Host Hotels & Resorts (NYSE:HST) traded higher Tuesday despite slightly widening its third-quarter loss, as sales surged on higher average room rates.
The Bethesda, Maryland-based company posted a net loss of $58 million, or 9 cents a share, compared with a loss of $57 million, or 9 cents a share in the same quarter last year.
Earnings missed average analyst estimates polled by Thomson Reuters of 11 cents.
Revenue for the hotel chain operator was $1 billion, up 7.4% from $903 million a year ago, and beating the Street’s view of $971.12 million.
An average increase in room rates led the sales rally, with revenue per available room up nearly 9%.
Formerly known as Host Marriott, the leading real estate investment trust owns and operates hotels across the US as well as several in several international markets.
Last quarter the company acquired three hotels in New York, Chicago and London for a total price of $430 million.
Following the quarter’s close, the company acquired the 245-room JW Marriott Hotel Rio de Janeiro in Brazil for $48 million, marking the company’s second international addition this year.
In September, the company’s board of directors approved a quarterly cash dividend of a penny a share, payable on Oct. 15 to shareholders of record on Sept. 30.
Host Hotels said it expects to post a fiscal 2010 net loss in the range of $150 million to $137 million, or 23 cents to 22 cents.