HOST MARRIOTT CORPORATION
Consolidated Balance Sheets (a)
(unaudited, in millions, except
share amounts)
September 6, December 31,
2002
2001
ASSETS
Property and
equipment, net
$7,102
$6,999
Notes and other
receivables
(including
amounts due from
affiliates
of $6 million)
54
54
Due from Managers
62
141
Investments
in affiliates
139
142
Other assets
523
536
Restricted cash
120
114
Cash and cash
equivalents
394
352
$8,394
$8,338
LIABILITIES AND SHAREHOLDERS' EQUITY
Debt
Senior notes
$3,246
$3,235
Mortgage debt
2,304
2,261
Other
103
106
5,653
5,602
Accounts payable
and accrued expenses
154
121
Other liabilities
250
321
Total liabilities
6,057
6,044
Minority interest
240
210
Company-obligated
mandatorily
redeemable
convertible preferred
securities
of a subsidiary whose
sole assets
are convertible
subordinated
debentures due 2026
("Convertible
Preferred Securities")
475
475
Shareholders'
equity
Cumulative redeemable
preferred stock
(liquidation
preference $25 per
share),
50 million shares
authorized;
14.1 million shares
issued
and outstanding
339
339
Common stock,
par value $.01, 750
million
shares authorized; 265.8
million
shares and 263.2 million
shares
issued and outstanding,
respectively
3
3
Additional paid-in
capital
2,100
2,051
Accumulated
other comprehensive loss
(1)
(5)
Deficit
(819)
(779)
Total shareholders' equity
1,622
1,609
$8,394
$8,338
(a) Our consolidated
balance sheets have been prepared without audit.
Certain information and footnote disclosures normally included in financial
statements presented in accordance with accounting principles generally
accepted in the United States have been omitted. The unaudited consolidated
balance sheets should be read in conjunction with the consolidated financial
statements and notes thereto included in the annual report on Form 10-K
for the fiscal year ended December 31, 2001.
HOST MARRIOTT CORPORATION
Consolidated Statements of Operations (a)
(unaudited, in millions, except per share amounts)
Twelve weeks ended Thirty-six weeks ended
Sept. 6, Sept. 7, Sept. 6, Sept. 7,
2002 2001
2002 2001
Revenues
Rooms
$481 $528
$1,489 $1,640
Food and beverage
224 234
756 782
Other
64 67
184 204
Total hotel sales
769 829
2,429 2,626
Rental income
(b)
20 19
70 89
Total revenues
789 848
2,499 2,715
Expenses
Rooms
125 133
365 389
Food and beverage
182 188
562 587
Hotel departmental costs
and deductions
225 229
646 669
Management fees
30 37
110 143
Taxes, insurance and other
property-level expenses (b) 69
69 203
209
Depreciation and amortization 86
86 254
263
Corporate expenses
8 7
28 24
Other expense
3 2
12 9
Lease repurchase expense
- -
- 5
Operating profit
61 97
319 417
Minority
interest income
(expense)
3 -
(8) (26)
Interest
income
7 5
14 25
Interest
expense
(107) (103)
(318) (310)
Net gains
on property
transactions
1 3
3 4
Equity
in earnings (losses)
of affiliates
(3) (1)
(6) 3
Dividends
on Convertible
Preferred Securities
(7) (7)
(22) (22)
Income (loss)
before
income
taxes
(45) (6)
(18) 91
Benefit (provision)
for income
taxes
7 -
(8) (15)
Income (loss)
from continuing
operations
(38) (6)
(26) 76
Discontinued
operations (c)
Income (loss)
from operations -
- 7
(1)
Income (loss)
before
extraordinary
items
(38) (6)
(19) 75
Extraordinary
gain on the
extinguishment
of debt
- (1)
6 (1)
Net income (loss)
$(38) $(7)
$(13) $74
Less: preferred
dividends (9)
(9) (27)
(23)
Net income (loss)
available
to common
shareholders
$(47) $(16)
$(40) $51
Basic earnings
(loss) per
common
share
$(.18) $(.06) $(.15)
$.21
Diluted earnings
(loss)
per common
share
$(.18) $(.06) $(.15)
$.21
(a) Our consolidated
statements of operations have been prepared without audit. Certain information
and footnote disclosures normally included in financial statements presented
in accordance with accounting principles generally accepted in the United
States have been omitted. The unaudited consolidated statements of
operations should be read in conjunction with the consolidated financial
statements and notes thereto included in our annual report on Form 10-K
for the year ended December 31, 2001.
