NYC, Maui drive big Q1 beat by Host

BETHESDA, Maryland – With outperformance in New York City and Maui, Host Hotels Resorts reported a big earnings beat for the first quarter of 2025 with earnings per share of $0.35, $0.08 better than the analyst estimate. Revenue for the quarter came in at $1.59 billion versus the consensus estimate of $1.55 billion.

At the same time, Host maintained its guidance for the rest of the year with R.W. Baird Michael Bellisario noting that the outlook does not appear to include any incremental conservatism or expected demand slowdown (vs. initial expectations).

Host RevPAR growth was +7.0%, driven primarily by higher room rates, while comparable revenues were +4.7% due to outperformance in Hawaii, New Orleans, New York City, and Washington, D.C.. Maui's RevPAR growth was +16%, boosting the overall portfolio's growth rate by ~70 bps. Comparable hotel Total RevPAR increased 5.8% over the same period last year, and improvements were led by group banquet and catering business.

Comparable Hotel EBITDA was $504 million (+5.8%) and margins were +30 bps ADR growth of +5.7%. Total expenses were +4.2%.

Host President and CEO James Risoleo stated, “Despite the recent heightened macroeconomic uncertainty, we are maintaining our 2025 comparable hotel RevPAR growth guidance range of 0.5% to 2.5% over 2024. We are slightly reducing our comparable hotel Total RevPAR growth guidance range to 0.7% to 2.7% over 2024, driven by moderating group lead volume. We continue to believe Host's investment grade balance sheet, ample liquidity, and continued reinvestment in our portfolio uniquely position the company to successfully navigate the current environment and take advantage of any potential opportunities.”

Host sold two outparcels adjacent to The Phoenician and recognized a gain on sale of $4 million for both net income and Adjusted EBITDAre.

On March 26, The Don CeSar in Florida began re-welcoming guests as part of a phased reopening following remediation and reconstruction of damages caused by Hurricanes Helene and Milton in 2024. The remaining amenities are expected to re-open in summer of 2025.

The company currently estimates the total property damage and remediation costs related to The Don CeSar to be approximately $100 million - $110 million. In the first quarter of 2025, Host received approximately $20 million of insurance proceeds related to the hurricanes, of which $10 million was recognized as business interruption proceeds.