Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

9bc3f0a8b5067e9aaa31855a7c1b114c1b0e4f757dbae229cf58615f06495403

| Metric (USD Million) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Rooms Revenue        | **763**  **[0000950170-23-002917_hst-ex99_1.htm:7]**  | **820**  **[0000950170-23-017303_hst-ex99_1.htm:6]**  | **850**  **[0000950170-23-037240_hst-ex99_1.htm:7]**  | **777**  **[0001070750-23-000128_hst-exx991.htm:7]**  | **797**  **[0001070750-24-000075_hst-exx991.htm:9]**  | **853**  **[0001070750-24-000125_hst-exx991.htm:7]**  | **885**  **[0001070750-24-000163_hst-ex991.htm:8]**  | **825**  **[0001070750-24-000184_hst-20240930.htm:3]**  |
| Food and Beverage Revenue | **386**  **[0000950170-23-002917_hst-ex99_1.htm:7]**  | **431**  **[0000950170-23-017303_hst-ex99_1.htm:6]**  | **415**  **[0000950170-23-037240_hst-ex99_1.htm:7]**  | **328**  **[0001070750-23-000128_hst-exx991.htm:7]**  | **408**  **[0001070750-24-000075_hst-exx991.htm:9]**  | **473**  **[0001070750-24-000125_hst-exx991.htm:7]**  | **447**  **[0001070750-24-000163_hst-ex991.htm:8]**  | **365**  **[0001070750-24-000184_hst-20240930.htm:3]**  |
| Other Revenue        | **114**  **[0000950170-23-002917_hst-ex99_1.htm:7]**  | **130**  **[0000950170-23-017303_hst-ex99_1.htm:6]**  | **128**  **[0000950170-23-037240_hst-ex99_1.htm:7]**  | **109**  **[0001070750-23-000128_hst-exx991.htm:7]**  | **118**  **[0001070750-24-000075_hst-exx991.htm:9]**  | **145**  **[0001070750-24-000125_hst-exx991.htm:7]**  | **134**  **[0001070750-24-000163_hst-ex991.htm:8]**  | **129**  **[0001070750-24-000184_hst-20240930.htm:3]**  |
| Total Revenue        | **1,263**  **[0000950170-23-002917_hst-ex99_1.htm:7]**  | **1,381**  **[0000950170-23-017303_hst-ex99_1.htm:6]**  | **1,393**  **[0000950170-23-037240_hst-ex99_1.htm:7]**  | **1,214**  **[0001070750-23-000128_hst-exx991.htm:7]**  | **1,323**  **[0001070750-24-000075_hst-exx991.htm:9]**  | **1,471**  **[0001070750-24-000125_hst-exx991.htm:7]**  | **1,466**  **[0001070750-24-000163_hst-ex991.htm:8]**  | **1,319**  **[0001070750-24-000184_hst-20240930.htm:3]**  |

4a4a9e4192fdac00c6e269c5a271b1e4f021d21d75f29c25f9dc45bcdc015a76

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

5112e0c95ef7fff10bd4f96711b1731055c0a55bcb155204f1764840d828d3bc

Host Hotels & Resorts, Inc. is a self-managed and self-administered real estate investment trust (REIT) that specializes in owning a large portfolio of luxury and upper-upscale hotels **[0001070750-24-000180_hst-ex991.htm:5]** **[0001070750-24-000163_hst-ex991.htm:7]**. Operating as an umbrella partnership REIT through Host Hotels & Resorts, L.P., the company is the sole general partner and owns 76 properties in the United States and five internationally, totaling approximately 43,400 rooms **[0001070750-24-000180_hst-ex991.htm:5]** **[0001070750-24-000163_hst-ex991.htm:7]**. The company's revenue streams are primarily derived from room sales, food and beverage services, and other hotel-related services **[0001070750-24-000184_hst-20240930.htm:3]**. Host Hotels & Resorts partners with premium brands such as Marriott, Ritz-Carlton, and Hilton, among others, to offer iconic and irreplaceable assets in prime locations **[0001070750-24-000180_hst-ex991.htm:5]** **[0001070750-24-000163_hst-ex991.htm:7]**.

1. **Room Sales** - Generates revenue through the sale of hotel rooms to transient, group, and contract customers, accounting for the majority of the company's income.
2. **Food and Beverage Services** - Provides dining and catering services within its hotel properties, contributing significantly to the company's revenue.
3. **Other Hotel-Related Services** - Offers additional services such as spa, parking, and other amenities to enhance guest experiences and drive supplementary income.

1d673f1762d0d5eee6a38947b5c688705c9a073564020613381389f97ba7410f

Current Assets [USD, Millions]

Cash and Cash Equivalents [USD, Millions]

Accounts Receivable [USD, Millions]

Inventory [USD, Millions]

Non-Current Assets [USD, Millions]

Property, Plant, and Equipment (PP&E) [USD, Millions]

Goodwill [USD, Millions]

Intangible Assets [USD, Millions]

Current Liabilities [USD, Millions]

Accounts Payable [USD, Millions]

Short-term Debt [USD, Millions]

Accrued Expenses [USD, Millions]

Non-Current Liabilities [USD, Millions]

Long-term Debt [USD, Millions]

Lease Liabilities [USD, Millions]

Deferred Tax Liabilities [USD, Millions]

Shareholders' Equity [USD, Millions]

Retained Earnings [USD, Millions]

Common Stock [USD, Millions]

Additional Paid-in Capital [USD, Millions]