(b) Rental income
and expense for the twelve and thirty-six weeks ended September 6, 2002
and September 7, 2001 are as follows:
Twelve weeks ended Thirty-six weeks ended
September 6, September 7, September 6, September 7,
2002 2001
2002 2001
Rental Income
Full-service
$2 $1
$19 $38
Limited service 16
16 47
47
Office buildings
2 2
4
4
$20 $19
$70 $89
Rental and Other
Expenses
Full-service
$2 $1
$5 $10
Limited service 16
17 48
50
Office building
1 1
2
2
$19 $19
$55 $62
Effective June 16, 2001, we repurchased from third parties the lessee entities
with respect to four of the five full-service properties for which we had
previously recorded rental income, terminating the leases for financial
reporting purposes. Therefore, we currently record rental income with respect
to only one full-service property. Rental and other expenses are included
in taxes, insurance and other property-level expenses on the consolidated
statements of operations.
(c) We adopted
SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived
Assets," effective January 1, 2002. Gains and losses from all subsequent
sales of real estate, as well as any income or loss from the property prior
to disposal, are required to be recorded as discontinued operations. In
January 2002, we transferred the St. Louis Marriott Pavilion to the lender.
The gain on the extinguishment of the debt has been recorded as an extraordinary
item. All other operating results, including the loss on disposal, are
recorded as discontinued operations. The total gain of $13 million is net
of taxes of $8 million. We have restated prior year periods to reflect
operations of the St. Louis Marriott Pavilion as discontinued operations.
HOST MARRIOTT CORPORATION
Reconciliation of Earnings per Share (a)
(unaudited, in millions, except per share amounts)
Twelve weeks ended September 6, 2002
Income Shares
Per Share
(Numerator) (Denominator) Amount
Net loss
$(38) 265.2
$(.15)
Dividends on preferred stock
(9)
- (.03)
Basic loss available
to common
shareholders
per share
(47) 265.2
(.18)
Assuming distribution of common
shares granted under the
comprehensive stock plan,
less shares assumed purchased
at average market price
-
- -
Assuming conversion of minority
OP Units issuable
-
- -
Assuming conversion of Convertible
Preferred Securities
-
- -
Diluted loss
per share
$(47) 265.2
$(.18)
Twelve weeks ended September 7, 2001
Income Shares
Per Share
(Numerator) (Denominator) Amount
Net loss
$(7) 262.5
$(.03)
Dividends on preferred stock
(9)
- (.03)
Basic loss available
to common
shareholders
per share
(16) 262.5
(.06)
Assuming distribution of common
shares granted under the
comprehensive stock plan,
less shares assumed purchased
at average market price
-
- -
Assuming conversion of minority
OP Units issuable
-
- -
Assuming conversion of Convertible
Preferred Securities
-
- -
Diluted loss
per share
$(16) 262.5
$(.06)
Thirty-six weeks ended September 6, 2002
Income Shares
Per Share
(Numerator) (Denominator) Amount
Net income/(loss)
$(13) 264.5
$(.05)
Dividends on preferred stock
(27)
- (.10)
Basic earnings
(loss) available to common shareholders per share
(40) 264.5
(.15)
Assuming distribution of common
shares granted under the
comprehensive stock plan,
less shares assumed purchased
at average market price
-
- -
Assuming conversion of minority
OP Units issuable
-
- -
Assuming conversion of Convertible
Preferred Securities
-
- -
Diluted earnings/(loss)
per share $(40)
264.5 $(.15)
Thirty-six weeks ended September 7, 2001
Income Shares
Per Share
(Numerator) (Denominator) Amount
Net income/(loss)
$74 244.3
$.30
Dividends on preferred stock
(23)
- (.09)
Basic earnings
(loss) available
to common
shareholders per share
51 244.3
.21
Assuming distribution of common
shares granted under the
comprehensive stock plan,
less shares assumed purchased
at average market price
-
4.2 -
Assuming conversion of minority
OP Units issuable
-
- -
Assuming conversion of
Convertible Preferred Securities
-
- -
Diluted earnings/(loss)
per share $51
248.5 $0.21
(a) Basic earnings
per common share is computed by dividing net income (loss) adjusted for
dividends on preferred stock by the weighted average number of shares of
common stock outstanding. Diluted earnings per share is computed by dividing
net income (loss) adjusted for dividends on preferred stock and potentially
dilutive securities, by the weighted average number of shares of common
stock outstanding plus other potentially dilutive securities. Dilutive
securities may include shares granted under comprehensive stock plans,
common and preferred OP Units held by minority partners, minority interests
that have the option to convert their limited partnership interest to common
OP Units and the Convertible Preferred Securities.
