Total Revenue

Up ~8.4% (Q1 2025: $1,594M vs Q1 2024: $1,471M)

Acquisitions and event-driven growth drove revenue higher, with new properties adding revenue streams and strong group business helping to lift performance compared to Q1 2024; improvements in comparable hotel performance from higher room rates and ancillary revenues also contributed. " " " "

Rooms Revenue

Up ~10% (Q1 2025: $938M vs Q1 2024: $853M)

New acquisitions and operational performance led to a robust increase in rooms revenue; this includes a 5.7% rise in average room rates and an 80 basis point improvement in occupancy, reflecting both pricing power and increased demand relative to the prior period. " " " "

Food and Beverage Revenue

Up ~6% (Q1 2025: $503M vs Q1 2024: $473M)

Enhanced F&B offerings and recovery dynamics contributed to the revenue increase, driven by the operations of acquired hotels and rising outlet revenues; strong group business and ancillary spending helped drive this growth compared to the previous quarter. " " " "

Other Revenue

Up ~5.5% (Q1 2025: $153M vs Q1 2024: $145M)

Incremental gains in ancillary services—including spa, golf, and other non-core revenues—helped lift Other Revenue modestly, with contributions from new acquisitions and market recovery factors offset slightly by lower attrition and cancellation fee recoveries relative to Q1 2024. " " " "

Total Assets

Up ~4% (Q1 2025: $12,947M vs Q1 2024: $12,464M)

Asset growth was driven by continued investment in acquisitions and capital expenditures which built on the prior period’s base, resulting in a moderate increase in the balance sheet size as new properties and improvements were added. " "

Total Debt

Up ~12.7% (Q1 2025: $5,085M vs Q1 2024 levels)

Higher leverage reflects strategic financing to support acquisitions and growth initiatives, with additional borrowings and issuance of new senior notes contributing to a steeper debt increase relative to Q1 2024. " "

Cash and Cash Equivalents

Down 68% (Q1 2025: $428M vs Q1 2024: $1,349M)

Aggressive use of cash in financing activities—including repurchases of common OP units and distributions—combined with lower operating cash generation in Q1 2025, led to a drastic reduction in liquidity compared to Q1 2024; this significant drop warrants close monitoring of the company’s cash management practices. " "

U.S. Operations Revenue

Concentrated with $1,576M generated domestically

Domestic market focus remains strong, as evidenced by U.S. operations accounting for nearly all revenue, reinforcing the company’s exposure to local market trends and events; this continuity from prior periods highlights geographic concentration that underpins overall performance. "

Comparable Hotel RevPAR Growth

FY 2025

50 basis points to 2.5% "

50 basis points to 2.5% "

no change

Comparable Hotel EBITDA Margins

FY 2025

Down 210 basis points at the low end to down 150 basis points at the high end "

Down 160 basis points at the low end to down 100 basis points at the high end "

raised

Adjusted EBITDAre

FY 2025

Full-year midpoint of $1,620 million "

Full-year midpoint of $1.645 billion "

raised

RevPAR Growth Cadence

FY 2025

Mid-single-digit growth in Q1 with January RevPAR growth up 9.5%, with the remaining quarters in low single digits "

Quarterly growth expected in the negative 2% to positive 1% range "

lowered

Wage and Benefit Expenses

FY 2025

Expected to increase over 6% "

Expected to increase over 6% "

no change

Business Interruption Proceeds

FY 2025

no prior guidance

Additional proceeds expected; timing and amount uncertain "

no prior guidance

Four Seasons Condo Development

FY 2025

no prior guidance

Estimated $25 million of EBITDA expected "

no prior guidance

Don CeSar and Alila Ventana Big Sur

FY 2025

no prior guidance

Estimated $1 million loss at Don CeSar and estimated $15 million contribution from Alila Ventana Big Sur "

no prior guidance

Group Booking and Transient Demand Dynamics

In Q2, Q3 and Q4 2024 calls, management discussed steady group revenue growth (despite regional challenges like Maui recovery and tough comparisons), noted strong corporate and leisure transient performance, and highlighted high single‐digit future group booking volumes. " " " " " "

In Q1 2025, group RevPAR increased by 7% y/y even with a negative impact from Maui, while transient RevPAR grew by 6% driven by strong leisure trends and special events. There was cautious commentary on government/association group lead volumes, but future-year bookings remain robust. " " "

Overall, recurring topics continue with robust transient performance and cautious short‐term moderation in group bookings. The narrative shows a steady recovery with sustained future group demand and consistent transient growth across periods.

