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 Host Hotels & Resorts Inc. Reports  a 3rd Qtr Net Profit of
$40 million from a year-ago loss of $5 million; 
Revenue Up 40% 
Hotel Operating Data
.
 
BETHESDA, Md., Oct. 11, 2006 - Host Hotels & Resorts, Inc. (NYSE: HST), the nation's largest lodging real estate investment trust (REIT), today announced its results of operations for the third quarter ended September 8, 2006. The Company conducts its operations through Host Hotels & Resorts, L.P., of which it is the sole general partner and holds 96% of the partnership interests. Third quarter results for Host Hotels & Resorts, Inc. include the following:

    -- Total revenue increased $324 million, or 40.0%, to $1.1 billion for the
       third quarter and $635 million, or 24.9%, to $3.2 billion for year-to-
       date 2006, which includes $242 million and $396 million of revenues for
       the recently acquired Starwood portfolio for the third quarter and
       year-to-date 2006, respectively.

    -- Net income increased $45 million to $40 million for the third quarter
       and $450 million to $542 million for year-to-date 2006. Earnings per
       diluted share increased $.10 to $.07 for the third quarter and $.93 to
       $1.12 for year-to-date 2006.

       Net income includes a net gain of $1 million for the third quarter 2006
       and $347 million, or $.74 per diluted share, for year-to-date 2006 from
       the following:  gains on hotel dispositions, costs associated with the
       refinancing of senior notes and the redemption of preferred stock and
       non-recurring costs of the Starwood acquisition. By comparison, for
       year-to-date 2005, net income included a net gain of $15 million, or
       $.04 per diluted share, associated with similar transactions in 2005.
       There were no gains associated with similar transactions during the
       third quarter of 2005. For further detail, refer to the "Schedule of
       Significant Transactions Affecting Earnings per Share and Funds From
       Operations per Diluted Share" attached to this press release.

    -- Funds from Operations (FFO) per diluted share increased 47.4% to $.28
       for the third quarter and 34.3% to $.94 for year-to-date 2006. FFO per
       diluted share was reduced by $.05 for year-to-date 2006 due to costs
       associated with refinancing the Company's senior notes and the
       redemption of its preferred stock and non-recurring costs associated
       with the Starwood acquisition. By comparison, FFO per diluted share was
       reduced by $.09 for year-to-date 2005 due to costs associated with
       refinancing transactions in 2005.

The Company also announced the following third quarter results for Host Hotels & Resorts, L.P.:

    -- Net income increased $46 million to $41 million for the third quarter
       and $468 million to $565 million for year-to-date 2006. Net income of
       Host LP was also affected by certain transactions -- See "Schedule of
       Significant Transactions Affecting Earnings per Share and Funds From
       Operations Per Diluted Share."

    -- Adjusted EBITDA, which is Earnings before Interest Expense, Income
       Taxes, Depreciation, Amortization and other items, increased 58.1% to
       $253 million for the third quarter and 33.1% to $812 million for year-
       to-date 2006 primarily due to growth in EBITDA from the Company's
       comparable hotel portfolio and EBITDA generated by the recently
       acquired Starwood portfolio.

Adjusted EBITDA, FFO per diluted share and comparable hotel adjusted operating profit margins (discussed below) are non-GAAP (generally accepted accounting principles) financial measures within the meaning of the rules of the Securities and Exchange Commission (SEC). See the discussion included in this press release for information regarding these non-GAAP financial measures.

Operating Results

Comparable hotel RevPAR for the third quarter of 2006 increased 9.1% and comparable hotel adjusted operating profit margins increased 2.2 percentage points when compared to the third quarter of 2005. The third quarter increases were driven by a 10.5% increase in average room rate, while occupancy declined 1.0 percentage point. Year-to-date 2006 comparable hotel RevPAR increased 8.9% and comparable hotel adjusted operating profit margins increased 2.2 percentage points when compared to year-to-date 2005. The year-to-date increases were comprised of a 9.1% increase in average room rate, while occupancy remained stable, with a decline of only 0.2 percentage points. Comparable hotel adjusted operating profit margins were positively affected by the Company's food and beverage operations, which represent approximately 30% of the Company's revenues. Food and beverage revenue growth at the Company's comparable hotels was 5.4% and 7.0% for the third quarter and year-to-date 2006, respectively, with food and beverage margins increasing 1.2 percentage points and 1.9 percentage points for the third quarter and year-to-date, respectively.

For the 27 recently acquired Starwood hotels that the Company consolidates, which are not included in our comparable hotel results, RevPAR increased 8.3% and 10.5% for the third quarter and year-to-date, respectively, when compared to the same period in 2005.

Christopher J. Nassetta, president and chief executive officer, stated, "We are once again pleased with our quarterly results, as continued positive industry fundamentals led to revenue and earnings growth in the third quarter that met our expectations and consensus estimates."

Acquisitions and Dispositions

On September 1, 2006, the Company purchased The Westin Kierland Resort & Spa in Scottsdale, Arizona, for approximately $393 million, including the assumption of $135 million of mortgage debt with an interest rate of 5.08%. The 732-room resort, which opened in November 2002, is situated on 252 acres of fee simple property and includes a 27-hole golf course, a full-service spa and approximately five acres of undeveloped land.

Additionally, on August 4, 2006, the Company's joint venture in Europe, in which the Company holds a 32.1% general and limited partnership interest, purchased the Hotel Arts Barcelona for euro 417 million ($537 million), including the assumption of euro 277 million ($357 million) of mortgage debt with an interest rate of approximately 5%. The hotel, which is located in Barcelona, Spain, contains 483 luxuriously-appointed and recently renovated guestrooms, including 28 two-story luxury suites. The Company increased its investment in the joint venture by euro 46 million, or $58 million, for the acquisition of the hotel.

The Company sold the Detroit Marriott, Livonia during the third quarter for proceeds of approximately $21 million and recorded a gain of approximately $5 million. Additionally, during the fourth quarter, the Company sold the 444- room Ritz-Carlton, Atlanta for proceeds of approximately $80 million and will record a gain of approximately $26 million.

2006 Outlook

The Company expects comparable hotel RevPAR to increase approximately 7.0% to 8.0% for the fourth quarter and 8.0% to 8.75% the full year 2006. For full year 2006, the Company also expects its operating profit margins under GAAP to increase approximately 190 basis points to 220 basis points and its comparable hotel adjusted operating profit margins to increase approximately 170 basis points to 200 basis points. Based upon this guidance, the Company estimates that full year 2006 guidance for Host Hotels & Resorts, Inc. and Host Hotels & Resorts, L.P. would be as follows:

Host Hotels & Resorts, Inc.