HOST MARRIOTT CORPORATION
Comparative Funds from Operations (unaudited, in millions, except per share
amounts)
Twelve weeks ended Thirty-six weeks ended
Sept. 6, Sept. 7, Sept. 6, Sept. 7,
2002 2001
2002 2001
Funds from Operations
Income (loss)
from continuing
operations
$(38) $(6)
$(26) $76
Depreciation and amortization 85
84 251
259
Partnership adjustments
4 4
18 37
Funds from operations
of Host LP 51
82 243
372
Effect
on funds from operations
of SAB 101 (a)
1 3
3 18
Effective
impact of lease
repurchase (b)
3 5
9 8
Comparative
funds from
operations
of Host LP
55 90
255 398
Dividends on preferred stock (9)
(9) (27)
(23)
Comparative
funds from operations
of Host
LP available to common
unitholders
46 81
228 375
Comparative
funds from
operations
of minority partners
of Host
LP (c)
(5) (6)
(20) (53)
Comparative
funds from
operations
available to common
shareholders
of Host REIT $41
$75 $208
$322
Comparative funds
from
operations
of Host REIT per
basic
common share
$0.15 $0.28
$0.79 $1.32
Comparative funds
from
operations
of Host REIT
per diluted
common share $0.15
$0.28 $0.77
$1.24
(a) Results are
adjusted to include contingent rent which is deferred under SAB 101. This
adjustment reflects revenues based on payment amounts calculated under
our hotel leases. During the twenty-four weeks ended June 15, 2001, we
leased five of our hotels to third parties. We purchased four of these
lessee entities, effectively terminating the leases for reporting purposes,
as of June 16, 2001.
(b) This adjustment
reflects the realization of the income tax benefit recognized as a result
of the purchase of the 120 leasehold interests from Crestline and Wyndham
at year-end 2000 and during June 2001.
(c) The $5 million
and $6 million deducted for the twelve weeks ended September 6, 2002 and
September 7, 2001, respectively, and $20 million and the $53 million deducted
for the thirty-six weeks ended September 6, 2002 and September 7, 2001,
respectively, represent the Comparative FFO attributable to the interests
in Host LP held by the minority partners in 2002 and 2001, respectively.
