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HOST HOTELS & RESORTS, INC. (HST)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $1.428B, up 7.9% YoY; diluted EPS was $0.15, down 21.1% YoY; comparable hotel Total RevPAR rose 3.3% and comparable hotel EBITDA margin improved 30 bps to 28.1% .
  • Adjusted EBITDAre was $373M, down 1.3% YoY; GAAP operating margin fell 210 bps to 11.0%, driven by a $35M YoY decrease in net gains on insurance settlements and hurricane impacts; leisure recovery in Maui and stronger ancillary spend offset some pressure .
  • 2025 guidance: revenues $5.996–$6.102B (+5.5% to +7.4% vs 2024), but margins expected to decline (operating margin down 280–360 bps; comparable hotel EBITDA margin down 150–210 bps) given wage growth, taxes/insurance, and lower business interruption proceeds; diluted EPS guided to $0.68–$0.77 .
  • Catalysts: accelerating Maui leisure recovery (festive RevPAR +42% YoY), robust group pace (3.2M definite room nights, group revenue pace +5.6%), and January comparable RevPAR +9.5% (ex-DC +6%); headwinds include international outbound vs inbound travel imbalance and wage inflation; declared a $0.20 regular quarterly dividend (paid April 15, 2025) .

What Went Well and What Went Wrong

What Went Well

  • “Host delivered comparable hotel Total RevPAR growth of 3.3% over the fourth quarter of 2023… Comparable hotel RevPAR increased 3.0%… driven by… improving leisure transient trends in Maui and strong group demand.” — CEO James F. Risoleo .
  • Leisure recovery in Maui began to take shape: Q4 Total RevPAR at the three Maui resorts +6.4% YoY; festive RevPAR +42% YoY, with sharp increases in transient rooms sold and resilient resort outlet spend .
  • Ancillary revenue strength: F&B +~3% in Q4, banquet revenue +2% with 7% higher contribution per group room night; spa +18% YoY and golf +6% YoY (ex-Turtle Bay accounting change), underscoring affluent customer spend .

What Went Wrong

  • GAAP net income fell 18.7% YoY to $109M and GAAP operating margin fell 210 bps to 11.0% in Q4, affected by a $35M decrease in net gains on insurance settlements vs Q4 2023 .
  • Adjusted EBITDAre decreased 1.3% YoY to $373M; hurricanes Helene and Milton negatively impacted 2024 net income by $21M and Adjusted EBITDAre by $15M, with Don CeSar closure and $100–$110M estimated remediation costs (insurance expected to cover above ~$$20M deductibles) .
  • 2025 margin guidance embeds declines (operating margin down 280–360 bps; comparable hotel EBITDA margin down 150–210 bps), reflecting >6% wage/benefit growth, lower business interruption proceeds, and lingering Maui normalization effects .

Financial Results

MetricQ3 2024Q4 2024Q4 2023
Revenue ($USD Millions)$1,319 $1,428 $1,323
Diluted EPS ($)N/A$0.15 $0.19
GAAP Operating Profit Margin %N/A11.0% 13.1%
Comparable Hotel EBITDA Margin %25.3% 28.1% 27.8%
Adjusted EBITDAre ($USD Millions)$324 $373 $378

Business mix (Q4 2024 vs Q4 2023):

SegmentRoom Nights (000s)% YoYRooms Revenue ($MM)% YoY
Transient1,479 +2.8% $524 +7.7%
Group958 -4.8% $270 -5.3%
Contract192 +0.3% $40 +6.2%

KPIs and hotel metrics:

KPI (Comparable Set)Q2 2024Q3 2024Q4 2024
ADR ($)$311.89 $288.91 $317.23
Occupancy (%)74.3% 71.5% 67.1%
RevPAR ($)$231.71 $206.51 $212.86
Total RevPAR ($)N/AN/A$351.01

