Host beats on better top-line performance

BETHESDA, Maryland – Host Hotels & Resorts reported solid third quarter results with quarterly comparable total RevPAR growth of 0.8% due to improvements in room revenues and ancillary spend driven by increased transient demand.  Comparable hotel RevPAR growth was 0.2% driven primarily by increases in room rates and strong transient leisure demand, along with the continuing recovery in Maui, which collectively offset an expected decrease in group demand.

Host raised its full-year comparable RevPAR growth guidance to ~3.0% over 2024. RevPAR growth for 4Q25 is forecasted to be approximately +1.5%. It also announced its second Marriott Transformational Capital Program and completed the sale of the Washington Marriott at Metro Center in late August to T2 Hospitality for $177 million and provided seller financing of $113.75 million.

Comparable hotel RevPAR also outperformed our expectations, increasing 0.2% over the third quarter of last year, driven by higher rates across the portfolio and improving leisure transient trends in Maui.

James Risoleo

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Host EBITDA was $309 million, which is -1.3% YOY reflecting a comparable hotel EBITDA margin decrease of 50 basis points to 23.9% due to increases in wages and benefits expense. Margins were -50 bps. Total expenses were +1.4% and costs per occupied room were +4.2%.

“We delivered better than expected comparable hotel Total RevPAR growth of 0.8% over the third quarter of 2024, driven by strong transient demand leading to improvements in room revenues and ancillary spend,” said Host President and CEO James Risoleo. “Comparable hotel RevPAR also outperformed our expectations, increasing 0.2% over the third quarter of last year, driven by higher rates across the portfolio and improving leisure transient trends in Maui. As a result of our outperformance, we now expect comparable hotel RevPAR growth of approximately 3.0% and comparable hotel Total RevPAR growth of approximately 3.4% over 2024, exceeding the high end of our previously announced guidance ranges."

Risoleo continued, “We continued to actively manage our portfolio with the sale of the Washington Marriott at Metro Center in the third quarter and made additional progress on our portfolio reinvestments. We are very pleased to have entered into a new agreement with Marriott to complete transformational renovations at four properties in our portfolio ($300-$350 million of capex). We believe Host is well positioned to benefit from favorable demand trends as a result of our investment-grade balance sheet, our size and scale, our diversified business and geographic mix, and our continued reinvestment in our portfolio.”

R.W. Baird analyst Michael Bellisario noted that Host’s third-quarter earnings beat was led by better top-line performance in Maui, New York City, and San Francisco.

As expected, Host said group room nights for the third quarter were down year-over-year as a result of planned renovations under the Hyatt Transformational Capital Program and a shift in the timing of holidays.