HOST MARRIOTT CORPORATION
Consolidated Balance Sheets (a)
(unaudited, in millions)
March 22, December 31,
2002 2001
ASSETS
Property and
equipment, net
$6,939 $6,999
Notes and other
receivables (including
amounts
due from affiliates of $6 million
and $6
million, respectively)
54 54
Due from Manager
150 141
Investments
in affiliates
137 142
Other assets
562 536
Restricted cash
115 114
Cash and cash
equivalents
341 352
$8,298 $8,338
LIABILITIES AND SHAREHOLDERS' EQUITY
Debt
Senior notes
$3,231 $3,235
Mortgage debt
2,228 2,261
Other
106 106
5,565 5,602
Accounts payable
and accrued expenses
124 121
Other liabilities
302 321
Total liabilities
5,991 6,044
Minority interest
213 210
Company-obligated
mandatorily redeemable
convertible
preferred securities of a
subsidiary
whose sole assets are the
convertible
subordinated debentures due
2026 ("Convertible
Preferred
Securities")
475 475
Shareholders'
equity
Cumulative redeemable
preferred stock
(liquidation
preference $25 per share),
50 million
shares authorized; 14.2
million
shares issued and outstanding
339 339
Common stock,
750 million shares
authorized;
264.6 million shares and
263.2
million shares issued and
outstanding,
respectively
3 3
Additional paid-in
capital
2,068 2,051
Accumulated
other comprehensive loss
(3) (5)
Retained deficit
(788) (779)
Total shareholders' equity
1,619 1,609
$8,298 $8,338
(a) Our consolidated
balance sheets have been prepared without audit.
Certain information and footnote disclosures normally included in financial
statements presented in accordance with accounting principles generally
accepted in the United States have been omitted. The unaudited consolidated
balance sheets should be read in conjunction with the consolidated financial
statements and notes thereto included in the annual report on Form 10-K
for the fiscal year ended December 31, 2001.
HOST MARRIOTT CORPORATION
Consolidated Statements of Operations
(a)
(unaudited, in millions, except
per share amounts)
Twelve weeks ended
March 22, March 23,
2002
2001
Revenues
Hotel
sales
Rooms
$465
$522
Food and beverage
244
253
Other
55
64
Total hotel sales
764
839
Rental
income (b)
26
34
Revenues
790
873
Expenses
Rooms
111
121
Food and
beverage
175
191
Hotel
departmental costs and deductions
196
208
Management
fees
36
52
Taxes,
insurance and other property-
level expenses
62
65
Depreciation
and amortization
84
77
Corporate
expenses
13
8
Other
expense
4
2
Operating profit
109
149
Minority
interest expense
(5)
(15)
Interest
income
3
8
Interest
expense
(105)
(103)
Net gains
on property transactions
1
1
Equity
in earnings (losses) of affiliates
(4)
2
Dividends
on convertible preferred
securities of subsidiary trust
(7)
(7)
Income (loss)
before income taxes
(8)
35
Provision for
income taxes
(4)
(3)
Income (loss)
from continuing operations
(12)
32
Discontinued
operations (c)
Gain on disposal
7
-
Income (loss)
before extraordinary items
(5)
32
Extraordinary
gain (c)
6
-
Net income
$1
$32
Less: preferred
dividends
(9)
(5)
Net income (loss)
available to common
shareholders
$(8)
$27
Basic earnings
(loss) per common share
$(.03)
$.12
Diluted earnings
(loss) per common share
$(.03)
$.12
(a) Our consolidated
statements of operations have been prepared without
audit. Certain information and footnote disclosures normally included in
financial statements presented in accordance with accounting principles
generally accepted in the United States have been omitted. The unaudited
consolidated statements of operations should be read in conjunction with
the consolidated financial statements and notes thereto included in our
annual report on Form 10-K for the year ended December 31, 2001.
