Host Hotels & Resorts, Inc. Reports Strong Operating Performance For The Second Quarter

   Host Hotels & Resorts, Inc. Reports Strong Operating Performance For The
                                Second Quarter

PR Newswire

BETHESDA, Md., Aug. 2, 2013

BETHESDA, Md., Aug. 2, 2013 /PRNewswire/ --Host Hotels & Resorts, Inc. (NYSE:
HST), the nation's largest lodging real estate investment trust ("REIT"),
today announced results of operations for the second quarter ended June30,
2013. On an "As Adjusted" basis, as described herein, net income for the
second quarter increased $58million, or 92.1%, and Adjusted EBITDA increased
$81 million, or 23.1%, when compared to 2012. The improvements in the
Company's results were driven by a 6.1% increase in comparable hotel RevPAR
and strong margin growth for the second quarter.

(Logo: http://photos.prnewswire.com/prnh/20060417/HOSTLOGO )

As of January1, 2013, the Company adopted calendar quarter reporting periods,
compared to 2012 where the Company reported based on the fiscal quarters that
had been used by Marriott International. Accordingly, the Company's revenues,
net income, Adjusted EBITDA, diluted earnings per share and NAREIT and
Adjusted FFO per diluted share quarterly results for 2013 are not comparable
to the historical quarterly results of 2012. To enable investors to evaluate
its performance, the Company has presented 2012 RevPAR and certain historical
results on a calendar quarter basis (the "2012 As Adjusted" results). The 2012
As Adjusted second quarter results include (i)an adjustment to add the
operations from June 16, 2012 through June30, 2012 and to exclude operations
from March24, 2012 through March31, 2012 for the Company's Marriott-managed
hotels and (ii)an adjustment to add the operations for the full calendar
month of June and exclude the March operations for its hotels managed by
Ritz-Carlton, Hyatt, Starwood and other managers who report on a calendar
basis, as the Company's historical second quarter results included March,
April and May operations for these properties. Accordingly, the following
discussion of operating performance will include a comparison between the
quarter and year-to-date ended June30 for both years, which management
believes is an important supplemental measure of the Company's performance.
For further discussion of the 2012 As Adjusted results, see the Notes to the
Financial Information included in this release.

Operating Results
(in millions, except per share and hotel statistics)
                Quarter
               ended
                        As                 As Reported
                        Adjusted
                June  June            June 15,
               30,    30,
               2013      2012   %       2012 (b)   % Change
                        (a)     Change
Total owned    $     $     9.4%     $     1,261 11.6%
hotel revenues  1,407 1,286
Comparable                                 
hotel revenues 1,310    1,233     6.3%     N/M             N/M
(a)
Comparable     162.69   153.39    6.1%       N/M
hotel RevPAR                               N/M
Net income     121      63        92.1%    83              45.8%
Adjusted       431      350       23.1%    348             23.9%
EBITDA (a)
Diluted        $     $              $      
earnings per           .09 77.8%    .11            45.5%
share          .16
NAREIT FFO per
diluted share  .39      .31       25.8%    .32             21.9%
(a)
Adjusted FFO
per diluted    .45      .33       36.4%    .34             32.4%
share (a)
                Year-to-date
               ended
                        As                 As Reported
                        Adjusted
                June  June            June 15,
               30,    30,
               2013      2012  %         2012 (b)   % Change
                        (a)     Change
Total owned    $     $     7.2%     $     2,146 22.7%
hotel revenues  2,633 2,457
Comparable                                 
hotel revenues 2,463    2,356     4.5%     N/M             N/M
(a)
Comparable     152.51   144.34    5.7%       N/M
hotel RevPAR                               N/M
Net income     181      122       48.4%    83              N/M
Adjusted       714      607       17.6%    523             36.5%
EBITDA (a)
Diluted        $     $              $      
earnings per           .16 50.0%    .11             N/M
share          .24
NAREIT FFO per
diluted share  .68      .55       23.6%    .47             44.7%
(a)
Adjusted FFO
per diluted    .73      .57       28.1%    .49             49.0%
share (a)
_________________
N/M=Not Meaningful

    NAREIT Funds From Operations ("FFO") per diluted share, Adjusted FFO per
    diluted share (which excludes debt extinguishment costs and other
    expenses), Adjusted EBITDA (which is earnings before interest, taxes,
    depreciation, amortization and other items) and comparable hotel operating
    results (including comparable hotel revenues and comparable hotel adjusted
    operating profit margins) are non-GAAP (U.S. generally accepted accounting
(a) principles) financial measures within the meaning of the rules of the
    Securities and Exchange Commission ("SEC"). In addition, the presentation
    of 2012 As Adjusted results, including total owned hotel revenues and net
    income, are also non-GAAP financial measures. See the Notes to Financial
    Information included in this press release on why the Company believes
    these supplemental measures are useful, reconciliations to the applicable
    GAAP measure and the limitations on their use and information on how the
    2012 As Adjusted results were calculated.
(b) Historical operating results for the second quarter 2012 as filed with the
    SEC on July17, 2012.

The Company's owned hotel revenues increased 9.4% for the second quarter and
7.2% for year-to-date 2013, compared to the 2012 As Adjusted results, due to
the strong performance of its comparable properties, as well as incremental
revenues of $31million for the quarter and $52million year-to-date from the
Grand Hyatt Washington, which was acquired in July 2012.

The increase in comparable hotel RevPAR was primarily driven by improvements
in average room rates, coupled with continued occupancy growth. For the second
quarter and year-to-date 2013, average room rates improved 4.5% and 4.3%,
respectively, when compared to the 2012 As Adjusted results, while occupancy
improved 1.2 percentage points to 79.8% for the second quarter and 1.0
percentage point to 76.1% for the year-to-date. Revenues from comparable food
and beverage increased 6.6% and 3.0% for the quarter and year-to-date,
respectively. The increase was driven by improvements in banquet and
audio-visual sales, which also led to increased profitability. The
improvements in revenues led to strong margin growth as comparable hotel
adjusted operating profit margins increased 180 basis points and 140 basis
points for the second quarter and year-to-date 2013, respectively, compared to
2012 As Adjusted.

ACQUISITIONS

On May31, 2013, the Company acquired the fee-simple interest in the 426-room
Hyatt Place Waikiki Beach in Honolulu, Hawaii for $138.5 million. The hotel is
located approximately one block from Waikiki Beach and is in close proximity
to the Waikiki Aquarium, the Honolulu Zoo and the Kalakaua
shopping/entertainment district. Kokua Hospitality will continue to manage the
hotel subject to a franchise agreement with Hyatt.

DISPOSITIONS

On June28, 2013, the Company sold The Ritz-Carlton, San Francisco, including
the furniture, fixtures & equipment ("FF&E") replacement fund, for a sales
price of $161 million. The Company has recorded a deferred gain of
approximately $25million, $14million of which the Company expects to
recognize in the third quarter upon completion of certain post-closing
conditions. The remainder of the deferred gain is subject to performance
guarantees through which the Company has guaranteed certain annual net
operating profit levels for the hotel through 2016, with a maximum payment of
$4million per year, not to exceed $11 million in total. 

INVESTMENTS

  oREDEVELOPMENT AND RETURN ON INVESTMENT EXPENDITURES - The Company invested
    approximately $26million and $47million during the second quarter and
    year-to-date 2013, respectively, in redevelopment and return on investment
    ("ROI") expenditures. These projects are designed to increase cash flow
    and improve profitability by capitalizing on changing market conditions
    and the favorable locations of the Company's properties. Projects
    completed during the second quarter include the lobby and restaurant
    renovation at the Philadelphia Airport Marriott and the restaurant and bar
    renovation at the Hyatt Regency Reston. The Company expects ROI
    investments for 2013 of approximately $90million to $100million.

  oCAPITAL EXPENDITURES FOR RECENT ACQUISITIONS – In conjunction with the
    acquisition of a property, the Company prepares capital and operational
    improvement plans designed to maximize profitability and enhance the guest
    experience. The Company invested approximately $7million and $22million
    on these projects during the second quarter and year-to-date 2013,
    respectively. During the second quarter, the Company completed the
    renovation of all 1,625 guest rooms at the Manchester Grand Hyatt San
    Diego. The Company expects that acquisition expenditures will total
    approximately $35million to $45million for 2013.

  oRENEWAL AND REPLACEMENT EXPENDITURES - The Company invested approximately
    $76million and $163million in renewal and replacement expenditures
    during the second quarter and year-to-date 2013, respectively. These
    expenditures are designed to ensure that the high-quality standards of
    both the Company and its operators are maintained. During the quarter,
    major renewal and replacement projects completed include the renovation of
    1,452 guestrooms, 47 suites and the concierge lounge at the San Francisco
    Marriott Marquis and the guestroom and lobby renovation at the San Diego
    Marriott Mission Valley. The Company expects that renewal and replacement
    expenditures for 2013 will total approximately $280million to
    $300million.

BALANCE SHEET

The Company has worked diligently to maintain a strong balance sheet with a
low leverage level and balanced debt maturities. During the second quarter, as
previously announced, the Company repaid or redeemed $846million of debt with
an average interest rate of 7.2%, which was funded through the issuance of
$400million of 3.75% SeriesD senior notes and available cash. Since
January1, 2012, the Company has reduced its total debt by $1billion,
decreased its weighted average interest rate to 5.0% and extended its weighted
average debt maturities to 5.6 years. As a result of these financing
transactions, on an annual pro forma basis, cash interest expense decreased to
approximately $225million. As of June30, 2013, the Company has approximately
$393million of cash and $798million of available capacity under its credit
facility.

Also, during the quarter, the Company issued 4.8million shares of common
stock, at an average price of $18.31 per share, for net proceeds of
approximately $87million. These issuances were made in "at-the-market"
offerings pursuant to Sales Agency Financing Agreements with BNY Mellon
Capital Markets, LLC and Scotia Capital (USA) Inc. There is approximately
$110million of issuance capacity remaining under the current agreements.

