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Host Hotels Acquisitions Pay Off in Quadruple Q2 Profits

BETHESDA, MD-The company expects hotel RevPAR to increase 9% to 10% for the third quarter and 8.5% to 10% for the full year.

By Erika Morphy | Updated on July 19, 2006

BETHESDA, MD-Host Hotels & Resorts, Inc., the nation’s largest hotel REIT, reported its second quarter earnings have quadrupled to $320 million from $80 million in the same period the previous year—in large part due to its acquisition 28 hotels from Starwood Hotels & Resorts Worldwide, Inc., earlier this Spring. Also, hotel revenue per available room, or RevPAR, during Q2 second quarter rose 9.7% compared to Q2 2005.

Host Hotels maintains that if the Starwood hotels were included in the results for both periods, RevPAR would have grown 13% during the quarter compared with last year. Its forecasts for 2006 include hotel RevPAR to increase approximately 9% to 10% for the third quarter and 8.5% to 10% for the full year.

“We significantly exceeded the high-end of our expectations and analysts’ consensus estimates by posting another quarter of strong RevPAR and margin growth,” Christopher J. Nassetta, president and chief executive officer, says.

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