7b7bcda7fa04f02fe4a95bf3d003aa0201d546020bc52a2239224546596851ae

435dc556b33cc8f1e5dbe85fb7bf9f43599bc9b6731ae1ed0e567971868e2c5e

1. Given that your occupancy rates are still approximately 8 to 9 points below 2019 levels and you attribute this gap to the slow return to office workers, what specific strategies are you implementing to accelerate business transient demand, and how confident are you that occupancy will recover in the near term?
2. You mentioned plans to test the market by selling non-core assets that require heavy CapEx investments while also aiming to be a net acquirer; how do you reconcile selling properties that may have future value with the strategy of acquiring new assets in what could become a more competitive transaction market?
3. Regarding the 40-unit residential condo development at the Four Seasons Resort Orlando, can you elaborate on the risks associated with your underwritten sales proceeds relative to the $150 million to $170 million development budget, and what contingencies are in place if sales do not meet expectations?
4. With leisure rates remaining relatively flat or slightly down year-over-year and considering potential economic headwinds, how do you plan to drive rate growth in the leisure segment for 2025 amid concerns about consumer strength and spending?
5. The Maui wildfires have resulted in an estimated EBITDA gap of $75 million to $80 million for next year; what specific measures are you taking to mitigate this impact, and how will it affect your capital allocation priorities, including investments, acquisitions, and stock buybacks?

5da45cc0288f062316cc10e21a2b3df8367ec3b3c7cda3aa690dff3ec3faecac

| Program Details           | Program 1        |
|---------------------------|------------------|
| Approval Date             | August 3, 2022  **[0001070750-24-000184_hst-20240930.htm:53]**  |
| End Date/Duration         | N/A              |
| Total additional amount   | **$1 billion**  **[0001070750-24-000184_hst-20240930.htm:53]**  |
| Remaining authorization amount | **$685 million**  **[0001070750-24-000184_hst-20240930.htm:13]** **[0001070750-24-000184_hst-20240930.htm:53]**  |
| Details                   | Part of capital allocation strategy to maximize financial flexibility and take advantage of market conditions  **[0001070750-24-000184_hst-20240930.htm:53]** **[0001070750-24-000184_hst-20240930.htm:35]** **[0001070750-24-000184_hst-20240930.htm:13]**  |

da96d3071f9a53e302e3246d8a1f06e74b43579a4f3ace71c34b82ded7366931

United States

- San Diego

- Florida Gulf Coast

- Orlando

- New York

- San Francisco/San Jose

- Maui

- Phoenix

- Washington, D.C.

- Miami

- Boston

- Houston

- Jacksonville

- Chicago

- Los Angeles/Orange County

- San Antonio

- Seattle

- New Orleans

- Denver

- Northern Virginia

- Philadelphia

- Austin

- Nashville

- Oahu

- Atlanta

- Other

Brazil

Canada

International

Total Revenue

5c9ef00dab219729dc8f58dfe28302b1615cf12b3c74fd41940a688221e1d73f

Number of properties for All Locations (Comparable Hotels) (number of properties)

Number of rooms for All Locations (Comparable Hotels) (number of rooms)

Average Room Rate for All Locations (Comparable Hotels) (USD)

Average Occupancy Percentage for All Locations (Comparable Hotels) (percentage)

RevPAR for All Locations (Comparable Hotels) (USD)

Total RevPAR for All Locations (Comparable Hotels) (USD)

Comparable hotel EBITDA margin (percentage)

Food and beverage profit margin (percentage)

Transient room nights (in thousands) (thousands of room nights)

Group room nights (in thousands) (thousands of room nights)

Contract room nights (in thousands) (thousands of room nights)

663a0cecb458117f84602c8426de15172782ec93ed51d75bbb25682cb8df5cad

c921a185739b6ff8bdbe760ea5c3caf914d4088b3e04e785ef2f2f66d1ed2ddf

**Annual guidance for FY 2024:**
- **Comparable Hotel Total RevPAR Growth**: Approximately 1%  **[HST_3406617_4]**  (no prior guidance)  
- **Comparable Hotel RevPAR**: Flat vs 2023  **[HST_3406617_4]**  (no change from -1% to +1%  **[HST_3406617_5]** )  
- **Comparable Hotel EBITDA Margin**: Approximately 29%, 90 bps below 2023  **[HST_3406617_4]**  (no change from down 110 to 60 bps  **[HST_3406617_5]** )  
- **Adjusted EBITDAre**: $1.630 billion  **[HST_3406617_4]**  (lowered from $1.645 billion  **[HST_3406617_5]** )  
- **Capital Expenditure Guidance**: $485 million to $580 million  **[HST_3406617_4]**  (lowered from $500 million to $600 million  **[HST_3406617_5]** )  
- **Residential Condo Development**: $50 million to $60 million  **[HST_3406617_4]**  (no change from $50 million to $60 million  **[HST_3406617_5]** )  
- **Operating Guarantees**: $9 million  **[HST_3406617_4]**  (no prior guidance)  

8f638499711ea077c2ec7212c9fb61f825845f1f879765e6b64bc4bb7966e61b

1. **Future M&A Plans**  
   **Q:** How are you thinking about future M&A and target markets?  
   **A:** We are actively pursuing acquisitions and are hopeful to complete additional transactions this year. We are leveraging our strong balance sheet, which doesn't require us to access debt markets to get deals done. We're focused on elevating the EBITDA growth profile of our portfolio and targeting markets where we currently lack exposure. Despite a quiet M&A landscape due to higher interest rates, we see opportunities, especially with owners who may need to sell assets due to various pressures. We believe our investment-grade balance sheet puts us in a unique competitive position.  **[HST_3382532_9]** **[HST_3382532_17]** 