Occupancy and RevPAR Performance Trends

Q2, Q3 and Q4 2024 discussions highlighted modest to moderate improvements in hotel RevPAR and occupancy. Past calls noted pressures from natural events (wildfires, hurricanes) and challenges relative to pre-pandemic occupancy levels, with incremental gains often offset by external headwinds. " " " " "

Q1 2025 showcased stronger RevPAR performance with total comparable RevPAR up about 5.8% and comparable RevPAR up 7%, driven by high performance in key markets including Maui, Washington, D.C., and New York. Enhanced transient and group demand supported these improvements. " "

Positive momentum is emerging. The current period reflects improved performance in key markets and stronger RevPAR gains compared to earlier quarters, indicating a recovery trend overcoming earlier natural disaster and occupancy challenges.

Cost Pressures and Margin Management

Across Q2, Q3 and Q4 2024 calls, increased wages and benefits, fixed expense pressures and external events (hurricanes, wildfires) were repeatedly cited as headwinds that eroded EBITDA margins. Management also noted operational improvements and benefits from business interruption proceeds, though margins faced ongoing pressure. " " " " "

In Q1 2025, management reported a slight improvement in comparable hotel EBITDA margins (up by 30 bps) driven by operational initiatives and targeted cost-cutting measures, while still forecasting future margin pressure due mostly to wage and benefits increases. " " " "

Persistent cost pressures remain a challenge, yet operational improvements are beginning to mitigate these effects. The sentiment has shifted to cautious optimism with improved margin metrics in Q1 2025 despite the structural pressures that have recurred over previous periods.

Capital Flexibility, Acquisition Strategy, and Asset Transaction Uncertainty

In Q2, Q3 and Q4 2024 calls, the company emphasized its strong balance sheet, liquidity and low leverage (around 2.7x), noted opportunistic acquisitions, regular market testing for asset transactions, and a “wait‐and‐see” attitude due to macro uncertainty, while also highlighting share repurchases and strategic capital deployment. " " " " " " "

In Q1 2025, Host Hotels reiterated its investment-grade capital position with a 2.8x leverage ratio and $2.2B liquidity, affirming its “do it all” flexibility. Although acquisitions remain on hold amid macro uncertainty, the overall strategic posture continues to leverage its strong financials for potential opportunities. " " "

The company’s capital flexibility remains consistently strong. While acquisition activity and asset dispositions are approached cautiously due to external market conditions, the consistent emphasis on financial strength and opportunistic capital allocation persists as a key strategic pillar.

Natural Disaster Impacts and Maui Recovery

In Q2, Q3 and Q4 2024, discussions focused on significant negative impacts from Maui wildfires and hurricanes (Helene, Milton), detailing revenue drags, high basis point impacts on RevPAR, and notable remediation/rebuilding costs at properties like Don CeSar; recovery efforts (including marketing campaigns and resilience investments) were underway but challenges such as constrained airline capacity and slower group recovery were common themes. " " " " "

In Q1 2025, while natural disaster-related impacts remain (with business interruption proceeds being collected), Maui shows strong signs of recovery – transient rooms sold were up approximately 70% y/y, Maui RevPAR grew 16% (providing a 70 bp portfolio benefit), and operational improvements are expected to further boost performance. " " "

There is a clear, gradual recovery in Maui, overcoming prior destructive impacts. Although natural disaster challenges continue to be addressed, the strong rebound in transient demand and improved RevPAR signal resilience and a turnaround trajectory in key leisure markets like Maui.

Shifts in Consumer Destination Preferences

Q2 2024 and Q3 2024 calls noted a significant shift with more affluent consumers opting for international destinations (e.g., Europe, Asia, Caribbean), with outbound travel surpassing inbound levels. Q3 commentary reaffirmed stable outbound ratios (~120%), while Q4 highlighted imbalances that continued to affect domestic versus international demand dynamics. " " " "

In Q1 2025, the emphasis shifted to strong domestic performance, with key U.S. markets (Washington, D.C., New York, Los Angeles) and luxury resorts driving demand, supported by high-profile events (the inauguration, Super Bowl) and overall improved leisure trends. " " " "

The consumer preference narrative is rebalancing. Earlier periods showed a tilt toward international leisure travel, but Q1 2025 reflects a renewed strength in domestic and key urban markets, indicating a shift back to home-market travel as macro uncertainties ease.

Renovations and Property Upgrades

In Q2, Q3 and Q4 2024, Host Hotels detailed significant capital expenditures (ranging from ~$500M to $600M), transformational renovations across multiple properties, and progress in high-profile projects such as the Hyatt Transformational Capital Program and residential condo developments at Four Seasons Orlando. These upgrades provided measured RevPAR index gains exceeding targets. " " " "

In Q1 2025, the company continued its momentum by reporting completed renovations (e.g., Grand Hyatt Atlanta, New York Marriott Marquis), a robust slate of upcoming projects (Hyatt Regency Austin, Capitol Hill, condo launches), and reaffirmed its 2025 capex guidance between $580M and $670M, maintaining a strong pipeline for property upgrades. " "

Renovation initiatives remain a consistent growth catalyst. The ongoing delivery of transformational upgrades continues to drive performance improvements and market share gains, reflecting a steady and strategic reinvestment in the portfolio across all periods.