Host Marriott earnings up 9% in '94 before noncash charges

March 04, 1995|By Kevin L. McQuaid | Kevin L. McQuaid,Sun Staff Writer

Host Marriott Corp. reported yesterday its earnings before interest expenses and other noncash charges rose 9 percent in 1994 to $376 million.

The results were in line with predictions the company made last month.

In the fourth quarter of last year, the Bethesda-based hotel owner generated earnings before noncash charges of $110 million, an 11 percent gain from pro forma figures for the same period in 1993. The company reported pro forma figures because of its October 1993 split from the former Marriott Corp.

Much of the increases were fueled by growth in Host Marriott's real estate and full-service hotel divisions, which rose 39 percent and 124 percent, respectively, in 1994.

"We're are delighted with our 1994 results and are very optimistic about 1995," said Host Marriott President and Chief Executive Stephen F. Bollenbach.

On a generally accepted accounting principle basis, Host Marriott reported a net loss of $25 million, 17 cents per share, on revenues of $1.5 billion in 1994, which included an extraordinary $6 million loss from the required redemption of bonds. In the fourth quarter, its loss was $15 million, 10 cents per share, on revenues of $454 million.

On a pro forma basis, Host Marriott lost $60 million, or 51 cents per share, in 1993.

The company also announced it had reduced debt by $220 million, to $2.25 billion as of Dec. 31, 1994. The reduction was partially offset, however, by a new $230 million credit line for acquisitions.

Host Marriott's portfolio currently contains 121 properties containing more than 30,000 rooms. In 1994, the company acquired 18 projects for $527 million and sold 51 limited service, economy and senior living facilities for $435 million.

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