2. **Leisure Transient Softness**  
   **Q:** Can you elaborate on the leisure transient demand softness?  
   **A:** We observed softness in short-term leisure transient demand starting in March, possibly influenced by poor weather in key states like Arizona, Florida, and California. Rates remain strong, but pickup is slower, especially into April due to the Easter shift. However, group bookings for the second half of the year are robust, with total revenue pace up **9%** over last year, giving us confidence for the full year.  **[HST_3382532_8]** 

3. **EBITDA Guidance and Recurring EBITDA**  
   **Q:** What is the right recurring EBITDA to build off for the longer term?  
   **A:** Adjusting our full-year EBITDA guidance of **$1.670 billion**, we subtract **$38 million** of business interruption proceeds, add **$10 million** for Alila Ventana, **$13 million** for the Nashville acquisition, and **$46 million** for Maui, arriving at a recurring EBITDA of approximately **$1.7 billion**. This reflects the ongoing run rate excluding non-recurring items.  **[HST_3382532_11]** **[HST_3382532_12]** 

4. **Nashville Acquisition Details**  
   **Q:** Walk us through the Nashville deal timeline and cost evolution.  
   **A:** Nashville is a market we've targeted for years. We initially considered participating during construction but decided to observe performance post-opening due to macroeconomic uncertainties and our fluid cost of capital. The property performed strongly in 2022 with **$8.7 million** EBITDA and improved in 2023 to **$37.7 million** EBITDA. Our underwriting for this year projects **$275** RevPAR and **$42.2 million** EBITDA. We believe Nashville's positive market dynamics make it a strategic addition to our portfolio.  **[HST_3382532_7]** 

5. **Deal Market Dynamics**  
   **Q:** What are the gating factors for a more active deal market?  
   **A:** The primary constraint is the high cost of debt, which prevents private equity firms from underwriting deals that meet their return hurdles while satisfying seller price expectations. Our advantage lies in not needing to access debt markets to complete acquisitions. We anticipate opportunities arising as some owners may need to sell due to factors like loan maturities and lack of asset investment, and we expect more activity in the second half of the year.  **[HST_3382532_17]** 

6. **Surge Spending and International Travel**  
   **Q:** Is surge spending cooling, and how is international travel impacting you?  
   **A:** While ADR at assets like the Four Seasons Orlando might be lower this year compared to 2023, they remain significantly above 2019 levels. Affluent consumers continue to spend on experiences, but strong outbound international travel has impacted domestic demand. The Caribbean saw RevPAR up **17%**, indicating a shift in travel patterns. The strong dollar and visa wait times are contributing factors, and we expect the inbound-outbound imbalance to take longer to correct than anticipated.  **[HST_3382532_12]** **[HST_3382532_13]** 

7. **Maui Demand Evolution**  
   **Q:** Provide more color on the evolving demand in Maui.  
   **A:** Demand in Maui continues to evolve post-wildfires. Travelers, especially first-time visitors, were initially deterred by official advisories. Cleanup efforts are ongoing, and displaced residents are moving into permanent housing. We are working with local associations to promote Maui's attractions. Air capacity remains down by **19%** from first-quarter 2019 levels, but we are confident that as marketing efforts take effect and capacity increases, recovery will commence.  **[HST_3382532_18]** 

8. **Seasonality of Key Assets**  
   **Q:** What is the seasonality of the Naples Ritz asset historically?  
   **A:** For the Ritz Naples, approximately **50%** of EBITDA is generated in the first quarter, **25%** in the second quarter, near zero in the third quarter, and the remaining **25%** in the fourth quarter. This seasonality aligns with historical patterns and supports our confidence in the asset's performance throughout the year.  **[HST_3382532_14]** 

9. **Revenue from Cancellation Fees**  
   **Q:** Was the increase in cancellation and attrition fees unusually high?  
   **A:** Cancellation and attrition revenues have been higher than expected, with a forecast of approximately **$71 million** for the year, up from the **$57 million** previously anticipated. This increase may stabilize at these elevated levels due to tighter contracts and better collection efforts by our managers, though it's difficult to predict exact future amounts.  **[HST_3382532_15]** **[HST_3382532_16]** 

