Host Hotels & Resorts, Inc. Reports Results for the Second Quarter 2019 | Host Hotels & Resorts Inc.Highlights
Comparable hotel Total RevPAR improved 0.1% for the quarter and 0.2% year-to-date, on a constant dollar basis. Total RevPAR is a key performance metric for the Company’s luxury and upper upscale portfolio as approximately 35% of revenues are earned from food and beverage, conference and meeting space, spa and other amenities.
The Company repurchased 10.9 million shares of stock totaling $200 million during the quarter. On August 5, 2019, the Board of Directors authorized an increase in its share repurchase program from $500 million to $1 billion, which, after taking into account the second quarter repurchases, leaves $800 million available for repurchases.
The Company executed on its strategy to refine its portfolio by disposing of three non-core assets during the quarter for $118 million and has sold or expects to sell in the third quarter, subject to customary closing conditions, an additional eight assets.
The Company has taken advantage of current market conditions and further strengthened its balance sheet by increasing the capacity of its revolving credit and term loan facility from $2 billion to $2.5 billion. The Company extended the maturity for both the revolver and the term loans to 2025 (including extension options) and, based on current debt ratings, the initial interest rate has been reduced by 10 basis points.
