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HOST HOTELS & RESORTS, INC. (HST)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered a clean beat: revenue $1.594B vs consensus $1.546B*, Diluted EPS $0.35 vs $0.28*; Adjusted EBITDAre $514M rose 5% YoY as rate strength offset wage inflation .
  • Comparable hotel RevPAR increased 7.0% and comparable Total RevPAR 5.8%; margin mix positive with comparable hotel EBITDA margin up 30 bps to 31.8% .
  • Guidance largely maintained or modestly improved: Comparable RevPAR unchanged; slight reduction to Total RevPAR; midpoints for GAAP operating margin and comparable EBITDA margin improved by 40–50 bps; full-year net income and Adjusted EBITDAre midpoints raised $30M and $25M, respectively .
  • Management tone: cautious on macro and moderating group lead volume, but confident in balance sheet (2.8x leverage) and Maui recovery; provided RevPAR-to-EBITDA “rule of thumb” of $32–$37M per 100 bps change .
  • Potential stock catalysts: continued Maui recovery, condo closings at Four Seasons Orlando (EBITDA ~$25M in Q4), progress on Hyatt Transformational Capital Program guarantees ($27M FY25), and capital returns (remaining buyback capacity $585M) .

What Went Well and What Went Wrong

What Went Well

  • Rate-driven beat: “Adjusted EBITDAre of $514 million, up 5.1%... Comparable hotel EBITDA margin improved by 30 bps to 31.8% as revenue growth outpaced expenses due to higher rates” .
  • Maui recovery accelerated: “Maui’s 16% RevPAR growth... 70 bps benefit to portfolio RevPAR; transient rooms sold up ~70% YoY” .
  • Events/markets strength: Inauguration RevPAR up 660% in Washington, D.C.; New York and Los Angeles strong; F&B RevPAR up 5% (banquet and outlets) .
    Quote: “We are encouraged that the recovery is well underway in Maui” – CEO Jim Risoleo .

What Went Wrong

  • GAAP margins/interest: GAAP net income down 7.7% YoY; operating profit margin down 190 bps, primarily due to lower insurance gains and higher interest expense .
  • Group lead moderation: Guidance cut reflects “moderating trends in group lead volume,” with association/government groups pausing new bookings; lead time shrinking (in-year, quarter-for-quarter) .
  • Wage/benefit inflation: Expect full-year comparable hotel EBITDA margin down 100–160 bps; wages/benefits up >6% (57% of hotel opex) .

Financial Results

Quarterly Comparison: Actuals vs Estimates

MetricQ3 2024Q4 2024Q1 2025Q1 2025 vs Est.
Revenue ($USD Billions)$1.319 $1.428 $1.594 $1.546* (beat by $0.048B)
Diluted EPS ($USD)$0.12 $0.15*$0.35 $0.276* (beat by $0.074)
Comparable RevPAR ($USD)$206.21 $215.42 $240.18 n/a
Comparable Hotel EBITDA Margin (%)25.3% n/a31.8% n/a

Values with asterisks retrieved from S&P Global.

Segment Mix – Q1 2025

SegmentRoom Nights (000s)YoY ChangeRooms Revenue ($MM)YoY Change
Transient1,362 -0.8% $523 +4.7%
Group1,136 -0.6% $365 +5.9%
Contract193 +11.4% $43 +20.5%

KPIs – Q1 2025 vs Q1 2024

KPIQ1 2024Q1 2025
Comparable RevPAR ($USD)$224.52 $240.18
Comparable Total RevPAR ($USD)$386.06 $408.57
GAAP Operating Profit Margin (%)19.8% 17.9%
Comparable Hotel EBITDA Margin (%)31.5% 31.8%
Adjusted EBITDAre ($MM)$489 $514

Additional P&L and Balance Sheet Highlights (Q1 2025)

  • Rooms revenue $938M; F&B $503M; Other $153M .
  • Interest expense $57M; interest income $8M; D&A $196M .
  • Total assets $12.947B; total debt $5.085B; liquidity ~$2.2B; WAM ~5.0 years; WA interest rate 4.7% .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Comparable Total RevPARFY 20251.0%–3.0% 0.7%–2.7% Lowered (midpoint -30 bps)
Comparable RevPARFY 20250.5%–2.5% 0.5%–2.5% Maintained
GAAP Total Revenues ($MM)FY 2025$5,987–$6,104 $5,987–$6,104 Maintained (mix narrative adjusted)
GAAP Operating Profit MarginFY 202512.2%–13.1% (prior 11.8%–12.7%) 12.2%–13.1% Midpoint +40 bps
Comparable Hotel EBITDA MarginFY 202527.7%–28.3% (prior 27.2%–27.8%) 27.7%–28.3% Midpoint +50 bps
Net Income ($MM)FY 2025$486–$546 $512–$581 Raised (+$30M midpoint)
Adjusted EBITDAre ($MM)FY 2025$1,590–$1,650 $1,610–$1,680 Raised (+$25M midpoint)
Diluted EPS ($)FY 2025$0.68–$0.77 $0.72–$0.82 Raised (+$0.05 midpoint)
NAREIT FFO / Adjusted FFO per diluted share ($)FY 2025$1.79–$1.87 / $1.82–$1.91 $1.84–$1.94 / $1.88–$1.97 Raised (+$0.06 midpoint each)

Context notes:

  • Scenarios embed wage/benefit, taxes/insurance pressures and lower business interruption proceeds vs 2024; include ~$25M condo sales contribution; no assumed insurance gains timing .