9cf84aff4ac8fae67019cc3926dc0d85e6d81e60ed259aac7330ada6096a1fb9

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted EBITDAre**: Expected to be **$1.630 billion**, a **$15 million** decrease due to hurricanes in Florida  **[HST_3406617_5]** .
  2. **Comparable Hotel Total RevPAR Growth**: Approximately **1%**  **[HST_3406617_4]** .
  3. **Comparable Hotel RevPAR**: Expected to be flat compared to 2023  **[HST_3406617_4]** .
  4. **Comparable Hotel EBITDA Margin**: Approximately **29%**, **90 basis points** below 2023  **[HST_3406617_5]** .
  5. **Capital Expenditure Guidance**: **$485 million to $580 million**  **[HST_3406617_3]** .
  6. **Operating Guarantees**: **$9 million** expected  **[HST_3406617_3]** .
  7. **Residential Condo Development**: **$50 million to $60 million** expected  **[HST_3406617_3]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Comparable Hotel RevPAR Growth**: Between **negative 1% and positive 1%**  **[HST_3396122_5]** .
  2. **Comparable Hotel EBITDA Margins**: Down **110 to 60 basis points**  **[HST_3396122_5]** .
  3. **Adjusted EBITDAre**: **$1.645 billion**, a **$25 million** decrease  **[HST_3396122_5]** .
  4. **Impact of Maui Wildfires**: **$75 million to $80 million** impact  **[HST_3396122_5]** .
  5. **Contribution from Acquisitions**: **$22 million**  **[HST_3396122_5]** .
  6. **Capital Expenditure Guidance**: **$500 million to $600 million**  **[HST_3396122_3]** .
  7. **Residential Condo Development**: **$50 million to $60 million**  **[HST_3396122_3]** .
  8. **Leverage and Liquidity**: Leverage ratio **2.7x**, liquidity **$1.4 billion**  **[HST_3396122_5]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted EBITDAre**: **$1.670 billion**, a **$35 million** increase  **[HST_3382532_6]** .
  2. **Comparable Hotel RevPAR Growth**: Between **2% and 4%**  **[HST_3382532_5]** .
  3. **Comparable Hotel EBITDA Margins**: Down **80 to 30 basis points**  **[HST_3382532_5]** .
  4. **Comparable Hotel Total RevPAR Growth**: **3.7%**  **[HST_3382532_6]** .
  5. **Impact of Maui Wildfires**: **90 basis points** impact on TRevPAR  **[HST_3382532_6]** .
  6. **Business Interruption Proceeds**: **$8 million** from Hurricane Ian, **$20 million** from Maui  **[HST_3382532_6]** .
  7. **Contribution from Specific Properties**: Various contributions totaling **$97 million**  **[HST_3382532_6]** .
  8. **Capital Expenditure Guidance**: **$500 million to $605 million**  **[HST_3382532_3]** .
  9. **Dividend**: **$0.20 per share**  **[HST_3382532_6]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Comparable Hotel RevPAR Growth**: Between **2.5% and 5.5%**  **[HST_3375706_6]** .
  2. **Comparable Hotel EBITDA Margins**: Down **120 to 40 basis points**  **[HST_3375706_6]** .
  3. **RevPAR Growth Cadence**: Low single digits in H1, mid-single digits in H2  **[HST_3375706_6]** .
  4. **January 2024 Comparable Hotel RevPAR**: Approximately **$187**  **[HST_3375706_6]** .
  5. **Full Year 2024 Adjusted EBITDAre Midpoint**: **$1.635 billion**  **[HST_3375706_6]** .
  6. **Wage Rate Increase**: Approximately **5%**  **[HST_3375706_6]** .
  7. **Capital Expenditure Guidance**: **$500 million to $605 million**  **[HST_3375706_3]** .
  8. **Impact from Maui**: **100 basis points** impact on RevPAR  **[HST_3375706_6]** .

276c795287a003bc6c2e22c75b829f3ba67c4dca637461487af684985fab4964

| Name               | Position                                               | Start Date         | Short Bio                                                                                                                                                                                                 |
|--------------------|--------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| James F. Risoleo   | President and Chief Executive Officer                  | January 2017       | James F. Risoleo became the President and CEO in January 2017. He joined the company in 1996 and has held various senior positions, including Executive Vice President and Chief Investment Officer  **[0001070750-24-000110_hst-20240402.htm:23]** **[0001193125-23-091642_d456607ddef14a.htm:20]** .                                     |
| Sourav Ghosh       | Executive Vice President, Chief Financial Officer      | September 1, 2020  | Sourav Ghosh was promoted to CFO on September 1, 2020. He has been with the company for over 10 years, indicating significant experience within the organization  **[0001070750-24-000110_hst-20240402.htm:39]** .                                                                            |
| Nathan S. Tyrrell  | Executive Vice President, Chief Investment Officer     | N/A                | Nathan S. Tyrrell serves as the Executive Vice President and CIO. He has been with the company since at least 2021, as indicated by his compensation details for that year  **[0001070750-24-000110_hst-20240402.htm:99]** .                                                                 |
| Julie P. Aslaksen  | Executive Vice President, General Counsel and Secretary| November 2019      | Julie P. Aslaksen joined as Executive Vice President, General Counsel, and Secretary in November 2019  **[0001193125-23-091642_d456607ddef14a.htm:60]** .                                                                                                                                      |
| Michael E. Lentz   | Executive Vice President, Development, Design & Construction | N/A                | Michael E. Lentz serves as the Executive Vice President, Development, Design & Construction. Specific details about his start date or a comprehensive biography are not provided in the documents  **[0001070750-24-000110_hst-20240402.htm:99]** .                                           |

2045aa92106ca3279555df75d2619d60bfb99a2bf58e8356d86ae1113930692b

Rooms

Food and Beverage

Other

43b85a7dfd2490b54e2f3920afb75fa04955646c02984dc97e1ce9ebca6e492d

1. **M&A Plans**  
   **Q:** How will you leverage your balance sheet for acquisitions?  
   **A:** Host intends to be **net acquirers in 2024**, leveraging their **strong balance sheet** with **1.9x leverage and $2.9 billion of liquidity** to unlock opportunities others may not have. They are working to find attractive assets, despite few being for sale, by using relationships and their ability to close deals with all cash. They believe this is the year to get the balance sheet to work and hope to be acquirers early in 2024.  **[HST_3375706_8]** 

