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HOST HOTELS & RESORTS, INC. (HST)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 beat consensus on revenue and EPS; revenue was $1.59B vs $1.51B consensus and diluted EPS was $0.32 vs $0.23 consensus, driven by higher rates, resilient transient demand, and strong ancillary spend; margins declined year over year due to lapping prior-year business interruption proceeds . Revenue Consensus Mean $1.51B*; EPS Consensus Mean $0.23* (Values retrieved from S&P Global).
  • Management raised full‑year guidance: net income to $601–$631M (+$70M midpoint), Adjusted EBITDAre to $1.69–$1.72B (+$60M midpoint), and lifted RevPAR/Total RevPAR growth ranges; operating margin and comparable hotel EBITDA margin guidance tightened higher vs prior quarter on better room rates and 4% insurance premium renewal savings (~$14M) .
  • Business mix: transient revenue +6.8% YoY (room nights +1.6%), group revenue −4.9% (nights −6.1%), and contract +21.7%; Maui recovery (RevPAR +18.6%) contributed ~100 bps to portfolio RevPAR growth and underpinned outperformance .
  • Capital allocation/catalysts: $105M buyback at $15.56 average and Westin Cincinnati sale ($60M; ~14.3x TTM EBITDA) clean up portfolio; leverage stayed low at 2.8x with $2.3B liquidity; Q2 dividend paid $0.20/share .

What Went Well and What Went Wrong

  • What Went Well

    • Rate-driven growth with strong leisure transient and ancillary spend; “Comparable hotel Total RevPAR improved 4.2%... driven by strong transient demand… food & beverage revenues and ancillary spend” .
    • Maui recovery accelerated: “Maui’s 19% RevPAR growth provided a 100 bps benefit to portfolio RevPAR… robust growth in F&B, golf and spa revenue” .
    • Guidance raised and cost tailwind: insurance renewal down 4% (~$14M savings) flowed through to updated outlook .

  • What Went Wrong

    • Margin compression YoY: GAAP operating profit margin fell 240 bps to 17.5% and comparable hotel EBITDA margin −120 bps to 31.0% due to lower business interruption proceeds vs last year .
    • Group softness and renovation disruption: group room revenue −5% on Hyatt Transformational Capital Program disruption, Easter shift, and lower short‑term pickup; Q3 RevPAR expected negative before modest Q4 growth .
    • Wage/benefit inflation: 2025 wage/benefits up ~6% (~50% of hotel opex), pressuring margins; management expects growth to moderate in 2026 but remains cautious .

Financial Results

Financials vs prior two quarters and estimates

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Billions)$1.43B $1.59B $1.59B
Revenue Consensus Mean ($B)*$1.37B$1.55B$1.51B
Diluted EPS ($)$0.15*$0.35 $0.32
EPS Consensus Mean ($)*$0.13$0.28$0.23
Comparable Hotel RevPAR ($)$216.63 $241.93 $239.64
Occupancy (%)67.0% 69.7% 73.8%
ADR ($)$323.38 $347.35 $324.87
  • Beats/misses vs Q2 2025 consensus: Revenue $1.59B vs $1.51B (+$0.08B); EPS $0.32 vs $0.23; both beats driven by rate strength and Maui recovery; EBITDA consensus $445M* vs reported EBITDAre/Adjusted EBITDAre of $491M/$496M (company-reported non‑GAAP); directionally a beat on S&P EBITDA as well . Revenue/EPS/EBITDA estimates from S&P Global*.

Margins (YoY and QoQ comparisons)

MarginQ2 2024Q2 2025
GAAP Operating Profit Margin (%)19.9% 17.5%
Comparable Hotel EBITDA Margin (%)32.2% 31.0%
MarginQ1 2025Q2 2025
GAAP Operating Profit Margin (%)17.9% 17.5%
Comparable Hotel EBITDA Margin (%)31.8% 31.0%

Business mix/segment breakdown (Q2 2025 vs Q2 2024)

SegmentRoom Nights (000s)YoY %Room Revenue ($M)YoY %
Transient1,560 +1.6% $563 +6.8%
Group1,091 −6.1% $321 −4.9%
Contract208 +14.6% $45 +21.7%

Selected KPIs by market (Q2 2025 vs Q2 2024, comparable hotels)

  • Maui RevPAR $442.40 vs $373.09 (+18.6%); Total RevPAR $723.40 vs $610.68 (+18.5%) .
  • Miami RevPAR $408.45 vs $361.34 (+13.0%); Total RevPAR $732.84 vs $629.52 (+16.4%) .
  • New York RevPAR $366.84 vs $336.30 (+9.1%); Total RevPAR $542.26 vs $482.84 (+12.3%) .

Non‑GAAP bridges (Q2)

  • EBITDA $505M; EBITDAre $491M; Adjusted EBITDAre $496M (adds back stock comp, excludes property insurance gains), reflecting lower prior-year BI proceeds; NAREIT FFO $0.57/share; Adjusted FFO $0.58/share .