EUROPEAN JOINT VENTURE

On June20, 2013, the Company's joint venture in Europe refinanced a mortgage
loan secured by a portfolio of five properties located in Spain, Italy, the
United Kingdom and Poland. The loan matures in 2016 and has a one year
extension option subject to meeting certain conditions. The loan has a fixed
and floating rate component with an initial, all-in interest rate of 4.5%. The
joint venture also reduced the outstanding principal amount of the mortgage
loan from €337million to €242million. The Company funded its portion of the
principal reduction, as well as certain closing costs and other funding
requirements, through a €37million ($48million) draw on its credit
facility.

DIVIDEND

On July15, 2013, the Company paid a regular quarterly cash dividend of $.11
per share on its common stock to stockholders of record on June28, 2013. The
amount of any future dividend is dependent on the Company's taxable income and
will be determined by the Company's Board of Directors.

2013 OUTLOOK

The Company anticipates that for 2013:

  oComparable hotel RevPAR will increase 5.5% to 6.25%;
  oTotal owned hotel revenues under GAAP will increase 6.8% to 7.7%;
  oTotal comparable hotel revenues will increase 4.3% to 5.1%;
  oOperating profit margins under GAAP will increase approximately 280 basis
    points to 310 basis points; and
  oComparable hotel adjusted operating profit margins will increase
    approximately 100 basis points to 120 basis points.

Based upon these parameters, the Company estimates that its 2013 guidance is
as follows:

  oearnings per diluted share should range from approximately $.34 to $.38;
  onet income should range from $265million to $290million;
  oNAREIT FFO per diluted share should range from approximately $1.24 to
    $1.27;
  oAdjusted FFO per diluted share should range from approximately $1.28 to
    $1.32; and
  oAdjusted EBITDA should be approximately $1,290million to $1,315million.

See the 2013 Forecast Schedules and the Notes to Financial Information for
other assumptions used in the forecasts and items that may affect forecasted
results. Effective April1, 2013, the Company modified its definition of
Adjusted EBITDA to exclude gains or losses associated with litigation outside
the ordinary course of business, which is consistent with the Company's
definition of Adjusted FFO. See the Notes to Financial Information for more
information on this change. 

ABOUT HOST HOTELS & RESORTS

Host Hotels & Resorts, Inc. is an S&P 500 and Fortune 500 company and is the
largest lodging real estate investment trust and one of the largest owners of
luxury and upper-upscale hotels. The Company currently owns 103 properties in
the United States and 15 properties internationally totaling approximately
62,700 rooms. The Company also holds non-controlling interests in a joint
venture in Europe that owns 19 hotels with approximately 6,100 rooms and a
joint venture in Asia that owns one hotel in Australia and a minority interest
in two hotels in India. Guided by a disciplined approach to capital allocation
and aggressive asset management, the Company partners with premium brands such
as Marriott^®, Ritz-Carlton^®, ^ Westin^®, Sheraton^®, W^®, St. Regis^®, Le
Meridien^®, The Luxury Collection^®, Hyatt^®, Fairmont^®, Four Seasons^®,
Hilton^®, Swissotel^®, ibis^®, Pullman^®, and Novotel^® in the operation of
properties in over 50 major markets worldwide. For additional information,
please visit the Company's website at www.hosthotels.com.

Note: This press release contains forward-looking statements within the
meaning of federal securities regulations. These forward-looking statements
include forecast results and are identified by their use of terms and phrases
such as "anticipate," "believe," "could," "estimate," "expect," "intend,"
"may," "should," "plan," "predict," "project," "will," "continue" and other
similar terms and phrases, including references to assumptions and forecasts
of future results. Forward-looking statements are not guarantees of future
performance and involve known and unknown risks, uncertainties and other
factors which may cause the actual results to differ materially from those
anticipated at the time the forward-looking statements are made. These risks
include, but are not limited to: changes in national and local economic and
business conditions that will affect occupancy rates at our hotels and the
demand for hotel products and services; the impact of geopolitical
developments outside the U.S. on lodging demand; volatility in global
financial and credit markets; operating risks associated with the hotel
business; risks and limitations in our operating flexibility associated with
the level of our indebtedness and our ability to meet covenants in our debt
agreements; risks associated with our relationships with property managers and
joint venture partners; our ability to maintain our properties in a
first-class manner, including meeting capital expenditure requirements; the
effects of hotel renovations on our hotel occupancy and financial results; our
ability to compete effectively in areas such as access, location, quality of
accommodations and room rate structures; risks associated with our ability to
complete acquisitions and dispositions and develop new properties and the
risks that acquisitions and new developments may not perform in accordance
with our expectations; our ability to continue to satisfy complex rules in
order for us to remain a REIT for federal income tax purposes; and other risks
and uncertainties associated with our business described in the Company's
annual report on Form 10‑K, quarterly reports on Form 10-Q and current reports
on Form 8-K filed with the SEC. Although the Company believes the expectations
reflected in such forward-looking statements are based upon reasonable
assumptions, it can give no assurance that the expectations will be attained
or that any deviation will not be material. All information in this release is
as of August2, 2013, and the Company undertakes no obligation to update any
forward-looking statement to conform the statement to actual results or
changes in the Company's expectations.

  This press release contains registered trademarks that are the exclusive
* property of their respective owners. None of the owners of these trademarks
  has any responsibility or liability for any information contained in this
  press release.

*** Tables to Follow ***

Host Hotels & Resorts, Inc., herein referred to as "we" or "Host Inc.," is a
self-managed and self-administered real estate investment trust ("REIT") that
owns hotel properties. We conduct our operations as an umbrella partnership
REIT through an operating partnership, Host Hotels & Resorts, L.P. ("Host
LP"), of which we are the sole general partner. When distinguishing between
Host Inc. and Host LP, the primary difference is approximately 1.3% of the
partnership interests in Host LP held by outside partners as of June 30, 2013,
which is non-controlling interests in Host LP in our consolidated balance
sheets and is included in net income attributable to non-controlling interests
in our consolidated statements of operations. Readers are encouraged to find
further detail regarding our organizational structure in our annual report on
Form 10‑K.

Effective January1, 2013, we report quarterly operating results on a calendar
cycle, which is not comparable to the quarterly reporting method used in 2012.
For additional information on the change in reporting periods, comparable
hotel measures and non-GAAP financial measures which we believe is useful to
investors, see the Notes to Financial Information included in this release.



HOST HOTELS & RESORTS, INC.
Condensed Consolidated Balance Sheets (a)
(in millions, except shares and per share amounts)
                                                                                                                                            June 30,      December
                                                                                                                                                          31,
                                                                                                                                            2013          2012
                                                                                                                                            
                                                                                                                                            (unaudited)
ASSETS
                                                                                                                                            $       $   
Property and equipment, net                                                                                                                 11,201          
                                                                                                                                                          11,588
Due from managers                                                                                                                           130           80
Advances to and investments in affiliates                                                                                                   392           347
Deferred financing costs, net                                                                                                               46            53
Furniture, fixtures and equipment replacement fund                                                                                          194           154
Other                                                                                                                                       274           319
Restricted cash                                                                                                                             35            36
Cash and cash equivalents                                                                                                                   393           417
                                                                                                                                            $       $   
 Total assets                                                                                                                    12,665          
                                                                                                                                                          12,994
LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY
Debt
 Senior notes, including $363million and $531million, respectively, net of                                                             $       $   
                                                                                                                                             3,210          
 discount, of Exchangeable Senior Debentures                                                                                                       3,569
Credit facility, including the $500million term loan                                  702           763
Mortgage debt         727           993
Other 85            86
 Total debt                                                                                                                      4,724         5,411
Accounts payable and accrued expenses                                                                                                       175           194
Other                                                                                                                                       384           372
 Total liabilities                                                                                                               5,283         5,977
Non-controlling interests—Host Hotels & Resorts, L.P                                                                                        168           158
Host Hotels & Resorts, Inc. stockholders' equity:
 Common stock, par value $.01, 1,050million shares authorized; 748.2million
                                                                                                                                            7             7
 shares and 724.6million shares issued and outstanding, respectively
 Additional paid-in capital                                                                                                              8,400         8,040
 Accumulated other comprehensive income (loss)                                                                                           (12)          12
 Deficit                                                                                                                                 (1,216)       (1,234)
 Total equity of Host Hotels & Resorts, Inc. stockholders                                                                        7,179         6,825
Non-controlling interests—other consolidated partnerships                                                                                   35            34
 Total equity                                                                                                                    7,214         6,859
                                                                                                                                            $       $   
 Total liabilities, non-controlling interests and equity                                                                         12,665          
                                                                                                                                                          12,994
_______________

(a) Our condensed consolidated balance sheet as of June 30, 2013 has been prepared without audit. Certain information and

 footnote disclosures normally included in financial statements presented in accordance with GAAP have been omitted.



