Host Hotels & Resorts Inc. (HST) swung to a fiscal third-quarter loss amid weak demand, though the loss wasn't as wide as Wall Street had feared.

The lodging company also gave a slightly more upbeat outlook for the year, and now expects a loss of 42 cents to 47 cents a share, with funds from operations of 46 cents to 51 cents, including some items, based on a 20% to 22% drop in revenue per available room. Host Hotels in July reduced its fiscal-year forecast to a loss of 46 cents to 53 cents a share and FFO of 43 cents to 50 cents, based on an 20% to 23% drop in revpar.

It was the third consecutive quarterly loss for the real-estate investment trust amid a prolonged travel and tourism downturn has hammered the industry. However, signs that sector has seen the worst of the declines have begun to emerge. Last week Marriott International Inc. (MAR) posted a quarterly loss, but results were better-than-expected and the company raised hopes for smaller revpar declines.

Host Hotels, a commercial real-estate investment trust, owns 112 properties world-wide and hires operating companies such as Marriott or Hilton Hotels Corp. to manage them. Among commercial REITs, hoteliers have been among the worst hit as they struggle to fill rooms.

For the quarter ended Sept. 11, highly leveraged Host Hotels reported a loss of $55 million, or 9 cents a share, compared with prior-year earnings of $47 million, or 9 cents share. Funds from operations, a key REIT profitability measurement, fell to 11 cents from 31 cents, including the one-time items.

Revenue decreased 20% to $912 million.

Analysts polled by Thomson Reuters most recently forecast a loss of 14 cents, FFO of 8 cents and revenue of $892 million.

Revpar declined 21%, but it was an improvement from the prior quarter's 25% drop.

Shares closed at $11.28 on Tuesday and didn't trade premarket. The stock is up 49% this year, after nearly quadrupling from a March low of $3.08.

 
   -By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com;