    -- earnings per diluted share should be approximately $.31 to $.34 for the
       fourth quarter and $1.43 to $1.46 for the full year;

    -- net income should be approximately $167 million to $182 million for the
       fourth quarter and $709 million to $724 million for the full year; and

    -- FFO per diluted share should be approximately $.55 to $.58 for the
       fourth quarter and $1.50 to $1.53 for the full year (including a charge
       of approximately $6 million and $34 million for the fourth quarter and
       full year, respectively, with a per diluted share effect of
       approximately $.01 and $.06 for the fourth quarter and full year,
       respectively, related to costs associated with debt and perpetual
       preferred stock that was or is expected to be refinanced or prepaid in
       2006 and non-recurring costs related to the Starwood acquisition).

Host Hotels & Resorts, L.P.

    -- net income should be approximately $739 million to $754 million; and

    -- Adjusted EBITDA should be approximately $1,255 million to $1,270
       million.

2007 Outlook

    -- The Company is in the preliminary stages of its budget process for
       2007. Accordingly, certain key items, including detailed property-level
       operating budgets, have not been determined which could significantly
       affect forecast results of operations. However, based on preliminary
       discussions with the Company's operators and hotel general managers, as
       well as a review of booking pace and other metrics, the Company
       believes that comparable hotel RevPAR for 2007 will increase
       approximately 6% to 8%.
 
 
 

HOST HOTELS & RESORTS, INC.
Consolidated Balance Sheets (a)
(unaudited, in millions, except share amounts)

                                                     September 8, December 31,
                                                         2006         2005
                                    ASSETS

    Property and equipment, net                          $10,685      $7,434
    Assets held for sale                                      21          73
    Due from managers                                         31          41
    Investments in affiliates                                151          41
    Deferred financing costs, net                             59          63
    Furniture, fixtures and equipment replacement fund       166         143
    Other                                                    199         157
    Restricted cash                                          129         109
    Cash and cash equivalents                                223         184
                Total assets                             $11,664      $8,245

                     LIABILITIES AND STOCKHOLDERS' EQUITY

    Debt
        Senior notes, including $494 million and
         $493 million, respectively, net of
         discount, of Exchangeable Senior Debentures      $3,712      $3,050
        Mortgage debt                                      2,038       1,823
        Convertible Subordinated Debentures                    -         387
        Other                                                 89         110
                Total debt                                 5,839       5,370
    Accounts payable and accrued expenses                    145         165
    Other                                                    223         148
                Total liabilities                          6,207       5,683

    Interest of minority partners of Host Hotels
     & Resorts, L.P.                                         188         119
    Interest of minority partners of other
     consolidated partnerships                                28          26

    Stockholders' equity
        Cumulative redeemable preferred stock
         (liquidation preference $100 million
         and $250 million, respectively), 50
         million shares authorized; 4.0 million
         shares and 10.0 million shares issued and
         outstanding, respectively                            97         241
        Common stock, par value $.01, 750 million
         shares authorized; 520.7 million
         shares and 361.0 million shares issued
         and outstanding, respectively                         5           4
        Additional paid-in capital                         5,665       3,080
        Accumulated other comprehensive income                17          15
        Deficit                                             (543)       (923)
                Total stockholders' equity                 5,241       2,417
                Total liabilities and stockholders'
                 equity                                  $11,664      $8,245

    (a) Our consolidated balance sheet as of September 8, 2006 has been
        prepared without audit. Certain information and footnote disclosures
        normally included in financial statements presented in accordance with
        GAAP have been omitted. The consolidated balance sheets should be read
        in conjunction with the consolidated financial statements and notes
        thereto included in our most recent Annual Report on Form 10-K.
 
 

                         HOST HOTELS & RESORTS, INC.
                  Consolidated Statements of Operations (a)
              (unaudited, in millions, except per share amounts)

                                        Quarter ended      Year-to-date ended
                                   September   September  September  September
                                        8,          9,         8,         9,
                                      2006        2005       2006       2005
    Revenues
            Rooms                      $736       $511     $1,977    $1,547
            Food and beverage           303        223        935       763
            Other                        74         56        199       169
              Total hotel sales       1,113        790      3,111     2,479
            Rental income (b)            22         21         78        75
              Total revenues          1,135        811      3,189     2,554
    Expenses
            Rooms                       182        128        470       374
            Food and beverage           244        184        690       574
            Hotel departmental
             expenses                   303        234        794       684
            Management fees              50         33        143       108
            Other property-level
             expenses (b)                91         67        243       199
            Depreciation and
             amortization               119         82        314       244
            Corporate and other
             expenses                    21         16         62        45
            Total operating costs
             and expenses             1,010        744      2,716     2,228
    Operating profit                    125         67        473       326
    Interest income                       8          5         22        17
    Interest expense                   (100)       (94)      (298)     (317)
    Net gains (loss) on property
     transactions                         1          -          3        77
    Gain (loss) on foreign currency
     and derivative contracts             -         (1)         -         1
    Minority interest expense            (1)         -        (30)      (12)
    Equity in earnings (losses) of
     affiliates                          (3)         -         (8)       (1)
    Income (loss) before income taxes    30        (23)       162        91
    Benefit (provision) for income
     taxes                                4         15        (14)      (23)
    Income (loss) from continuing
     operations                          34         (8)       148        68
    Income from discontinued
     operations (c)                       6          3        394        24
    Net income (loss)                    40         (5)       542        92
    Less:  Dividends on preferred stock  (2)        (6)       (12)      (21)
          Issuance costs of redeemed
           preferred stock (d)            -          -         (6)       (4)
    Net income (loss) available to
     common stockholders                $38       $(11)      $524       $67
    Basic earnings (loss) per common
     share:
        Continuing operations          $.06      $(.04)      $.28      $.12
        Discontinued operations         .01        .01        .85       .07
    Basic earnings (loss) per common
     share                             $.07      $(.03)     $1.13      $.19
    Diluted earnings (loss) per
     common share:
        Continuing operations          $.06      $(.04)      $.28      $.12
        Discontinued operations         .01        .01        .84       .07
    Diluted earnings (loss) per
     common share                      $.07      $(.03)     $1.12      $.19

    (a) Our consolidated statements of operations presented above have been
        prepared without audit. Certain information and footnote disclosures
        normally included in financial statements presented in accordance with
        GAAP have been omitted. The consolidated statements of operations
        should be read in conjunction with the consolidated financial
        statements and notes thereto included in our most recent Annual Report
        on Form 10-K.

    (b) Rental income and expense are as follows:
 

                                        Quarter ended      Year-to-date ended
                                    September  September  September  September
                                        8,          9,         8,         9,
                                      2006        2005       2006       2005
    Rental income
        Full-service                    $4         $4         $24       $22
        Limited service and office
         buildings                      18         17          54        53
                                       $22        $21         $78       $75
    Rental and other expenses
     (included in other property
     level expenses)
        Full-service                    $2         $2          $5        $5
        Limited service and office
         buildings                      19         18          56        54
                                       $21        $20         $61       $59

    (c) Reflects the results of operations and gain (loss) on sale, net of the
        related income tax, for six properties sold in 2006 and one hotel
        classified as held-for-sale as of September 8, 2006 and five
        properties sold in 2005.

    (d) Represents the original issuance costs associated with the redemption
        of the Class C preferred stock in the second quarter of 2006 and the
        Class B preferred stock in the second quarter of 2005.
 