HOST HOTELS & RESORTS, INC.
Condensed Consolidated Statements of Operations (a)
(unaudited, in millions, except per share amounts)
                              Quarter ended            Year-to-date ended
                               June      June     June     June
                              30,        15,       30,       15,
                              2013         2012        2013        2012
Revenues
 Rooms                     $       $      $       $    
                               903         798       1,677      1,346
 Food and beverage         425          386         800         665
 Other                     79           77          156         135
 Owned hotel revenues  1,407        1,261       2,633       2,146
 Other revenues            13           65          30          124
 Total revenues        1,420        1,326       2,663       2,270
Expenses
 Rooms                     230          206         448         364
 Food and beverage         290          268         567         474
 Other departmental and    322          306         634         545
support expenses
 Management fees           66           55          114         87
 Other property-level      93           140         189         263
expenses
 Depreciation and          174          153         349         301
amortization
 Corporate and other       37           21          63          43
expenses
 Total operating costs 1,212        1,149       2,364       2,077
and expenses
Operating profit              208          177         299         193
Interest income               1            3           2           7
Interest expense (b)          (103)        (94)        (179)       (180)
Net gains on property         21           1           32          2
transactions and other
Gain (loss) on foreign
currency transactions and     1            —           3           (1)
derivatives
Equity in earnings of         6            5           4           3
affiliates
Income before income taxes    134          92          161         24
Benefit (provision) for       (15)         (12)        (7)         1
income taxes
Income from continuing        119          80          154         25
operations
Income from discontinued      2            3           27          58
operations, net of tax
Net income                    121          83          181         83
Less: Net income
attributable to               (2)          (1)         (6)         (3)
non-controlling interests
Net income attributable to    $       $      $      $     
Host Inc.                      119          82       175         80
Basic and diluted earnings
per common share:
 Continuing operations     $       $      $      $     
                                .16        .11       .20       .03
 Discontinued operations   —            —           .04         .08
Basic and diluted earnings    $       $      $      $     
per common share                .16        .11       .24       .11
_______________

(a) Our condensed consolidated statements of operations presented above have
been prepared without audit. Certain information and

footnote disclosures normally included in financial statements
presented in accordance with GAAP have been omitted.
(b) Interest expense includes the following items:

                              Quarter     Year-to-date ended
                             ended
                              June      June    June    June
                             30,        15,      30,      15,
                             2013          2012        2013        2012
Non-cash interest for        $       $      $      $     
exchangeable debentures        4           4       7       9
Debt extinguishment costs    33            14          33          14
 Total            $       $      $      $     
                              37           18       40       23

 



HOST HOTELS & RESORTS, INC.
Earnings per Common Share
(unaudited, in millions, except per share amounts)
                              Quarter        Year-to-date
                             ended              ended
                              June       June     June     June
                             30,         15,       30,       15,
                             2013          2012        2013        2012
Net income                   $       $      $      $     
                             121             83       181         83
 Less: Net income
attributable to              (2)           (1)         (6)         (3)
non-controlling interests
Net income attributable to   $       $      $      $     
Host Inc                     119             82       175         80
Diluted income attributable  $       $      $      $     
to Host Inc                  119             83       175         80
Basic weighted average       745.2         718.1       736.8       712.8
common shares outstanding
Diluted weighted average
common shares outstanding    745.9         730.6       742.4       713.8
(a)
Basic and diluted earnings   $       $      $      $     
per common share              .16           .11       .24       .11
________________

(a) Dilutive securities may include shares granted under comprehensive stock
plans, preferred operating partnership units ("OP

 Units") held by minority partners, exchangeable debt securities and
other non-controlling interests that have the option

 toconvert their limited partnership interests to common OP Units. No
effect is shown for any securities that were anti-dilutive

 for the period.



HOST HOTELS & RESORTS, INC.
Comparable Hotel Operating Data (a)
                                                                          As
                                                                         Adjusted
                         As of June 30,   Quarter ended June    Quarter ended June 30,
                        2013             30, 2013              2012
                                                      Average                    Average                 
                                                                                                             Percent
                         No.    No.         Occupancy                   Occupancy          Change in
                        of      of    Average                     Average
Region                  Properties       Room     Percentage        Room     Percentage               
                                   Rooms Rate                RevPAR Rate                       RevPAR RevPAR
Pacific                 26         16,548   $      81.0%      $      $      79.2%             $      8.4%
                                            192.27             155.65  181.13                    143.53
Mid-Atlantic            11         8,638    263.42   88.0       231.74   257.67   85.3              219.68   5.5
South Central           9          5,695    167.82   73.9       123.94   155.82   73.5              114.46   8.3
D.C. Metro              12         5,418    208.14   82.9       172.59   206.98   82.9              171.52   0.6
North Central           11         4,782    181.67   79.7       144.80   167.76   77.6              130.12   11.3
Florida                 8          3,680    220.39   75.9       167.26   207.27   77.4              160.34   4.3
New England             6          3,672    210.17   84.6       177.73   208.21   83.6              174.07   2.1
Mountain                7          2,885    164.62   69.1       113.75   156.25   69.4              108.39   4.9
Atlanta                 6          2,183    184.51   73.3       135.28   171.10   71.0              121.46   11.4
Asia-Pacific            6          1,255    150.60   80.0       120.42   141.45   75.3              106.57   13.0
Canada                  3          1,219    186.61   71.4       133.19   178.69   69.2              123.71   7.7
Latin America           4          1,075    245.84   62.6       153.97   239.34   71.5              171.09   (10.0)
 AllRegions       109        57,050   203.79   79.8       162.69   194.96   78.7              153.39   6.1
                                                                          As
                                                                         Adjusted
                         As of June 30,   Year-to-date ended June   Year-to-date ended June 30,
                        2013             30, 2013                  2012
                                                      Average                    Average                 
                                                                                                             Percent
                         No.    No.         Occupancy                   Occupancy                  Change in
                        of      of    Average                     Average
Region                  Properties       Room     Percentage        Room     Percentage               
                                   Rooms Rate                RevPAR Rate                       RevPAR RevPAR
Pacific                 26         16,548   $      77.6%      $      $      77.5%             $      4.8%
                                            193.12             149.95  184.61                    143.04
Mid-Atlantic            11         8,638    243.28   81.8       199.09   238.03   78.5              186.76   6.6
South Central           9          5,695    169.28   74.8       126.60   156.26   74.3              116.13   9.0
D.C. Metro              12         5,418    205.34   75.0       154.10   203.21   74.7              151.78   1.5
North Central           11         4,782    164.20   70.7       116.10   154.40   71.1              109.75   5.8
Florida                 8          3,680    253.48   80.2       203.17   233.38   79.0              184.47   10.1
New England             6          3,672    188.97   74.5       140.85   187.02   71.1              132.95   5.9
Mountain                7          2,885    180.70   68.5       123.80   173.50   68.7              119.25   3.8
Atlanta                 6          2,183    180.46   72.1       130.08   171.43   69.7              119.55   8.8
Asia-Pacific            6          1,255    157.26   81.9       128.73   150.20   78.7              118.15   9.0
Canada                  3          1,219    182.55   67.9       123.87   175.99   65.6              115.37   7.4
Latin America           4          1,075    243.80   65.0       158.37   240.00   71.9              172.60   (8.2)
 AllRegions       109        57,050   200.42   76.1       152.51   192.13   75.1              144.34   5.7
                                                                          As
                                                                         Adjusted
                   As of June 30,         Quarter ended June    Quarter ended June 30,
                  2013                   30, 2013              2012
                                                      Average                    Average                 
                                                                                                             Percent
                   No.       No.            Occupancy                   Occupancy                  Change in
                  of         of       Average                     Average
                  Properties             Room     Percentage        Room     Percentage               
                                Rooms    Rate                RevPAR Rate                       RevPAR RevPAR
Property Type
Urban             56            34,958      $      82.1%      $      $      80.8%             $      5.8%
                                            218.83             179.74  210.29                    169.82
Suburban          29            10,568      162.62   73.9       120.20   151.89   73.5              111.70   7.6
Resort/Conference 13            6,356       246.46   73.1       180.20   238.71   71.9              171.74   4.9
Airport           11            5,168       133.22   84.6       112.70   125.86   83.4              104.95   7.4
                  109           57,050      203.79   79.8       162.69   194.96   78.7              153.39   6.1
                                                                                  As Adjusted
                   As of June 30,         Year-to-date ended June   Year-to-date ended June 30,
                  2013                   30, 2013                  2012
                                                      Average                    Average                 
                                                                                                             Percent
                   No.       No.            Occupancy                   Occupancy                  Change in
                  of         of       Average                     Average
                  Properties             Room     Percentage        Room     Percentage               
                                Rooms    Rate                RevPAR Rate                       RevPAR RevPAR
Property Type
Urban             56            34,958      $      77.2%      $      $      76.0%             $      4.8%
                                            208.72             161.19  202.34                    153.75
Suburban          29            10,568      162.09   70.2       113.72   151.50   70.5              106.81   6.5
Resort/Conference 13            6,356       271.40   76.4       207.23   256.86   74.3              190.94   8.5
Airport           11            5,168       131.87   80.2       105.82   125.54   79.8              100.15   5.7
                  109           57,050      200.42   76.1       152.51   192.13   75.1              144.34   5.7
______________

(a) See the Notes to Financial Information for a discussion of reporting periods and the calculation of comparable
hotel operating statistics.







HOST HOTELS & RESORTS, INC.
Hotel Operating Statistics for All Properties (a)
                       Quarter        Year-to-date
                      ended                 ended
                                   As Adjusted                  As Adjusted
                       June     June       June      June
                      30,       30,         30,        30,
                      2013         2012           2013          2012
Average room rate     $        $          $         $    
                      204.39       191.94         200.69        189.40
Average occupancy     79.4%        77.7%          75.7%         74.4%
RevPAR                $        $          $         $    
                      162.20       149.18         151.87        140.88
_______________

(a) The operating statistics reflect all consolidated properties as of June
30, 2013 and June 30, 2012, respectively,

 and include the results of operations of properties sold or transferred
during the year through the date of their

 disposition. See the Notes to Financial Information for a discussion of
reporting periods.





