By Anastasia Tomazhenkova: Hotel owner Host Hotels & Resorts Inc posted its quarterly funds from operations rose, due to an increase in average room rates.
Host Hotels & Resorts Inc., the owner of 119 properties including Marriotts, Hiltons and Westins, announced fourth-quarter profit rose 50%.
Net income advanced to 294 million dollars, or 54 cents a share, from 196 million dollars, or 36 cents, a year earlier, the Bethesda, Maryland-based company said. Funds from operations, a measure of cash flow used by real estate investment trusts, rose more than analysts estimated.
Room rates climbed 6.4% as business travelers
Host Hotels, the largest U.S. hotel real estate investment trust, said fourth-quarter FFO was 75 cents a share, compared to 58 cents a share in the same quarter a year ago.
FFO, a widely accepted measure of real estate investment trust performance, removes the profit-reducing effects that depreciation - a non-cash accounting item - has on earnings.
Host fell 14 cents to 16.69 dollars at 9:55 a.m. in New York Stock Exchange composite trading. The shares declined 1.2% this year through yesterday.
The company lowered its growth-rate forecast for revenue per available room, a measure of rates and occupancy, to 2% to 4% for 2008 from October's estimate of 5% to 7%. Marriott International Inc. and Starwood Hotels & Resorts Worldwide Inc., which together manage 112 Host properties, have also lowered their 2008 Revpar forecasts.
Host forecast first-quarter earnings of 8 cents to 9 cents a share and full-year profit of 1.05 dollar to 1.14 dollar.
For the time being, one needs to finish the construction of the section that is 100 kilometres long. On October 17, German Foreign Minister Heiko Maas said in an interview with RND that the project would be completed