Host Marriott 2004 Annual Report - Host Hotels & Resorts, Inc

een reclassified to discontinued operations. The business
interruption proceeds received, net of expenses, for the New
York Marriott Financial Center hotel are included in rooms
revenue from continuing operations.
COMPARABLE HOTEL OPERATING STATISTICS
We present certain operating statistics (i.e., RevPAR, average
daily rate and average occupancy) and operating results (revenues,
expenses and adjusted operating profit) for the periods
included in this report on a comparable hotel basis. We
define our comparable hotels as full-service properties (i)
that are owned or leased by us and the operations of which
are included in our consolidated results, whether as continuing
operations or discontinued operations, for the entirety of
the reporting periods being compared, and (ii) that have not
sustained substantial property damage or undergone largescale
capital projects during the reporting periods being
compared. Of the 111 full-service hotels that we owned on
December 31, 2004, 103 have been classified as comparable
hotels for 2004 versus 2003 comparisons. The operating
results of the following eight hotels that we owned as of
December 31, 2004 are excluded from comparable hotel
results for these periods:
• The JW Marriott, Washington, D.C. (consolidated in our
financial statements beginning in the second quarter of 2003);
• The Hyatt Regency Maui Resort and Spa (acquired in
November 2003);
• The Memphis Marriott (construction of a 200-room
expansion started in 2003 and completed in 2004);
• The Embassy Suites Chicago Downtown-Lakefront Hotel
(acquired in April 2004);
• The Fairmont Kea Lani Maui (acquired in July 2004);
• The Newport Beach Marriott Hotel (major renovation
started in July 2004);
• The Mountain Shadows Resort Hotel (temporarily closed
in September 2004); and
• The Scottsdale Marriott at McDowell Mountains
(acquired in September 2004).
In addition, the operating results of the 17 hotels we
disposed of in 2004 and 2003 are also not included in
comparable hotel results for the periods presented herein.
Moreover, because these statistics and operating results are for
our full-service hotel properties, they exclude results for our
non-hotel properties and leased limited-service hotels.
We evaluate the operating performance of our comparable
hotels based on both geographic region and property type. These
divisions are generally consistent with industry data provided by
hospitality research firms such as Smith Travel Research.
Geographic regions consist of the following (only states in
which we own hotels are listed):
• Pacific—California, Hawaii, Oregon and Washington;
• Mountain—Arizona and Colorado;
• North Central—Illinois, Indiana, Michigan, Minnesota,
Missouri and Ohio;
• South Central—Louisiana, Tennessee and Texas;
• New England—Connecticut, Massachusetts and
New Hampshire;
• Mid-Atlantic—Pennsylvania, New Jersey and New York;
• DC Metro—Maryland, Virginia and Washington, D.C.;
• Atlanta— Georgia and North Carolina;
• Florida—Florida; and
• International—Canada and Mexico.
Property types consist of the following:
• Urban—Hotels located in central business districts of major
cities. This includes most of our large convention center
properties, suburban markets or edge cities located outside
the urban core in larger metropolitan areas;
• Suburban—Hotels located in office parks or smaller
secondary markets;
• Resort/conference—Hotels in tourist locations such as
Florida, Hawaii and Southern California; and
• Airport—Hotels located at or near airports.
The following table sets forth performance information for
our comparable full-service hotels by geographic region and
property type as of December 31, 2004 and 2003:
COMPARABLE BY REGION
AS OF DECEMBER 31, 2004 YEAR ENDED DECEMBER 31, 2004 YEAR ENDED DECEMBER 31, 2003
PERCENT
NO. OF NO. OF AVERAGE AVERAGE AVERAGE AVERAGE CHANGE IN
PROPERTIES ROOMS DAILY RATE OCCUPANCY REVPAR DAILY RATE OCCUPANCY REVPAR REVPAR
Pacific 20 10,720 $148.93 73.3% $109.10 $148.71 67.9% $101.03 8.0%
Florida 12 7,337 163.16 71.5 116.69 158.40 68.8 109.00 7.1
Mid-Atlantic 10 6,720 189.17 78.3 148.19 180.11 74.3 133.85 10.7
Atlanta 13 5,940 143.30 67.1 96.15 138.16 65.6 90.67 6.0
North Central 13 4,923 123.93 67.8 84.06 123.52 66.6 82.28 2.2
South Central 7 4,816 131.73 75.1 98.87 131.46 75.9 99.79 (0.9)
DC Metro 10 3,890 155.75 73.4 114.29 148.07 70.7 104.65 9.2
New England 7 3,413 146.12 73.0 106.72 142.32 67.5 96.11 11.0
Mountain 6 2,351 102.34 59.7 61.10 97.56 61.0 59.52 2.7
International 5 1,953 122.86 72.3 88.87 114.67 66.0 75.64 17.5
All Regions 103 52,063 149.64 71.9 107.66 145.42 69.0 100.35 7.3
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HOST MARRIOTT 2004