HOST HOTELS & RESORTS, INC.
Comparable Hotel Operating Data
Schedule of Comparable Hotel Results (a)
(unaudited, in millions, except hotel statistics)
                           Quarter ended             Year-to-date ended
                                       As Adjusted               As Adjusted
                            June     June       June     June
                           30,       30,         30,       30,
                           2013         2012      2013         2012
                                       (b)                     (b)
Number of hotels           109         109           109         109
Number of rooms            57,050      57,050        57,050      57,050
Percent change in          6.1%        —             5.7%        —
comparable hotel RevPAR
Operating profit margin    14.6%       12.0%         11.2%       9.5%
(c)
Comparable hotel adjusted
operating profit margin    29.0%       27.2%         26.4%       25.0%
(c)
Comparable hotel revenues
 Room                   $      $       $       $    
                            845       796           1,575      1,498
 Food and beverage (d)  389         365           737         716
 Other                  76          72            151         142
 Comparable hotel 1,310       1,233         2,463       2,356
revenues (e)
Comparable hotel expenses
 Room                   214         205           417         399
 Food and beverage (f)  267         260           524         515
 Other                  39          39            78          78
 Management fees,
ground rent and other      410         394           793         774
costs
 Comparable hotel 930         898           1,812       1,766
expenses (g)
Comparable hotel adjusted  380         335           651         590
operating profit
Non-comparable hotel       39          13            60          30
results, net (h)
Earnings (loss) for hotels —           2             —           (2)
leased from HPT (i)
Depreciation and           (174)       (166)         (349)       (325)
amortization
Corporate and other        (37)        (22)          (63)        (47)
expenses (j)
Operating profit           $      162           $      246
                            208                      299
Less: Estimated operating
profit adjustments for the             15                        (53)

calendar period (b)
Operating profit for the
periods March 24, 2012
through
                                       $                   $      
June 15, 2012 and                 177                       193
January 1, 2012 through
June15,

2012 (as reported)
______________

(a) See the Notes to Financial Information for discussion of non-GAAP
measures, reporting periods and the calculation of

 comparable hotel results.
(b) Comparable hotel results and statistics for June 30, 2012 are based on
2012 As Adjusted results. For the As Adjusted quarter

 ended June 30, 2012, adjustments for the calendar period reflect (i)
estimated operations for the fifteen days from June 16,

 2012 through June 30, 2012 less eight days from March 24, 2012 through
March 31, 2012 for our Marriott-managed properties

 and (ii) for the remainder of the portfolio, the inclusion of the month
of June 2012 results, which previously were reported in

 the third quarter 2012 results, and the exclusion of the March 2012
results. For the As Adjusted year-to-date ended June 30,

 2012, adjustments for the calendar period reflect estimated operations
for the fifteen days from June 16, 2012 through June

 30, 2012 for our Marriott-managed properties and the month of June 2012
results for the remainder of the portfolio. See the

 Notes to Financial Information for further discussion and information on
how the 2012 As Adjusted results were calculated.
(c) Operating profit margins are calculated by dividing the applicable
operating profit by the related revenue amount. GAAP

 margins are calculated using amounts presented in the consolidated
statements of operations, or amounts As Adjusted.

 Comparable margins are calculated using amounts presented in the above
table.

(d) The reconciliation of total food and beverage sales per the consolidated
statements of operations to the comparable food and

 beverage sales is as follows:
                           Quarter ended             Year-to-date ended
                                       As Adjusted               As Adjusted
                            June    June      June    June
                           30,      30,        30,      30,
                           2013         2012     2013         2012
                                       (b)                    (b)
Food and beverage per the
consolidated statements of

operations:
 For the periods March
24, 2012 through June 15,
2012
                                       $                   $      
 and January 1,             386                      665
2012 through June 15, 2012
(as

 reported)
Food and beverage
adjustment for the                     (2)                       88
calendar period (b)
For the quarter and     $      384           $      753
year-to-date ended          425                     800
Non-comparable hotel food  (44)        (27)          (82)        (55)
and beverage sales
Food and beverage sales
for the property for which
we                         8           8             19          18

record rental income
 Comparable     $      $       $      $      
food and beverage sales     389      365           737      716



(e) The reconciliation of total revenues per the consolidated statements of
operations to the comparable hotel revenues is as

 follows:
                               Quarter ended           Year-to-date ended
                                           As Adjusted             As Adjusted
                                June    June    June    June
                               30,      30,      30,      30,
                               2013         2012   2013         2012
                                           (b)                  (b)
Revenues per the consolidated
statements of

operations:
 For the periods March 24,
2012 through June 15, 2012
                                           $                  $     
 and January 1,                 1,326                   2,270
2012 through June 15, 2012 (as

 reported)
Revenue adjustment for the                 29                      322
calendar period (b)
For the quarter and         $      1,355       $      2,592
year-to-date ended             1,420                   2,663
Non-comparable hotel revenues  (123)       (74)        (227)       (149)
Hotel revenues for which we    13          13          27          27
record rental income, net
Revenues for hotels leased     —           (61)        —           (114)
from HPT (i)
 Comparable hotel   $      $      $      $     
revenues                    1,310       1,233       2,463       2,356



(f) The reconciliation of total food and beverage expenses per the
consolidated statements of operations to the comparable food and

beverage expenses is as follows:
                           Quarter ended            Year-to-date ended
                                       As Adjusted               As Adjusted
                            June                  June
                           30,       June     30,       June
                                       30,                    30,
                           2013         2012     2013         2012
                                       (b)                    (b)
Food and beverage expenses
per the consolidated

statements of
operations:
 For the periods March
24, 2012 through June 15,
2012
                                       $                   $      
 and January 1,             268                      474
2012 through June 15, 2012
(as

 reported)
Food and beverage expenses
adjustment for the
calendar                               5                         66

period (b)
For the quarter and     $      273           $      540
year-to-date ended          290                     567
Non-comparable hotel food  (28)        (18)          (54)        (36)
and beverage expenses
Food and beverage expenses
for the property for which
we                         5           5             11          11

record rental income
 Comparable     $      $       $      $      
food and beverage expenses  267      260           524      515



(g) The reconciliation of operating costs per the consolidated statements of
operations to the comparable hotel expenses is as

 follows:
                             Quarter ended             Year-to-date ended
                                         As Adjusted               As Adjusted
                              June    June      June    June
                             30,      30,        30,      30,
                             2013         2012     2013         2012
                                         (b)                    (b)
Operating costs and expenses
per the consolidated

statements of
operations:
 For the periods March
24, 2012 through June 15,
2012
                                         $                    $     
 and January 1,               1,149                     2,077
2012 through June 15, 2012
(as

 reported)
Operating costs and expenses
adjustment for the calendar              44                        269

period (b)
For the quarter and       $      1,193         $      2,346
year-to-date ended           1,212                     2,364
Non-comparable hotel         (84)        (61)          (167)       (119)
expenses
Hotel expenses for which we  13          13            27          27
record rental income
Expense for hotels leased    —           (59)          —           (116)
from HPT (i)
Depreciation and             (174)       (166)         (349)       (325)
amortization
Corporate and other expenses (37)        (22)          (63)        (47)
 Comparable hotel $      $       $      $     
expenses                      930      898          1,812       1,766
(h) Non-comparable hotel results, net, includes the following items: (i) the
results of operations of our non-comparable hotels

whose operations are included in our consolidated statements of
operations as continuing operations, (ii) gains on property

insurance settlements and (iii) the results of our office buildings.
(i) The leases terminated on December 31, 2012.
(j) For the quarter and year-to-date periods ended June 30, 2013, corporate
expenses include a litigation loss of $8 million due to an

adverse ruling related to our San Antonio ground lease.





HOST HOTELS & RESORTS, INC.
Other Financial Data
(unaudited, in millions, except per share amounts)
                                                      June   December
                                                     30,     31,
                                                     2013         2012
Equity
Common shares outstanding                            748.2        724.6
Common shares outstanding assuming conversion of
non-controlling interest                             758.2        734.7

 OP Units (a)
Preferred OP Units outstanding                       .02          .02
Security pricing
Common (b)                                           $       $     
                                                       16.87      15.67
3¼% Exchangeable Senior Debentures (c)               $       $     
                                                         —   1,152.8
2½% Exchangeable Senior Debentures (c)               $       $     
                                                     1,358.8     1,309.2
Dividends declared per share for calendar year
                                                     $       $     
Common                                                   .21    
                                                                  .30
Debt
                                                      June   December 31,
                                                     30,
Senior debt                 Maturity      2013         2012
                     Rate  date
Series Q (d)          6¾%   6/2016   $       $     
                                                         350      550
Series T (e)         9%              5/2017   —            391
Series V             6%              11/2020    500          500
Series X              5⅞%   6/2019   497          497
Series Z             6%              10/2021    300          300
Series B              5¼%   3/2022   350          350
Series C              4¾%   3/2023   450          450
Series D (e)          3¾%   10/2023    400          —
Exchangeable senior   3¼%   4/2024   —            175
debentures
Exchangeable senior   2½%   10/2029    363          356
debentures (f)
Credit facility term 1.8%            7/2017   500          500
loan
Credit facility      2.5%            11/2015    202          263
revolver (g)
                                                     3,912        4,332
Mortgage debt and
other
Mortgage debt         3.3-8.5%   7/2013-11/2016   727          993
(non-recourse) (h)
Other                 7.0-7.8%   10/2014-12/2017  85           86
 Total                                    $       $     
debt (i)(j)                                            4,724      5,411
Percentage of fixed rate debt                        75.8%        78%
Weighted average interest rate                       5.0%         5.4%
Weighted average debt maturity                          
                                                     5.6 years    5.1 years
Annualized pro forma cash interest expense based on  $     
current debt outstanding (k)                             225
__________

    Each OP Unit is redeemable for cash or, at our option, for 1.021494 common
(a) shares of Host Inc. At June 30, 2013 and December31, 2012, there were
    9.8million and 9.9million common OP Units, respectively, held by
    non-controlling interests.
(b) Share prices are the closing price as reported by the New York Stock
    Exchange.
(c) Amount reflects market price of a single $1,000 debenture as quoted by
    Bloomberg L.P.
(d) On June3, 2013, we redeemed $200million of the SeriesQ senior notes.
    The net proceeds from the issuance of the SeriesD senior notes, together
(e) with available cash, were used to redeem, on May15, 2013, the SeriesT
    senior notes.
    At June 30, 2013, the principal balance outstanding of the 2½%
    Exchangeable Senior Debentures due 2029 (the "2009 Debentures") is
(f) $400million. The discount related to these debentures is amortized
    through October 2015, the first date at which holders can require us to
    repurchase the 2009 Debentures for cash.
(g) The interest rate shown is the weighted average rate of the outstanding
    credit facility at June30, 2013.
(h) On May1, 2013, we repaid the 4.75% $246million mortgage loan on the
    Orlando World Center Marriott with available cash.
    In accordance with GAAP, total debt includes the debt of entities that we
    consolidate, but of which we do not own 100%, and excludes the debt of
    entities that we do not consolidate, but of which we have a
(i) non-controlling ownership interest and record our investment therein under
    the equity method of accounting. As of June30, 2013, our non-controlling
    partners' share of consolidated debt is $67million and our share of debt
    in unconsolidated investments is $430million.
(j) Total debt as of June 30, 2013 and December31, 2012 includes net
    discounts of $35million and $48million, respectively.
    Reflects annualized pro forma cash interest expense based on existing debt
    as of the balance sheet date. The following chart reconciles annualized
(k) pro forma cash interest expense to the forecast full year 2013 GAAP
    interest expense. See footnote (a) to the Reconciliation of Net Income to
    EBITDA, Adjusted EBITDA and NAREIT and Adjusted Funds From Operations per
    Diluted Shares for 2013 Forecasts for full year forecast assumptions.