                         HOST HOTELS & RESORTS, INC.
                       Earnings (Loss) per Common Share
              (unaudited, in millions, except per share amounts)

                                      Quarter ended          Quarter ended
                                      September 8,           September 9,
                                         2006                   2005
                                Income                  Income
                                (loss)   Shares  Per    (loss)  Shares  Per
                                (Numer- (Denom-  Share  (Numer- (Denom- Share
                                 ator)   inator) Amount  ator)  inator) Amount
 

    Net income (loss)             $40     520.5   $.08   $(5)    353.1  $(.01)
      Dividends on preferred
       stock                       (2)        -   (.01)   (6)        -   (.02)
    Basic earnings (loss)
     available to common
     stockholders (a)(b)           38     520.5    .07   (11)    353.1   (.03)
      Assuming distribution of
       common shares granted
       under the comprehensive
       stock plan less shares
       assumed purchased at
       average market price         -       1.8      -     -         -      -
      Assuming conversion of
       minority OP units
       issuable                     -       2.3      -     -         -      -
    Diluted earnings (loss)
     available to
     common stockholders (a)(b)   $38     524.6   $.07  $(11)    353.1  $(.03)
 

                                  Year-to-date ended       Year-to-date ended
                                     September 8,              September 9,
                                        2006                      2005
                                Income                  Income
                                (loss)   Shares  Per    (loss)  Shares  Per
                                (Numer- (Denom-  Share  (Numer- (Denom- Share
                                 ator)   inator) Amount  ator)  inator) Amount
    Net income                   $542     464.1  $1.17   $92     352.6   $.26
      Dividends on preferred
       stock                      (12)        -   (.03)  (21)        -   (.06)
      Issuance costs of redeemed
       preferred stock (c)         (6)        -   (.01)   (4)        -   (.01)
    Basic earnings available to
     common stockholders (a)(b)    524    464.1   1.13    67     352.6    .19
      Assuming distribution of
       common shares granted
       under the comprehensive
       stock plan less shares
       assumed purchased at
       average market price          -      1.8   (.01)    -       2.4      -
    Diluted earnings available to
     common stockholders (a)(b)   $524    465.9  $1.12   $67     355.0   $.19

    (a) Basic earnings (loss) per common share is computed by dividing net
        income (loss) available to common stockholders by the weighted average
        number of shares of common stock outstanding. Diluted earnings (loss)
        per common share is computed by dividing net income (loss) available
        to common stockholders as adjusted for potentially dilutive
        securities, by the weighted average number of shares of common stock
        outstanding plus potentially dilutive securities. Dilutive securities
        may include shares granted under comprehensive stock plans, preferred
        OP Units held by minority partners, convertible debt securities and
        other minority interests that have the option to convert their limited
        partnership interests to common OP Units. No effect is shown for any
        securities that are anti-dilutive.

    (b) Our results for certain periods presented were significantly affected
        by certain transactions, which are detailed in the table entitled,
        "Schedule of Significant Transactions Affecting Earnings per Share and
        Funds From Operations per Diluted Share."

    (c) Represents the original issuance costs associated with the redemption
        of the Company's Class C preferred stock in the second quarter of 2006
        and the Company's Class B preferred stock in the second quarter of
        2005.
 

                         HOST HOTELS & RESORTS, INC.
                       Comparable Hotel Operating Data
                                 (unaudited)

                       Comparable Hotels by Region (a)

                            As of September 8,   Quarter ended September 8,
                                  2006                     2006

                                                            Average
                                                Average     Occupancy
                            No. of     No. of    Daily      Percent
                           Properties   Rooms    Rate        -ages    RevPAR

    Pacific                       21    11,485  $202.86       79.3%  $160.87
    Florida                       10     6,435   151.13       68.6    103.66
    Mid-Atlantic                   8     5,865   208.66       81.1    169.17
    DC Metro                      13     5,335   171.29       71.5    122.51
    North Central                 12     4,906   155.29       77.7    120.64
    South Central                  7     4,126   132.06       67.3     88.85
    Atlanta                        8     3,069   185.00       66.8    123.57
    New England                    6     3,032   175.83       83.0    146.02
    Mountain                       6     2,210   104.06       68.9     71.74
    International                  5     1,953   153.27       71.5    109.61
        All Regions               96    48,416   174.51       74.7    130.32
 

                                  Quarter ended September 9, 2005

                                                                      Percent
                                                                      Change
                                   Average      Average                 in
                                   Daily       Occupancy   RevPAR     RevPAR
                                    Rate       Percentages

    Pacific                       $182.79         82.1%   $150.03        7.2%
    Florida                        141.14         68.7      97.00        6.9
    Mid-Atlantic                   191.93         78.3     150.29       12.6
    DC Metro                       161.21         76.0     122.52          -
    North Central                  139.46         76.4     106.59       13.2
    South Central                  119.24         70.9      84.53        5.1
    Atlanta                        163.11         65.1     106.12       16.4
    New England                    151.03         81.6     123.22       18.5
    Mountain                        90.43         70.9      64.14       11.8
    International                  134.49         74.4     100.00        9.6
        All Regions                157.87         75.7     119.49        9.1
 

                         HOST HOTELS & RESORTS, INC.
                       Comparable Hotel Operating Data
                                 (unaudited)

                         As of September 8,    Year-to-date ended September 8,
                                 2006                      2006

                          No. of     No. of     Average    Average
                         Properties  Rooms      Daily    Occupancy
                                                Rate    Percentages   RevPAR

    Pacific                  21     11,485    $201.15        76.4%   $153.71
    Florida                  10      6,435     196.13        73.9     144.84
    Mid-Atlantic              8      5,865     213.03        78.8     167.87
    DC Metro                 13      5,335     182.29        72.6     132.31
    North Central            12      4,906     145.57        73.0     106.28
    South Central             7      4,126     142.03        72.2     102.58
    Atlanta                   8      3,069     187.40        71.1     133.23
    New England               6      3,032     168.18        77.1     129.70
    Mountain                  6      2,210     131.66        65.9      86.77
    International             5      1,953     150.17        71.8     107.77
        All Regions          96     48,416     181.74        74.3     135.00
 

                                Year-to-date ended September 9, 2005

                                      Average                     Percent
                        Average      Occupancy                   Change in
                       Daily Rate   Percentages     RevPAR        RevPAR

   Pacific           $   184.52        78.3%       $144.50         6.4%
   Florida               181.72        74.6        135.50          6.9
   Mid-Atlantic          193.70        78.5        152.04         10.4
   DC Metro              169.99        77.3        131.46          0.7
   North Central         134.40        68.2         91.63         16.0
   South Central         130.50        74.2         96.89          5.9
   Atlanta               167.30        67.4        112.68         18.2
   New England           151.15        71.4        107.98         20.1
   Mountain              117.88        66.1         77.92         11.4
   International         131.45        72.2         94.95         13.5
        All Regions      166.62        74.4        124.02          8.9
 
 

