates	(12)		(13)
Pro rata EBITDAre of equity investments	40		41
EBITDAre	1,689		1,749
Adjustments to EBITDAre:
Gain on property insurance settlement	(74)		(74)
Adjusted EBITDAre	$	1,615	$	1,675


	Full Year 2024
	Low-end of range		High-end of range
Net income	$	683	$	741
Less: Net income attributable to non-controlling interests	(10)		(11)
Net income attributable to Host Inc.	673		730
Adjustments:


Gain on property insurance settlement	(74)		(74)
Depreciation and amortization	740		740

Equity investment adjustments:
Equity in earnings of affiliates	(12)		(13)
Pro rata FFO of equity investments	21		22
Consolidated partnership adjustments:
FFO adjustment for non-controlling partnerships	(1)		(1)
FFO adjustment for non-controlling interests of Host LP	(9)		(9)




NAREIT and Adjusted FFO	$	1,338	$	1,395

Diluted weighted average shares outstanding - EPS, NAREIT FFO and Adjusted FFO	705.6		705.6
Diluted earnings per common share	$	0.95	$	1.03

NAREIT and Adjusted FFO per diluted share	$	1.90	$	1.98

_______________

(1)The Forecasts are based on the below assumptions:

•Comparable hotel RevPAR will decrease 1.0% compared to 2023 for the low end of the forecast range and increase 1.0% compared to 2023 for the high end of the forecast range.

•Comparable hotel EBITDA margins will decrease 110 basis points to 60 basis points compared to 2023 for the low and high ends of the forecasted comparable hotel RevPAR range, respectively.

•We expect to spend approximately $500 million to $600 million on capital expenditures.

•Includes $12 million of net income and $22 million of EBITDA from the 1 Hotel Central Park and The Ritz-Carlton O’ahu, Turtle Bay, acquired in July 2024. Assumes no additional acquisitions and no dispositions during the year.

•Includes the final settlement for insurance proceeds related to Hurricane Ian and the Maui wildfires.

For a discussion of items that may affect forecast results, see the Notes to Financial Information.

PAGE 19 OF 24

HOST HOTELS & RESORTS, INC.

Schedule of Comparable Hotel Results for Full Year 2024 Forecasts (1)(2)

(unaudited, in millions)


	Full Year 2024
	Low-end of range			High-end of range
Operating profit margin(3)	15.3		%	16.0		%
Comparable hotel EBITDA margin(3)	29.1		%	29.6		%

Net income	$	683		$	741
Depreciation and amortization	742			742
Interest expense	216			216
Provision for income taxes	20			22
Gain on sale of property and corporate level income/expense	(20)			(21)

Forecast results for July acquisitions(2)	(22)			(22)
Property transaction adjustments	10			10
Non-comparable hotel results, net(4)	(82)			(83)
Comparable hotel EBITDA(1)	$	1,547		$	1,605

___________

(1)See "Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre and Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share for Full Year 2024 Forecasts" for other forecast assumptions.

(2)Forecast comparable hotel results include 77 hotels (of our 79 hotels owned at June 30, 2024) that we have assumed will be classified as comparable as of December 31, 2024. Comparable hotel metrics do not yet include the results of 1 Hotel Central Park and The Ritz-Carlton O’ahu, Turtle Bay, which were acquired in July 2024. We expect to include the comparable hotel results for these two hotels beginning in the third quarter.

(3)Profit margins are calculated by dividing the applicable operating profit by the related revenue amount. GAAP profit margins are calculated using amounts presented in the unaudited condensed consolidated statements of operations. Comparable hotel margins are calculated using amounts presented in the following tables, which include reconciliations to the applicable GAAP results:


	Low-end of range												High-end of range
			Adjustments												Adjustments
	GAAP Results		Forecast results for July acquisitions		Property transaction adjustments		Non-comparable hotel results, net		Depreciation and corporate level items		Comparable hotel Results		GAAP Results		Forecast results for July acquisitions		Property transaction adjustments		Non-comparable hotel results, net		Depreciation and corporate level items		Comparable hotel Results
Revenues
Rooms	$	3,384	$	(60)	$	18	$	(122)	$	—	$	3,220	$	3,452	$	(60)	$	18	$	(124)	$	—	$	3,286
Food and beverage	1,699		(20)		10		(88)		—		1,601		1,729		(20)		10		(88)		—		1,631
Other	536		(14)		2		(22)		—		502		544		(14)		2		(22)		—		510
Total revenues	5,619		(94)		30		(232)		—		5,323		5,725		(94)		30		(234)		—		5,427
Expenses
Hotel expenses	4,018		(72)		20		(169)		—		3,797		4,065		(72)		20		(170)		—		3,843
Depreciation and amortization	742		—		—		—		(742)		—		742		—		—		—		(742)		—
Corporate and other expenses	115		—		—		—		(115)		—		115		—		—		—		(115)		—
Gain on insurance settlements	(114)		—		—		19		74		(21)		(114)		—		—		19		74		(21)
Total expenses	4,761		(72)		20		(150)		(783)		3,776		4,808		(72)		20		(151)		(783)		3,822
Operating Profit - Comparable hotel EBITDA	$	858	$	(22)	$	10	$	(82)	$	783	$	1,547	$	917	$	(22)	$	10	$	(83)	$	783	$	1,605

•The Ritz-Carlton, Naples (business disruption due to Hurricane Ian beginning in September 2022, reopened in July 2023);

•Alila Ventana Big Sur (business disruption due to the collapse of a portion of Highway 1, causing closure of the hotel beginning in March 2024, reopened in May 2024);

•Sales and marketing expenses related to the development and sale of condominium units on a development parcel adjacent to Four Seasons Resort Orlando at Walt Disney World® Resort.

PAGE 20 OF 24

HOST HOTELS & RESORTS, INC.

Notes to Financial Information

FORECASTS

Our forecast of net income, earnings per diluted share, NAREIT and Adjusted FFO per diluted share, EBITDA, EBITDAre, Adjusted EBITDAre and comparable hotel results are forward-looking statements and are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause actual results and performance to differ materially from those expressed or implied by these forecasts. Although we believe the expectations reflected in the forecasts are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that the results will not be materially different. Risks that may affect these assumptions and forecasts include the following: potential changes in overall economic outlook make it inherently difficult to forecast the level of RevPAR; the amount and timing of debt payments may change significantly based on market conditions, which will directly affect the level of interest expense and net income; the amount and timing of transactions involving shares of our common stock may change based on market conditions; and other risks and uncertainties associated with our business described herein and in our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC.

COMPARABLE HOTEL OPERATING STATISTICS AND RESULTS

To facilitate a year-to-year comparison of our operations, we present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in our reports on a comparable hotel basis in order to enable our investors to better evaluate our operating performance. We define our comparable hotels as those that: (i) are owned or leased by us as of the reporting date and are not classified as held-for-sale; and (ii) have not sustained substantial property damage or business interruption, or undergone large-scale capital projects, in each case requiring closures lasting one month or longer (as further defined below), during the reporting periods being compared.

We make adjustments to include recent acquisitions to include results for periods prior to our ownership. For these hotels, since the year-over-year comparison includes periods prior to our ownership, the changes will not necessarily correspond to changes in our actual results. Additionally, operating results of hotels that we sell are excluded from the comparable hotel set once the transaction has closed or the hotel is classified as held-for-sale.

The hotel business is capital-intensive and renovations are a regular part of the business. Generally, hotels under renovation remain comparable hotels. A large-scale capital project would cause a hotel to be excluded from our comparable hotel set if it requires the entire property to be closed to hotel guests for one month or longer.

Similarly, hotels are excluded from our comparable hotel set from the date that they sustain substantial property damage or business interruption if it requires the property to be closed to hotel guests for one month or longer. In each case, these hotels are returned to the comparable hotel set when the operations of the hotel have been included in our consolidated results for one full calendar year after the hotel has reopened. Often, related to events that cause property damage and the closure of a hotel, we will collect business interruption insurance proceeds for the near-term loss of business. These proceeds are included in gain on insurance settlements on our condensed consolidated statements of operations. Business interruption insurance gains covering lost revenues while the property was considered non-comparable also will be excluded from the comparable hotel results.

Of the 79 hotels that we owned as of June 30, 2024, 77 have been classified as comparable hotels. The operating results of the following properties that we owned as of June 30, 2024 are excluded from comparable hotel results for these periods:

•Alila Ventana Big Sur (business disruption due to the collapse of a portion of Highway 1, causing closure of the hotel beginning in March 2024, reopened in May 2024);

•The Ritz-Carlton, Naples (business disruption due to Hurricane Ian beginning in September 2022, reopened in July 2023); and

•Sales and marketing expenses related to the development and sale of condominium units on a development parcel adjacent to Four Seasons Resort Orlando at Walt Disney World® Resort.