HOST MARRIOTT CORPORATION
Reconciliation of Comparative
Funds from Operations on a Per Share Basis (a)
(unaudited, in millions, except per share basis)
Twelve weeks ended September 6, 2002
Income Shares
Per Share
(Numerator) (Denominator) Amount
Basic Comparative
Funds from
Operations
available to common
shareholders
$41 265.2
$ .15
Assuming
distribution of common
shares granted under the
comprehensive stock plan, less
shares assumed purchased at
average market price
--
2.8 --
Assuming
conversion of minority
OP Units issuable
--
-- --
Assuming
conversion of Convertible
Preferred Securities
--
-- --
Diluted Comparative
Funds from
Operations
(b)
$41 268.0
$ .15
Twelve weeks ended September 7, 2001
Income Shares
Per Share
(Numerator) (Denominator) Amount
Basic Comparative
Funds from
Operations
available to common
shareholders
$75 262.5
$ .28
Assuming
distribution of common
shares granted under the
comprehensive stock plan, less
shares assumed purchased at
average market price
--
3.6 --
Assuming
conversion of minority
OP Units issuable
--
-- --
Assuming
conversion of Convertible
Preferred Securities
7 30.9
--
Diluted Comparative
Funds from
Operations
(b)
$82 297.0
$ .28
Thirty-six weeks ended September 6, 2002
Income Shares
Per Share
(Numerator) (Denominator) Amount
Basic Comparative
Funds from
Operations
available to common
shareholders
$208 264.5
$ .79
Assuming
distribution of common
shares granted under the
comprehensive stock plan, less
shares assumed purchased at
average market price
--
3.0 (.01)
Assuming
conversion of minority
OP Units issuable
--
-- --
Assuming
conversion of Convertible
Preferred Securities
22 30.9
(.01)
Diluted Comparative
Funds from
Operations
(b)
$230 298.4
$ .77
Thirty-six weeks ended September 7, 2001
Income Shares
Per Share
(Numerator) (Denominator) Amount
Basic Comparative
Funds from
Operations
available to common
shareholders
$322 244.3
$1.32
Assuming
distribution of common
shares granted under the
comprehensive stock plan, less
shares assumed purchased at
average market price
--
4.2 (.02)
Assuming
conversion of minority
OP Units issuable
--
-- --
Assuming
conversion of Convertible
Preferred Securities
22 30.9
(.06)
Diluted Comparative
Funds from
Operations
(b)
$344 279.4
$1.24
(a) Comparative
FFO per basic share is computed by dividing Comparative FFO available to
common shareholders by the weighted average number of shares of common
stock outstanding. Comparative FFO per diluted share is computed by dividing
Comparative FFO available to common shareholders, as adjusted for potentially
dilutive securities, by the weighted average number of shares of common
stock outstanding plus other potentially dilutive securities. Dilutive
securities may include shares granted under comprehensive stock plans,
common and preferred OP Units held by minority partners, minority interests
that have the option to convert their limited partnership interest to common
OP Units and the Convertible Preferred Securities.
(b) Minority
common and preferred OP Units were antidilutive for all periods presented.
For the twelve and thirty-six weeks ended September 6, 2002 there were
28 million and 26 million weighted average units outstanding with a minority
interest in Comparative FFO of $5 million and $20 million, respectively.
For the twelve and thirty-six weeks ended September 7, 2001 there were
22 million and 40 million weighted average units outstanding with a minority
interest in comparative FFO of $6 million and $53 million, respectively.
There would be no change in the reported Diluted Comparative Funds From
Operations per share had these minority units been converted.
HOST MARRIOTT CORPORATION
EBITDA and FFO Reconciliations
(unaudited, in millions)
Twelve weeks ended Thirty-six weeks ended
Sept. 6, Sept. 7, Sept. 6, Sept. 7,
2002 2001
2002 2001
Income (loss)
from continuing
operations
$(38) $(6)
$(26) $76
Effect on revenue of SAB 101 1
3 3
18
Interest expense
107 103
318 310
Dividends on Convertible
Preferred Securities
7 7
22 22
Depreciation and amortization 86
86 254
263
Minority interest (income)
expense
(3) -
8 26
Income taxes
(7) -
8 15
Lease repurchase expense
- -
- 5
Equity in (earnings) losses
of affiliates
3 1
6 (3)
Other non-cash changes, net 3
(4) 9
-
EBITDA of Host
LP
$159 $190
$602 $732
Distributions to
minority interest
partners of Host LP (a)
$- $(5)
$- $(35)
EBITDA of Host
REIT
$159 $185
$602 $697
EBITDA of Host
LP
$159 $190
$602 $732
Interest expense
(107) (103)
(318) (310)
Dividends on Convertible
Preferred Securities
(7) (7)
(22) (22)
Dividends on preferred stock (9)
(9) (27)
(23)
Income taxes
7 -
(8) (15)
Effective impact of lease
repurchase (b)
3 5
9 8
Partnership adjustments
and other
- 5
(8) 5
Comparative
Funds From
Operations
of Host LP
available
to common
unitholders
46 81
228 375
Comparative
Funds From
Operations
of minority
partners
of Host LP (c)
(5) (6)
(20) (53)
Comparative
Funds From
Operations
available to
common
shareholders of Host
REIT
$41 $75
$208 $322
(a) Host REIT
held approximately 90% and 92% of the outstanding OP Units of Host LP at
September 6, 2002 and September 7, 2001, respectively. The distributions
to minority interest partners of Host LP reflect cash distributions made
during the quarter to minority holders of OP Units and holders of certain
preferred OP Units.