2. **RevPAR Growth Outlook**  
   **Q:** Why do you expect stronger RevPAR growth in the second half?  
   **A:** RevPAR growth is expected to be in the **low single digits** in the first half due to tough comparisons from strong leisure performance last year. Growth accelerates in the second half to **mid-single digits**, driven by strong group booking pace and tailwinds from four hotels that were under renovation last year: **1 Hotel South Beach, Fairmont Kea Lani, Biscayne Bay Marriott, and Hilton Singer Island**.  **[HST_3375706_11]** 

3. **Group Booking Pace**  
   **Q:** What trends are you seeing in group bookings?  
   **A:** Group bookings are strong, with **corporate group business** performing well. Group pace is ahead **10% year-over-year** in total revenue, with ADR up **4%** and room nights up **3.4%**. Key markets like **San Diego, Orlando, D.C., San Francisco, and San Antonio** account for over **50%** of the **3.1 million group room nights** booked for 2024.  **[HST_3375706_9]** 

4. **Leisure Transient Trends**  
   **Q:** How do you expect leisure transient demand to trend in 2024?  
   **A:** Leisure transient demand is expected to moderate in the summer due to tough comparisons, but **spring break bookings are strong**, with revenue pacing up **20%** and rate up over **7%**, excluding Maui. The affluent leisure traveler continues to spend, with **transient ADR for resorts still up 58% over 2019** in Q4.  **[HST_3375706_14]** 

5. **Maui Impact and Recovery**  
   **Q:** What are your expectations for Maui's recovery post-wildfires?  
   **A:** Maui's recovery depends on factors like housing for displaced residents and rebuilding Lahaina. Currently, **350 rooms at the Hyatt Regency Maui** are contracted with the Red Cross through May. Properties in Wailea, such as **Andaz Wailea and Fairmont Kea Lani**, are in great shape after renovations. They have assumed a **100 basis point impact** on RevPAR due to Maui, resulting in a **$25–$30 million** incremental EBITDA impact for 2024.  **[HST_3375706_19]** 

6. **Acquisition Strategy**  
   **Q:** What types of assets are you targeting for acquisition?  
   **A:** Host focuses on larger, complex transactions with diverse demand drivers—group, business transient, and leisure. They are open to assets needing repositioning and aim to elevate the EBITDA growth profile by improving assets through asset management and analytics. **"Bigger is better"** for them.  **[HST_3375706_20]** 

7. **CapEx and Transformation Programs**  
   **Q:** How are the Hyatt and Marriott transformation programs performing?  
   **A:** The **Hyatt Transformation Capital Program (HTCP)** is modeled after Marriott's. Host has received enhanced priorities on all invested dollars and expects **low double-digit to low-teens cash-on-cash returns**. Hyatt is providing **$40 million** in operating profit guarantees to cover disruption, expecting to collect **$9 million** this year. Investments have led to meaningful uplift in F&B revenues.  **[HST_3375706_15]** **[HST_3375706_16]** 

8. **CMBS Maturities and Distress Opportunities**  
   **Q:** Are you seeing acquisition opportunities due to CMBS maturities?  
   **A:** Host tracks CMBS maturities, with **$26 billion** of full-service loans maturing this year, but distress hasn't materialized in assets or markets of interest. They continue to monitor but are not counting on distress, focusing instead on leveraging relationships, reputation, and balance sheet to acquire desired assets.  **[HST_3375706_10]** 

9. **Expense Outlook**  
   **Q:** What is your outlook on expenses and cost per occupied room?  
   **A:** Total expense growth for 2024 is expected to be **5.8%** at the midpoint of guidance, with RevPAR growth at **4%**. The increase is evenly split between occupancy and rate. The portfolio's weighting differs from industry forecasts, so comparisons should be made carefully.  **[HST_3375706_12]** 

10. **Revenue Management Strategy**  
    **Q:** How have group and transient rates shifted since 2019?  
    **A:** Pricing is determined by building the **group base first**, considering total revenue including ancillary spend, then layering in transient business at appropriate rates. It's more the **group base** that drives pricing rather than transient rates. Specific changes in the spread between group and transient ADR since 2019 were not provided.  **[HST_3375706_21]** 

31c413d62292caa6c060a1d3480b2d9269fcd85ad94f14f0bbbbd4477f54883d

| Name       | Start Date | End Date | Reason for Change |
|------------|------------|----------|-------------------|
| KPMG LLP   | 2002  **[0001070750-24-000081_hst-20231231.htm:114] [0001070750-24-000081_hst-20231231.htm:118]**  | Present  | Current auditor   |

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- Total Revenue: $1,319 million (+9% YoY)  **[0001070750-24-000184_hst-20240930.htm:3]** **[0001070750-24-000184_hst-20240930.htm:5]** **[0001070750-23-000133_hst-20230930.htm:6]** **[0001070750-23-000133_hst-20230930.htm:3]**   
- Operating Income: $135 million (−14% YoY)  **[0001070750-24-000184_hst-20240930.htm:3]** **[0001070750-24-000184_hst-20240930.htm:5]** **[0001070750-23-000133_hst-20230930.htm:6]** **[0001070750-23-000133_hst-20230930.htm:3]**   
- Net Income: $84 million (−26% YoY)  **[0001070750-24-000184_hst-20240930.htm:3]** **[0001070750-24-000184_hst-20240930.htm:5]** **[0001070750-23-000133_hst-20230930.htm:6]** **[0001070750-23-000133_hst-20230930.htm:3]**   
- D&A: $197 million (+13% YoY)  **[0001070750-24-000184_hst-20240930.htm:3]** **[0001070750-24-000184_hst-20240930.htm:5]** **[0001070750-23-000133_hst-20230930.htm:6]** **[0001070750-23-000133_hst-20230930.htm:3]**   
- Interest Expense: $59 million (+23% YoY)  **[0001070750-24-000184_hst-20240930.htm:3]** **[0001070750-24-000184_hst-20240930.htm:5]** **[0001070750-23-000133_hst-20230930.htm:6]** **[0001070750-23-000133_hst-20230930.htm:3]**   
- Share Repurchases: **$57 million** vs. $1 million in Q3 2023 (over 5,600% YoY increase)  **[0001070750-23-000133_hst-20230930.htm:13]** **[0001070750-24-000184_hst-20240930.htm:4]** **[0001070750-24-000184_hst-20240930.htm:6]**   

