HST » Topics » Hotel Sales Overview

This excerpt taken from the HST 8-K filed Nov 9, 2009.

Hotel Sales Overview

 

     2008    2007    % Change
2007 to 2008
    2006    % Change
2006 to 2007
 
     (in millions)          (in millions)       

Revenues

             

Rooms

   $ 3,133    $ 3,204    (2.2 )%    $ 2,837    12.9

Food and beverage

     1,566      1,603    (2.3     1,435    11.7   

Other

     349      351    (0.6     294    19.4   
                         

Total hotel sales

   $ 5,048    $ 5,158    (2.1   $ 4,566    13.0   
                         

 

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2008 Compared to 2007

Hotel sales declined in 2008 due to decreases in occupancy at our properties, as well as decreases in food and beverage and other revenue items. Sales related to properties sold as of August 5, 2009 have been reclassified as discontinued operations. See “Discontinued Operations” below.

Comparable hotel RevPAR decreased 2.6%. The decrease in RevPAR was the result of a 2.4 percentage point decrease in occupancy which was slightly offset by a .7% increase in average room rates. Occupancy was negatively affected by the decrease in overall lodging demand.

Food and beverage revenues for our comparable hotels decreased 2.9%, primarily due to decreased sales from our catering and banquet business and meeting room rentals and the decline in occupancy at our hotels. Other revenues for our comparable hotels, which primarily represent spa, golf, parking, internet connectivity and other fees, were down slightly.

While management evaluates the performance of each individual hotel against its competitive set in a given market, overall we evaluate the portfolio operating results using three different criteria: property type (i.e. urban, suburban, resort/conference or airport), geographic region and mix of business (i.e. transient, group or contract).

Comparable Hotel Sales by Property Type

The following tables set forth performance information for 2008 and 2007:

This excerpt taken from the HST 8-K filed Aug 5, 2009.

Hotel Sales Overview

 

     2008    2007    % Change
2007 to 2008
    2006    % Change
2006 to 2007
 
     (in millions)          (in millions)       

Revenues

             

Rooms

   $ 3,147    $ 3,218    (2.2 )%    $ 2,850    12.9

Food and beverage

     1,573      1,611    (2.4     1,444    11.6   

Other

     350      352    (0.6     294    19.7   
                         

Total hotel sales

   $ 5,070    $ 5,181    (2.1   $ 4,588    12.9   
                         

 

16


2008 Compared to 2007

Hotel sales declined in 2008 due to decreases in occupancy at our properties, as well as decreases in food and beverage and other revenue items. Sales related to properties sold as of August 5, 2009 have been reclassified as discontinued operations. See “Discontinued Operations” below.

Comparable hotel RevPAR decreased 2.6%. The decrease in RevPAR was the result of a 2.4 percentage point decrease in occupancy which was slightly offset by a .7% increase in average room rates. Occupancy was negatively affected by the decrease in overall lodging demand.

Food and beverage revenues for our comparable hotels decreased 2.9%, primarily due to decreased sales from our catering and banquet business and meeting room rentals and the decline in occupancy at our hotels. Other revenues for our comparable hotels, which primarily represent spa, golf, parking, internet connectivity and other fees, were down slightly.

While management evaluates the performance of each individual hotel against its competitive set in a given market, overall we evaluate the portfolio operating results using three different criteria: property type (i.e. urban, suburban, resort/conference or airport), geographic region and mix of business (i.e. transient, group or contract).

Comparable Hotel Sales by Property Type

The following tables set forth performance information for 2008 and 2007:

This excerpt taken from the HST 10-Q filed Apr 23, 2009.

Hotel Sales Overview

 

     Quarter ended       
     March 27,
2009
   March 21,
2008
   % Increase
(Decrease)
 
     (in millions)       

Revenues:

        

Rooms

   $ 511    $ 621    (17.7 )%

Food and beverage

     272      332    (18.1 )

Other

     70      70    —    
                

Total hotel sales

   $ 853    $ 1,023    (16.6 )
                

Hotel sales declined 16.6% for the quarter, reflecting continued weakness in the lodging industry. The amounts presented in our statements of operations include 86 days and 81 days for our Marriott-managed hotels in the first quarters of 2009 and 2008, respectively. Revenues for properties sold or classified as held for sale in 2009 or 2008 have been reclassified as discontinued operations. See “Discontinued Operations” below.

