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HOST HOTELS & RESORTS, INC. (HST)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue was $1.331B and diluted EPS $0.23; Comparable hotel Total RevPAR rose 0.8% YoY to $335.42, while RevPAR increased 0.2% to $208.07. Adjusted EBITDAre was $319M (-3.3% YoY), with GAAP net income up 94% YoY on a $122M gain from the sale of Washington Marriott at Metro Center .
  • Guidance raised: FY2025 comparable RevPAR ~3.0%, Total RevPAR ~3.4%; FY net income $780M, Adjusted EBITDAre $1.73B, diluted EPS $1.11, Adjusted FFO/share $2.03 .
  • Operational drivers: stronger transient demand and out-of-room spend; Maui recovery continued; group pace improving for 2026, while near-term group volume was soft due to renovations and holiday timing .
  • Balance sheet and catalysts: Moody’s upgraded Host to Baa2 (stable); sold Washington Marriott at Metro Center; priced $400M 4.25% senior notes due 2028 to redeem 2026 notes; declared $0.20 dividend payable Oct 15, 2025 .

What Went Well and What Went Wrong

What Went Well

  • “We delivered better than expected comparable hotel Total RevPAR growth of 0.8%... As a result of our outperformance, we now expect comparable hotel RevPAR growth of approximately 3.0%... exceeding the high end of our previously announced guidance ranges.” — CEO Jim Risoleo .
  • Maui strength: Comparable RevPAR +19.7% YoY in Q3; CEO highlighted “substantial increase in occupancy and strong out-of-room spending on F&B, golf, and spa services,” with 2026 total group revenue pace in Maui up 13% .
  • Balance sheet/ratings: Moody’s upgrade to Baa2, citing low leverage, fixed charge coverage, and unencumbered portfolio; total liquidity ~$2.2B at quarter-end .

What Went Wrong

  • Comparable hotel EBITDA margin fell 50bps YoY to 23.9%, driven by higher wages and benefits .
  • Near-term group softness: Group revenue down ~5% YoY in Q3 due to planned renovation disruption, calendar shift (Jewish holidays), and reduced short-term pickup; banquet revenue per group room night up mid-single digits, but volume was the headwind .
  • GAAP operating profit margin declined 260bps YoY to 7.6%, mainly from $24M lower net gains on insurance settlements versus prior year .

Financial Results

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$1,594 $1,586 $1,331
Diluted EPS ($)$0.35 $0.32 $0.23
Margin MetricQ1 2025Q2 2025Q3 2025
GAAP Operating Profit Margin (%)17.9% 17.5% 7.6%
Comparable Hotel EBITDA Margin (%)31.8% 31.0% 23.9%
KPI (Comparable Set - All Locations)Q3 2024Q3 2025
ADR ($)$290.27 $299.07
Occupancy (%)71.5% 69.6%
RevPAR ($)$207.58 $208.07
Total RevPAR ($)$332.67 $335.42
Business Mix (Current Portfolio)Q3 2025 Room Nights (000s)YoY %Q3 2025 Rooms Revenue ($MM)YoY %
Transient1,535 -1.2% $507 +1.7%
Group928 -7.8% $249 -4.7%
Contract219 +11.6% $46 +14.5%
EBITDA and FFO (Company)Q3 2024Q3 2025
Adjusted EBITDAre ($MM)$330 $319
NAREIT FFO per diluted share ($)$0.36 $0.34
Adjusted FFO per diluted share ($)$0.36 $0.35

Notes: Comparable set excludes certain non-comparable properties and condo development operations; see press release tables and footnotes for definitions .

