James F. Risoleo
President, Chief Executive Officer and Director at Host Hotels & Resorts
Thank you, Jaime, and thanks to everyone for joining us this morning.
We ended the year with strong operating improvements across our portfolio driven by continued rate strength. For the full year 2022, we delivered adjusted EBITDAre of $1.498 billion, All Owned Hotel EBITDA of $1.573 billion, and All Owned Hotel RevPAR of $196, which helped us achieve the high-end of our full-year 2022 guidance range. During the fourth quarter, we delivered adjusted EBITDAre of $364 million and adjusted FFO per share of $0.44. Our All Owned Hotel EBITDA of $373 million in the fourth quarter was 5% above 2019 driven by rate strength out-of-room revenues and expense efficiencies resulting from operating improvements. All Owned Hotel RevPAR for the fourth quarter was approximately $197, a 60-basis-point improvement over the fourth quarter of 2019. As a reminder, fourth quarter operations were impacted by Hurricane Ian, yet RevPAR All Owned Hotel EBITDA and EBITDA margins still exceeded 2019 levels for the third consecutive quarter since the onset of the pandemic. All Owned Hotel revenues in the fourth quarter were up 1.1% over the fourth quarter of 2019, while All Owned Hotel operating expenses were down 40 basis-points.
In addition to delivering strong operating improvements over the course of 2022, we continued to be recognized as a global leader in corporate responsibility. While we work toward achieving our 2025 environmental and social targets, we introduced our 2050 Vision of becoming a net positive company, which is detailed in our 2022 Corporate Responsibility Report. We now have a total of 10 LEED-certified properties including three LEED Gold hotels, plus our corporate headquarters. In addition, we were named to the Dow Jones Sustainability Index World and was recognized as Global Sustainability Leaders across all industries for the fourth consecutive year and we were included in the DJSI North America for the sixth consecutive year. Additionally, we were once again included among the World's Most Sustainable Companies in S&P's Global Sustainability Yearbook and named one of America's Most Responsible Companies by Newsweek.
Subsequent to quarter-end, we amended and restated our existing $2.5 billion credit facility to further enhance the strength and flexibility of our balance sheet. The agreement reflects no increase in pricing and incorporates our industry-leading commitment to ESG by adding incentives linked to portfolio sustainability initiatives including Green Building certifications and Renewable Energy consumption.
On the capital allocation front, during the fourth quarter, we repurchased 1.7 billion shares at an average price of $15.93 per share through our common share repurchase program, bringing our total repurchases for the quarter to $27 million. We have approximately $973 million of remaining capacity under the repurchase program.
While macroeconomic headwinds continue to dominate the headlines, we remain optimistic about the state of travel for several reasons. First, although leisure rates are moderating, they remain well above 2019 levels. For context, transient rates at our resorts were 52% above 2019 in the fourth quarter compared to 64% in the third quarter. Second, in the fourth quarter, we booked 400,000 group rooms for 2023 and total group revenue pace is down only 70 basis points to the same time 2019. Third, while business transient demand has been uneven, revenue driven by this segment improved 440 basis points compared to 2019 on a quarterly sequential basis. Small and medium-sized businesses are driving the business transient recovery and they represent a larger share of our corporate demand today. According to American Express Global Business Travel, transactions by this segment reached 80% of pre-pandemic levels in the third quarter.
Our recent acquisitions continue to contribute to our outperformance and are substantially ahead of our underwriting expectations. Based on full year 2022 results, EBITDA from the seven hotels we acquired in 2021, put us at the bottom end of our targeted range of 10 to 12 times EBITDA, well ahead of our planned stabilization period. Looking back on our transaction activity since 2018, we have acquired $3.5 billion of assets at a 13.7 times EBITDA multiple and disposed of $4.9 billion of assets at a 17 times EBITDA multiple, including $954 million of estimated forgone capital expenditures.
It is worth noting that this quarter, we moved the 2017 comparison of our All Owned Hotel results from 2019 to 2022, as our 2022 results reflect more normalized operations. Comparing All Owned Hotel 2022 results for our current portfolio to 2017, we have increased the RevPAR of our assets by 9% it's RevPAR by 15%, the EBITDA per key by 31% and avoided considerable business disruption associated with capital projects.