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fd4ce2e372bae8df4ee54472beac7bd841ba565e198d59ed59b185f659cbd6c0

| Year       | Amount Due [Billions] | Debt Type         | Interest Rate [%] | % of Total Debt                          |
|------------|-----------------------|-------------------|-------------------|------------------------------------------|
| 2035       | 0.7                  | Senior Notes      | 5.500            | 13.7% = (0.7 / 5.1) * 100 **[0001070750-24-000184_hst-20240930.htm:38]** **[0001070750-24-000184_hst-20240930.htm:5]** |

1941648a2eed0e04ab26108e0be154a19a8b9a0160cc3744e7af9e2f69ecef77

- **Host Hotels anticipates flat to negative RevPAR growth for full year 2024, with comparable hotel RevPAR growth between negative 1% and positive 1% over 2023, and expects comparable hotel EBITDA margins to decline by 110 to 60 basis points year-over-year.**  **[HST_3396122_7]**
- **The Maui wildfires are expected to significantly impact full-year results, with an estimated impact on adjusted EBITDAre of $75 million to $80 million relative to prefire estimates, and a 180 basis point impact on full year RevPAR.**  **[HST_3396122_7]**
- **Approximately 90% of the RevPAR decline is attributed to weakening transient business, as domestic leisure demand moderates due to consumers opting for international destinations, without a corresponding increase in international inbound demand.**  **[HST_3396122_7]** **[HST_3396122_21]**

8165d003acf7cd0fc2c4def2fbf3435ad0d0af0d7c3b134d8a2eb14539870fda

- **Softness in leisure transient demand starting in March**, driven by poor weather and potentially softer short-term leisure demand, with April trending flat overall and only slightly above **1% excluding Maui**. This may indicate a weakening in consumer demand in the leisure segment.  **[HST_3382532_8]**
- **Lowered RevPAR growth expectations**, with the midpoint reduced from **4% to 3%**, resulting in a **$13 million** decline in comparable operations EBITDA. The adjusted EBITDA guidance increase is due to business interruption proceeds and other non-recurring items, suggesting that underlying performance may be less robust than previously anticipated.  **[HST_3382532_10]**
- **Ongoing uncertainty and challenges in Maui**, where demand continues to "evolve" post-wildfires, with air capacity down **around 19%** from Q1 2019 levels, and recovery dependent on marketing efforts and increased airline capacity. This could indicate prolonged impact on revenues from the region.  **[HST_3382532_18]**

5ec3b65520a146156c852624092776067213a8200b9137531df9e286be709a46

- The company expects an incremental negative EBITDA impact of **$25 million to $30 million** in 2024 due to the Maui wildfires, resulting in a total impact of close to **$50 million**, with the recovery timeline on Maui remaining uncertain.  **[HST_3375706_19]**
- In-year group booking pick-up is anticipated to be lower than previously due to extended lead times, potentially affecting short-term revenues.  **[HST_3375706_13]**
- When asked about the return on investment for the Hyatt transformation projects compared to the Marriott transformations, management was unable to provide specific details, indicating potential uncertainty around these investments.  **[HST_3375706_15]**

69bfeda19d23af10af23738687f84687f6e5870bd391a4ac3dfa74e459865e74

- **Strong Group Business Momentum:** Group revenue was up **8%** in the quarter, and the company picked up **241,000 rooms** in Q2 for the second half, with Q3 group pace up **high single digits**, indicating robust group demand.  **[HST_3396122_9]**
- **Successful Acquisition Strategy Driving Growth:** The acquisition of three luxury properties is expected to lead to **elevated EBITDA growth and free cash flow**. Additionally, 14 properties that have stabilized operations have picked up **7 points in yield index**, exceeding underwriting expectations.  **[HST_3396122_6]**
- **Resilient Pricing Power in Resorts:** Resort rates have held firm, remaining **51% above 2019** levels despite moderating volumes, demonstrating strong pricing power and ability to maintain margins.  **[HST_3396122_16]**

9db72d814ee946c883b68463cedca7b3c078d46c9c5ecf7c2d348de8267a212a

- **Strong Group Booking Pace for Second Half of 2024**: Host Hotels has picked up **421,000 group room nights** for the remainder of the year, with **60%** for the second half. This leads to a total revenue pace increase of over **9%** for the second half, signaling confidence in future performance.  **[HST_3382532_8]**
- **Solid Balance Sheet and Capacity for Accretive Acquisitions**: The company maintains a leverage ratio of **2.3x** and has **$1.7 billion of available liquidity**, allowing it to potentially acquire another **$1.1 billion** of assets this year. Management is focused on elevating EBITDA growth and is on track towards **$2 billion of EBITDA**.  **[HST_3382532_9]**
- **Resilient Performance of Luxury Resorts with High ADRs**: Host Hotels' luxury resorts continue to deliver strong results, with **five resorts achieving over $1,000 ADRs** in the quarter. The affluent consumer remains healthy, prioritizing experiences over goods, contributing to sustained high rates.  **[HST_3382532_12]**