Guidance Changes

MetricPeriodPrevious Guidance (Midpoint)Current Guidance (Midpoint)Change
Comparable Hotel Total RevPARFY 2025 vs 2024+2.5% +3.4% Raised (+90bps)
Comparable Hotel RevPARFY 2025 vs 2024+2.0% +3.0% Raised (+100bps)
GAAP Total Revenues ($MM)FY 2025$6,082 (midpoint of $6,054–$6,109) $6,060 Slightly Lower (−22)
GAAP Operating Profit Margin (%)FY 202513.5% (midpoint of 13.3–13.7) 13.9% Raised (+40bps)
Comparable Hotel EBITDA Margin (%)FY 202528.6% (midpoint of 28.4–28.7) 28.8% Raised (+20bps)
Net Income ($MM)FY 2025$616 $780 Raised (+$164)
Adjusted EBITDAre ($MM)FY 2025$1,705 $1,730 Raised (+$25)
Diluted EPS ($)FY 2025$0.88 $1.11 Raised (+$0.24)
NAREIT FFO/share ($)FY 2025$1.97 $2.00 Raised (+$0.03)
Adjusted FFO/share ($)FY 2025$2.00 $2.03 Raised (+$0.03)
Capital Expenditures ($MM)FY 2025$590–$660 $605–$640 Narrowed lower
DividendQ3 2025—$0.20 per share (paid Oct 15) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1/Q2)Current Period (Q3)Trend
Maui recovery & mixQ1: Strong leisure and improving Maui; Q2: Maui RevPAR +19%, 40% of transient growth; near-term group soft, long lead times Continued strength in leisure; RevPAR ~20%; out-of-room spend strong; 2026 group pace +13%, 67k room nights already on books Improving
Near-term group demandQ1: Moderating lead volume; Q2: group −5% YoY; renovation and holidays; cautious on Q3 pickup Q3: Group −~5% YoY; softness due to planned renovation & holiday timing; Q4 group pace +~8% Mixed: near-term soft, forward improving
Wages & marginsQ2: Expect margin pressure; wage/benefits +6% in 2025 Q3: Comparable margin −50bps YoY; wage pressure persists; 2026 wage growth expected lower (TBD) Stabilizing (pressure persists)
Ancillary/out-of-room spendQ2: F&B outlets +6–9%; other rev +13%; spa/golf strong Q3: Other rev +7%; spa double-digit; continued prioritization of premium experiences Improving
Capital programs (Hyatt/Marriott)Q2: HTCP ~50% complete; ~$27M guarantees in 2025 Q3: New Marriott Transformational Program at 4 properties; $22M OP guarantees, $300–$350M spend through 2029 Expanding
Macro/government shutdownQ2: Macro uncertainty and international demand imbalance; insurance savings −4% YoY Q3: October RevPAR +5.5%; limited shutdown impact, but risk if prolonged Slightly improving
Transactions/capital marketsQ2: Sold Westin Cincinnati; refinanced Series E with Series M notes Q3: Sold Washington Marriott Metro Center (12.7x TTM EBITDA); priced $400M 4.25% 2028 notes Active/Opportunistic

Management Commentary

  • CEO Jim Risoleo: “We delivered better than expected comparable hotel Total RevPAR growth of 0.8%... we now expect comparable hotel RevPAR growth of approximately 3.0% and comparable hotel Total RevPAR growth of approximately 3.4% over 2024” .
  • CFO Sourav Ghosh: “Comparable hotel EBITDA margin of 23.9% was 50 basis points below the third quarter of 2024, driven primarily by elevated wage rate growth... we are increasing our adjusted EBITDAre guidance to $1,730 million” .
  • CEO Jim Risoleo on portfolio strategy: “We have raised guidance, both RevPAR and EBITDA, every quarter this year... investments we made in our assets... have paid off... average RevPAR index share gains over 8.5 points” .
  • CFO on demand mix: “Other revenue grew 7%... spa revenue was up double digits... transient revenue pace is up 5% for Thanksgiving and the festive period is up 9%” .

Q&A Highlights

  • Capital allocation and valuation: Management emphasized opportunistic dispositions at attractive multiples (e.g., Metro Center at 12.7x TTM EBITDA), fortress balance sheet (2.8x leverage), and preference for ROI capex over buybacks currently given clearer return visibility .
  • Maui trajectory: 2026 total group revenue pace +13% with 67k group room nights on the books; management expects incremental EBITDA progress between $110M and $160M range scenarios versus FY2025 .
  • Group cadence and holiday timing: Q4 group pace up ~8%; Q3 softness driven by holiday shift and renovations; banquet/catering per group room night up mid-single digits despite lower volume .
  • Wage outlook: 2025 wage rate growth ~6%; expected to be lower in 2026 though specifics are pending budget cycles .
  • Gulf Coast: Don CeSar reopened with raised FY2025 EBITDA contribution ($6M from $3M); broader Gulf Coast seeing strong leisure; upcoming renovations (e.g., Tiburón) will have OP guarantees to offset disruption .

Estimates Context

Q3 2025ConsensusActualSurprise
Revenue ($USD)$1,305.8M*$1,331.0M Beat
Primary EPS ($)$0.0466*$0.23 Beat (driven by sale gain)
Primary EPS – # of Estimates6*——
Revenue – # of Estimates15*——

Values with an asterisk were retrieved from S&P Global (Capital IQ) consensus. Note EPS beat was amplified by ~$122M gain on sale recognized in Q3 2025 .

Key Takeaways for Investors

  • The quarter was operationally steady with modest RevPAR gains, but headline EPS benefited from a one-time asset sale; Adjusted EBITDAre decline (-3.3% YoY) reflects wage pressures and lower insurance proceeds .
  • Guidance raises across RevPAR, margins, EBITDAre, EPS, and FFO imply stronger H2 momentum; October RevPAR +5.5% and festive period pace +9% support near-term trends .
  • Maui recovery is a multi-quarter tailwind: strong transient demand now, rising group pace for 2026, and out-of-room spend strength (golf/spa), which should drive EBITDA uplift over 2025–2026 .
  • Capital allocation discipline continues: dispositions at attractive multiples, transformational capex backed by operator OP guarantees, and proactive liability management (new 2028 notes to redeem 2026s) .
  • Margin headwinds from wages/benefits likely persist near-term; management expects 2026 wage growth to be lower, which could relieve pressure next year .
  • Watch group cadence: Q4 setup is solid, but short-term pickup remains variable; renovations and holiday timing can create quarterly noise .
  • Dividend maintained at $0.20/share; balance sheet provides flexibility to sustain shareholder returns through cycles .