We discuss operating results for our hotels on a comparable basis. Comparable hotels are those properties that we have owned for the entirety of the reporting periods being compared. Comparable hotels do not include the results of properties acquired or sold, or that incurred significant property damage and business interruption or large scale capital improvements during these periods. As of March 27, 2009, all of our 116 hotels have been classified as comparable hotels. See “Comparable Hotel Operating Statistics” for a complete description of our comparable hotels. We discuss our operating results by property type (i.e. urban, suburban, resort/conference or airport), geographic region and mix of business (i.e. transient, group or contract).

For the quarter, comparable hotel sales decreased 19.6% to approximately $863 million. The revenue decline reflects the decrease in comparable RevPAR of 19.8% as a result of a decrease in occupancy of 8.5 percentage points and a decrease in average room rates of 8.6%.

Food and beverage revenues for our comparable hotels decreased 20.7% for the quarter. The decrease in the quarter reflects a decline in both banquet and outlet revenues. Other revenues for our comparable hotels, which primarily represent spa, golf, parking, internet connectivity and attrition and cancellation fees, decreased 9.3% for the quarter.

 

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Table of Contents
This excerpt taken from the HST 10-K filed Feb 27, 2009.

Hotel Sales Overview

 

     2008    2007    % Change
2007 to 2008
    2006    % Change
2006 to 2007
 
     (in millions)          (in millions)       

Revenues

             

Rooms

   $ 3,216    $ 3,293    (2.3 )%   $ 2,915    13.0 %

Food and beverage

     1,601      1,642    (2.5 )     1,471    11.6  

Other

     353      356    (0.8 )     297    19.9  
                         

Total hotel sales

   $ 5,170    $ 5,291    (2.3 )   $ 4,683    13.0  
                         

2008 Compared to 2007

Hotel sales declined in 2008 due to decreases in occupancy at our properties, as well as decreases in food and beverage and other revenue items. Sales for properties disposed of in both years have been reclassified as discontinued operations. See “Discontinued Operations” below.

Comparable hotel RevPAR decreased 2.6%. The decrease in RevPAR was the result of a 2.4 percentage point decrease in occupancy which was slightly offset by a .7% increase in average room rates. Occupancy was negatively affected by the decrease in overall lodging demand.

 

46


Food and beverage revenues for our comparable hotels decreased 2.9%, primarily due to decreased sales from our catering and banquet business and meeting room rentals and the decline in occupancy at our hotels. Other revenues for our comparable hotels, which primarily represent spa, golf, parking, internet connectivity and other fees, were down slightly.

While management evaluates the performance of each individual hotel against its competitive set in a given market, overall we evaluate the portfolio operating results using three different criteria: property type (i.e. urban, suburban, resort/conference or airport), geographic region and mix of business (i.e. transient, group or contract).

Comparable Hotel Sales by Property Type

The following tables set forth performance information for 2008 and 2007:

This excerpt taken from the HST 8-K filed Nov 21, 2008.

Hotel Sales Overview

 

     2007    2006    % Change
2006 to 2007
    2005    % Change
2005 to 2006
 
     (in millions)          (in millions)       

Revenues

             

Rooms

   $ 3,294    $ 2,916    13.0 %   $ 2,194    32.9 %

Food and beverage

     1,642      1,470    11.7       1,147    28.2  

Other

     356      297    19.9       238    24.8  
                         

Total hotel sales

   $ 5,292    $ 4,683    13.0     $ 3,579    30.8  
                         

2007 Compared to 2006

Hotel sales growth for 2007 was due to increases in RevPAR, as well as increases in food and beverage and other revenue items. Hotel sales for 2007 also reflect a full year of operations for the Starwood Portfolio and include $1,056 million and $755 million in 2007 and 2006, respectively, from these properties. Sales for properties sold have been reclassified as discontinued operations. See “Discontinued Operations” below.

Comparable Hotel plus the Starwood Portfolio RevPAR increased 6.5% in 2007 and comparable hotel RevPAR increased 5.8% (as of December 31, 2007, 93 of our 119 hotels have been classified as comparable hotels). The increase in RevPAR was the result of strong growth in average room rates and a slight increase in occupancy. The growth in average room rate was driven by increasing demand due to strong economic growth in the first half of 2007 and low growth in the supply of new luxury and upper upscale hotels. As a result of these trends, our operators were able to continue to increase room rates, while marginally improving the year-over-year occupancy levels. However, occupancy was affected at a number of our hotels by our capital expenditure program, which is described below, as well as weakness in individual markets.