(b) This adjustment
reflects the realization of the income tax benefit recognized as a result
of the purchase of the 120 leasehold interests from Crestline and Wyndham
at year-end 2000 and during June 2001.
(c) This adjustment
reflects the comparative funds from operations attributable to the minority
interest partners of Host LP.
HOST MARRIOTT CORPORATION
Other Financial Data
(unaudited, in millions, except per share and ratio data)
September 6 December 31
2002
2001
Capitalization
Equivalent
common shares outstanding (a)
300.5
298
Security
pricing:
Share price-common (b)
$10.00
$ 9.00
Share price-Class A Preferred stock (b)
$26.40
$24.91
Share price-Class B Preferred stock (b)
$26.23
$24.91
Share price-Class C Preferred stock (b)
$26.48
$25.00
Share price-Convertible Preferred
Securities (b)
$37.13
$34.94
Total
enterprise value (c)
$9,384
$8,971
Equity
Common shares
outstanding
265.8
263.2
Common shares
and minority held
common OP Units outstanding
293.8
284.7
Preferred OP
Units outstanding
.02
.02
Class A Preferred
shares outstanding
4.1
4.1
Class B Preferred
shares outstanding
4.0
4.0
Class C Preferred
shares outstanding
6.0
6.0
Dividends (per
share)
Common
(d)
$ -
$ .78
Class
A Preferred (e)
$1.88
$2.50
Class
B Preferred (e)
$1.88
$2.50
Class
C Preferred (e)
$1.88
$1.91
Debt
Percentage
fixed rate
90%
98%
Weighted
average rate
7.9%
8.2%
Weighted
average maturity
5.6 years 6.2 years
Line of
Credit, outstanding balance (f)
$ -
$ -
Financial Ratios
(g)
Interest
coverage ratio (EBITDA/
cash interest expense) (h)
2.0x
2.1x
Ratio
of Earnings to Fixed Charges
and Preferred Dividends
1.0x
1.2x
Debt service
coverage ratio (EBITDA/
(cash interest + principal payments)) (h)
1.7x
1.9x
Debt as
a percentage of total enterprise value 60.2%
62%
(a) Includes
the number of shares of common stock outstanding plus those common and
preferred OP Units issuable or outstanding that are held by minority partners
which potentially could be converted plus shares granted under comprehensive
stock plans, which are assumed to be distributed, net of shares assumed
repurchased at average market price.
(b) Share prices
are the closing price on the balance sheet date, as
reported by the New York Stock Exchange for the common and preferred stock.
The shares of Convertible Preferred Securities are not traded on an exchange.
The per share price is the higher of the buy or sell price as provided
by the trading desk for Goldman Sachs in New York, New York.
(c) Total enterprise
value is calculated as the fair value of our debt, plus outstanding shares
of our preferred stock, equivalent common shares outstanding as computed
in footnote (a), and the Convertible Preferred Securities multiplied by
the closing stock prices on the balance sheet date. Total enterprise value
is based on a market price as of the balance sheet date and should not
be deemed to represent the fair market value of the company.
(d) We have
not declared a dividend year-to-date on our common stock.
During 2001, we paid three quarterly dividends of $.26 per share but did
not pay a fourth quarter dividend. The responsibility to declare dividends
is the sole responsibility of our board of directors.
(e) 2002 dividends
reflect a quarterly cash dividend of $.625 per share for the Class A, Class
B and Class C Preferred Stock. 2001 dividends reflect quarterly cash
dividends of $.625 per share, or an annual dividend of $2.50 per share,
for both Class A and Class B Preferred Stock. The 2001 Class C Preferred
Stock dividends reflect the pro rata dividend, based on the stated rate
of 10% per annum on a liquidation value of $25 per share from the date
of issuance. The responsibility to declare dividends is the sole responsibility
of our board of directors.
(f) In June
2002, the Company completed negotiations on a new bank credit facility
to replace its prior credit line. The new credit facility provides the
Company with an aggregate revolving loan commitment amount of $400 million
($300 million of which is available initially, with the balance becoming
available to the extent that our leverage ratios meet specified levels).
