Host Hotels provides update on Hurricane Ian damage

The company said, "As previously discussed, Hurricane Ian caused significant damage at The Ritz-Carlton, Naples and Hyatt Regency Coconut Point Resort and Spa. The Hyatt Regency Coconut Point remained open to first responders and reopened to guests on November 7, 2022, as part of a phased reopening. The pool facilities reopening is currently in progress and targeted for completion by June 2023. The Ritz-Carlton, Naples remains closed, and the Company is targeting a phased reopening strategy beginning in summer 2023. The Company is still evaluating the complete property and business interruption impacts of the storm, but currently estimates the total property damage and remediation costs resulting from the storm to be approximately $200 million to $220 million, across all of the affected Florida properties. The Company is insured for $325 million per named windstorm, with a $15 million deductible, resulting in potential insurance recovery of approximately $310 million for covered costs. Provided planned reopening dates can be maintained, the Company believes this coverage should be sufficient to cover substantially all of the property remediation and reconstruction costs and the near-term loss of business. However, it is possible that the insurance coverage may not be sufficient to cover the entirety of the business interruption caused by the storm. As of February 15, 2023, the Company has received approximately $50 million of insurance proceeds related to these claims. The Company estimates that Hurricane Ian negatively impacted its full year revenues by approximately $39 million, of which $33 million was in the fourth quarter, All Owned Hotel RevPAR by 60 basis points, with a 220 basis points impact in the fourth quarter, and net income and Adjusted EBITDAre by $18 million, of which $15 million was in the fourth quarter. The impact also reduced full year operating profit margin under GAAP by an estimated 20 basis points, with an 80 basis points impact in the fourth quarter, and All Owned Hotel EBITDA margin by 10 basis points, with a 40 basis points impact in the fourth quarter."