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Comparable hotel Total RevPARFY 2025N/A$368–$375; +1.0%–3.0% vs 2024 Initiated
Comparable hotel RevPARFY 2025N/A$221–$225; +0.5%–2.5% vs 2024 Initiated
Total Revenues (GAAP)FY 2025N/A$5,996–$6,102 (+5.5%–7.4% YoY) Initiated
Operating Profit Margin (GAAP)FY 2025N/A11.8%–12.6% (down 360–280 bps YoY) Initiated (lower YoY)
Comparable hotel EBITDA MarginFY 2025N/A27.2%–27.8% (down 210–150 bps YoY) Initiated (lower YoY)
Net Income ($MM)FY 2025N/A$486–$546 Initiated
Adjusted EBITDAre ($MM)FY 2025N/A$1,590–$1,650 Initiated
Diluted EPS ($)FY 2025N/A$0.68–$0.77 Initiated
NAREIT FFO / Diluted Share ($)FY 2025N/A$1.79–$1.87 Initiated
Adjusted FFO / Diluted Share ($)FY 2025N/A$1.82–$1.91 Initiated
Dividend per shareQ1 2025N/A$0.20 declared; payable Apr 15, 2025 Declared

Notes: 2025 guidance includes ~$9M BI gains (Hurricanes) and ~$25M condo sales contribution; beginning Jan 1, 2025, non-cash stock-based compensation is excluded from Adjusted EBITDAre/Adjusted FFO (2024 total $24M) .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Maui recoverySlower-than-anticipated; airline seats -16% YoY; BI proceeds $21M; marketing planned post-anniversary Improvement underway; Thanksgiving/festive pace up; Maui drag narrowing Leisure recovery underway; Q4 Total RevPAR +6.4%; bridge to $80–$95M 2025 EBITDA net of one-timers Improving
International travel imbalanceOutbound ~119% vs inbound ~88% of 2019; headwind for domestic leisure Persisting; TSA throughput strong but outbound favored Midpoint assumes inbound stays static; outbound ~125% vs inbound ~94% of 2019 Still unfavorable
Group demand & banquetGroup revenue +8% Q2; banquet/catering strength Citywides pacing strong (+40% SF); banquet contribution record 3.2M definite room nights; total group revenue pace +5.6%; banquet revenue per group room night +7% Strong/accelerating
Business transient (BT)+4% Q2; recovery steady +5% Q3; consulting firms improving +~6% Q4; favorable mix; further BT growth expected Gradual uptrend
AI/technology initiativesNot highlightedNot highlightedExploring AI for upselling out-of-room spend (spa, golf, experiences) Emerging
Labor & wagesExpect moderation into 2025 (3–4%)—early view Staffing levels stable; managers employer-of-choice 2025 wage/benefits >6%; productivity tools (e.g., Marriott scheduling) Cost headwind
Hurricanes & resiliencyIan BI; resiliency measures at RC Naples Helene/Milton impact; Don CeSar closure; Naples resilience Don CeSar phased reopening late Q1 2025; 2024 impact: net income -$21M, Adj. EBITDAre -$15M Recovering
Capital allocation$1.5B acquisitions; buybacks; condo project Ongoing buybacks ($57M Q3); testing disposition market Opportunistic across buybacks, ROI, Hyatt TCP; 2025 CapEx $580–$670M Balanced/investment-focused

Management Commentary

  • “We finished 2024 above our most recent guidance estimates… adjusted EBITDAre of $1,656 million… Comparable hotel total RevPAR grew 2.1%… Comparable hotel EBITDA margin… down 60 bps… due to increased wages… and Maui performance.” — CEO James Risoleo .
  • “The leisure recovery is underway [in Maui]. Total RevPAR… up 6.4%… transient rooms sold were up approximately 50%… at Wailea… and up 325% at Hyatt Regency Maui.” — CEO James Risoleo .
  • “At the midpoint of our [2025] guidance… comparable hotel RevPAR growth of 1.5%… comparable hotel EBITDA margin of 27.5%, which is 180 basis points below 2024… overall wage and benefit expenses [to] increase over 6%.” — CFO Sourav Ghosh .
  • “One of the… exciting things… is the use of artificial intelligence to assist customers… to book out-of-room spend… further leverages the labor force.” — CEO James Risoleo .

Q&A Highlights

  • Maui EBITDA bridge: Restated 2024 Maui EBITDA excluding one-timers ~$72M; deduct ~$7M for 2025 wage/benefit increase, add ~$15–$30M operational improvement → ~$80–$95M 2025 estimate (net of one-timers) .
  • Guidance cadence: January comparable RevPAR +9.5% (ex-DC +6%); mid-single-digit Q1 growth expected; Q2 derisked due to Easter shift and travel imbalance uncertainty; breakeven margin flow-through needs ~3.7% RevPAR growth ex-BI .
  • Capital deployment: Maintain opportunistic posture across buybacks, ROI projects, Hyatt Transformational Capital Program; balance sheet optionality at ~2.7x leverage .
  • Group outlook: 3.2M definite room nights; total group revenue pace +5.6%; corporate group +6%; strong citywides in SF, SA, NY; banquet/catering spend rising .
  • Labor/productivity: No major availability issues; wage growth >6% expected; leveraging scheduling tools and exploring AI to drive productivity and revenue .

