Host Hotels & Resorts (HST) has reported 22.70 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $126 million, or $0.17 a share in the quarter, compared with $163 million, or $0.22 a share for the same period last year.
Revenue during the quarter went up marginally by 0.83 percent to $1,337 million from $1,326 million in the previous year period.
Cost of revenue went up marginally by 0.51 percent or $5 million during the quarter to $980 million. Gross margin for the quarter expanded 23 basis points over the previous year period to 26.70 percent.
Total expenses were almost stable at $1,187 million, when compared with the previous year period. Operating margin for the quarter expanded 43 basis points over the previous year period to 11.22 percent.
Operating income for the quarter was $150 million, compared with $143 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $348 million compared with $344 million in the prior year period. At the same time, adjusted EBITDA margin improved 9 basis points in the quarter to 26.03 percent from 25.94 percent in the last year period.
For financial year 2017, Host Hotels & Resorts projects net income to be in the range of $469 million to $539 million. The company expects diluted earnings per share to be in the range of $0.63 to $0.72.
Occupancy revenue for the quarter was almost stable at $837 million, when compared with the previous year period. Food and beverage revenue was $416 million during the quarter, up 1.96 percent or $8 million from year-ago period.
Other income during the quarter was $84 million, up 7.69 percent or $6 million from year-ago period.
James F. Risoleo, president and chief executive officer of Host Hotels, stated: "We are pleased with the Company’s solid fourth quarter and full year 2016 results, including meaningful year-over-year growth in diluted EPS and Adjusted FFO per share, reflecting outstanding work and successful execution by the talented employees of Host Hotels. This is a great company that is well-positioned for continued success, and as we move into 2017, we look forward to strengthening our culture, empowering employees, and streamlining decision-making to make the Company more nimble in order to accelerate growth and value-creation."
Net receivables were at $55 million as on Dec. 31, 2016, down 1.79 percent or $1 million from year-ago.
Total assets declined 3.19 percent or $376 million to $11,408 million on Dec. 31, 2016. On the other hand, total liabilities were at $4,210 million as on Dec. 31, 2016, down 7.66 percent or $349 million from year-ago.
Return on assets moved down 45 basis points to 1.46 percent in the quarter. At the same time, return on equity moved down 51 basis points to 1.79 percent in the quarter.
Debt comes downTotal debt was at $3,649 million as on Dec. 31, 2016, down 5.64 percent or $218 million from year-ago. Shareholders equity stood at $7,033 million as on Dec. 31, 2016, down 0.69 percent or $49 million from year-ago. As a result, debt to equity ratio went down 3 basis points to 0.52 percent in the quarter.
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