Guidance Changes

MetricPeriodPrevious Guidance (Apr 30)Current Guidance (Jul 30)Change
Comparable Hotel Total RevPAR (YoY)FY 20250.7%–2.7% 2.0%–3.0% Raised
Comparable Hotel RevPAR (YoY)FY 20250.5%–2.5% 1.5%–2.5% Raised (low end)
Total Revenues (GAAP)FY 2025$5.99–$6.10B $6.05–$6.11B Raised
Operating Profit Margin (GAAP)FY 202512.2%–13.1% 13.3%–13.7% Raised
Comparable Hotel EBITDA Margin (YoY Δ)FY 2025−160 to −100 bps −90 to −60 bps Raised (less negative)
Net IncomeFY 2025$512–$581M $601–$631M Raised
Adjusted EBITDAreFY 2025$1.61–$1.68B $1.69–$1.72B Raised
Diluted EPSFY 2025$0.72–$0.82 $0.85–$0.90 Raised
NAREIT FFO/shareFY 2025$1.84–$1.94 $1.95–$1.99 Raised
Adjusted FFO/shareFY 2025$1.88–$1.97 $1.98–$2.02 Raised
Dividend2Q 2025—$0.20 paid Jul 15 Declared

Drivers: higher 1H rates, better insurance renewal (−4%, ~$14M), added BI proceeds ($14M across 2Q–3Q), and condo sales contribution ($25M est.) .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’24 and Q1’25)Current Period (Q2’25)Trend
Maui recoveryQ1: improving RevPAR; phased reopening of Don CeSar; Maui aiding RevPAR . Q4: international outbound 125% vs 2019; inbound 94% (imbalance) .Maui RevPAR +19%; ~100 bps portfolio RevPAR lift; spend robust (F&B, spa, golf) .Improving
Group demandQ1: moderating lead volume; maintained FY RevPAR guide .Q2 group −5% YoY; short‑term pickup soft; Q3 RevPAR negative, Q4 modest growth expected .Soft near‑term; better into 2026
Pricing/rateQ1: rate drove RevPAR; strong city/regional outperformance .Rate strength persisted; transient revenue +7% on rate and resort nights .Stable/positive
Costs/insuranceQ1: margin pressure from wages, taxes, insurance .Insurance renewal −4% (~$14M); wage/benefits +6% in 2025 .Mixed: cost tailwind from insurance; wage headwinds persist
Capex/repositioningQ1: $580–$670M capex; Hyatt Transformational Capital Program ongoing .Capex $590–$660M; Hyatt program ~50% complete; operating guarantees ~$27M in 2025 .On track; offset from guarantees
Capital allocationQ1: $100M buybacks .$105M buybacks; Westin Cincinnati sold for $60M (~14.3x TTM EBITDA including avoided capex); leverage 2.8x .Shareholder-friendly; portfolio quality up

Management Commentary

  • “Comparable hotel Total RevPAR improved 4.2%… driven by strong transient demand… and ancillary spend… Comparable hotel RevPAR improved 3%” (CEO, prepared remarks) .
  • “Maui’s 19% RevPAR growth provided a 100 basis point benefit to portfolio RevPAR… recovery… is well underway” (CEO) .
  • “Insurance renewal came in meaningfully better than expected at down 4%… a $14 million expense reduction compared to our prior guidance” (CFO) .
  • “For every 100 bps change in RevPAR, we would expect $32–$37 million change in adjusted EBITDAre” (CEO) .
  • “Hyatt Transformational Capital Program is approximately 50% complete… tracking on time and under budget” (CEO) .

Q&A Highlights

  • Group dynamics: soft short‑term pickup in 3Q drove ~75–77k room nights removed from 2H forecast; 2026–2028 group pace improved sequentially; 2Q pickups for rest of year were 215k nights (80% 2H) despite macro caution .
  • Maui outlook: pacing very close to pre‑fire and pre‑pandemic levels; 2026 expected to be “much better” for group; need added airlift to sustain momentum (air capacity still ~−20% vs pre‑wildfire) .
  • Cost trajectory: wages/benefits +6% in 2025 (CBA-driven); expectation for lower growth next year, details pending budgeting later in 2025 .
  • Transactions: markets more active, CMBS open; still bid‑ask spread; prioritizing reinvestment, dividend, and buybacks over acquisitions near term .

Estimates Context

  • Q2 2025 vs S&P Global consensus: Revenue $1.59B vs $1.51B; EPS $0.32 vs $0.23; EBITDA (S&P definition) $467M actual vs $445M consensus — all beats. Company’s Adjusted EBITDAre was $496M (non‑GAAP) . Revenue/EPS/EBITDA estimates and actuals marked with asterisk in tables above were retrieved from S&P Global*.
  • Prior quarters show consistent beats: Q1 2025 revenue $1.59B vs $1.55B; EPS $0.35 vs $0.28*; Q4 2024 EPS $0.15 vs $0.13*; reinforcing positive estimate revisions potential* .

Key Takeaways for Investors

  • Rate/ancillary strength and Maui recovery are offsetting group softness and wage headwinds; with Q3 RevPAR expected down, the setup favors a 4Q re‑acceleration and stronger 2026 group backdrop .
  • Raised full‑year guidance (net income, Adjusted EBITDAre, EPS, FFO) plus a 4% insurance renewal tailwind de‑risks 2H; sensitivity remains ~$32–$37M EBITDAre per 100 bps RevPAR change .
  • Capital allocation remains shareholder‑friendly (buybacks, portfolio pruning) with low leverage (2.8x) and $2.3B liquidity to navigate macro and fund ROI projects .
  • Watch near‑term catalysts: Q3 RevPAR trajectory vs negative guide, group pickup inflection, insurance recoveries timing, and condo closings at Four Seasons Orlando (~$25M EBITDA contribution in 4Q) .
  • Medium‑term thesis: completed/ongoing transformational capex (Hyatt program, outlet upgrades) is driving share gains and higher mix of resilient luxury/upper‑upscale assets; expect margin recovery as wage growth moderates and BI proceeds normalize .

Footnote: Values marked with an asterisk (*) are retrieved from S&P Global.