FOREIGN CURRENCY TRANSLATION

Operating results denominated in foreign currencies are translated using the prevailing exchange rates on the date of the transaction, or monthly based on the weighted average exchange rate for the period. Therefore, hotel statistics and results for non-U.S. properties include the effect of currency fluctuations, consistent with our financial statement presentation.

NON-GAAP FINANCIAL MEASURES

Included in this press release are certain “non-GAAP financial measures,” which are measures of our historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules. They are as follows: (i) FFO and FFO per diluted share (both NAREIT and Adjusted), (ii) EBITDA, (iii) EBITDAre and Adjusted EBITDAre, and (iv) Comparable Hotel Operating Statistics and Results. The following discussion defines these measures and presents why we believe they are useful supplemental measures of our performance.

PAGE 21 OF 24

HOST HOTELS & RESORTS, INC.

Notes to Financial Information (cont.)

NAREIT FFO AND NAREIT FFO PER DILUTED SHARE

We present NAREIT FFO and NAREIT FFO per diluted share as non-GAAP measures of our performance in addition to our earnings per share (calculated in accordance with GAAP). We calculate NAREIT FFO per diluted share as our NAREIT FFO (defined as set forth below) for a given operating period, as adjusted for the effect of dilutive securities, divided by the number of fully diluted shares outstanding during such period, in accordance with NAREIT guidelines. As noted in NAREIT’s Funds From Operations White Paper – 2018 Restatement, NAREIT defines FFO as net income (calculated in accordance with GAAP) excluding depreciation and amortization related to certain real estate assets, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment expense of certain real estate assets and investments and adjustments for consolidated partially owned entities and unconsolidated affiliates. Adjustments for consolidated partially owned entities and unconsolidated affiliates are calculated to reflect our pro rata share of the FFO of those entities on the same basis.

We believe that NAREIT FFO per diluted share is a useful supplemental measure of our operating performance and that the presentation of NAREIT FFO per diluted share, when combined with the primary GAAP presentation of diluted earnings per share, provides beneficial information to investors. By excluding the effect of real estate depreciation, amortization, impairment expense and gains and losses from sales of depreciable real estate, all of which are based on historical cost accounting and which may be of lesser significance in evaluating current performance, we believe that such measures can facilitate comparisons of operating performance between periods and with other REITs, even though NAREIT FFO per diluted share does not represent an amount that accrues directly to holders of our common stock. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. As noted by NAREIT in its Funds From Operations White Paper – 2018 Restatement, the primary purpose for including FFO as a supplemental measure of operating performance of a REIT is to address the artificial nature of historical cost depreciation and amortization of real estate and real estate-related assets mandated by GAAP. For these reasons, NAREIT adopted the FFO metric in order to promote a uniform industry-wide measure of REIT operating performance.

Adjusted FFO per Diluted Share

We also present Adjusted FFO per diluted share when evaluating our performance because management believes that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. Management historically has made the adjustments detailed below in evaluating our performance, in our annual budget process and for our compensation programs. We believe that the presentation of Adjusted FFO per diluted share, when combined with both the primary GAAP presentation of diluted earnings per share and FFO per diluted share as defined by NAREIT, provides useful supplemental information that is beneficial to an investor’s understanding of our operating performance. We adjust NAREIT FFO per diluted share for the following items, which may occur in any period, and refer to this measure as Adjusted FFO per diluted share:

•Gains and Losses on the Extinguishment of Debt – We exclude the effect of finance charges and premiums associated with the extinguishment of debt, including the acceleration of the write-off of deferred financing costs from the original issuance of the debt being redeemed or retired and incremental interest expense incurred during the refinancing period. We also exclude the gains on debt repurchases and the original issuance costs associated with the retirement of preferred stock. We believe that these items are not reflective of our ongoing finance costs.

•Acquisition Costs – Under GAAP, costs associated with completed property acquisitions that are considered business combinations are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company.

•Litigation Gains and Losses – We exclude the effect of gains or losses associated with litigation recorded under GAAP that we consider to be outside the ordinary course of business. We believe that including these items is not consistent with our ongoing operating performance.