                                                       December 31,
                                                      2013
Forecast GAAP interest expense                        $          305
Debt extinguishment costs                             (33)
Interest expense for retired debt                     (25)
Adjustment to annualize interest expense for debt     3
incurred in 2013
Annualized pro forma interest expense based on        250
current debt outstanding
Non-cash interest for exchangeable debentures         (15)
Amortization of deferred financing costs              (10)
Annualized pro forma cash interest expense based on   $          225
current debt outstanding







HOST HOTELS & RESORTS, INC.
Reconciliation of Net Income to
EBITDA and Adjusted EBITDA (a)
(unaudited, in millions)
                 Quarter     Year-to-date
                ended           ended
                           As         As                    As         As
                           Adjusted   Reported              Adjusted   Reported
                                                             
                June30, June30, June15, June30, June30, June15,
                2013        2012    2012       2013        2012    2012
                           (a)                            (a)
Net income      $      $      $      $      $      $    
(b)(e)           121       63      83     181      122       83
 Interest    103        99         94         179        193        180
expense

Depreciation    174        166        153        349        325        301
and
amortization
 Income      15         14         12         7          4          (1)
taxes

Discontinued    1          6          6          7          12         11
operations (c)
EBITDA          414        348        348        723        656        574
 Gain on
dispositions    —          —          —          (19)       (48)       (48)
(d)
 Acquisition 1          —          —          1          —          —
costs
 Recognition
of deferred
gain on land
                —          —          —          (11)       —          —

condemnation
(e)
 Litigation  8          —          —          8          —          —
loss (f)

Amortization of —          (1)        (1)        —          (2)        (2)
deferred gains
 Equity
investment
adjustments:
 Equity
in earnings of  (6)        (4)        (5)        (4)        (5)        (3)
affiliates
 Pro
rata Adjusted
EBITDA of
equity          18         11         10         26         16         12


investments

Consolidated
partnership
adjustments:
 Pro
rata Adjusted
EBITDA
attributable

 to
non-controlling (4)        (4)        (4)        (10)       (10)       (10)
partners in
other


consolidated
partnerships
Adjusted EBITDA $      $      $      $      $      $    
                 431      350      348      714      607      523
_____________

    See the Notes to Financial Information for discussion of non-GAAP
(a) measures, reporting periods and information on the calculation of As
    Adjusted quarterly results.
    The difference of $(20) million in net income between the As Adjusted
    quarter ended June30, 2012 and the as reported quarter ended June15,
    2012 includes estimated net income from June16, 2012 through June30,
    2012 and excludes estimated net income from March24, 2012 through
    March31, 2012 for our Marriott-managed hotels, and includes the June 2012
(b) operations, which previously were reported in the third quarter 2012
    results, and excludes the March 2012 operations for the remainder of the
    portfolio. The difference of $39million in net income between the As
    Adjusted year-to-date period ended June30, 2012 and the as reported
    year-to-date period ended June15, 2012 reflects estimated net income from
    June16, 2012 through June30, 2012 for our Marriott-managed hotels, and
    the June 2012 operations for the remainder of the portfolio.
(c) Reflects the interest expense, depreciation and amortization and incomes
    taxes included in discontinued operations.
(d) Reflects the gain recorded on the sale of one hotel in 2013 and 2012,
    respectively.
    During the first quarter of 2013, we recognized a deferred gain of
    approximately $11million related to the eminent domain claim by the State
    of Georgia for 2.9 acres of land at the Atlanta Marriott Perimeter Center
    for highway expansion, for which we received cash proceeds in 2007. We
(e) have included the gain in NAREIT FFO per diluted share, which is
    consistent with the treatment of gains recognized on the disposition of
    undepreciated assets. However, due to the significant passage of time
    since we received the proceeds, we have excluded the gain from its
    Adjusted FFO per diluted share and Adjusted EBITDA for the quarter.
    Effective April1, 2013, we modified the definition of Adjusted EBITDA to
    exclude gains or losses associated with litigation outside the ordinary
    course of business, which is consistent withthe definition of Adjusted
    FFO that we adopted effective January 1, 2011. See Notes to Financial
    Information for further discussion. On June28, 2013, the Texas Supreme
(f) Court denied our Petition for Review on litigation related to the sale of
    land under the San Antonio Marriott Rivercenter in 2005. We have accrued
    $67million related to this litigation, including $8million in the second
    quarter, which we believe reflects substantially all of our obligation
    assuming we lose the appeal. We have $25million in restricted cash that
    will be utilized to pay a portion of any judgment, assuming we lose the
    appeal. We are continuing to appeal this ruling.







HOST HOTELS & RESORTS, INC.
Reconciliation of Net Income to NAREIT and
Adjusted Funds From Operations per Diluted Share (a)
(unaudited, in millions, except per share amounts)
                 Quarter ended                        Year-to-date ended
                            As         As Reported               As         As
                            Adjusted                             Adjusted   Reported
                                    June15,                    
                 June30, June30,                June30, June30, June15,
                 2013        2012    2012           2013        2012    2012
                            (a)                                (a)
Net income (b)   $      $      $        $      $      $    
                  121       63    83             181      122       83
 Less: Net
income
attributable to
non-             (2)        (1)        (1)            (6)        (5)        (3)


controlling
interests
Net income
attributable to  119        62         82             175        117        80
Host Inc
Adjustments:
 Gain on
dispositions,    —          —          —              (19)       (48)       (48)
net of taxes (c)
 Amortization
of deferred
gains and other
                 —          (1)        (1)            —          (2)        (2)
 property
transactions,
net of taxes
 Depreciation  174        171        158            350        336        311
and amortization
 Partnership   8          2          4              15         6          5
adjustments
 FFO of
non-controlling  (4)        (4)        (4)            (7)        (6)        (5)
interests of
Host LP
NAREIT FFO       297        230        239            514        403        341
Adjustments to
NAREIT FFO:
 Loss on debt  37         14         14             37         14         14
extinguishment
 Acquisition   1          —          1              1          1          1
costs (d)
 Recognition
of deferred gain
on land          —          —          —              (11)       —          —


condemnation (e)
Litigation loss  8          —           8          —          —
(f)                                    -—
Loss
attributable to
non-controlling  (1)        —          —              —          —          —

 interests
Adjusted FFO     $      $      $         $      $      $    
                  342      244     254            549      418      356
For calculation
on a per share
basis:
Adjustments for
dilutive
securities (g):
 Assuming
conversion of
Exchangeable     $      $      $        $      $      $    
                    6      8    7             13      15      14
 Senior
Debentures
Diluted NAREIT   $      $      $         $      $      $    
FFO               303      238     246            527      418      355
Diluted Adjusted $      $      $         $      $      $    
FFO               348      252     261            562      433      370
Diluted weighted
average shares                         
                 745.9      719.5                     742.4      714.5      713.8
                                     730.6
outstanding-EPS
 Assuming
conversion of
Exchangeable     29.5       40.4       28.8           29.3       40.3       40.3

 Senior
Debentures
Diluted weighted
average shares

outstanding 775.4      759.9      759.4          771.7      754.8      754.1
– NAREIT FFO and

Adjusted
FFO
NAREIT FFO per   $      $      $        $      $      $    
diluted share      .39      .31    .32              .68      .55      .47
Adjusted FFO per $      $      $        $      $      $    
diluted share      .45      .33    .34              .73      .57      .49
__________

    See Notes to the Financial Information for discussion of non-GAAP
(a) measures, reporting periods and information on the calculation of As
    Adjusted quarterly results.
    The difference of $(20)million in net income between the As Adjusted
    quarter ended June30, 2012 and the as reported quarter ended June15,
    2012 includes estimated net income from June16, 2012 through June30,
    2012 and excludes estimated net income from March 24, 2012 through March
    31, 2012 for our Marriott-managed hotels, and includes the June 2012
(b) operations, which previously were reported in the third quarter 2012
    results and excludes the March 2012 operations for the remainder of the
    portfolio. The difference of $39million in net income between the As
    Adjusted year-to-date period ended June30, 2012 and the as reported
    year-to-date period ended June15, 2012 reflects estimated net income from
    June16, 2012 through June30, 2012 for our Marriott-managed hotels, and
    the June 2012 operations for the remainder of the portfolio.
(c) Reflects the gain recorded on the sale of one hotel in 2013 and 2012,
    respectively.
    Includes approximately $1million for the year-to-date ended June30, 2012
(d) As Adjusted and the quarter and year-to-date ended June15, 2012 As
    Reported, related to our share of acquisition costs incurred by
    unconsolidated joint ventures.
    The Company has excluded from Adjusted FFO the recognition of deferred
(e) gain on the land condemnation at the Atlanta Marriott Perimeter Center.
    Please see note (e) to the Reconciliation of Net Income to EBITDA and
    Adjusted EBITDA for further discussion.
(f) See footnote (f) to the Reconciliation of Net Income to EBITDA and
    Adjusted EBITDA.
    Earnings/loss per diluted share and NAREIT FFO and Adjusted FFO per
    diluted share are adjusted for the effects of dilutive securities.
    Dilutive securities may include shares granted under comprehensive stock
(g) plans, preferred OP units held by non-controlling partners, exchangeable
    debt securities and other non-controlling interests that have the option
    to convert their limited partnership interests to common OP units. No
    effect is shown for securities if they are anti-dilutive.