The loan has an initial maturity of June 2005, with an option to extend
for an additional year if certain conditions are met. Interest on
borrowings under the credit facility will be calculated based on a spread
over LIBOR that will vary based on the Company's leverage ratio. As of
September 6, 2002 and December 31, 2001, there were no outstanding borrowings
under the credit facility.
(g) These ratios
are intended to provide an investor with an understanding of our ability
to make interest and principal payments on our current debt structure.
The financial ratios are not calculated in the same manner as required
by the indenture for the senior notes and the credit facility agreement.
Calculation of these ratios consistent with those agreements would require,
among other items, presentation of certain pro forma financial information
which has not been provided. In addition, the coverage ratios have
been calculated using EBITDA of Host LP. The ratios are calculated for
the thirty-six weeks and fifty-two weeks ended September 6, 2002 and December
31, 2001, respectively.
(h) Cash interest
is calculated as interest expense under accounting principles generally
accepted in the United States, less amortization of deferred costs and
other non-cash interest expense, plus capitalized interest.
HOST MARRIOTT
CORPORATION
Hotel Operational Data
Comparable Property Statistics
(unaudited)
Comparable by Region
As of September 6, 2002 Twelve weeks ended September 6, 2002
Average
No. of No. of Average
Occupancy
Properties Rooms Daily Rate Percentages
RevPAR(b)
(a)
Atlanta
15 6,563 $128.93
66.0% $85.15
DC Metro
13 4,998 135.58
74.4 100.92
Florida
13 7,581 118.18
64.8 76.55
International
4 1,641 100.65
78.5 78.96
Mid-Atlantic
9 6,222 175.98
75.4 132.66
Mountain
8 3,313
89.45 64.7
57.87
New England
6 2,277 132.24
76.3 100.92
North Central
15 5,395 120.53
73.8 88.91
Pacific
23 11,822 140.58
74.0 104.08
South Central
12 6,515 109.99
74.8 82.26
All Regions 118 56,327
130.26 71.8
93.47
Comparable by Region
Twelve weeks ended September 7, 2001
Average Average
Percent
Daily Occupancy
Change in
Rate Percentages RevPAR(b)
RevPAR
Atlanta
$144.88 65.6%
$95.04 (10.4%)
DC Metro
143.26 72.7
104.21 (3.2)
Florida
126.78 69.5
88.06 (13.1)
International
105.40 78.6
82.84 (4.7)
Mid-Atlantic
180.62 81.5
147.20 (9.9)
Mountain
93.55 69.6
65.09 (11.1)
New England
146.91 73.2
107.56 (6.2)
North Central
132.47 74.9
99.25 (10.4)
Pacific
152.22 74.7
113.65 (8.4)
South Central
115.91 76.8
88.96 (7.5)
All Regions 139.68 73.5
102.65 (8.9)
Comparable by Region
As of September 6, 2002 Thirty-six weeks ended
September 6,
2002
Average
No. of No. of Average
Occupancy
Properties Rooms Daily Rate Percentages
RevPAR(b)
(a)
Atlanta
15 6,563 $139.90
68.0% $95.14
DC Metro
13 4,998
138.74 71.7
99.44
Florida
13 7,581
152.99 72.4
110.77
International
4 1,641
97.90 72.0
70.51
Mid-Atlantic
9 6,222
181.52 76.9
139.51
Mountain
8 3,313
108.65 67.5
73.34
New England
6 2,277
129.19 68.4
88.31
North Central
15 5,395
118.88 68.5
81.41
Pacific
23 11,822 150.89
71.6 108.03
South Central
12 6,515
128.42 78.2
100.38
All Regions 118 56,327
142.05 72.0
102.25
Comparable by Region
Thirty-six weeks ended September 7, 2001
Average Average
Percent
Daily Occupancy
Change in
Rate Percentages RevPAR(b)
RevPAR
Atlanta
$153.84 69.5%
$106.89 (11.0%)
DC Metro
153.98 71.1
109.54 (9.2)
Florida
165.03 74.7
123.24 (10.1)
International
104.09 75.1
78.17 (9.8)
Mid-Atlantic
190.59 79.6
151.65 (8.0)
Mountain
111.38 71.1
79.24 (7.4)
New England
147.60 69.0
101.90 (13.3)
North Central