Earnings Call Themes & Trends

TopicQ-2 (Q3 2024)Q-1 (Q4 2024)Current (Q1 2025)Trend
Maui recoveryHeadwinds diluted RevPAR and margins; wildfire aftermath noted Quarterly RevPAR/ADR/occupancy improved in historical comps 16% RevPAR growth; ~70% transient rooms sold YoY; 70 bps portfolio lift Improving sharply
Group lead volumeStable demand; Q3 comps aided F&B Limited disclosed in our corpusModerating leads; association/government pause; in-year bookings dominate Softer near-term
Business transientMixed; rate up, volume flat-to-down (implied from comps) Limited disclosed in our corpusFlat FY25 outlook; Q1 rate +6.5%, volume -5% (gov’t weakness) Rate up, volume down
Macro/tariffsCaution into late 2024; insurance settlements influence GAAP metrics Investor materials notice; no specifics Heightened uncertainty; provided $32–$37M per 100 bps RevPAR guide; watching tariff policy; contingency plans ready Uncertain but prepared
Capital allocationBuybacks, notes issuance; liquidity strong Scheduled Q4 call; presentation update 6.3M shares repurchased ($100M); $585M remaining; dividend $0.20; contemplating opportunistic buybacks Continuing
Balance sheetIssued $700M 5.5% notes (Aug ‘24) –Liquidity ~$2.2B; leverage 2.8x; priced $500M 5.700% notes due 2032 to redeem Series E Strengthening ladder

Management Commentary

  • Strategic focus: “We remain cautious given heightened macro uncertainty… maintaining comparable RevPAR guidance with a slight reduction to total RevPAR driven by moderating group lead volume” .
  • Operating leverage: “For every 100 basis point change in RevPAR, we would expect to see a $32 million to $37 million change in adjusted EBITDAre” .
  • Maui and Don CeSar: “Recovery is well underway in Maui… transient demand stronger-than-anticipated at Don CeSar; expect additional BI proceeds but timing uncertain” .
  • Capital investment: “Hyatt Transformational Capital Program… expect ~$27M operating profit guarantees offsetting EBITDA disruption; ROI projects at Phoenician and Don CeSar” .
  • Shareholder returns: “Repurchased 6.3M shares at $15.79; will be opportunistic on buybacks and maintain dividend” .

Q&A Highlights

  • April demand/mix: Host tracking better than upper tier; luxury strong around Easter; international inbound not a drag; NYC and D.C. strong .
  • Maui EBITDA bridge: Midpoint now ~$100M for 2025, up ~$10M vs prior view; strongest in Q1/Q4, moderating Q2/Q3 .
  • Group bookings: Lead volumes moderated (association/government); 2026–2028 picked up ~470k group room nights; pacing high-single-digits .
  • Margins and contingency: Property-level contingency plans ready; productivity actions contributed ~20 bps operational improvement; comfortable with current margin guidance .
  • Transactions and tariffs: Transaction market in “wait-and-see”; low new supply supportive; CapEx guidance maintained; tariff risk monitored with off-ramps prepared .

Estimates Context

  • Q1 2025 revenue: Actual $1.594B vs consensus $1.546B* (beat ~3.1%). Drivers: rate growth, events (inauguration, Super Bowl), Maui leisure recovery; F&B RevPAR +5% .
  • Q1 2025 EPS: Actual $0.35 vs consensus $0.276* (beat ~26.6%). Helped by rate mix, $10M business interruption proceeds, and $4M land sale gain .
  • FY 2025 consensus snapshots: EPS $1.009*; revenue $5.963B*; EBITDA $1.714B* – company midpoint Adjusted EBITDAre $1.645B, with condo sales $25M in Q4 and no assumed insurance gains .

Values with asterisks retrieved from S&P Global.

Key Takeaways for Investors

  • Rate-led outperformance and Maui recovery underpin a high-quality Q1 beat; sustained pricing power and event calendar support near-term RevPAR .
  • Guidance tweaks are prudent: comparable RevPAR maintained; Total RevPAR trimmed; margin midpoints improved – suggests discipline amid wage/benefit inflation .
  • Balance sheet optionality remains a differentiator (2.8x leverage; ~$2.2B liquidity); $585M buyback capacity provides downside support .
  • Watch group lead volumes (association/government softness) and business transient volumes; management expects flat BT revenue for FY25 with rate offsets .
  • Near-term catalysts: continued Maui strength; $27M Hyatt guarantees; Four Seasons Orlando condo closings (Q4 EBITDA contribution); potential additional BI proceeds (timing uncertain) .
  • Execution on ROI/transformation projects has historically driven outsized share gains (8.9 index points across stabilized assets) – supports medium-term margin story .

Other Q1 2025 Relevant Press Releases

  • Updated investor presentation posted for Q1 2025 results .
  • Host L.P. priced $500M 5.700% Senior Notes due 2032; intends to redeem Series E notes due 2025 .

Appendix: Additional Comparatives

  • Historical comparable hotel metrics (2025 comparable set): Q4 2024 RevPAR $215.42; occupancy 66.9%; ADR $321.96 .
  • Q3 2024 summary: Revenue $1.319B; GAAP net income $84M; Diluted EPS $0.12; Comparable RevPAR $206.21; comparable EBITDA margin 25.3% .