Host outperforms, increases guidance range

BETHESDA, Maryland – With portfolio weighted in the resilient luxury space, Host Hotels & Resorts reported strong operating and financial results for 2Q25, leading to outperformance in the first half of 2025 and an increase in its 2025 comparable hotel RevPAR and Total RevPAR growth guidance range.

Comparable hotel Total RevPAR growth of 4.2% over the second quarter of 2024 was driven by strong transient demand, leading to improvements in room revenues, food & beverage revenues and ancillary spend. Management noted better out-of-rooms spend and Maui strength as two drivers of the outperformance.

Comparable hotel RevPAR increased by 3% was driven by higher rates across the portfolio and improving leisure transient trends in Maui.

Comparable hotel RevPAR growth continued into the second quarter; however, Host said macroeconomic uncertainty remains for the second half of the year. Their guidance reflects an expected year-over-year comparable hotel RevPAR decline in the third quarter and moderate growth in the fourth quarter as short-term group volume remains soft. However, Host added that these may be affected by a changing macroeconomic sentiment and the international demand imbalance.

Host reported second quarter earnings per share of $0.32, $0.10 better than the analysts estimate of $0.22. Revenue for the quarter came in at $1.59 billion versus the consensus estimate of $1.5 billion.

For the second half of the year, Host guided with comparable Hotel Total RevPAR of +2.0% to +3.0%; comparable Hotel RevPAR guidance range of +1.5% to +2.5%; operating profit margin of 13.3% to 13.7%; and comparable Hotel EBITDA margin of 28.4% to 28.7%.

The guidance includes an expected decline in operating profit margin and comparable hotel EBITDA margin due to growth in wages and a decrease in business interruption proceeds, as compared to 2024. The guidance ranges for net income and Adjusted EBITDAre increased since prior quarter reflecting the higher room rates achieved in the first half of the year, successful renewal terms for insurance policies and the receipt of an additional $14 million of business interruption proceeds during the second and third quarters of 2025. The guidance ranges for net income and Adjusted EBITDAre also include an estimated $25 million contribution from sales at the condominium development adjacent to the Four Seasons Resort Orlando at Walt Disney Resort.

Host President and CEO James Risoleo added that during the second quarter, Host also sold The Westin Cincinnati, repurchased $105 million of common stock and made additional progress on its portfolio reinvestments. “We continue to believe Host is well positioned to successfully navigate the current environment 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.”