                         HOST HOTELS & RESORTS, INC.
                       Comparable Hotel Operating Data
                                 (unaudited)

                    Comparable Hotels by Property Type (a)
 

                                As of September 8,  Quarter ended September 8,
                                       2006                 2006

                                                Average     Average
                             No. of    No. of    Daily     Occupancy
                           Properties   Rooms     Rate    Percentages  RevPAR

    Urban                         40   23,124   $185.84       78.4%  $145.78
    Suburban                      29   11,139    143.37       68.6     98.35
    Airport                       16    7,328    127.12       73.7     93.72
    Resort/Convention             11    6,825    230.30       72.9    167.82
               All Types          96   48,416    174.51       74.7    130.32
 

                                Quarter ended September 9, 2005

                                  Average       Average               Percent
                                   Daily       Occupancy             Change in
                                   Rate      Percentages   RevPAR     RevPAR

    Urban                         $166.23         78.0%   $129.67       12.4%
    Suburban                       132.15         71.1      93.94        4.7
    Airport                        115.45         78.5      90.63        3.4
    Resort/Convention              215.63         72.4     156.22        7.4
                  All Types        157.87         75.7     119.49        9.1
 
 

                               As of September 8,    Year-to-date ended
                                     2006             September 8, 2006

                                                 Average     Average
                             No. of    No. of     Daily     Occupancy
                           Properties   Rooms      Rate    Percentages  RevPAR

    Urban                         40   23,124    $190.39       77.3%   $147.15
    Suburban                      29   11,139     145.13       68.0      98.74
    Airport                       16    7,328     133.02       73.6      97.91
    Resort/Convention             11    6,825     257.19       75.0     192.92
                  All Types       96   48,416     181.74       74.3     135.00
 

                                 Year-to-date ended September 9, 2005

                                  Average       Average               Percent
                                   Daily       Occupancy             Change in
                                   Rate      Percentages   RevPAR     RevPAR

    Urban                         $173.93         76.9%   $133.76       10.0%
    Suburban                       133.36         68.3      91.03        8.5
    Airport                        120.53         76.0      91.62        6.9
    Resort/Convention              241.28         74.5     179.67        7.4
                  All Types        166.62         74.4     124.02        8.9
 

    (a) See the notes to financial information for a discussion of reporting
        periods and comparable hotel results.
 

                         HOST HOTELS & RESORTS, INC.
                       Comparable Hotel Operating Data
                   Schedule of Comparable Hotel Results (a)
              (unaudited, in millions, except hotel statistics)

                                      Quarter ended         Year-to-date ended
                                  September  September    September  September
                                      8,         9,           8,         9,
                                     2006       2005         2006       2005

    Number of hotels                    96         96          96         96
    Number of rooms                 48,416     48,416      48,416     48,416
    Percent change in Comparable
     Hotel RevPAR                     9.1%          -        8.9%          -
    Operating profit margin
     under GAAP (b)                  11.0%       8.3%       14.8%      12.8%
    Comparable hotel adjusted
     operating profit margin (c)     23.2%      21.0%       26.5%      24.3%

    Comparable hotel sales
        Room                          $542       $497      $1,633     $1,500
        Food and beverage              233        221         803        751
        Other                           58         56         176        173
            Comparable hotel
             sales (d)                 833        774       2,612      2,424
    Comparable hotel expenses
        Room                           132        125         386        362
        Food and beverage              188        181         587        563
        Other                           36         37         104        108
        Management fees, ground
         rent and other costs          284        268         842        801
            Comparable hotel
             expenses (e)              640        611       1,919      1,834
    Comparable hotel adjusted
     operating profit                  193        163         693        590
    Non-comparable hotel
     results, net (f)                   73          3         158         26
    Office buildings and limited
     service properties, net (g)        (1)        (1)         (2)        (1)
    Depreciation and
     amortization                     (119)       (82)       (314)      (244)
    Corporate and other expenses       (21)       (16)        (62)       (45)
    Operating profit                  $125        $67        $473       $326

    (a) See the notes to the financial information for discussion of non-GAAP
        measures, reporting periods and comparable hotel results.

    (b) Operating profit margin under GAAP is calculated as the operating
        profit divided by the total revenues per the consolidated statements
        of operations.

    (c) Comparable hotel adjusted operating profit margin is calculated as the
        comparable hotel adjusted operating profit divided by the comparable
        hotel sales per the table above.

    (d) The reconciliation of total revenues per the consolidated statements
        of operations to the comparable hotel sales is as follows:
 

                                      Quarter ended         Year-to-date ended
                                  September  September    September  September
                                      8,         9,           8,         9,
                                     2006       2005         2006       2005

    Revenues per the
     consolidated statements of
     operations                     $1,135       $811      $3,189     $2,554
    Non-comparable hotel sales        (295)       (31)       (567)      (112)
    Hotel sales for the property
     for which we record rental
     income, net                        11         11          37         35
    Rental income for office
     buildings and limited
     service hotels                    (18)       (17)        (54)       (53)
    Adjustment for hotel sales
     for comparable hotels
     to reflect Marriott's
     fiscal year for
     Marriott-managed hotels             -          -           7          -
            Comparable hotel sales    $833       $774      $2,612     $2,424

    (e) The reconciliation of operating costs per the consolidated statements
        of operations to the comparable hotel expenses is as follows (in
        millions):

                                      Quarter ended         Year-to-date ended
                                  September  September    September  September
                                      8,         9,           8,         9,
                                     2006       2005         2006       2005

    Operating costs and expenses
     per the consolidated
     statements of operations       $1,010        $744     $2,716     $2,228
    Non-comparable hotel expenses     (220)        (26)      (408)       (87)
    Hotel expenses for the property
     for which we record rental
     income                              9           9         38         36
    Rent expense for office
     buildings and limited service
     hotels                            (19)        (18)       (56)       (54)
    Adjustment for hotel expenses
     for comparable hotels to
     reflect Marriott's fiscal year
     for Marriott-managed hotels         -           -          5          -
    Depreciation and amortization     (119)        (82)      (314)      (244)
    Corporate and other expenses       (21)        (16)       (62)       (45)
        Comparable hotel expenses     $640        $611     $1,919     $1,834

    (f) Non-comparable hotel results, net, includes the following items: (i)
        the results of operations of our non-comparable hotels whose
        operations are included in our consolidated statement of operations as
        continuing operations and (ii) the difference between the number of
        days of operations reflected in the comparable hotel results and the
        number of days of operations reflected in the consolidated statements
        of operations.

    (g) Represents rental income less rental expense for limited service
        properties and office buildings.
 

