Shares of Host Hotels and Resorts Inc (NYSE:HST) ended Thursday session in red amid volatile trading. The shares closed down -0.25 points or -1.47% at $16.81 with 12.82 million shares getting traded. Post opening the session at $16.99, the shares hit an intraday low of $16.79 and an intraday high of $17.02 and the price vacillated in this range throughout the day. The company has a market cap of $12.47 billion and the numbers of outstanding shares have been calculated to be 742.48 million shares.
Host Hotels and Resorts Inc (HST) on July 29, 2016 announced results of operations for the second quarter of 2016.
“Consistent with our disciplined approach to capital allocation and active portfolio management, we completed the sale of five non-core properties for a total of $345 million and repurchased 5.2 million shares at an average price of $15.39,” said W. Edward Walter, President and Chief Executive Officer. “Importantly, we invested a portion of the proceeds to acquire the ground lease under the Key Bridge Marriott, which is located along the Potomac River with dynamic views of the Washington, D.C. cityscape. Notwithstanding variances in top-line performance across markets, we achieved strong margin growth, driven by improvements in productivity and efficiency across the portfolio and by food and beverage operations, resulting in strong EBITDA and FFO growth.”
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Adjusted EBITDA increased $14 million, or 3.3%, for the quarter and $39 million, or 5.2%, year-to-date, driven by increases of 5.0% and 5.7%, respectively, in comparable hotel EBITDA. This increase was primarily a result of strong margin improvement, a significant increase in F&B revenues, and comparable RevPAR increases. The growth in Adjusted EBITDA was partially offset by our successful 2016 asset sales which reduced year-to-date growth by 110 basis points.
Comparable RevPAR on a constant dollar basis improved 2.0% for the quarter, driven by a slight increase in average room rate and a 120 basis point increase in occupancy to 82.4%, the highest occupancy level since 2000. The increase in occupancy was driven by strong group and leisure business; however, an unfavorable business mix shift from higher rated corporate transient demand to lower rated discount business affected average room rates. Year-to-date, comparable RevPAR on a constant dollar basis increased 2.7%, largely driven by a 170 basis point increase in occupancy.
Comparable RevPAR at the Company’s domestic properties improved 2.0% for the quarter and 2.6% year-to-date. The Los Angeles and Washington, D.C. markets outperformed the portfolio during the second quarter, with RevPAR increases of 9.1% and 5.5%, respectively. The Company’s New York and Florida properties lagged the portfolio, with decreases for the quarter of 4.9% and 2.2%, respectively.
RevPAR at the Company’s comparable international properties increased 2.3% in the second quarter and 5.8% year-to-date, on a constant dollar basis. The increase was predominantly due to strength at Latin America properties, driven by pre-Olympic test business, and partially offset by the Company’s Canadian properties, which continue to be negatively impacted by the oil markets and renovations.
The Company’s F&B revenues grew 4.5% for the quarter, which was positively impacted by strong growth in banquet and audio visual revenues of 6.6% in the quarter. Banquet revenues were driven by strong performances in the San Francisco and Boston markets.
The improvement in RevPAR and F&B revenues helped drive comparable hotel EBITDA margin growth of 65 basis points and 75 basis points for the quarter and year-to-date, respectively. In addition to the strong growth in F&B revenues, operating profit was positively impacted by the successful execution of cost control initiatives at many of our larger resort and convention hotels over the past two years.
As a result of the improvements in operating results described above, a reduction in interest expense, as well as the repurchase of 42.1 million shares over the past 12 months, Adjusted FFO per share increased 6.5% and 11.1% for the quarter and year-to-date, respectively.
Shares of U.S. Bancorp (NYSE:USB) ended Thursday session in green amid volatile trading. The shares closed up +0.20 points or 0.46% at $43.84 with 6.42 million shares getting traded. Post opening the session at $43.63, the shares hit an intraday low of $43.58 and an intraday high of $43.94 and the price vacillated in this range throughout the day. The company has a market cap of $74.69 billion and the numbers of outstanding shares have been calculated to be 1.72 billion shares.
On September 6, 2016 To reduce the barriers to equality in the St. Louis region, U.S. Bank is donating $20,000 and investing $2 million in the Urban League of Metropolitan St. Louis’ new Ferguson Empowerment Center planned for the site of the former gasoline station that burned during racial unrest.
The $5.8 million Ferguson Empowerment Center, which is under construction at the former QuikTrip at 9420 W. Florissant Ave., will house multiple nonprofit organizations, providing employment assistance and training, financial literacy and asset building, counseling services and entrepreneurship training.
U.S. Bancorp Community Development Corporation, a division of U.S. Bank, invested the $2 million in equity raised from New Markets Tax Credits provided by Heartland Regional Investment Fund. The funding was critical to enable the Urban League to achieve its vision of building a larger, 13,000-square-foot center–triple the size it originally planned.
“Our investment in this project with the Urban League demonstrates U.S. Bank’s commitment to providing an avenue for African-Americans, especially young people, to escape poverty and attain financial stability,” said Steve Kramer, senior vice president of USBCDC.