(b) Rental income
for the twelve weeks ended March 22, 2002 and March 23,
2001 includes: 1) lease income from our HPT leases of $15 million for both
periods, 2) lease income from full-service properties of $10 million and
$18 million, respectively, and 3) office building rental income of $1 million
for both periods. As of March 23, 2001, we had five full-service properties
that received lease income. We repurchased the lessee entities with respect
to four of those properties in June 2001, terminating the leases for financial
reporting purposes. Therefore, we currently receive lease income with respect
to only one full-service property. Corresponding expenses for the aforementioned
rental income for the twelve weeks ended March 22, 2002 and March 23, 2001
include rental expense relating to our HPT leases of $16 million for both
periods and office building expenses of $1 million for both periods. These
expenses are included in taxes, insurance and other property-level expenses
on the consolidated statement of operations.
(c) We adopted
SFAS No. 144, "Accounting for the Impairment or Disposal of
Long-Lived Assets," effective January 1, 2002. Gains and losses from all
subsequent sales of real estate, as well as any income or loss from the
property prior to disposal, are required to be recorded as discontinued
operations. In January 2002 we transferred the St. Louis Marriott Pavilion
to the lender. The gain on the extinguishment of the debt has been recorded
as an extraordinary item. All other gains and losses are recorded as discontinued
operations. The total gain of $13 million is net of taxes of $8 million.
HOST MARRIOTT
CORPORATION
Hotel Operational Data
Comparable Property Statistics
(unaudited)
Comparable by Region
As of March 22, 2002 Twelve weeks ended March 22,
2002
Average
No. of No. of
Average Occupancy
Properties(a) Rooms Daily
Rate Percentages RevPAR(b)
Atlanta
15 6,543
$142.84 69.2%
$98.78
DC Metro
13 4,995
134.90 62.8
84.74
Florida
13 7,594
173.41 79.7
138.15
International
4 1,636
94.21 64.0
60.31
Mid-Atlantic
9 6,221
176.77 76.2
134.69
Mountain
8 3,310
128.20 68.5
87.84
New England
6 2,279
117.02 57.9
67.81
North Central
15 5,394
112.40 62.0
69.64
Pacific
23 11,812
157.25 70.5
110.88
South Central
12 6,513
140.37 78.7
110.50
All Regions 118 56,297
148.12 70.9%
105.08
Comparable by Region
Twelve weeks ended March 23, 2001
Average
Percent
Average Occupancy
Change in
Daily Rate Percentages RevPAR(b)
RevPAR
Atlanta
$157.35 72.8%
$114.60 (13.8)%
DC Metro
159.07 65.1
103.54 (18.2)
Florida
192.56 80.7
155.38 (11.1)
International
101.09 69.1
69.83 (13.6)
Mid-Atlantic
190.85 75.5
144.17 (6.6)
Mountain
124.20 73.3
91.09 (3.6)
New England
133.77 60.9
81.49 (16.8)
North Central
127.39 64.3
81.95 (15.0)
Pacific
181.21 74.5
135.04 (17.9)
South Central
146.97 79.3
116.57 (5.2)
All Regions 163.48
73.3% 119.85
(12.3)%
Other Portfolio Statistics
As of March 22, 2002 Twelve weeks ended March 22, 2002
Average
No. of No. of
Average Occupancy
Properties(a) Rooms Daily Rate
Percentages RevPAR(b)
Ritz-Carlton(c)
9 3,536
$241.68 66.2%
$159.91
Other Portfolio Statistics
Twelve weeks ended March 23, 2001
Average
Percent
Average Occupancy
Change in
Daily Rate Percentages RevPAR(b)
RevPAR
Ritz-Carlton(c)
$270.58 71.4%
$193.27 (17.3)%
(a) Comparable
properties consist of the 118 properties owned, directly
or indirectly, by us for the first quarter of 2002 and 2001, excluding
hotels with non-comparable operating environments as a result of acquisitions,
dispositions, property damage and expansion and development projects.
(b) RevPAR represents
room revenue per available room, which measures
daily room revenues generated on a per room basis, excluding food and beverage
revenues or other ancillary revenues generated by the property.