HOST HOTELS & RESORTS, INC.
Reconciliation of Net Income to EBITDA, Adjusted EBITDA and
NAREIT and Adjusted Funds From Operations per Diluted Shares for 2013
Forecasts (a)
(unaudited, in millions, except per share amounts)
                                    Full Year
                                   2013
                                    Low-end   High-end
                                    of range  of range
Net income                         $            $         
                                   265                  290
 Interest expense               305                   305
 Depreciation and amortization  699                   699
 Income taxes                   20                    20
 Discontinued operations        7                     7
EBITDA                             1,296                 1,321
 Gain on dispositions           (33)                  (33)
 Acquisition costs              1                     1
 Recognition of deferred gain   (11)                  (11)
on land condemnation
 Litigation loss                8                     8
 Equity investment adjustments:
 Equity in earnings of      (4)                   (4)
affiliates
 Pro rata Adjusted EBITDA   51                    51
of equity investments
 Consolidated partnership
adjustments:
 Pro rata Adjusted EBITDA
attributable to non-controlling
partners in other                  (18)                  (18)

 consolidated
partnerships
Adjusted EBITDA                    $             $        
                                   1,290                 1,315
                                    Full Year
                                   2013
                                    Low-end   High-end

                                    of range  of range
Net income                         $            $         
                                   265                  290
Less: Net income attributable to (8)                   (9)
non-controlling interests
Net income attributable to Host    257                   281
Inc.
Adjustments:
 Gain on dispositions           (33)                  (33)
 Depreciation and amortization  698                   698
 Partnership adjustments        27                    28
 FFO of non-controlling         (12)                  (12)
interests of Host LP
NAREIT FFO                         937                   962
Adjustments:
 Loss on debt extinguishments   37                    37
 Acquisition costs              1                     1
 Recognition of deferred gain   (11)                  (11)
on land condemnation
 Litigation loss                8                     8
Adjusted FFO                       972                   997
Adjustment for dilutive
securities:
 Assuming conversion of         26                    26
Exchangeable Senior Debentures
Diluted NAREIT FFO                 963                   988
Diluted Adjusted FFO               $            $        
                                   998                  1,023
Weighted average diluted shares –  747.6                 747.6
EPS
Weighted average diluted shares –  777.5                 777.5
NAREIT and Adjusted FFO (b)
Earnings per diluted share         $           $          
                                   .34                   .38
NAREIT FFO per diluted share       $            $         
                                   1.24                  1.27
Adjusted FFO per diluted share     $            $         
                                   1.28                  1.32
_____________

(a) The forecasts were based on the below assumptions:
    -- Comparable hotel RevPAR will increase 5.5% to 6.25% for the low and
    high ends of the

    forecasted range, respectively.
    -- Comparable hotel adjusted operating profit margins will increase 100
    basis points to 120 basis

    points for the low and high ends of the forecasted range,
    respectively.
    -- Interest expense includes approximately $37million related to debt
    extinguishments

    and $26million related to non-cash interest expense for exchangeable
    senior debentures,

    amortization of original issue discounts and deferred financing fees.
    -- We expect to spend approximately $125million to $145million on
    ROI/redevelopment and

    acquisition capital expenditures and approximately $280million to
    $300million on renewal and

    replacement expenditures.
    -- Due to uncertainty related to the completion and timing of any
    potential acquisitions and

    dispositions, we have not adjusted the forecast for any use of
    proceeds, gains on sale,

    acquisition costs or adjusted the number of comparable properties.
    However, we have
    adjusted our GAAPincome statement, Adjusted EBITDA, NAREIT FFO and
    Adjusted FFO for
    potential dispositions totaling $100 million to $150
    million.Additionally, we expect to

    spend approximately $50million on new development projects in 2013.
    For a discussion of additional items that may affect forecasted results,
    see the Notes to Financial Information.
(b) The NAREIT and Adjusted FFO per diluted share include 29.9million shares
    for the dilution of exchangeable senior debentures.

HOST HOTELS & RESORTS, INC.
Schedule of Comparable Hotel Adjusted Operating Profit Margin
for 2013 Forecasts (a)
(unaudited, in millions, except hotel statistics)
                                   2013
                                    Low-end     High-end
                                    of range   of range
Operating profit margin under GAAP 9.9%                  10.2%
(b)
Comparable hotel adjusted          25.3%                 25.5%
operating profit margin (c)
Comparable hotel sales
 Room                           $        3,094 $        3,116
 Food and beverage              1,352                 1,365
 Other                          274                   275
 Comparable hotel   4,720                 4,756
sales (d)
Comparable hotel expenses
 Rooms, food and beverage and   1,959                 1,973
other departmental costs
 Management fees, ground rent   1,566                 1,570
and other costs
 Comparable hotel   3,525                 3,543
expenses (e)
Comparable hotel adjusted          1,195                 1,213
operating profit
Non-comparable hotel results, net  131                   134
Depreciation and amortization      (699)                 (699)
Corporate and other expenses       (114)                 (114)
 Operating profit   $            $         
                                   513                   534
___________

    Forecast comparable hotel results include 108 hotels that we have assumed
    will be classified as comparable as of December31, 2013. See "Comparable
    Hotel Operating Statistics" in the Notes to Financial Information. No
    assurances can be made as to the hotels that will be in the comparable
(a) hotel set for 2013. Also, see the notes to the "Reconciliation of Net
    Income to EBITDA, Adjusted EBITDA and NAREIT and Adjusted Funds From
    Operations per Diluted Share for Full Year 2013 Forecasts" for other
    forecast assumptions and further discussion of our comparable hotel
    set.
    Operating profit margin under GAAP is calculated as the operating profit
(b) divided by the forecast total revenues per the consolidated statements of
    operations. See (d) below for forecast revenues.
    Comparable hotel adjusted operating profit margin is calculated as the
(c) comparable hotel adjusted operating profit divided by the comparable hotel
    sales per the table above.
(d) The reconciliation of forecast total revenues to the forecast comparable
    hotel sales is as follows (in millions):

                                   2013
                                    Low-end     High-end
                                    of range   of range
Revenues                           $        5,199 $        5,238
Non-comparable hotel revenues      (531)                 (534)
Hotel revenues for which we record 52                    52
rental income, net
 Comparable hotel sales $        4,720 $        4,756

(e) The reconciliation of forecast operating costs and expenses to the
    comparable hotel expenses is as follows (in millions):

                                   2013
                                    Low-end     High-end
                                    of range   of range
Operating costs and expenses       $        4,686 $        4,704
Non-comparable hotel and other     (400)                 (400)
expenses
Hotel expenses for which we record 52                    52
rental income
Depreciation and amortization      (699)                 (699)
Corporate and other expenses       (114)                 (114)
 Comparable hotel       $        3,525 $        3,543
expenses



FORECASTS

Our forecast of earnings per diluted share, NAREIT and Adjusted FFO per
diluted share, EBITDA, Adjusted EBITDA and comparable hotel adjusted operating
profit margins are forward-looking statements and are not guarantees of future
performance and involve known and unknown risks, uncertainties and other
factors which may cause actual results and performance to differ materially
from those expressed or implied by these forecasts. Although we believe the
expectations reflected in the forecasts are based upon reasonable assumptions,
we can give no assurance that the expectations will be attained or that the
results will not be materially different. Risks that may affect these
assumptions and forecasts include the following: potential changes in overall
economic outlook make it inherently difficult to forecast the level of RevPAR
and margin growth; the amount and timing of acquisitions and dispositions of
hotel properties is an estimate that can substantially affect financial
results, including such items as net income, depreciation and gains on
dispositions; the level of capital expenditures may change significantly,
which will directly affect the level of depreciation expense and net income;
the amount and timing of debt payments may change significantly based on
market conditions, which will directly affect the level of interest expense
and net income; the amount and timing of transactions involving shares of our
common stock may change based on market conditions; and other risks and
uncertainties associated with our business described herein and in our annual
report on Form 10‑K, quarterly reports on Form 10-Q and current reports on
Form 8‑K filed with the SEC.

REPORTING PERIODS FOR STATEMENT OF OPERATIONS

Effective January1, 2013, we report quarterly operating results on a calendar
cycle, which now is consistent with all of our hotel managers and the majority
of companies in the lodging industry. Historically, our annual financial
statements have been reported on a calendar basis and are unaffected by this
change. However, our quarterly operating results have been reported based on a
52-53 week fiscal calendar used by Marriott International, Inc. ("Marriott"),
the manager of approximately 50% of our properties. For 2013, Marriott
converted to reporting results based on a 12-month calendar year. During 2012,
Marriott used a fiscal year ending on the Friday closest to December31 and
reported twelve weeks of operations for the first three quarters and sixteen
weeks for the fourth quarter of the year for its Marriott-managed hotels.
Accordingly, our first three quarters of operations in 2012 ended on March23,
June15 and September7. In contrast, managers of our other hotels, such as
Ritz-Carlton, Hyatt, and Starwood, reported results on a monthly basis. During
2012, we did not report the month of operations that ended after our fiscal
quarter until the following quarter for those hotels using a monthly reporting
period because these hotel managers did not make mid-month results available
to us. Accordingly, the month of operations that ended after our fiscal
quarter was included in our quarterly results of operations in the following
quarter for those calendar reporting hotel managers. As a result, our 2012
quarterly results of operations include results from hotel managers reporting
results on a monthly basis as follows: first quarter (January, February),
second quarter (March to May), third quarter (June to August) and fourth
quarter (September to December).

We will not restate the previously filed 2012 quarterly financial statements
prepared in accordance with GAAP because certain property-level operating
expenses for our Marriott-managed properties necessary to restate operations
are unavailable on a daily basis. Because we rely on our operators for the
hotel operating results used in our financial statements, the unavailability
of this information on a calendar quarter basis for 2012 made restating our
financial statements in accordance with GAAP unfeasible. Accordingly, the
corresponding 2012 quarterly historical operating results are not comparable
to our 2013 quarterly results.