917830f782664a6e0c9864530db43fbe943e25b4782400c2dbb53505c7c3dd8e

- **Host Hotels has a strong balance sheet with low leverage at 2.7x**, providing **significant dry powder** for investments and acquisitions. The company aims to be a **continued net acquirer**, capitalizing on its ability to move quickly without the need for financing.  **[HST_3406617_6]** **[HST_3406617_24]**
- **Positive outlook for group bookings in 2025**, with **2.8 million group room nights already on the books**, **group revenue up 5%**, and **group rates up 3.5%**. Key markets like **San Francisco (group bookings up 40%)**, New York, San Antonio, Orlando, and DC are showing strong performance.  **[HST_3406617_12]** **[HST_3406617_10]**
- **Transformational renovations are yielding strong results**, with an **average RevPAR index share gain of over 7 points**, exceeding the targeted gain of 3 to 5 points. This indicates a significant **return on investment** and provides meaningful tailwinds for the portfolio.  **[HST_3406617_1]**

1b94416171c0c6f1bc95b55adffe46c969822a581f0c14477e69d06ca8dcecea

1. **Guidance Revision and Maui Impact**  
   **Q:** What's driving the $47M guidance cut and Maui impact?  
   **A:** Sourav explained they reduced the midpoint of guidance by **$64 million**, with about **50%** attributed to Maui and San Francisco. The remainder comes from markets like D.C., Orlando, Phoenix, and L.A. Maui's recovery is slower than expected, leading to a **180 basis point** negative impact on portfolio RevPAR, up from **130 basis points** previously cited.  **[HST_3396122_14]** 

2. **Second Half Guidance and Risks**  
   **Q:** How derisked is your second-half guidance?  
   **A:** Sourav noted strong group booking pace for the second half, with Q3 group pace up **high single digits**. They derisked Q4 group forecasts around election weeks due to observed softness. Adjustments were made for the continued lack of short-term leisure pickup seen in Q2.  **[HST_3396122_9]** 

3. **Leisure Demand Trends**  
   **Q:** Are leisure trends assumed flat in H2 guidance?  
   **A:** Sourav confirmed they applied Q2 leisure transient trends to the rest of the year, assuming **flat ADR** and slightly down occupancy for resorts in H2. The **300 basis point** decline in guidance midpoint is evenly split between Q3 and Q4.  **[HST_3396122_12]** **[HST_3396122_20]** 

4. **Economic Slowdown Indicators**  
   **Q:** What lodging indicators reflect economic slowdown?  
   **A:** Jim stated that weaker weekend leisure at the lower end of the chain scale is the first indicator. He noted a bifurcation between the **high-end consumer**, still strong, and the **low-end consumer**. They believe current trends are temporary and expect the pendulum to swing back.  **[HST_3396122_21]** 

5. **Cost Management Amid Softness**  
   **Q:** Can you reduce costs as revenue softens?  
   **A:** Sourav explained that variable costs move with volume and are managed asset by asset. There's no meaningful lag; by month-end, expense adjustments are reflected in results.  **[HST_3396122_13]** 

6. **Maui Recovery Efforts**  
   **Q:** How are you stimulating demand in Maui?  
   **A:** Jim mentioned pursuing new channels like wholesalers and **Costco Travel** to bring customers back. They're collaborating with Hawaii's governor and Maui's mayor on a marketing campaign launching mid to late September to announce that **Maui is open for business**. Airlift into Maui is down **16%** over 2019, so they're also advocating for increased airline capacity.  **[HST_3396122_11]** 

7. **Capital Allocation Plans**  
   **Q:** Any plans for acquisitions or dispositions?  
   **A:** Jim expressed satisfaction with the **three acquisitions** made this year and stated they're not contemplating additional acquisitions in the near term. They've explored dispositions but find current pricing unattractive due to prohibitive debt costs. They're focused on integrating recent acquisitions and may consider **buying back additional stock**, with **$742 million** remaining on their repurchase program.  **[HST_3396122_6]** **[HST_3396122_7]** 

8. **Ancillary Revenue Trends**  
   **Q:** Are ancillary revenues holding up?  
   **A:** Jim reported that their affluent customer base is still spending. Food and beverage outlet revenue per occupied room is up **2%** over last year and **1%** over Q1. Excluding Maui, **spa revenues** are up **11%** and **golf revenues** up **5%**. Group **banquet revenues** are also up over the same time last year.  **[HST_3396122_17]** 

9. **Labor Cost Outlook for 2025**  
   **Q:** How do you view wage increases for 2025?  
   **A:** Sourav expects wage and benefit increases to be lower next year, potentially in the **3% to 4%** range or better, depending on inflation trends. Managers are currently working through budgets, and more clarity is expected by **October or November**.  **[HST_3396122_22]** 

a99c0ab3e296cf7612c9cfe9d8b24dcf0e9f64d0cd0f5fe2e695f5887bca08a1

1. **Underlying EBITDA Expectations**  
   **Q:** Is the underlying EBITDA still around $1.75 billion, including Maui recovery?  
   **A:** Yes, the underlying EBITDA is still **$1.75 billion**, which includes **$75 million to $80 million** expected from Maui recovery. This figure adjusts for acquisitions and insurance proceeds.  **[HST_3406617_7]** **[HST_3406617_8]** **[HST_3406617_21]** 