                         HOST HOTELS & RESORTS, INC.
                      Other Financial and Operating Data
              (unaudited, in millions, except per share amounts)

                                                    September 8,  December 31,

                                                            2006        2005
    Equity
        Common shares outstanding                          520.7       361.0
        Common shares and minority held common OP
         Units outstanding                                 539.7       380.8
        Preferred OP Units outstanding                       .02         .02
        Class C Preferred shares outstanding (a)             -           6.0
        Class E Preferred shares outstanding                 4.0         4.0

    Security pricing (per share price)
        Common (b)                                        $22.66      $18.95
        Class C Preferred (a) (b)                         $ -         $25.25
        Class E Preferred (b)                             $26.60      $26.75
        Convertible Preferred Securities (c)              $ -         $61.02
        Exchangeable Senior Debentures (d)             $1,369.90   $1,163.70

    Dividends declared per share for calendar year
        Common (e)                                          $.51        $.41
        Class B Preferred (f)                               $ -         $.87
        Class C Preferred (a)                               $.86       $2.50
        Class E Preferred (e)                              $1.66       $2.22
 
 

                         HOST HOTELS & RESORTS, INC.
                      Other Financial and Operating Data
              (unaudited, in millions, except per share amounts)
 

    Debt
    Series B senior notes, with a rate of 7 7/8% due
     August 2008 (g)                                     $    -         $136
    Series G senior notes, with a rate of 9 1/4% due
     October 2007 (h)                                        235         236
    Series I senior notes, with a rate of 9 1/2% due
     January 2007 (i)                                        448         451
    Series K senior notes, with a rate of 7 1/8% due
     November 2013                                           725         725
    Series M senior notes, with a rate of 7% due
     August 2012                                             347         346
    Series O senior notes, with a rate of 6 3/8% due
     March 2015                                              650         650
    Series Q senior notes, with a rate of 6 3/4% due
     June 2016                                               800          -
    Exchangeable Senior Debentures, with a rate of
     3.25% due April 2024                                    494         493
    Senior notes, with an average rate of 9.7%,
     maturing through May 2012                                13          13
                Total senior notes                         3,712       3,050
    Mortgage debt (non-recourse) secured by $3.4
     billion of real estate assets,
     with an average interest rate of 7.5% and
     7.8% at September 8, 2006 and
     December 31, 2005, respectively, maturing
     through December 2023 (j)                             2,038       1,823
    Credit facility (k)                                       -           20
    Convertible Subordinated Debentures, with a rate
     of 6 3/4% due December 2026 (c)                          -          387
    Other                                                     89          90
                Total debt                                $5,839      $5,370

    Percentage of fixed rate debt                             87%         85%
    Weighted average interest rate                           7.2%        7.2%
    Weighted average debt maturity                      5.6 years   6.4 years
 

                                   Quarter ended          Year-to-date ended
                           September 8, September 9, September 8, September 9,
                                   2006        2005         2006        2005
    Hotel Operating Statistics
    for All Full
        Service Properties (l)

        Average daily rate      $171.26     $155.59      $178.81     $164.46
        Average occupancy          74.9%       74.5%        74.2%       73.7%
        RevPAR                  $128.31     $115.97      $132.72     $121.22

    (a) On May 19, 2006, the Company redeemed, at par, all of the shares of
        its 10% Class C Cumulative Redeemable Preferred stock for
        approximately $151 million, including accrued dividends.

    (b) Share prices are the closing price as reported by the New York Stock
        Exchange.

    (c) During the period of December 2005 through February 10, 2006, the
        Company issued 30.8 million shares of its common stock to converting
        holders of its Convertible Preferred Securities. The remaining $2
        million of securities were redeemed for cash on April 5, 2006. Market
        price for December 31, 2005 is as quoted by Bloomberg L.P. and
        reflects the price of a single $50 security.

    (d) Market price as quoted by Bloomberg L.P. Amount reflects the price of
        a single $1,000 debenture, which is exchangeable for common stock upon
        the occurrence of certain events.

    (e) On September 15, 2006, the Company declared a third quarter common
        dividend of $.20 per share and a third quarter preferred dividend of
        $.5546875 per share for its Class E preferred stock.

    (f) On May 20, 2005, the Company redeemed, at par, all four million shares
        of its 10% Class B Cumulative Redeemable Preferred stock for
        approximately $101 million, including accrued dividends.

    (g) The Company redeemed the outstanding 7 7/8% Series B senior notes on
        May 15, 2006.

    (h) Includes the fair value of interest rate swap agreements of $(7)
        million and $(6) million as of September 8, 2006 and December 31,
        2005, respectively.

    (i) Includes the fair value of an interest rate swap agreement of $(2)
        million and $1 million as of September 8, 2006 and December 31, 2005,
        respectively.

    (j) Includes the $135 million mortgage (with a fair value of $133 million
        at September 1, 2006) assumed in connection with the acquisition of
        the Westin Kierland Resort & Spa on September 1, 2006.

    (k) The outstanding balance on the Company's credit facility of $20
        million as of December 31, 2005 was repaid on January 13, 2006.
        Currently, the Company has $575 million of available capacity under
        its credit facility.

    (l) The operating statistics reflect all consolidated properties as of
        September 8, 2006 and September 9, 2005, respectively. The operating
        statistics include the results of operations for six properties sold
        as of September 8, 2006 and five properties sold in 2005 prior to
        their disposition.
 

                         HOST HOTELS & RESORTS, INC.
     Reconciliation of Net Income (Loss) Available to Common Stockholders
                  to Funds From Operations per Diluted Share
              (unaudited, in millions, except per share amounts)
 

                                         Quarter ended         Quarter ended
                                        September 8, 2006    September 9, 2005
                                                                          Per
                                                     Per                 Share
                                      Income         Share  Income        Amo-
                                       (loss) Shares Amount (loss) Shares  unt
    Net income (loss) available to
     common stockholders                 $38  520.5  $.07  $(11)  353.1 $(.03)
    Adjustments:
      Gains on dispositions, net of
       taxes                              (5)    -   (.01)    -      -     -
      Amortization of deferred gains
       and other property transactions,
       net of taxes                       (1)    -     -     (1)     -     -

      Depreciation and amortization      119     -    .23    85      -    .24
      Partnership adjustments              2     -     -      1      -     -
      FFO of minority partners of
       Host LP (a)                        (5)    -   (.01)   (4)     -   (.01)
    Adjustments for dilutive
     securities:
      Assuming distribution of
       common shares granted
       under the comprehensive
       stock plan less shares
       assumed purchased at
       average market price                -    1.8    -      -     2.3    -
      Assuming conversion of
       Exchangeable Senior
       Debentures                          4   28.5    -      4    27.7  (.01)

    FFO per diluted share (b) (c)       $152  550.8  $.28   $74   383.1  $.19
 
 

                                      Year-to-date ended   Year-to-date ended
                                      September 8, 2006    September 9, 2005

                                                                          Per
                                                     Per                 Share
                                      Income         Share  Income        Amo-
                                      (loss) Shares Amount (loss) Shares  unt

    Net income available to common
     stockholders                       $524  464.1  $1.13    $67  352.6 $.19
    Adjustments:
      Gains on dispositions, net of
       taxes                            (390)    -    (.84)   (54)    -  (.15)
      Amortization of deferred gains
       and other property transactions,
       net of taxes                       (3)    -    (.01)    (5)    -  (.02)
      Depreciation and amortization      314     -     .68    254     -   .72
      Partnership adjustments             24     -     .05      9     -   .03
      FFO of minority partners of
       Host LP (a)                       (18)    -    (.04)   (15)    -  (.04)
    Adjustments for dilutive
     securities:
      Assuming distribution of
       common shares granted
       under the comprehensive
       stock plan less shares
       assumed purchased at
       average market price                -    1.8      -     -     2.4 (.01)
      Assuming conversion of
       Exchangeable Senior
       Debentures                         13   28.5   (.03)    13   27.7 (.02)
      Assuming conversion of
       Convertible Subordinated
       Debentures                          2    2.7      -     -      -    -
    FFO per diluted share (b) (c)       $466  497.1   $.94  $269  382.7  $.70
 

    (a) Represents FFO attributable to the minority interests in Host LP.

