Portfolio Re-Investment and Growth Opportunities Presentation
COMPANY
OVERVIEW
RECENT
HIGHLIGHTS
PORTFOLIO
UPDATE
GROWTH
OPPORTUNITIES
CORPORATE
RESPONSIBILITY
RECONCILIATIONS &
SUPPLEMENTAL INFO
2024 Outlook - Margin Performance
In 2023, Comparable Hotel EBITDA margin was 60 basis points
above 2019 due in part to our efforts to redefine the operating
model with our managers. (1)
In 2024, we expect margins to decline by 50 basis points at the
midpoint of our guidance compared to 2023 as estimated impacts
from Maui operations and insurance and property tax increases
outweigh net operations improvements. (1)
COMPARABLE HOTEL EBITDA MARGIN (1)
MARGIN-ENHANCING
OPERATING MODEL CHANGES
Driving efficiencies through the
cross-utilization of management
functions
Reducing the fixed component of
above-property charges
Adapting brand standards for
greater relevancy and adopting
productivity-enhancing technology
30.1%
(20) bps
(50) bps
+20 bps
29.6%
2023 Comparable Hotel Maui Operations Impact Insurance & Property Tax
EBITDA Margin
Increase
Net Operations
Improvement (2)
2024E Comparable Hotel
EBITDA Margin Midpoint
Potential contributions and deductions are estimates only; actual results are expected to vary from these forecasts.
1) Comparable Hotel EBITDA Margin is a non-GAAP financial measure. 2023 Comparable Hotel EBITDA margin of 30.1% is based on the 2024 Comparable Hotel portfolio. 2023 operating profit margin was 15.6%, a 100-basis point increase
from 2019 operating profit margin of 14.6%. 2024 midpoint operating profit margin forecast is 15.7%, a 10 basis points increase compared to 2023. The impacts to margins for each of the above items are expected to be the same for
operating profit margin and comparable hotel EBITDA margin (except the impact of net operations improvement as set forth in footnote 2). See Reconciliations & Supplemental Information for reconciliations and items that may affect
forecast results, projections, and other estimates. See slide 2 (Forward Looking Statements) for factors that may affect lodging demand.
2)
Net Operations Improvement includes expected Comparable Hotel EBITDA margin benefits from improved productivity, lower food costs, utilities savings from the New York Marriott Marquis co-generation plant, and destination fees.
Net Operations Improvement for net income includes an additional benefit of 60 basis points to margins from improved operations at non-comparable hotels and lower corporate expenses, partially offset by less gain on insurance
settlements.
2024 Host Hotels & Resorts, Inc.
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