Estimates Context

  • We attempted to retrieve S&P Global consensus EPS and revenue for Q4 2024 but were unable to due to SPGI daily request limits; therefore, vs-consensus comparisons are not available at this time [Values retrieved from S&P Global were unavailable due to service limits].
  • Where estimates comparisons are omitted or marked N/A, please note consensus was unavailable at the time of analysis.

Key Takeaways for Investors

  • Q4 delivered solid top-line growth and improved comparable hotel EBITDA margin, with strength in Maui leisure and ancillary spend; headline EPS declined on reduced insurance gains and hurricane impacts, which are transitory .
  • 2025 setup balances modest RevPAR growth (1–3%) against margin headwinds (wages, taxes/insurance, lower BI), suggesting a focus on operational productivity and pricing discipline; watch Q2 seasonality and international travel mix .
  • Group pace and banquet/catering trends look robust and are key to EBITDA resilience; monitor citywide calendars (SF, SA, NY) and incremental in-the-year/for-the-year bookings .
  • Maui is shifting from drag to tailwind; track transient demand sustainability, airlift normalization, and gradual group recovery into late 2025/2026; Don CeSar reopening by late Q1 2025 should aid Florida Gulf Coast results .
  • Capital allocation remains a catalyst: buybacks (remaining capacity $685M), ROI projects, Hyatt TCP operating guarantees ($27M in 2025), and condo sales ($25M EBITDA contribution at 4Q closings) .
  • Dividend continuity ($0.20 declared for April 2025) underscores balance sheet strength (weighted average maturity 5.2 years, WA interest 4.7%, liquidity ~$2.3B); watch June 2025 $500M maturity and potential refinancing activity .
  • Trading lens: Upside on continued Maui recovery, stronger-than-modeled group/BT, and ancillary spend; downside if wage inflation exceeds plan, international outbound persists, or BI proceeds timing slips—margin trajectory is the focal debate .
Citations:  
- Press release and supplemental (8‑K Item 2.02, Exhibits 99.1/99.2): **[1070750_0001070750-25-000055_hst-20250219.htm:1]** **[1070750_0001070750-25-000055_hst-ex991.htm:0]** **[1070750_0001070750-25-000055_hst-ex991.htm:1]** **[1070750_0001070750-25-000055_hst-ex991.htm:3]** **[1070750_0001070750-25-000055_hst-ex991.htm:4]** **[1070750_0001070750-25-000055_hst-ex991.htm:5]** **[1070750_0001070750-25-000055_hst-ex991.htm:6]** **[1070750_0001070750-25-000055_hst-ex991.htm:7]** **[1070750_0001070750-25-000055_hst-ex991.htm:8]** **[1070750_0001070750-25-000055_hst-ex991.htm:9]** **[1070750_0001070750-25-000055_hst-ex991.htm:10]** **[1070750_0001070750-25-000055_hst-ex991.htm:17]** **[1070750_0001070750-25-000055_hst-ex991.htm:19]** **[1070750_0001070750-25-000055_hst-ex991.htm:20]** **[1070750_0001070750-25-000055_hst-ex991.htm:21]** **[1070750_0001070750-25-000055_hst-supplementalfinanciali.htm:14]** **[1070750_0001070750-25-000055_hst-supplementalfinanciali.htm:15]** **[1070750_0001070750-25-000055_hst-supplementalfinanciali.htm:19]**.  
- Q4 2024 earnings call transcript: **[1070750_HST_3417003_1]** **[1070750_HST_3417003_2]** **[1070750_HST_3417003_3]** **[1070750_HST_3417003_4]** **[1070750_HST_3417003_5]** **[1070750_HST_3417003_6]** **[1070750_HST_3417003_8]** **[1070750_HST_3417003_11]** **[1070750_HST_3417003_12]**.  
- Prior quarters (Q3 2024, Q2 2024) for trends: **[1070750_HST_3406617_1]** **[1070750_HST_3406617_2]** **[1070750_HST_3406617_4]** **[1070750_HST_3406617_23]** **[1070750_HST_3396122_1]** **[1070750_HST_3396122_4]** **[1070750_HST_3396122_22]**.