(Reuters) – Real estate investment trust (REIT) Host Hotels & Resorts raised its full-year outlook for adjusted funds from operation (FFO) on Wednesday, helped by healthy hotel occupancy rates.
A recovery in international travel has lifted the quarterly results of hotel operators, as post-pandemic flexible work arrangements encourage more Americans to fly overseas for leisure and business.
The company, which owns luxury and upscale hotels operating under brand names such as JW Marriott and Ritz Carlton, now expects adjusted FFO per share in the range of $1.90 to $1.95, compared to prior expectations in the range of $1.82 to $1.89.
Host Hotels expects full-year RevPAR (revenue per available room) to be 5.6% above pre-pandemic 2019.
“Despite the impact of the wildfires in Maui, we maintained the midpoint of our previous full year comparable hotel RevPAR growth at 8%,” said CEO James Risoleo.
The company, which owns about 72 properties in the U.S. and five internationally, reported an adjusted FFO per share of 41 cents for the third quarter ended September 30, compared to 38 cents last year.
Comparable hotel revenues were down slightly year-on-year to $1.18 billion from $1.19 billion due to lower room rates.
Shares of Host Hotels & Resorts were up 2% in trading after the bell.
(Reporting by Ananta Agarwal and Mehr Bedi in Bengaluru; Editing by Krishna Chandra Eluri)