    (b) FFO per diluted share in accordance with NAREIT is adjusted for the
        effects of dilutive securities. Dilutive securities may include shares
        granted under comprehensive stock plans, preferred OP Units held by
        minority partners, convertible debt securities and other minority
        interests that have the option to convert their limited partnership
        interest to common OP Units. No effect is shown for securities if they
        are anti-dilutive.

    (c) FFO per diluted share for certain periods presented was significantly
        affected by certain transactions, which are detailed in the table
        entitled, "Schedule of Significant Transactions Affecting Earnings per
        Share and Funds from Operations per Diluted Share."
 

                         HOST HOTELS & RESORTS, INC.
    Schedule of Significant Transactions Affecting Earnings per Share and
                   Funds From Operations per Diluted Share
              (unaudited, in millions, except per share amounts)
 

                                        Quarter ended         Quarter ended
                                      September 8, 2006     September 9, 2005

                                    Net Income              Net Income
                                      (Loss)       FFO        (Loss)      FFO

    Gain on hotel dispositions,
     net of taxes                       5           -           -          -
    Non-recurring Starwood
     acquisition costs (a)             (4)         (4)          -          -
            Total (b)              $    1     $    (4)     $    -     $    -
            Per diluted share      $    -     $     -      $    -     $    -
 

                                      Year-to-date ended    Year-to-date ended
                                      September 8, 2006     September 9, 2005

                                    Net Income              Net Income
                                      (Loss)       FFO        (Loss)      FFO

    Non-recurring Starwood
     acquisition costs (a)         $  (17)    $   (17)     $    -     $    -
    Senior notes redemptions and
     debt prepayments (c)              (4)         (4)        (34)       (34)
    Preferred stock redemptions (d)    (8)         (8)         (4)        (4)
    Gain on CBM Joint Venture LLC
     sale (e)                           -           -          42          -
    Gain on hotel dispositions,
     net of taxes                     390           -          12          -
    Minority interest income
    (expense) (f)                     (14)          1          (1)         2
            Total (b)              $  347     $   (28)     $   15     $  (36)
            Per diluted share      $  .74     $  (.05)     $  .04     $ (.09)

    (a) Represents non-recurring costs incurred in conjunction with the
        acquisition of the Starwood portfolio that are required to be expensed
        under GAAP, including start-up costs, bridge loan fees and expenses
        and the Company's portion of a foreign currency hedge loss by the
        European joint venture as the venture hedged a portion of its initial
        investment for the acquisition of six of its European hotels.

    (b) Net income of Host LP was also affected by the transactions discussed
        above, with the exception of the minority interest income (expense)
        item discussed in footnote (f). Accordingly, the total adjustments on
        the net income of Host LP were approximately $361 million and $16
        million for year-to-date 2006 and year-to-date 2005, respectively.

    (c) Represents call premiums and the acceleration of original issue
        discounts and deferred financing costs, as well as incremental
        interest during the call or prepayment notice period, included in
        interest expense in the consolidated statements of operations. We
        recognized these costs in conjunction with the prepayment or
        refinancing of senior notes and mortgages during certain periods
        presented.

    (d) Represents the original issuance costs and the incremental dividends
        during the redemption notice period associated with the redemption of
        the Class C preferred stock in 2006 and the Class B preferred stock in
        2005.

    (e) Represents the gain, net of tax, on the sale of 85% of our interest in
        CBM Joint Venture LLC.

    (f) Represents the portion of the significant transactions attributable to
        minority partners in Host LP.
 
 

                         HOST HOTELS & RESORTS, L.P.
                  Consolidated Statements of Operations (a)
              (unaudited, in millions, except per unit amounts)

                                        Quarter ended      Year-to-date ended
                                   September   September  September  September
                                        8,          9,         8,         9,
                                      2006        2005       2006       2005

    Revenues
            Rooms                       $736      $511     $1,977    $1,547
            Food and beverage            303       223        935       763
            Other                         74        56        199       169
              Total hotel sales        1,113       790      3,111     2,479
            Rental income                 22        21         78        75
              Total revenues           1,135       811      3,189     2,554
    Expenses
            Rooms                        182       128        470       374
            Food and beverage            244       184        690       574
            Hotel departmental
             expenses                    303       234        794       684
            Management fees               50        33        143       108
            Other property-level
             expenses                     91        67        243       199
            Depreciation and
             amortization                119        82        314       244
            Corporate and other
             expenses                     21        16         62        45
            Total operating costs
             and expenses              1,010       744      2,716     2,228
    Operating profit                     125        67        473       326
    Interest income                        8         5         22        17
    Interest expense                    (100)      (94)      (298)     (318)
    Net gains (loss) on property
     transactions                          1         -          3        77
    Gain (loss) on foreign currency
     and derivative contracts              -        (1)         -         1
    Minority interest expense              -         -         (7)       (6)
    Equity in earnings (losses) of
     affiliates                           (3)        -         (8)       (1)
    Income (loss) before income taxes     31       (23)       185        96
    Benefit (provision) for income
     taxes                                 4        15        (14)      (23)
    Income (loss) from continuing
     operations                           35        (8)       171        73
    Income from discontinued
     operations (b)                        6         3        394        24
    Net income (loss)                     41        (5)       565        97
    Less:  Distributions on preferred
     units                                (2)       (6)       (12)      (21)
          Issuance costs of redeemed
           preferred units (c)             -         -         (6)       (4)
    Net income (loss) available to
     common unitholders                  $39       $(11)     $547       $72
    Basic earnings (loss) per
     common unit:
        Continuing operations           $.06      $(.04)     $.32      $.13
        Discontinued operations          .01        .01       .81       .06
    Basic earnings (loss) per
     common unit                        $.07      $(.03)    $1.13      $.19
    Diluted earnings (loss) per
     common unit:
        Continuing operations           $.06      $(.04)     $.32      $.13
        Discontinued operations          .01        .01       .81       .06
    Diluted earnings (loss) per
     common unit                        $.07      $(.03)    $1.13      $.19

    (a) Our consolidated statements of operations presented above have been
        prepared without audit. Certain information and footnote disclosures
        normally included in financial statements presented in accordance with
        GAAP have been omitted. When distinguishing between Host and Host LP,
        the primary difference is the partnership interests in Host LP held by
        outside partners, which is reflected as minority interest in our
        consolidated balance sheets and minority interest expense in our
        consolidated statements of operations. The consolidated statements of
        operations should be read in conjunction with the consolidated
        financial statements and notes thereto included in our most recent
        Annual Report on Form 10-K.

