Bethesda-based Host Hotels & Resorts, Inc. improved net income and funds from operations in its latest quarter, but admitted that the results would have been better had the company not backed out of a deal to acquire the Grand Hyatt Washington.
Host (NYSE: HST) said that it posted net income of $17 million, 2 cents per diluted share, in the fourth quarter of 2011. That compares with a net loss of $6 million, 1 cent per diluted share, in the fourth quarter of 2010.
Adjusted funds from operations in the quarter rose to 32 cents per diluted share from 28 cents per diluted share in the year ago quarter.
Host said that its results were negatively impacted by the forfeiture of a $15 million deposit related to Host’s decision in December not to acquire the Grand Hyatt Washington, D.C.
Revenues in the quarter rose 11 percent to $1.66 billion as average room rates rose 3.8 percent and occupancy increased 1.3 percent.