Food and beverage revenues for our comparable hotels increased 3.7%, primarily due to increased sales from our catering and banquet business and meeting room rentals. In addition, operating margins at our food and beverage outlets increased 1.1 percentage points. Other revenues for our comparable hotels, which primarily represent spa, golf, parking, internet connectivity and other fees, increased 7.4%.

While management evaluates the performance of each individual hotel against its competitive set in a given market, overall we evaluate the portfolio operating results using three different criteria: property type (i.e. urban, suburban, resort/convention or airport), geographic region and mix of business (i.e. transient, group or contract).

Comparable Hotel Sales by Property Type

The following tables set forth performance information as of December 31, 2007 and 2006:

This excerpt taken from the HST 10-Q filed Oct 15, 2008.

Hotel Sales Overview

 

     Quarter ended       
     September 5,
2008
   September 7,
2007
   % Increase
(Decrease)
 
     (in millions)       

Revenues:

        

Rooms

   $ 757    $ 769    (1.6 )%

Food and beverage

     311      323    (3.7 )

Other

     78      83    (6.0 )
                

Total hotel sales

   $ 1,146    $ 1,175    (2.5 )
                

 

     Year-to-Date ended       
     September 5,
2008
   September 7,
2007
   % Increase
(Decrease)
 
     (in millions)       

Revenues:

        

Rooms

   $ 2,236    $ 2,216    0.9 %

Food and beverage

     1,085      1,071    1.3  

Other

     241      242    (0.4 )
                

Total hotel sales

   $ 3,562    $ 3,529    0.9  
                

Hotel sales declined 2.5% for the quarter and increased 0.9% for year-to-date 2008, reflecting continued weakness in the lodging industry. Sales for properties sold or classified as held for sale in 2008 or 2007 have been reclassified as discontinued operations. See “Discontinued Operations” below.

We discuss operating results for our hotels on a comparable basis. Comparable hotels are those properties that we have owned for the entirety of the reporting periods being compared. Comparable hotels do not include the results of properties acquired or sold, or that incurred significant property damage and business interruption or large scale capital improvements during these periods. As of September 5, 2008, 115 of our 117 hotels have been classified as comparable hotels. See “Comparable Hotel Operating Statistics” for a complete description of our comparable hotels. We discuss our operating results by property type (i.e. urban, suburban, resort/conference or airport), geographic region and mix of business (i.e. transient, group or contract).

For the quarter, comparable hotel sales decreased 3.1% to approximately $1.1 billion. The revenue decline reflects the decrease in comparable RevPAR of 2.1% as a result of a decrease in occupancy of 2.6 percentage points, partially offset by an increase in average room rates of 1.3%. Year-to-date, comparable hotel sales increased 0.6% to approximately $3.5 billion. The revenue growth reflects the increase in comparable RevPAR of 0.6%, as a result of an increase in average room rates of 2.6%, partially offset by a decrease in occupancy of 1.5 percentage points. The year-to-date increase also includes one extra day of results for approximately 41% of our comparable hotels that report results on a monthly basis as 2008 is a leap year.

Food and beverage revenues for our comparable hotels decreased 4.6% for the quarter and increased 0.7% year-to-date. The decrease in the quarter reflects a decline in both banquet and outlet revenues. Other revenues for our comparable hotels, which primarily represent spa, golf, parking, internet connectivity and attrition and cancellation fees, decreased 6.0% for the quarter and 0.8% year-to-date.

 

17


Table of Contents
This excerpt taken from the HST 10-Q filed Jul 21, 2008.

Hotel Sales Overview

 

     Quarter ended       
     June 13,
2008
   June 15,
2007
   % Increase
(Decrease)
 
     (in millions)       

Revenues

        

Rooms

   $ 856    $ 839    2.0 %

Food and beverage

     440      427    3.0  

Other

     92      90    2.2  
                

Total hotel sales

   $ 1,388    $ 1,356    2.4  
                
     Year-to-Date ended       
     June 13,
2008
   June 15,
2007
   % Increase
(Decrease)
 
     (in millions)       

Revenues

        

Rooms

   $ 1,480    $ 1,447    2.3 %

Food and beverage

     774      748    3.5  

Other

     162      159    1.9  
                

Total hotel sales

   $ 2,416    $ 2,354    2.6  
                

Hotel sales grew 2.4% and 2.6% for the quarter and year-to-date 2008, respectively, reflecting increases in RevPAR, as well as increases in food and beverage and other revenues. Sales for properties sold or classified as held for sale in 2008 or 2007 have been reclassified as discontinued operations. See “Discontinued Operations” below.