•Severance Expense – In certain circumstances, we will add back hotel-level severance expenses when we do not believe that such expenses are reflective of the ongoing operation of our properties. Situations that would result in a severance add-back include, but are not limited to, (i) costs incurred as part of a broad-based reconfiguration of the operating model with the specific hotel operator for a portfolio of hotels and (ii) costs incurred at a specific hotel due to a broad-based and significant reconfiguration of a hotel and/or its workforce. We do not add back corporate-level severance costs or severance costs at an individual hotel that we consider to be incurred in the normal course of business.

In unusual circumstances, we also may adjust NAREIT FFO for gains or losses that management believes are not representative of the Company’s current operating performance. For example, in 2017, as a result of the reduction of the U.S. federal corporate income tax rate from 35% to 21% by the Tax Cuts and Jobs Act, we remeasured our domestic deferred tax assets as of December 31, 2017 and recorded a one-time adjustment to reduce our deferred tax assets and to increase the provision for income taxes by approximately $11 million. We do not consider this adjustment to be reflective of our ongoing operating performance and, therefore, we excluded this item from Adjusted FFO.

PAGE 22 OF 24

HOST HOTELS & RESORTS, INC.

Notes to Financial Information (cont.)

EBITDA

Earnings before Interest Expense, Income Taxes, Depreciation and Amortization (“EBITDA”) is a commonly used measure of performance in many industries. Management believes EBITDA provides useful information to investors regarding our results of operations because it helps us and our investors evaluate the ongoing operating performance of our properties after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization). Management also believes the use of EBITDA facilitates comparisons between us and other lodging REITs, hotel owners that are not REITs and other capital-intensive companies. Management uses EBITDA to evaluate property-level results and as one measure in determining the value of acquisitions and dispositions and, like FFO and Adjusted FFO per diluted share, it is widely used by management in the annual budget process and for our compensation programs.

EBITDAre and Adjusted EBITDAre

We present EBITDAre in accordance with NAREIT guidelines, as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate,” to provide an additional performance measure to facilitate the evaluation and comparison of the Company’s results with other REITs. NAREIT defines EBITDAre as net income (calculated in accordance with GAAP) excluding interest expense, income tax, depreciation and amortization, gains or losses on disposition of depreciated property (including gains or losses on change of control), impairment expense for depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustments to reflect the entity’s pro rata share of EBITDAre of unconsolidated affiliates.

We make additional adjustments to EBITDAre when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. We believe that the presentation of Adjusted EBITDAre, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s understanding of our operating performance. Adjusted EBITDAre also is similar to the measure used to calculate certain credit ratios for our credit facility and senior notes. We adjust EBITDAre for the following items, which may occur in any period, and refer to this measure as Adjusted EBITDAre:

•Property Insurance Gains – We exclude the effect of property insurance gains reflected in our condensed consolidated statements of operations because we believe that including them in Adjusted EBITDAre is not consistent with reflecting the ongoing performance of our assets. In addition, property insurance gains could be less important to investors given that the depreciated asset book value written off in connection with the calculation of the property insurance gain often does not reflect the market value of real estate assets.

In unusual circumstances, we also may adjust EBITDAre for gains or losses that management believes are not representative of the Company’s current operating performance. The last adjustment of this nature was a 2013 exclusion of a gain from an eminent domain claim.

Limitations on the Use of NAREIT FFO per Diluted Share, Adjusted FFO per Diluted Share, EBITDA, EBITDAre and Adjusted EBITDAre

We calculate EBITDAre and NAREIT FFO per diluted share in accordance with standards established by NAREIT, which may not be comparable to measures calculated by other companies that do not use the NAREIT definition of EBITDAre and FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance. In addition, although EBITDAre and FFO per diluted share are useful measures when comparing our results to other REITs, they may not be helpful to investors when comparing us to non-REITs. We also calculate Adjusted FFO per diluted share and Adjusted EBITDAre, which measures are not in accordance with NAREIT guidance and may not be comparable to measures calculated by other REITs or by other companies. This information should not be considered as an alternative to net income, operating profit, cash from operations or any other operating performance measure calculated in accordance with GAAP. Cash expenditures for various long-term assets (such as renewal and replacement capital expenditures), interest expense (for EBITDA, EBITDAre and Adjusted EBITDAre purposes only), severance expense related to significant property-level reconfiguration and other items have been, and will be, made and are not reflected in the EBITDA,

PAGE 23 OF 24

HOST HOTELS & RESORTS, INC.

