HOST HOTELS & RESORTS, INC. REPORTS RESULTS OF OPERATIONS FOR THE FIRST QUARTER OF 2009

BETHESDA, MD; April 23, 2009 – Host Hotels & Resorts, Inc. (NYSE: HST), the nation’s largest lodging real estate investment trust (REIT), today announced its results of operations for the first quarter ended March 27, 2009.
􀂃 Total revenue decreased $171 million, or 16.2%, to $882 million for the first quarter of 2009 compared to 2008.
􀂃 Net loss was $60 million for the first quarter of 2009 compared to net income of $63 million for the first quarter of 2008. The diluted loss per share was $.12 for the first quarter of 2009 compared to earnings per share of $.10 in 2008.
Operating results for the first quarter of 2009 were significantly affected by gains on a hotel disposition as well as non-cash impairment charges related to potential asset sales. Additionally, the first quarter of 2009 and 2008 include an increase in non-cash interest expense due to an accounting change implemented in the first quarter of 2009 that related to our exchangeable debentures. The cumulative effects of these items were to decrease earnings by $28 million, or $.05 per diluted share, for the first quarter of 2009. For further detail, refer to the "Schedule of Significant Items Affecting Earnings per Share and Funds From Operations per Diluted Share" attached to this earnings release.
􀂃 Funds from Operations (FFO) per diluted share were $.10 for the first quarter of 2009 compared to $.33 per share for the first quarter of 2008. FFO per diluted share for the first quarter of 2009 was reduced by $.09 per diluted share due to non-cash impairment charges and the accounting change noted above.
􀂃 Adjusted EBITDA, which is Earnings before Interest Expense, Income Taxes, Depreciation, Amortization and other items, decreased $88 million for first quarter 2009, to $174 million.