133.09 70.2
93.43 (12.9)
Pacific
168.77 74.6
125.84 (14.2)
South Central
134.44 78.4
105.37 (4.7)
All Regions 154.50 73.9
114.10 (10.4)
HOST MARRIOTT CORPORATION
Hotel Operational Data
Comparable Property Statistics
(unaudited)
Other Portfolio Statistics
As of September 6, 2002 Twelve weeks ended
September 6, 2002
Average Average
No. of No. of Daily
Occupancy
Properties Rooms Rate
Percentages RevPAR (b)
Ritz-Carlton
(c) 9
3,536 $201.94 63.0%
$127.20
Twelve weeks ended September 7, 2001
Average
Percent
Average Occupancy
Change in
Daily Rate Percentages REVPAR (b)
RevPAR
Ritz-Carlton
(c) $223.55
67.3% $150.46
(15.5%)
As of September 6, 2002 Thirty-six weeks
ended
September 6, 2002
Average Average
No. of No. of Daily
Occupancy
Properties Rooms Rate
Percentages RevPAR (b)
Ritz-Carlton
(c) 9
3,536 $231.93 66.2%
$153.63
Thirty-six weeks ended September 7, 2001
Average
Percent
Average Occupancy
Change in
Daily Rate Percentages REVPAR (b)
RevPAR
Ritz-Carlton
(c) $254.18
70.7% $179.63
(14.5%)
(a) Comparable
properties consist of the 118 properties owned, directly or indirectly,
by us for the first three quarters of 2002 and 2001, excluding hotels with
non-comparable operating environments as a result of acquisitions, dispositions,
property damage and expansion and development projects.
(b) RevPAR represents
room revenue per available room, which measures daily room revenues generated
on a per room basis, excluding food and beverage revenues or other ancillary
revenues generated by the property.
(c) Includes
nine Ritz-Carlton properties owned by us for all periods presented, excluding
the Ritz-Carlton, Naples Golf Resort, which was placed in service in January
2002.
HOST MARRIOTT CORPORATION
Hotel Operational Data
Property Statistics by Region (All Properties)
(unaudited)
As of September 6, 2002 Twelve weeks ended September 6, 2002
Average
No. of No. of
Average Occupancy
Properties Rooms Daily
Rate Percentages RevPAR
Atlanta
15 6,563
$128.93 66.0%
$85.15
DC Metro
13 4,998
135.58 74.4
100.92
Florida
14 7,876
118.77 63.5
75.36
International
6 2,553
111.15 76.5
85.02
Mid-Atlantic
10 6,726
176.37 75.6
133.28
Mountain
8 3,313
89.45 64.7
57.87
New England
7 3,416
145.11 75.3
109.22
North Central
15 5,395
120.53 73.8
88.91
Pacific
23 11,822
140.58 74.0
104.08
South Central
12 6,515
109.99 74.8
82.26
All Regions 123
59,177 131.58
71.6 94.27
Twelve weeks ended September 7, 2001
Average
Percent
Average Occupancy
Change in
Daily Rate Percentages RevPAR
RevPAR
Atlanta
$144.88 65.6%
$95.04 (10.4%)
DC Metro
143.26 72.7
104.21 (3.2)
Florida
126.78 69.5
88.06 (14.4)
International
116.92 75.7
88.51 (3.9)
Mid-Atlantic
180.00 81.3
146.34 (8.9)
Mountain
95.59 69.7
66.65 (13.2)
New England
146.91 73.2
107.56 1.5
North Central
132.47 74.9
99.25 (10.4)
Pacific
152.22 74.7
113.65 (8.4)
South Central
115.46 76.7
88.56 (7.1)
All Regions
140.48 73.7
103.50 (8.9)
As of September 6, 2002 Thirty-six weeks ended September 6, 2002
Average
No. of No. of
Average Occupancy
Properties Rooms Daily
Rate Percentages RevPAR
Atlanta
15 6,563
$139.90 68.0%
$95.14
DC Metro
13 4,998
138.74 71.7
99.44
Florida
14 7,876
155.61 71.6
111.43
International
6 2,553
110.20 71.8
79.10
Mid-Atlantic
10 6,726
181.10 76.6
138.70
Mountain
8 3,313
108.62 67.5
73.32
New England
7 3,416
136.05 69.1
93.96
North Central
15 5,395
118.88 68.5
81.41
Pacific
23 11,822
150.89 71.6
108.03
South Central
12 6,515
128.21 77.7
99.68
All Regions 123 59,177
142.76 71.8
102.57
Thirty-six weeks ended September 7, 2001
Average
Percent
Average Occupancy
Change in
Daily Rate Percentages RevPAR