(c) Includes
nine Ritz-Carlton properties currently owned by us for all
periods presented, excluding the Ritz-Carlton, Naples Golf Resort, which
was placed in service in January 2002.
HOST MARRIOTT CORPORATION
Hotel Operational Data
Property Statistics by Region (All Properties)
(unaudited)
As of March 22, 2002 Twelve Weeks Ended March 22, 2002
Average
No. of No. of
Average Occupancy
Properties Rooms Daily
Rate Percentages RevPAR
Atlanta
15 6,543
$142.84 69.2%
$98.78
DC Metro
13 4,995
134.90 62.8
84.74
Florida
14 7,889
176.57 79.2
139.92
International
6 2,548
109.25 65.4
71.45
Mid-Atlantic
10 6,725
175.57 75.4
132.32
Mountain
8 3,310
128.14 68.5
87.80
New England
6 2,279
117.02 57.9
67.81
North Central
15 5,394
112.40 62.0
69.64
Pacific
23 11,812
157.25 70.5
110.88
South Central
12 6,513
139.51 77.5
108.05
All Regions 122 58,008
148.55 70.7%
105.04
Twelve weeks ended March 23, 2001
Average
Percent
Average Occupancy
Change in
Daily Rate Percentages RevPAR
RevPAR
Atlanta
$157.35 72.8%
$114.60 (13.8)%
DC Metro
159.07 65.1
103.54 (18.2)
Florida
192.56 80.7
155.38 (9.9)
International
101.09 69.1
69.83 2.3
Mid-Atlantic
196.40 75.3
147.80 (10.5)
Mountain
133.77 73.9
98.84 (11.2)
New England
133.77 60.9
81.49 (16.8)
North Central
127.39 64.3
81.95 (15.0)
Pacific
181.21 74.5
135.04 (17.9)
South Central
146.97 79.3
116.57 (7.3)
All Regions 165.51
73.4% 121.43
(13.5)%
HOST MARRIOTT CORPORATION
Hotel Operational Data
Schedule of Property Level Results (Comparable Properties) (a)
(unaudited, in millions)
Twelve weeks ended
March 22, 2002 March 23, 2001
Number of hotels
(b)
118
118
Number of rooms
56,297 56,300
Percent change
in RevPAR
(12.3)%
Operating profit
margin
27.0
27.2
Revenues
Room
$467
$533
Food and beverage
246
263
Other
57
67
Total hotel
sales
770
863
Expenses
Room
110
122
Food and beverage
175
195
Other
31
34
Management fees, ground rent and other costs 246
277
Total operating
expenses
562
628
Operating profit
(c)
$208
$235
(a) Hotel sales
and expenses represent the unaudited comparable gross
hotel results, which includes room, food and beverage and other hotel revenues
and expenses generated by our 118 comparable properties, without consideration
of whether these properties are leased to outside parties. During
the twelve weeks ended March 22, 2002 and March 23, 2001, one and five
of our hotels, respectively, were leased to third parties for which we
recorded rental income. As a result, for those properties, the sales and
expenses are not subject to our system of internal accounting controls.
We have presented this information because we feel that it may be useful
to investors in determining the unleveraged economic value of our properties.
However, this should not be deemed to be a method for the calculation of
the market value of either Host REIT or the hotel properties. It
also does not represent the value at which we could sell the properties
on the open market.
(b) Comparable
properties consist of the 118 properties owned, directly or
indirectly by us for the same period of time in each period covered, and
excludes hotels with non-comparable operating environments as a result
of acquisitions, dispositions, property damage and expansion and development
projects.
(c) As stated
above, these results represent comparable property-level
results and are not the revenues or operating profit of Host REIT for all
periods presented. Further, certain significant cost items normally
recorded under accounting principles generally accepted in the United States
including interest expense, lease payments, depreciation and amortization
have not been included in the calculation of property-level profit. Additionally,
the property-level profit does not reflect our EBITDA reported herein. |