    (b) Reflects the results of operations and gain (loss) on sale, net of the
        related income tax, for six properties sold in 2006 and one hotel
        classified as held-for-sale as of September 8, 2006 and five
        properties sold in 2005.

    (c) Represents the original issuance costs associated with the redemption
        of the Class C preferred units in the second quarter of 2006 and the
        Class B preferred units in the second quarter of 2005.
 

              Reconciliation of Net Income (loss) to EBITDA and
                               Adjusted EBITDA
                           (unaudited), in millions

                                        Quarter ended      Year-to-date ended
                                   September   September  September  September
                                        8,          9,         8,         9,
                                      2006        2005       2006       2005

    Net income (loss)                    $41        $(5)     $565       $97
        Interest expense                 100         94       298       318
        Depreciation and amortization    119         82       314       244
        Income taxes                      (4)       (15)       14        23
        Discontinued operations (a)       (1)         4         2        12
    EBITDA                               255        160     1,193       694
        Gains on dispositions             (5)         -      (392)      (83)
        Amortization of deferred gains    (1)        (1)       (3)       (7)
        Consolidated partnership
         adjustments:
            Minority interest
             expense                       -          -         7         6
            Distributions to
             minority partners             -          -        (4)       (3)
        Equity investment
         adjustments:
            Equity in (earnings)
             losses of affiliates          3          -         8         1
            Distributions received
             from equity investments       1          1         3         2
    Adjusted EBITDA of Host LP          $253       $160      $812      $610

    (a) Reflects the interest expense, depreciation and amortization and
        income taxes included in discontinued operations.
 
 

                         HOST HOTELS & RESORTS, INC.

Reconciliation of Net Income Available to Common Stockholders to Funds From Operations per Diluted Share for Fourth Quarter 2006 Forecasts (a)

              (unaudited, in millions, except per share amounts)
 

                                                     Low-end of Range
                                                 Fourth Quarter 2006 Forecast
                                                                     Per Share
                                              Income (Loss)  Shares   Amount

    Forecast net income available to common
     stockholders                                    $165     521.0     $.32
    Adjustments:
        Depreciation and amortization                 164      -         .31
        Gain on dispositions, net of taxes            (27)     -        (.05)
        Partnership adjustments                         8      -         .02
        FFO of minority partners of Host LP (b)       (11)     -        (.02)
    Adjustment for dilutive securities:
        Assuming distribution of common shares
         granted under the comprehensive stock plan
         less shares assumed purchased at
         average market price                            -      1.8     (.01)
        Assuming conversion of Exchangeable
         Senior Debentures                              6      28.8     (.02)
    FFO per diluted share                            $305     551.6     $.55
 
 

                                                      High-end of Range
                                                  Fourth Quarter 2006 Forecast
                                                                     Per Share
                                              Income (Loss)  Shares   Amount
    Forecast net income available to common
     stockholders                                    $180     521.0     $.35
    Adjustments:
        Depreciation and amortization                 164      -         .31
        Gain on dispositions, net of taxes            (27)     -        (.05)
        Partnership adjustments                         8      -         .02
        FFO of minority partners of Host LP (b)       (11)     -        (.02)
    Adjustment for dilutive securities:
        Assuming distribution of common shares
         granted under the comprehensive stock plan
         less shares assumed purchased at
         average market price                           -       1.8     (.01)
        Assuming conversion of Exchangeable
         Senior Debentures                              6      28.8     (.02)
    FFO per diluted share                            $320     551.6     $.58
 
 

                         HOST HOTELS & RESORTS, INC.
       Reconciliation of Net Income Available to Common Stockholders to
                 Funds From Operations per Diluted Share for
                         Full Year 2006 Forecasts (a)
              (unaudited, in millions, except per share amounts)

                                                     Low-end of Range
                                                  Full Year 2006 Forecast
                                              Income                Per Share
                                              (Loss)      Shares      Amount
    Forecast net income available to
     common stockholders                        $689       481.9       $1.43
    Adjustments:
     Depreciation and amortization               478           -         .99
     Gain on dispositions, net of taxes         (420)          -        (.87)
     Partnership adjustments                      33           -         .07
     FFO of minority partners of Host LP (b)     (30)          -        (.06)
    Adjustment for dilutive securities:
     Assuming distribution of common shares
      granted under the comprehensive stock
      plan less shares assumed purchased at
      average market price                         -         1.8        (.01)
     Assuming conversion of Exchangeable
      Senior Debentures                           19        28.8        (.05)
     Assuming conversion of Convertible
      Subordinated Debentures                      2         1.9           -
    FFO per diluted share                       $771       514.4       $1.50
 
 

                                                     High-end of Range
                                                  Full Year 2006 Forecast
                                              Income                Per Share
                                              (Loss)      Shares      Amount
    Forecast net income available to
     common stockholders                        $704       481.9       $1.46
    Adjustments:
     Depreciation and amortization               478           -         .99
     Gain on dispositions, net of taxes         (420)          -        (.87)
     Partnership adjustments                      34           -         .07
     FFO of minority partners of Host LP (b)     (30)          -        (.06)
    Adjustment for dilutive securities:
     Assuming distribution of common shares
      granted under the comprehensive stock
      plan less shares assumed purchased at
      average market price                         -         1.8        (.01)
     Assuming conversion of Exchangeable
      Senior Debentures                           19        28.8        (.05)
     Assuming conversion of Convertible
      Subordinated Debentures                      2         1.9           -
    FFO per diluted share                       $787       514.4       $1.53
 
 

    (a) The fourth quarter and full year 2006 forecasts were based on the
        following assumptions (the comparable hotel guidance listed below does
        not include the Starwood portfolio):

        * Comparable hotel RevPAR will increase 7.0% to 8.0% for the fourth
          quarter and 8.0% to 8.75% for the full year for the low and high
          ends of the forecasted range, respectively.

        * Comparable hotel adjusted operating profit margins will increase 170
          basis points and 200 basis points for the full year for the low and
          high ends of the forecasted range, respectively.

        * RevPAR growth for the Starwood portfolio will be modestly higher
          than the RevPAR for the Company's comparable hotels for full year
          2006.

        * Approximately $820 million of debt and perpetual preferred stock has
          been, or will be, refinanced. Charges, net of the minority interest
          benefit, totaling approximately $6 million ($.01 of FFO per diluted
          share effect) and $34 million ($.06 of FFO per diluted share)
          related to costs associated with the debt and perpetual preferred
          stock repayments and non-recurring costs related to the Starwood
          acquisition will be incurred for the fourth quarter and full year
          2006, respectively.