We discuss operating results for our hotels on a comparable basis. Comparable hotels are those properties that we have owned for the entirety of the reporting periods being compared. Comparable hotels do not include the results of properties acquired or sold, or that incurred significant property damage and business interruption or large scale capital improvements during these periods. As of June 13, 2008, 115 of our 118 hotels have been classified as comparable hotels. See “Comparable Hotel Operating Statistics” for a complete description of our comparable hotels. We discuss our operating results by property type (i.e. urban, suburban, resort/convention or airport), geographic region and mix of business (i.e. transient, group or contract).

Comparable hotel sales increased 1.9 % to approximately $1.4 billion for the quarter and increased 2.5% to approximately $2.4 billion year-to-date. The revenue growth reflects the increase in comparable RevPAR of 1.7% for the quarter and 2.0% year-to-date, as a result of an increase in average room rates of 2.6% for the quarter and 3.2% year-to-date, offset by a decrease in occupancy of 0.7 percentage points for the quarter and 0.9 percentage points year-to-date. The year-to-date increase also includes one extra day of results for approximately 42% of our hotels that report results on a monthly basis as 2008 is a leap year.

Food and beverage revenues for our comparable hotels increased 2.6% for the quarter and 3.2% year-to-date, primarily due to increased sales from our banquet and audio visual sales. Food and beverage revenues also benefited from a strong performance at the Orlando World Center Marriott and its recently opened 105,000 square foot Cypress ballroom/exhibit hall. Other revenues for our comparable hotels, which primarily represent spa, golf, parking, internet connectivity and attrition fees, increased 1.1% for the quarter and 1.2% year-to-date.

 

16


Table of Contents
This excerpt taken from the HST 10-Q filed Apr 28, 2008.

Hotel Sales Overview

 

     Quarter ended    % Increase  
     March 21,
2008
   March 23,
2007
  
     (in millions)       

Revenues

        

Rooms

   $ 624    $ 608    2.6 %

Food and beverage

     334      321    4.0  

Other

     70      69    1.4  
                

Total hotel sales

   $ 1,028    $ 998    3.0  
                

Hotel sales growth for the first quarter of 2008 was due to increases in RevPAR, as well as increases in food and beverage and other revenues. Sales for properties sold or classified as held for sale in 2008 or 2007 have been reclassified as discontinued operations. See “Discontinued Operations” below.

We discuss operating results for our hotels on a comparable basis. Comparable hotels are those properties that we have owned for the entirety of the reporting periods being compared. Comparable hotels do not include the results of properties acquired or sold, or that incurred significant property damage and business interruption or large scale capital improvements during these periods. As of March 21, 2008, 116 of our 119 hotels have been classified as comparable hotels. See “Comparable Hotel Operating Statistics” for a complete description of our comparable hotels. We discuss our operating results by property type (i.e. urban, suburban, resort/convention or airport), geographic region and mix of business (i.e. transient, group or contract).

Comparable hotel sales increased 3.2% to approximately $1.0 billion for the first quarter of 2008. The revenue growth reflects the increase in comparable RevPAR of 2.4%, as a result of an increase in average room rates of 4.0% offset by a decrease in occupancy of 1.1 percentage points. The increase is also due to one extra day of results for approximately 42% of our hotels that report results on a monthly basis as 2008 is a leap year.

Food and beverage revenues for our comparable hotels increased 3.9%, primarily due to increased sales from our catering and banquet business and meeting room rentals. Food and beverage revenues also benefited from a strong performance at the Orlando World Center Marriott and its recently opened 105,000 square foot Cypress ballroom/exhibit hall, as well as strong performance at a number of our other large convention properties. Other revenues for our comparable hotels, which primarily represent spa, golf, parking, internet connectivity and attrition fees, increased 1.4% for the first quarter of 2008.

 

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