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Host Hotels 4th-quarter FFO grows 57 percent

BETHESDA — Real estate investment trust Host Hotels & Resorts Inc. said Tuesday its funds from operations climbed 57 percent in the fourth quarter on greater revenue from the hotels it owns, including greater food, room and beverage revenue.

Host said its funds from operations rose to $177 million, or 26 cents per share, in the three months ended Dec. 31 from $113 million, or 18 cents per share. Acquisition costs reduced its FFO by 2 cents per share in the latest quarter. Analysts expected FFO of 28 cents per share, according to FactSet.

FFO, which adds such items as amortization and depreciation to net income, is considered key to measuring the financial performance of real estate investment trusts.

Host Hotels owned or leased 113 hotels as of Dec. 31, and has agreed to acquire two more since the end of the quarter. The company reported a smaller quarterly loss of $6 million, or a penny per share. A year ago the company lost $73 million, or 12 cents per share.

Its revenue rose 13 percent, to $1.49 billion from $1.33 billion. The company said revenue from owned hotels rose 9 percent to $1.41 billion. Room revenue grew 11 percent and food and beverage revenue increased 7 percent.

For the full year, Host Hotels said its funds from operations climbed to $465 million, or 68 cents per share, from $303 million, or 51 cents per share in 2009. The company reported a smaller loss and said its revenue rose 7 percent to $4.44 billion from $4.14 billion.

The company said it expects funds from operations of $652 million to $687 million, or 82 cents to 92 cents per share, in 2011.

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