However, to enable investors to better evaluate our performance over
comparable periods, we have presented certain 2012 quarterly results and
operating statistics on a calendar year basis of reporting, which we will
refer to as "2012 As Adjusted" results. The financial information for the 2012
As Adjusted results presented herein was calculated based on our actual
reported operating results for the quarter and year-to-date ended June15,
2012, period adjusted as follows:

  oOur 59 hotels operated by Marriott traditionally have reported operations
    on the basis of a 52-53 week fiscal calendar. For the second quarter,
    operations from March24, 2012 through June15, 2012 were included. Based
    on daily revenue information provided by Marriott, our 2012 second quarter
    As Reported results were adjusted to include $101million of revenue for
    the 15 days from June16, 2012 through June30, 2012 (that previously were
    included in our results of operations for the third quarter 2012) and to
    exclude $60million of revenues for the eight days from March24, 2012
    through March31, 2012 to determine the 2012 As Adjusted second quarter
    revenues. Our 2012 As Adjusted year-to-date revenues have been adjusted to
    reflect the same 15 days of revenues from June16, 2012 through June30,
    2012 noted above.

  oBecause Marriott is unable to provide us with operating expenses for our
    Marriott-operated hotels on a daily basis, we derived estimated expenses
    based on an internally developed allocation methodology based on
    historical expenses provided by Marriott consistent with its prior 52-53
    week reporting calendar. Our 2012 second quarter As Reported operating
    expenses were adjusted to include approximately $77million of estimated
    expenses incurred from June16, 2012 through June30, 2012 and to exclude
    approximately $43million of operating expenses for the period from
    March24, 2012 through March31, 2012 to determine the 2012 As Adjusted
    second quarter expenses. Our 2012 As Adjusted year-to-date expenses have
    also been adjusted to reflect the 15 days from June16, 2012 through
    June30, 2012.

  oFor our 57 hotels operated by managers other than Marriott (including
    those by Ritz-Carlton, Hyatt and Starwood) that traditionally have
    reported operations on a calendar month basis, our 2012 As Adjusted
    quarter results reflect $210million of revenues and $154million of
    operating expenses for these hotels for the full calendar month of June
    2012 that previously were included in our results of operations for the
    third quarter 2012 and were reduced by $226million of revenues and
    $163million of operating expenses for these hotels for the full calendar
    month of March 2012. Our 2012 As adjusted year-to-date results have also
    been adjusted to reflect the full calendar month of June 2012 for these
    hotels.

  oFor all other income statement line items presented for the 2012 As
    Adjusted quarter and year-to-date periods ended June30, 2012, including
    depreciation, interest income and expense and other corporate costs, as
    well as those used in the reconciliations for our non-GAAP measures, our
    As Adjusted results reflect such amounts for the full calendar quarter and
    year-to-date periods ended June30, 2012, respectively, based on
    historical information.

COMPARABLE HOTEL OPERATING STATISTICS

To facilitate a quarter-to-quarter comparison of our operations, we present
certain operating statistics (i.e., RevPAR, average daily rate and average
occupancy) and operating results (revenues, expenses, adjusted operating
profit and associated margins) for the periods included in this report on a
comparable hotel basis. 

Because these statistics and operating results are for our hotel properties,
they exclude results for our non-hotel properties and other real estate
investments. We define our comparable hotels as 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 business
  interruption, or undergone large-scale capital projects (as further defined
  below) during the reporting periods being compared.

The hotel business is capital-intensive and renovations are a regular part of
the business. Generally, hotels under renovation remain comparable hotels. A
large scale capital project that would cause a hotel to be excluded from our
comparable hotel set is an extensive renovation of several core aspects of the
hotel, such as rooms, meeting space, lobby, bars, restaurants and other public
spaces. Both quantitative and qualitative factors are taken into consideration
in determining if the renovation would cause a hotel to be removed from the
comparable hotel set, including unusual or exceptional circumstances such as:
a reduction or increase in room count, rebranding, a significant alteration of
the business operations, or the closing of the hotel during the renovation.

We do not include an acquired hotel in our comparable hotel set until the
operating results for that hotel have been included in our consolidated
results for one full calendar year. For example, we acquired the Westin
Chicago River North in August of 2010. The hotel was not included in our
comparable hotels until January1, 2012. Hotels that we sell are excluded from
the comparable hotel set once the transaction has closed. Similarly, hotels
are excluded from our comparable hotel set from the date that they sustain
substantial property damage or business interruption or commence a large-scale
capital project. In each case, these hotels are returned to the comparable
hotel set when the operations of the hotel have been included in our
consolidated results for one full calendar year after completion of the repair
of the property damage or cessation of the business interruption, or the
completion of large-scale capital projects, as applicable.

Of the 118 hotels that we owned on June30, 2013, 109 have been classified as
comparable hotels. The operating results of the following hotels that we owned
as of June30, 2013 are excluded from comparable hotel results for these
periods:

  oHyatt Place Waikiki Beach (acquired in May 2013);
  oGrand Hyatt Washington (acquired in July 2012);
  oThe Westin New York Grand Central (business interruption due to
    re-branding of the hotel and extensive renovations, which included
    renovation of 774 guest rooms, lobby, public and meeting spaces, fitness
    center, restaurant and bar);
  oTwo hotels in Christchurch, New Zealand (business interruption due to
    closure of the hotels following an earthquake in 2011 and the subsequent
    extensive renovations);
  oOrlando World Center Marriott (business interruption due to extensive
    renovations, which include façade restoration, the shutdown of the main
    pool and a complete restoration and enhancement of the hotel, including
    new water slides and activity areas, new pool, dining facilities and the
    renovation of one tower of guestrooms, meeting space and restaurants);
  oAtlanta Marriott Perimeter Center (business interruption due to extensive
    renovations, which included renovation of the guest rooms, lobby, bar and
    restaurant and the demolition of one tower of the hotel);
  oChicago Marriott O'Hare (business interruption due to extensive
    renovations, which included renovating every aspect of the hotel and
    shutting down over 200 rooms); and
  oSheraton Indianapolis Hotel at Keystone Crossing (business interruption
    due to extensive renovations, which included the conversion of one tower
    of the hotel into apartments, reducing the room count, and the renovation
    of the remaining guest rooms, lobby, bar and meeting space). 

The operating results of five hotels disposed of in 2013 and 2012 are not
included in comparable hotel results for the periods presented herein.

NON-GAAP FINANCIAL MEASURES

Included in this press release are certain "non-GAAP financial measures,"
which are measures of our historical or future financial performance that are
not calculated and presented in accordance with GAAP, within the meaning of
applicable SEC rules. They are as follows: (i)FFO and FFO per diluted share
(both NAREIT and Adjusted), (ii)EBITDA, (iii)Adjusted EBITDA and (iv)
Comparable Hotel Operating Results. The following discussion defines these
measures and presents why we believe they are useful supplemental measures of
our performance.

To facilitate comparison against a comparable period in 2012, we are
presenting our above non-GAAP financial measures for the quarter and
year-to-date ended June30, 2013 and for the 2012 As Adjusted quarter and
year-to-date periods. We also present Adjusted EBITDA, NAREIT FFO per diluted
share and Adjusted FFO per diluted share for our "as reported" quarter and
year-to-date ended June15, 2012. In addition, we present our Total Owned
Hotel Revenue and Net Income for the 2012 As Adjusted quarter and year-to-date
periods. Because the presentation of these line items on an "As Adjusted"
basis is not in accordance with GAAP, they also constitute non-GAAP financial
measures. We present these measures because we believe that doing so provides
investors and management with useful supplemental information for evaluating
the period-to-period performance of our hotels. These results are, however,
based on estimates. Our internal allocation methodology used to develop these
estimates is based on assumptions, some of which may be inaccurate. For this
reason, while management believes presentation of these supplemental measures
is beneficial, investors are cautioned from placing undue reliance on the 2012
As Adjusted results and should consider these results together with the
presentation of GAAP revenues, net income and expenses.

NAREIT FFO AND NAREIT FFO PER DILUTED SHARE

We present NAREIT FFO and NAREIT FFO per diluted share as non-GAAP measures of
our performance in addition to our earnings per share (calculated in
accordance with GAAP). We calculate NAREIT FFO per diluted share as our NAREIT
FFO (defined as set forth below) for a given operating period, as adjusted for
the effect of dilutive securities, divided by the number of fully diluted
shares outstanding during such period, in accordance with NAREIT guidelines.
NAREIT defines FFO as net income (calculated in accordance with GAAP)
excluding gains and losses from sales of real estate, the cumulative effect of
changes in accounting principles, real estate-related depreciation,
amortization and impairments and adjustments for unconsolidated partnerships
and joint ventures. Adjustments for unconsolidated partnerships and joint
ventures are calculated to reflect our pro rata FFO of those entities on the
same basis.

We believe that NAREIT FFO per diluted share is a useful supplemental measure
of our operating performance and that the presentation of NAREIT FFO per
diluted share, when combined with the primary GAAP presentation of earnings
per share, provides beneficial information to investors. By excluding the
effect of real estate depreciation, amortization, impairments and gains and
losses from sales of depreciable real estate, all of which are based on
historical cost accounting and which may be of lesser significance in
evaluating current performance, we believe that such measures can facilitate
comparisons of operating performance between periods and with other REITs,
even though NAREIT FFO per diluted share does not represent an amount that
accrues directly to holders of our common stock. Historical cost accounting
for real estate assets implicitly assumes that the value of real estate assets
diminishes predictably over time. As noted by NAREIT in its April 2002 "White
Paper on Funds From Operations," since real estate values have historically
risen or fallen with market conditions, many industry investors have
considered presentation of operating results for real estate companies that
use historical cost accounting to be insufficient by themselves. For these
reasons, NAREIT adopted the FFO metric in order to promote an industry-wide
measure of REIT operating performance.

Adjusted FFO per Diluted Share

We also present Adjusted FFO per diluted share when evaluating our performance
because management believes that the exclusion of certain additional items
described below provides useful supplemental information to investors
regarding our ongoing operating performance. Management historically has made
the adjustments detailed below in evaluating our performance, in our annual
budget process and for our compensation programs. We believe that the
presentation of Adjusted FFO per diluted share, when combined with both the
primary GAAP presentation of earnings per share and FFO per diluted share as
defined by NAREIT, provides useful supplemental information that is beneficial
to an investor's complete understanding of our operating performance. We
adjust NAREIT FFO per diluted share for the following items, which may occur
in any period, and refer to this measure as Adjusted FFO per diluted share:

  oGains and Losses on the Extinguishment of Debt – We exclude the effect of
    finance charges and premiums associated with the extinguishment of debt,
    including the acceleration of the write-off of deferred financing costs
    associated with the original issuance of the debt being redeemed or
    retired. We also exclude the gains on debt repurchases and the original
    issuance costs associated with the retirement of preferred stock. We
    believe that these items are not reflective of our ongoing finance costs.

  oAcquisition Costs – Under GAAP, costs associated with completed property
    acquisitions are expensed in the year incurred. We exclude the effect of
    these costs because we believe they are not reflective of the ongoing
    performance of the Company.

  oLitigation Gains and Losses – We exclude the effect of gains or losses
    associated with litigation recorded under GAAP that we consider outside
    the ordinary course of business. We believe that including these items is
    not consistent with our ongoing operating performance.

