Host Hotels & Resorts (HST) has reported a 13.19 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $158 million, or $0.21 a share in the quarter, compared with $182 million, or $0.24 a share for the same period last year.
Revenue during the quarter went up marginally by 0.67 percent to $1,348 million from $1,339 million in the previous year period.
Cost of revenue went down marginally by 1.22 percent or $12 million during the quarter to $971 million. Gross margin for the quarter expanded 138 basis points over the previous year period to 27.97 percent.
Total expenses were $1,177 million for the quarter, down 0.93 percent or $11 million from year-ago period. Operating margin for the quarter expanded 141 basis points over the previous year period to 12.69 percent.
Operating income for the quarter was $171 million, compared with $151 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $367 million compared with $345 million in the prior year period. At the same time, adjusted EBITDA margin improved 146 basis points in the quarter to 27.23 percent from 25.77 percent in the last year period.
For financial year 2017, Host Hotels & Resorts projects net income to be in the range of $557 million to $621 million. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $0.73 to $0.81.
Occupancy revenue for the quarter was stable at $843 million, when compared with the previous year period. Food and beverage revenue was $422 million during the quarter, up 3.43 percent or $14 million from year-ago period.
Other income during the quarter was $83 million, down 5.68 percent or $5 million from year-ago period.
James F. Risoleo, president and chief executive officer of Host Hotels, stated: "We are pleased with our first quarter results and we continue to improve our geographically diverse portfolio of irreplaceable assets, with over $430 million of high-quality asset acquisitions during the quarter. By utilizing our scale, access to information, and industry-leading balance sheet, we added the Don CeSar and W Hollywood to our collection of properties. Both properties, without any adjustments for our value-add plans, are immediately in the top ten of our portfolio, based on their 2016 EBITDA results on a per room basis. Combined with our strategic sales of non-core assets, we believe this disciplined capital allocation activity will help us to continue to fulfill our mission of creating value for our stockholders."
Net receivables were at $133 million as on Mar. 31, 2017, down 1.48 percent or $2 million from year-ago.
Total assets went up marginally by 0.74 percent or $86 million to $11,776 million on Mar. 31, 2017. On the other hand, total liabilities were at $4,549 million as on Mar. 31, 2017, up 1.70 percent or $76 million from year-ago.
Return on assets moved down 21 basis points to 1.70 percent in the quarter. At the same time, return on equity moved down 34 basis points to 2.24 percent in the quarter.
Debt remains almost stable
Total debt was at $3,988 million as on Mar. 31, 2017, up 0.68 percent or $27 million from year-ago. Shareholders equity was almost stable over the past one year at $7,066 million on Mar. 31, 2017. As a result, debt to equity ratio was almost stable at 0.56 percent in the quarter, when compared with the last year period.
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