Notes to Financial Information (cont.)

EBITDAre, Adjusted EBITDAre, NAREIT FFO per diluted share and Adjusted FFO per diluted share presentations. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our consolidated statements of operations and consolidated statements of cash flows in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures. Additionally, NAREIT FFO per diluted share, Adjusted FFO per diluted share, EBITDA, EBITDAre and Adjusted EBITDAre should not be considered as measures of our liquidity or indicative of funds available to fund our cash needs, including our ability to make cash distributions. In addition, NAREIT FFO per diluted share and Adjusted FFO per diluted share do not measure, and should not be used as measures of, amounts that accrue directly to stockholders’ benefit.

Similarly, EBITDAre, Adjusted EBITDAre, NAREIT FFO and Adjusted FFO per diluted share include adjustments for the pro rata share of our equity investments, and NAREIT FFO and Adjusted FFO per diluted share include adjustments for the pro rata share of non-controlling partners in consolidated partnerships. Our equity investments consist of interests ranging from 11% to 67% in eight domestic and international partnerships that own a total of 35 properties and a vacation ownership development. Due to the voting rights of the outside owners, we do not control and, therefore, do not consolidate these entities. The non-controlling partners in consolidated partnerships primarily consist of the approximate 1% interest in Host LP held by unaffiliated limited partners and a 15% interest held by an unaffiliated limited partner in a partnership owning one hotel for which we do control the entity and, therefore, consolidate its operations. These pro rata results for NAREIT FFO and Adjusted FFO per diluted share, EBITDAre and Adjusted EBITDAre were calculated as set forth in the definitions above. Readers should be cautioned that the pro rata results presented in these measures for consolidated partnerships (for NAREIT FFO and Adjusted FFO per diluted share) and equity investments may not accurately depict the legal and economic implications of our investments in these entities.

Comparable Hotel Property Level Operating Results

We present certain operating results for our hotels, such as hotel revenues, expenses, food and beverage profit, and EBITDA (and the related margins), on a comparable hotel, or "same store," basis as supplemental information for our investors. Our comparable hotel results present operating results for our hotels without giving effect to dispositions or properties that experienced closures due to renovations or property damage, as discussed in “Comparable Hotel Operating Statistics and Results” above. We present comparable hotel EBITDA to help us and our investors evaluate the ongoing operating performance of our comparable hotels after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization expense). Corporate-level costs and expenses also are removed to arrive at property-level results. We believe these property-level results provide investors with supplemental information about the ongoing operating performance of our comparable hotels. Comparable hotel results are presented both by location and for the Company’s properties in the aggregate. We eliminate from our comparable hotel level operating results severance costs related to broad-based and significant property-level reconfiguration that is not considered to be within the normal course of business, as we believe this elimination provides useful supplemental information that is beneficial to an investor’s understanding of our ongoing operating performance. We also eliminate depreciation and amortization expense because, even though depreciation and amortization expense are property-level expenses, these non-cash expenses, which are based on historical cost accounting for real estate assets, implicitly assume that the value of real estate assets diminishes predictably over time. As noted earlier, because real estate values historically have risen or fallen with market conditions, many real estate industry investors have considered presentation of historical cost accounting for operating results to be insufficient.

Because of the elimination of corporate-level costs and expenses, gains or losses on disposition, certain severance expenses and depreciation and amortization expense, the comparable hotel operating results we present do not represent our total revenues, expenses, operating profit or net income and should not be used to evaluate our performance as a whole. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our condensed consolidated statements of operations include such amounts, all of which should be considered by investors when evaluating our performance.

We present these hotel operating results on a comparable hotel basis because we believe that doing so provides investors and management with useful information for evaluating the period-to-period performance of our hotels and facilitates comparisons with other hotel REITs and hotel owners. In particular, these measures assist management and investors in distinguishing whether increases or decreases in revenues and/or expenses are due to growth or decline of operations at comparable hotels (which represent the vast majority of our portfolio) or from other factors. While management believes that presentation of comparable hotel results is a supplemental measure that provides useful information in evaluating our ongoing performance, this measure is not used to allocate resources or to assess the operating performance of each of our hotels, as these decisions are based on data for individual hotels and are not based on comparable hotel results in the aggregate. For these reasons, we believe comparable hotel operating results, when combined with the presentation of GAAP operating profit, revenues and expenses, provide useful information to investors and management.

PAGE 24 OF 24