2. **Maui Wildfire Impact and Recovery**  
   **Q:** What is the expected EBITDA impact from Maui this year and recovery timeline?  
   **A:** This year's EBITDA from Maui, excluding business interruption proceeds, is expected to be **$97 million**, with a missing EBITDA of **$75 million to $80 million** due to the wildfires. Group business recovery in Maui is expected to take longer, potentially into **2025** and **2026**, while transient demand is improving for holidays.  **[HST_3406617_11]** **[HST_3406617_12]** **[HST_3406617_17]** 

3. **Capital Allocation Priorities**  
   **Q:** How are you prioritizing capital allocation among ROI projects, acquisitions, and buybacks?  
   **A:** We focus on investing in our existing portfolio through ROI projects like the Hyatt Transformational Capital Program. We also remain opportunistic with stock buybacks, having repurchased **3.5 million shares for $57 million** last quarter. With leverage at **2.7x**, we have significant dry powder to allocate across these opportunities.  **[HST_3406617_6]** **[HST_3406617_24]** 

4. **Group Business Outlook for 2025**  
   **Q:** How is the group booking pace for 2025, and are you adjusting group mix?  
   **A:** Group booking pace is strong for **2025**, with **2.8 million group room nights** on the books, and total group revenue up **5%** with rates up **3.5%**. We're optimizing group mix on an asset-by-asset basis but expect it to remain consistent overall. Citywide events in markets like San Francisco are contributing positively.  **[HST_3406617_12]** **[HST_3406617_17]** **[HST_3406617_23]** 

5. **Leisure Transient Demand and Rates**  
   **Q:** How are leisure transient rates trending, and what's the expectation for 2025?  
   **A:** Leisure transient ADRs are holding strong, up **50% over Q3 2019** for ten consecutive quarters. Year-over-year rates are relatively flat to slightly down but have normalized at elevated levels. We expect leisure rates and demand to stabilize into **2025** without degradation, supported by consumer strength.  **[HST_3406617_14]** **[HST_3406617_20]** 

6. **Labor Market Conditions**  
   **Q:** What is your perspective on the current labor market and staffing levels?  
   **A:** We are optimistic about the labor market, with staffing at optimal levels. Our management companies, Marriott and Hyatt, are employers of choice, attracting talent in hospitality. We do not foresee labor issues impacting us in **2025 and beyond**.  **[HST_3406617_13]** 

7. **Impact of Alternative Accommodations on Occupancy**  
   **Q:** Is shadow supply like Airbnb affecting your occupancy levels?  
   **A:** No, the occupancy gap is not due to shadow supply or new hotel supply. We believe we have **8 to 9 points** of occupancy to recapture as business transient travel returns, especially with companies mandating return to office. This is seen as a tailwind for our portfolio.  **[HST_3406617_19]** 

8. **Orlando Condo Development and Densification Opportunities**  
   **Q:** Can you provide details on the Orlando condo development budget and returns?  
   **A:** The Orlando condo development has a construction budget of **$150 million to $170 million**, targeting mid- to high-teens cash-on-cash returns. Construction began mid-July, with sales expected to start in mid-November. We are exploring similar densification opportunities within our portfolio.  **[HST_3406617_15]** **[HST_3406617_16]** 

9. **San Francisco Market Outlook**  
   **Q:** How is the San Francisco market performing, especially regarding group business?  
   **A:** Group room nights in San Francisco are pacing up **40% year-over-year**, with approximately **220,000 group room nights** on the books, up nearly **30%**. While still below 2019 levels, we are encouraged by this progress and expect positive momentum into **2025** and events like the **World Cup and Super Bowl in 2026**.  **[HST_3406617_17]** **[HST_3406617_23]** 

3c3f339aeaba10e8c8dbfe39101c97e9af429de87ad436fa9ab7129057dc0598

- **Significant EBITDA loss from the Maui wildfires, amounting to $75 to $80 million, with uncertainty about recovery in 2025.**  **[HST_3406617_8]**
- **Occupancy rates remain below pre-pandemic levels, with year-to-date occupancy at 72% compared to 79% in 2019, due to slow return to office and business travel.**  **[HST_3406617_19]**
- **Natural disasters like Hurricanes Helene and Milton have caused property closures, including The Don CeSar, which remains closed with a phased reopening expected in late Q1 2025, impacting revenues.**  **[HST_3406617_1]**

6f8783eca4b1e2ea1da667a1423f5e85b3645966d96532e90d5bb8c9d054d84a

- **Strong leisure demand among affluent consumers with no slowdown in spend**, and **revenue pace is up 20% year-over-year for spring break**, indicating robust leisure performance.  **[HST_3375706_18]**
- **Focused on larger transactions and open to acquiring assets needing repositioning**, leveraging their in-house capabilities to **elevate the EBITDA growth profile**, demonstrating strategic growth opportunities.  **[HST_3375706_20]**
- **Record-setting performance at key properties**, such as the **San Francisco Marriott Marquis achieving its best month in history in January**, with total revenue and EBITDA setting all-time records, showing continued positive trends.  **[HST_3375706_2]**

7996e3ed24c663f604569762664ed2d55a2d6196b20d0be3cf7b0b354cc02aa9

Host Hotels & Resorts Inc (HST)

Financials