Moving back to fourth quarter operations and starting with a hurricane update. We estimate that Hurricane Ian impacted our fourth quarter RevPAR growth by 220 basis points, our adjusted EBITDAre by $15 million and our All Owned Hotel EBITDA margin by 40 basis points. On a full-year basis, that translates to an All Owned Hotel RevPAR impact of 60 basis points and All Owned Hotel EBITDA impact of $18 million and an All Owned Hotel EBITDA margin impact of 10 basis points. As a reminder, the Hyatt Regency Coconut Point opened in November, and we expect to reopen the remaining facilities and waterpark in June. The Ritz-Carlton, Naples, remains closed, and we are targeting a phased reopening strategy beginning this summer. Reconstruction at the Ritz-Carlton will enhance the resilience of the property by elevating critical equipment, introducing drive flood proofing measures and replacing major equipment with more efficient machinery.
In addition, while the hotel was closed, we are avoiding future disruption by executing planned capital projects that would have otherwise impacted operations. While we are still evaluating the total financial impacts of the storm, we currently estimate the total property damage and remediation costs for all impacted properties in Florida to be between $200 million and $220 million. We are insured for $325 million per name windstorm with a $15 million deductible resulting in potential insurance recovery of approximately $310 million recovered costs. Based on our current reopening plans for Ritz-Carlton, Naples, we believe our insurance coverage is sufficient to cover substantially all of the property damage as well as the near-term loss of business. Thus far this year, we have received approximately $50 million of insurance proceeds related to our claims.
Continuing with fourth quarter results, transient revenue was up 60 basis points compared to the fourth quarter of 2019 with strong rate increases, making up for the volume shortfall resulting from lower business transient demand like cancellations during the holidays, colder weather in Florida and hurricane displacement at Hyatt Coconut Point and Ritz-Carlton, Naples. Revenue growth was driven by Orlando, Phoenix and Hawaii, which offset declines in San Francisco and the Florida Gulf Coast. Our resort properties continue to outperform with 13% transient rate growth over 2021. In the fourth quarter, we had six resorts with transient rates above $1,000, led by the Four Seasons Jackson Hole at over $2,200 and the Four Seasons Orlando at close to $2,000.
Turning to group. This is the second consecutive quarter group revenue exceeded 2019, driven by 10% rate growth. In the fourth quarter, our hotels sold 954,000 group rooms, bringing our total group room nights sold for 2022 to 3.8 million, which represents approximately 84% of 2019 actual group room nights. Total group revenue for 2022 was down just 11% to 2019 as 6% rate growth and Banquet contribution helped offset lower demand. For 2023, we currently have 2.9 million definite group room nights on the books, which represents 80% of full year 2022 group room nights. This compares to 71% on the books at the same time last year for 2022, representing a 9-point improvement.
Group rate on the books for 2023 is up nearly 6% to the same time last year, a 140-basis-point increase since the third quarter. In addition, group revenue pace is up approximately 17% to the same time last year. We are very encouraged by the large group base we have on the books, particularly given short-term booking trends. Sourav will discuss more operational detail in our 2023 outlook in a few minutes.
In addition to delivering operational improvements, we continue to execute on our three strategic objectives, all of which are aimed at elevating the EBITDA growth profile of our portfolio. As a reminder, our objectives include, redefining the hotel operating model with our managers, gaining market share at our hotels through comprehensive renovations and strategically allocating capital to development ROI projects. As it relates to our first strategic objective, it is important to note that we have achieved the bulk of the $100 million to $150 million of expense savings associated with redefining the operating model. In order to achieve the high-end of the range, we will need to get back to 2019 business volumes, and as of the fourth quarter, occupancy was still 10 points below the fourth quarter of 2019.
Turning to portfolio reinvestment. Our 2023 capital expenditure guidance range is $600 million to $725 million, which reflects approximately $275 million of investments for redevelopment, repositioning in ROI projects. The projects include a transformational renovation of the Fairmont Kea Lani, The Phoenician and Canyon suites expansion and completing construction of the tower expansion, guest room renovation and lobby transformation at Ritz-Carlton, Naples, which was delayed by Hurricane Ian.
To-date, we have completed 14 out of 16 assets in our Marriott transformational capital program and we will complete the San Diego Marriott Marquis by the end of this month. The final property, the Washington Marriott at Metro Center is underway, and we expect it to be completed in May. It is worth noting that actual 2022 capital expenditures came in at the low-end of our guidance range. As such, the midpoint of our 2023 range is $160 million higher than last year, which is driven by carryover capital and an estimated $100 million to $125 million of capital expenditures related to hurricane restoration work, which we expect to be reimbursed by insurance claims.
To conclude my remarks, we are extremely proud of the results we achieved in 2022 and we are confident that the quality of our portfolio, our ability to reinvest in our assets and our fortress balance sheet will allow us to continue our strong performance in 2023.
With that, I will now turn the call over to Sourav.