1. Crafting the Future of Host Hotels and Resorts

2. Area of Operation: Segments Host Hotels and Resorts is a part of the Real Estate Investment Trust, REIT, governmental program. This program involves investment in all types of businesses including Health Care, Mortgages, Retail, Residential, Lodging, etc. Health Care Industrial/Office Infrastructure Lodging/Resort Mortgage Residential Retail Self Storage Timber Other Host Hotels and Resorts only operates in one segment: Hotel & Lodging 3. Area of Operations: Brands Westin W Hotel The Luxury Collection Swissotel St Regis Sheraton The Ritz-Carlton Pullman Novotel Marriott IBIS 4. Area of Operations: Geographic Geographically Host Hotels and Resorts domestic location is the United States; the majority of their hotels are located there. However, they also have locations in Canada, Chile, Mexico, joint ventures in Europe, and newer locations in the Asia-Pacific region. 5. Company Strategies Level of Business Specific Strategy Type Corporate Single Business Strategy- only operate in the lodging industry Business: Competitive Focused Differentiation- Focused on their one operating segment and differentiate themselves through the quality of their product Blue Ocean N/A Timing First Mover- Host is the most global competitor in the industry Marketplace Approach Analyzer- Host focuses most of their efforts on their stable American market with other international markets still developing Functional: R&D Functional Activity Marketing Functional Activity Production Critical Activity Human Relations Critical Activity International Global Strategy- Host has globally expanded to many different parts of the world including Asia-Pacific, Europe, South America, etc. They are the most global company in the industry by far 6. Performance: Income Statement2010 2011 2012 Total Revenue 4,361,000 4,924,000 5,286,000 Gross Profit 2,693,000 3,064,000 3,306,000 Operating Income (loss) 223,000 326,000 383,000 Net Income (loss) (130,000) (15,000) 61,000 -1,000,000 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 2010 2011 2012 All numbers are in thousand s 7. Performance: Ratios Profitability Ratios 12/31/2012 12/31/2011 12/31/2010 ROA % (Net) 0.47 (0.12) (1.04) ROE % (Net) 0.9 (0.23) (2.08) ROI % (Operating) 3.1 2.68 1.87 EBITDA Margin % 7.47 6.74 4.94 Calculated Tax Rate % 73.81 EBT