Host Hotels & Resorts (HST) has reported 25.88 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $107 million, or $0.14 a share in the quarter, compared with $85 million, or $0.11 a share for the same period last year.
Revenue during the quarter went up marginally by 0.94 percent to $1,295 million from $1,283 million in the previous year period.
Cost of revenue for the quarter was almost stable at $953 million, when compared with the previous year period. Gross margin for the quarter expanded 92 basis points over the previous year period to 26.41 percent.
Total expenses were almost stable at $1,151 million, when compared with the previous year period. Operating margin for the quarter expanded 75 basis points over the previous year period to 11.12 percent.
Operating income for the quarter was $144 million, compared with $133 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $342 million compared with $323 million in the prior year period. At the same time, adjusted EBITDA margin improved 123 basis points in the quarter to 26.41 percent from 25.18 percent in the last year period.
For fiscal year 2016, Host Hotels & Resorts projects revenue to grow in the range of 0.60 percent to 1.10 percent. It expects net income to be in the range of $732 million to $746 million , the company forecasts diluted earnings per share to be in the range of $0.97 to $0.99.
Occupancy revenue was $879 million for the quarter, up 1.03 percent or $9 million. Food and beverage revenue during the quarter was almost stable at $336 million, when compared with the previous year period.
Other income during the quarter was $80 million, up 5.26 percent or $4 million from year-ago period.
"We are pleased with our financial performance during the third quarter, as strong RevPAR growth drove significant comparable hotel profit increases," said W. Edward Walter, president and chief executive officer. "We have continued our disciplined approach to capital allocation and active portfolio management, which includes realizing profits as we completed our exit from New Zealand, and are now seeing the benefits of our broader strategy reflected in double-digit diluted EPS and Adjusted FFO per share growth year-over-year. We are also excited about the value we are creating through transformational redevelopment projects at several of our hotels, and looking ahead, see additional opportunities to enhance and further unlock the value of our real estate. We remain committed to delivering significant value to stockholders and have returned $802 million through dividends and stock repurchases year-to-date."
Receivables remain almost stableNet receivables stood at $106 million as on Sep. 30, 2016. Total assets stood at $11,542million as on Sep. 30, 2016. On the other hand, total liabilities were at $4,274 million as on Sep. 30, 2016.
Return on assets was at 1.26 percent in the quarter. At the same time, return on equity was at 1.50 percent in the quarter.
Total debt was at $3,752 million as on Sep. 30, 2016. Shareholders equity was at $7,130 million as on Sep. 30, 2016. Meanwhile, debt to equity ratio was at 0.53 percent in the quarter.
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