        * Fully diluted weighted average shares for FFO per diluted share will
          be 551.6 million for the fourth quarter and 514.4 million for the
          full year and for earnings per diluted share will be 551.6 million
          for the fourth quarter and 483.7 million for the full year.

The amounts shown in these forecasts are based on these and other assumptions, as well as management's estimate of operations for 2006. These forecasts are forward-looking and are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause actual transactions, results and performance to differ materially from those expressed or implied by these forecasts. Although we believe the expectations reflected in the forecasts are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that the results will be materially different. Risks that may affect these assumptions and forecasts include the following:

        * the level of RevPAR and margin growth may change significantly;

        * the amount and timing of acquisitions and dispositions of hotel
          properties is an estimate that can substantially affect financial
          results, including such items as net income, depreciation and gains
          (losses) on dispositions;

        * the level of capital expenditures may change significantly, which
          will directly affect the level of depreciation expense and net
          income; and

        * other risks and uncertainties associated with our business described
          herein and in the Company's filings with the SEC.

    (b) Represents FFO attributable to the minority interests in Host LP.
 

                         HOST HOTELS & RESORTS, INC.
        Schedule of Comparable Hotel Adjusted Operating Profit Margin
                       for Full Year 2006 Forecasts (a)
              (unaudited, in millions, except hotel statistics)

                                                   Full Year 2006 Forecast
                                                  Low-end           High-end
                                                  of range          of range

    Percent change in Comparable Hotel RevPAR         8.0%             8.75%
    Operating profit margin under GAAP (b)           15.2%             15.5%
    Comparable hotel adjusted operating profit
     margin (c)                                      26.5%             26.8%

    Comparable hotel sales
      Room                                          $2,355            $2,371
      Other                                          1,438             1,442
        Comparable hotel sales (d)                   3,793             3,813
    Comparable hotel expenses
      Rooms and other departmental costs             1,561             1,564
      Management fees, ground rent and other costs   1,228             1,229
        Comparable hotel expenses (e)                2,789             2,793
    Comparable hotel adjusted operating profit       1,004             1,020
    Non-comparable hotel results, net                  300               300
    Office buildings and limited service
     properties, net                                     7                 7
    Depreciation and amortization                     (479)             (479)
    Corporate and other expenses                       (86)              (86)
        Operating profit                              $746              $762
 

    (a) Forecasted comparable hotel results include assumptions on the number
        of hotels that will be included in our comparable hotel set in 2006.
        We have assumed that 95 hotels will be classified as comparable as of
        December 31, 2006. No assurances can be made as to the hotels that
        will be in the comparable hotel set for 2006. Also, see the notes
        following the table reconciling net income available to common
        shareholders to Funds From Operations per Diluted Share for
        assumptions relating to the full year 2006 forecasts.

    (b) Operating profit margin under GAAP is calculated as the operating
        profit divided by the forecast total revenues per the consolidated
        statements of operations. See (d) below for forecasted revenues.

    (c) Comparable hotel adjusted operating profit margin is calculated as the
        comparable hotel adjusted operating profit divided by the comparable
        hotel sales per the table above. We forecasted an increase in margins
        of 170 basis points to 200 basis points over the comparable adjusted
        operating profit margin of 24.8%.

    (d) The reconciliation of forecast total revenues to the forecast
        comparable hotel sales is as follows (in millions):
 

                                                         Full Year 2006
                                                       Low-end      High-end
                                                       of range     of range
    Revenues                                             $4,893       $4,901
    Non-comparable hotel sales                           (1,064)      (1,052)
    Hotel sales for the property for which we
     record rental income, net                               52           52
    Rental income for office buildings and limited
    service hotels                                          (88)         (88)
                Comparable hotel sales                   $3,793       $3,813

    (e) The reconciliation of forecast operating costs and expenses to the
        comparable hotel expenses is as follows (in millions):

                                                          Full Year 2006
                                                       Low-end      High-end
                                                       of range     of range
    Operating costs and expenses                         $4,147       $4,139
    Non-comparable hotel expenses                          (764)        (752)
    Hotel expenses for the property for which we
     record rental income                                    52           52
    Rent expense for office buildings and limited
    service hotels                                          (81)         (81)
    Depreciation and amortization                          (479)        (479)
    Corporate and other expenses                            (86)         (86)
                Comparable hotel expenses                $2,789       $2,793
 
 

                             HOST HOTELS & RESORTS, L.P.
                  Reconciliation of Net Income to EBITDA and
               Adjusted EBITDA for Full Year 2006 Forecasts (a)
                           (unaudited, in millions)

                                                         Full Year 2006
                                                   Low-end           High-end
                                                   of range          of range

    Net income                                        $739              $754
    Interest expense                                   438               438
    Depreciation and amortization                      479               479
    Income taxes                                         7                 7
    EBITDA                                           1,663             1,678
    Gains on dispositions                             (420)             (420)
    Consolidated partnership adjustments:
    Minority interest expense                            8                 8
    Distributions to minority partners                  (6)               (6)
    Equity investment adjustments:
    Equity in losses of affiliates                       6                 6
    Distributions received from equity investments       4                 4
    Adjusted EBITDA of Host LP                      $1,255            $1,270

    (a)   The amounts shown in these reconciliations are based on
          management's estimate of operations for 2006. These tables are
          forward-looking and as such contain assumptions by management based
          on known and unknown risks, uncertainties and other factors which
          may cause the actual transactions, results, performance, or
          achievements to be materially different from any future
          transactions, results, performance or achievements expressed or
          implied by this table. General economic condition, competition and
          governmental actions will affect future transactions, results
          performance and achievements. Although we believe the expectations
          in this reconciliation are based upon reasonable assumptions, we
          can give no assurance that the expectations will be attained or
          that any deviations will not be material. For purposes of the full
          year forecasts, we have utilized the same, previously detailed
          assumptions as those utilized for the full year forecasts for Host
          Hotels & Resorts, Inc.

About Host Hotels & Resorts

Host Hotels & Resorts, Inc. is the largest lodging real estate investment trust and one of the largest owners of luxury and upper upscale hotels. The Company currently owns 128 properties with approximately 67,000 rooms, and also holds a minority interest in a joint venture that owns seven hotels in Europe with approximately 2,700 rooms. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The Luxury Collection®, Hyatt®, Fairmont®, Four Seasons®, Hilton® and Swissotel®* in the operation of properties in over 50 major markets worldwide. For additional information, please visit the Company's website at http://www.hosthotels.com.

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "continue" and other similar terms and phrases, including references to assumption and forecasts of future results.

.
Contact:

Host Hotels & Resorts, Inc.
http://www.hosthotels.com/theindex.html

Also See: Host Hotels & Resorts Inc. 2nd Qtr Net Income Balloons to $330 million On its 28 Hotel Acquisition and Strong RevPAR Growth / July 2006
Host Hotels & Resorts Reports First Quarter 2006 Net Income of $172 million, Includes $146 million from Gains on Hotel Dispositions; Comparable RevPAR for 98 Hotels Up 7.6% Over Last Year First Quarter / Hotel Operating Data / April 2006

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