RevPAR
Atlanta
$153.84 69.5%
$106.89 (11.0%)
DC Metro
153.98 71.1
109.54 (9.2)
Florida
165.03 74.7
123.24 (9.6)
International
114.49 73.9
84.65 (6.6)
Mid-Atlantic
192.06 79.5
152.59 (9.1)
Mountain
115.48 70.9
81.84 (10.4)
New England
147.60 69.0
101.90 (7.8)
North Central
133.09 70.2
93.43 (12.9)
Pacific
168.77 74.6
125.84 (14.2)
South Central
133.03 78.2
104.00 (4.2)
All Regions
155.44 74.0
114.96 (10.8)
HOST MARRIOTT CORPORATION
Hotel Operational Data
Schedule of Comparable Property Level Results(a)
(unaudited, in millions)
Twelve weeks ended Thirty-six weeks ended
Sept. 6, Sept. 7, Sept. 6, Sept. 7,
2002 2001
2002 2001
Number of hotels
(b)
118 118
118 118
Number of rooms
56,327 56,327 56,327
56,327
Percent change
in RevPAR (8.9)%
(10.4)%
Operating profit
margin 18.8%
23.2% 24.5%
27.0%
Percent change
in operating
profit (25.8)%
(17.5)%
Revenues
Room
$451 $495 $1,439
$1,606
Food and beverage
215 223
741 783
Other
52 65
172 206
Total hotel
sales
718 783
2,352 2,595
Expenses
Room
119 125
352 378
Food and beverage
172 178
545 579
Other
33 35
99 106
Management fees, ground rent
and other costs
260 264
779 832
Total operating
expenses 584
602 1,775 1,895
Operating profit
(c)
$134 $181
$577 $700
(a) Hotel sales
and expenses represent the unaudited comparable gross hotel results, which
includes room, food and beverage and other hotel revenues and expenses
generated by our 118 comparable properties, without consideration of whether
these properties are leased. During the thirty-six weeks ended September
6, 2002, one of our hotels was leased, and therefore, we recorded rental
income. We also recorded rental income for four additional hotels between
January 1, 2001 and June 15, 2001. These leases were effectively
terminated on June 16, 2001. We have presented this information because
we feel that it may be useful to investors in determining the recurring
operating performance of our properties. However, this should not
be deemed to be a method for the calculation of the market value of either
Host REIT or the hotel properties. It also does not represent the
value at which we could sell the properties on the open market.
(b) Comparable
properties consist of the 118 properties owned, directly or indirectly
by us for the same period of time in each period covered, and excludes
hotels with non-comparable operating environments as a result of acquisitions,
dispositions, property damage and expansion and development projects.
(c) As stated
above, these results represent comparable property-level results and are
not the revenues or operating profit of Host REIT for all periods presented.
Further, certain significant cost items normally recorded under accounting
principles generally accepted in the United States including interest expense,
lease payments, depreciation and amortization have not been included in
the
calculation of property-level profit. Additionally, the property-level
profit does not reflect our EBITDA reported herein.
HOST MARRIOTT CORPORATION
Capital Expenditure Data
(unaudited, in millions
Twelve weeks ended Thirty-six weeks ended
September 6, September 7, September 6, September 7,
2002 2001
2002 2001
Capital expenditures
Renewals
and replacements $23
$46 $103
$148
New investments
- 8
10 38
Other
investments
10 6
16 18
$33 $60
$129 $204
September 6 December 31
2002 2001
Construction
in
progress
(a)
$47 $149
(a) On January
4, 2002, the Ritz-Carlton, Naples Golf Resort was placed in service at
a cost of approximately $75 million.
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