In unusual circumstances, we may also adjust NAREIT FFO for gains or losses
that management believes are not representative of the Company's current
operating performance. For example, in the first quarter of 2013, management
excluded the $11million gain from the eminent domain claim for land adjacent
to the Atlanta Marriott Perimeter Center for which we received the cash
proceeds in 2007, but, pending the resolution of certain contingencies, was
not recognized until 2013. Typically, gains from the disposition of
non-depreciable property are included in the determination of NAREIT and
Adjusted FFO.

EBITDA

Earnings before Interest Expense, Income Taxes, Depreciation and Amortization
("EBITDA") is a commonly used measure of performance in many industries.
Management believes EBITDA provides useful information to investors regarding
our results of operations because it helps us and our investors evaluate the
ongoing operating performance of our properties after removing the impact of
the Company's capital structure (primarily interest expense) and its asset
base (primarily depreciation and amortization). Management also believes the
use of EBITDA facilitates comparisons between us and other lodging REITs,
hotel owners who are not REITs and other capital-intensive companies.
Management uses EBITDA to evaluate property-level results and as one measure
in determining the value of acquisitions and dispositions and, like FFO and
Adjusted FFO per diluted share, is widely used by management in the annual
budget process and for our compensation programs.

Adjusted EBITDA

Historically, management has adjusted EBITDA when evaluating the performance
of Host Inc. and Host LP because we believe that the exclusion of certain
additional items described below provides useful supplemental information to
investors regarding our ongoing operating performance and that the
presentation of Adjusted EBITDA, when combined with the primary GAAP
presentation of net income, is beneficial to an investor's complete
understanding of our operating performance. Adjusted EBITDA also is a relevant
measure in calculating certain credit ratios. We adjust EBITDA for the
following items, which may occur in any period, and refer to this measure as
Adjusted EBITDA:

  oReal Estate Transactions – We exclude the effect of gains and losses,
    including the amortization of deferred gains, recorded on the disposition
    or acquisition of depreciable assets and property insurance gains in our
    consolidated statement of operations because we believe that including
    them in Adjusted EBITDA is not consistent with reflecting the ongoing
    performance of our assets. In addition, material gains or losses based on
    the depreciated value of the disposed assets could be less important to
    investors given that the depreciated asset value often does not reflect
    the market value of real estate assets as noted above.

  oEquity Investment Adjustments – We exclude the equity in earnings (losses)
    of affiliates as presented in our consolidated statement of operations
    because it includes our pro rata portion of the depreciation, amortization
    and interest expense related to such investments, which are excluded from
    EBITDA. We include our pro rata share of the Adjusted EBITDA of our equity
    investments as we believe this reflects more accurately the performance of
    our investments. The pro rata Adjusted EBITDA of equity investments is
    defined as the EBITDA of our equity investments adjusted for any gains or
    losses on property transactions multiplied by our percentage ownership in
    the partnership or joint venture.

  oConsolidated Partnership Adjustments – We deduct the non-controlling
    partners' pro rata share of Adjusted EBITDA of our consolidated
    partnerships as this reflects the non-controlling owners' interest in the
    EBITDA of our consolidated partnerships. The pro rata Adjusted EBITDA of
    non-controlling partners is defined as the EBITDA of our consolidated
    partnerships adjusted for any gains or losses on property transactions
    multiplied by the non-controlling partners' percentage ownership in the
    partnership or joint venture.

  oCumulative Effect of a Change in Accounting Principle – Infrequently, the
    Financial Accounting Standards Board promulgates new accounting standards
    that require the consolidated statement of operations to reflect the
    cumulative effect of a change in accounting principle. We exclude these
    one-time adjustments because they do not reflect our actual performance
    for that period.

  oImpairment Losses – We exclude the effect of impairment losses recorded
    because we believe that including them in Adjusted EBITDA is not
    consistent with reflecting the ongoing performance of our remaining
    assets. In addition, we believe that impairment charges, which are based
    off of historical cost accounting values, are similar to gains and losses
    on dispositions and depreciation expense, both of which are excluded from
    EBITDA.

  oAcquisition Costs – Under GAAP, costs associated with completed property
    acquisitions are expensed in the year incurred. We exclude the effect of
    these costs because we believe they are not reflective of the ongoing
    performance of the company.

  oLitigation Gains and Losses – Effective April1, 2013, we have excluded
    the effect of gains or losses associated with litigation recorded under
    GAAP that we consider outside the ordinary course of business, which is
    consistent with the definition of Adjusted FFO that we adopted effective
    January 1, 2011. We believe that including these items is not consistent
    with our ongoing operating performance.

In unusual circumstances, we may also adjust EBITDA for gains or losses that
management believes are not representative of the Company's current operating
performance. For example, in the first quarter of 2013, management excluded
the $11million gain from the eminent domain claim for land adjacent to the
Atlanta Marriott Perimeter Center for which we received the cash proceeds in
2007, but, pending the resolution of certain contingencies, was not recognized
until 2013. Typically, gains from the disposition of non-depreciable property
are included in the determination of Adjusted EBITDA.

Limitations on the Use of NAREIT FFO per Diluted Share, Adjusted FFO per
Diluted Share, EBITDA and Adjusted EBITDA

We calculate NAREIT FFO per diluted share in accordance with standards
established by NAREIT, which may not be comparable to measures calculated by
other companies who do not use the NAREIT definition of FFO or do not
calculate FFO per diluted share in accordance with NAREIT guidance. In
addition, although FFO per diluted share is a useful measure when comparing
our results to other REITs, it may not be helpful to investors when comparing
us to non-REITs. We also calculate Adjusted FFO per diluted share, which is
not in accordance with NAREIT guidance and may not be comparable to measures
calculated by other REITs. EBITDA and Adjusted EBITDA, as presented, may also
not be comparable to measures calculated by other companies. This information
should not be considered as an alternative to net income, operating profit,
cash from operations or any other operating performance measure calculated in
accordance with GAAP. Cash expenditures for various long-term assets (such as
renewal and replacement capital expenditures), interest expense (for EBITDA
and Adjusted EBITDA purposes only) and other items have been and will be
incurred and are not reflected in the EBITDA, Adjusted EBITDA, NAREIT FFO per
diluted share and Adjusted FFO per diluted share presentations. Management
compensates for these limitations by separately considering the impact of
these excluded items to the extent they are material to operating decisions or
assessments of our operating performance. Our consolidated statement of
operations and cash flows include interest expense, capital expenditures, and
other excluded items, all of which should be considered when evaluating our
performance, as well as the usefulness of our non-GAAP financial measures.
Additionally, NAREIT FFO per diluted share, Adjusted FFO per diluted share,
EBITDA and Adjusted EBITDA should not be considered as a measure of our
liquidity or indicative of funds available to fund our cash needs, including
our ability to make cash distributions. In addition, NAREIT FFO per diluted
share and Adjusted FFO per diluted share do not measure, and should not be
used as a measure of, amounts that accrue directly to stockholders' benefit.

Comparable Hotel Operating Results

We present certain operating results for our hotels, such as hotel revenues,
expenses, adjusted operating profit (and the related margin) and food and
beverage adjusted profit (and the related margin), on a comparable hotel, or
"same store," basis as supplemental information for investors. Our comparable
hotel results present operating results for hotels owned during the entirety
of the periods being compared without giving effect to any acquisitions or
dispositions, significant property damage or large scale capital improvements
incurred during these periods. We present these comparable hotel operating
results by eliminating corporate-level costs and expenses related to our
capital structure, as well as depreciation and amortization. We eliminate
corporate-level costs and expenses to arrive at property-level results because
we believe property-level results provide investors with supplemental
information into the ongoing operating performance of our hotels. We eliminate
depreciation and amortization because, even though depreciation and
amortization are property-level expenses, these non-cash expenses, which are
based on historical cost accounting for real estate assets, implicitly assume
that the value of real estate assets diminishes predictably over time. As
noted earlier, because real estate values have historically risen or fallen
with market conditions, many real estate industry investors have considered
presentation of historical cost accounting for operating results to be
insufficient by themselves.

As a result of the elimination of corporate-level costs and expenses and
depreciation and amortization, the comparable hotel operating results we
present do not represent our total revenues, expenses, operating profit or
operating profit margin and should not be used to evaluate our performance as
a whole. Management compensates for these limitations by separately
considering the impact of these excluded items to the extent they are material
to operating decisions or assessments of our operating performance. Our
consolidated statements of operations include such amounts, all of which
should be considered by investors when evaluating our performance.

We present these hotel operating results on a comparable hotel basis because
we believe that doing so provides investors and management with useful
information for evaluating the period-to-period performance of our hotels and
facilitates comparisons with other hotel REITs and hotel owners. In
particular, these measures assist management and investors in distinguishing
whether increases or decreases in revenues and/or expenses are due to growth
or decline of operations at comparable hotels (which represent the vast
majority of our portfolio) or from other factors, such as the effect of
acquisitions or dispositions. While management believes that presentation of
comparable hotel results is a "same store" supplemental measure that provides
useful information in evaluating our ongoing performance, this measure is not
used to allocate resources or to assess the operating performance of each of
these hotels, as these decisions are based on data for individual hotels and
are not based on comparable hotel results. For these reasons, we believe that
comparable hotel operating results, when combined with the presentation of
GAAP operating profit, revenues and expenses, provide useful information to
investors and management.

SOURCE Host Hotels & Resorts, Inc.

Website: http://www.hosthotels.com
Contact: Gregory J. Larson, Chief Financial Officer, 240.744.5120; Gee
Lingberg, Vice President, 240.744.5275
 
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