Host Hotels & Resorts Q1 Earnings Call Highlights

Key Points

• Q1 outperformance: Host delivered adjusted EBITDAre of $543M (up 5.6%) and adjusted FFO/share of $0.67 (up 4.7%), driven by comparable hotel RevPAR growth of about 4.4%–4.6% and a 70-basis-point improvement in EBITDA margin.
• Raised guidance: Full-year comparable hotel RevPAR guidance was lifted to 3%–4.5% (total RevPAR 3.5%–5%) and the adjusted EBITDAre midpoint was increased to $1.81B, with management citing a World Cup-related boost concentrated in Q2.
• Capital returns and liquidity: The board authorized a quarterly dividend of $0.20 and a special dividend of $0.72 (from ~ $500M Four Seasons sale proceeds), repurchased ~$75M of stock in Q1, and expects dividend payments to reduce liquidity and bring adjusted leverage to about 2.5x.

Host Hotels & Resorts NASDAQ: HST reported first-quarter 2026 results that management said exceeded expectations, supported by stronger-than-anticipated RevPAR growth, improving margins, and continued strength in out-of-room spending. The company also updated its full-year outlook, raised RevPAR guidance ranges, and detailed capital returns including a regular dividend, a special dividend tied to recent asset sales, and ongoing share repurchases.

First-quarter performance tops expectations

President and CEO Jim Risoleo said the company delivered first-quarter adjusted EBITDAre of $543 million, up 5.6% from last year, and adjusted FFO per share of $0.67, up 4.7%. Risoleo noted results benefited from $7 million of business interruption proceeds related to Hurricanes Helene and Milton, compared with $10 million in the first quarter of 2025.

On the operating side, management pointed to broad-based revenue growth and stronger rate performance. Comparable hotel total RevPAR increased 4.6% year-over-year, while comparable hotel RevPAR rose 4.4%. Comparable hotel EBITDA margin improved 70 basis points to 32.7%, which Risoleo attributed to revenue growth. CFO Sourav Ghosh added that margin improvement came as total revenue growth outpaced absolute wage and benefit increases.

Risoleo said first-quarter RevPAR growth was “meaningfully better than expected,” despite estimated weather impacts of roughly 120 basis points and “tough comparisons” to the prior year. He highlighted particularly strong performance in Florida and Phoenix resorts and in San Francisco, where the portfolio benefited from the Super Bowl and continuing market recovery. Risoleo said San Francisco posted 26% RevPAR growth and more than 70% EBITDA growth during the quarter.

Demand mix: leisure and transient strength, group pace improves

Management described continued strength in transient demand and improving group trends. Risoleo said transient revenue increased 5.5% in the quarter, driven by rate growth and resort performance. He also said Easter falling in early April compressed spring break demand into March, contributing to 9% transient revenue growth at the company’s resorts.

Ghosh noted that Florida and Phoenix resorts generated about 60% of the company’s transient revenue growth in the quarter, and said transient revenue at resorts increased more than 9%. Looking ahead, he said transient revenue pace is up 6% for Memorial Day weekend year-over-year, driven by resorts. He also said July Fourth weekend revenue pace is up nearly 50% versus last year, driven by northeastern cities including Philadelphia, Washington, D.C., New York, and Boston, though he cautioned the company expects that figure to “actualize lower.”

Business transient revenue rose 4% in the first quarter, which management attributed primarily to rate growth and a continued mix shift from government to corporate negotiated customers. Ghosh said government volume has stabilized and cited corporate activity from consulting, technology, and financial services firms.

Group room revenue increased 2.4% year-over-year, with Risoleo citing improvements in both demand and rate. The company sold 1.1 million group room nights during the quarter, and definite group room nights on the books for 2026 stand at 3.5 million. Ghosh said that figure represents a 12% increase since the fourth quarter, while total group revenue pace is up nearly 4% versus the same time last year. He pointed to strength in San Francisco, New York, the Florida Gulf Coast, and Miami, and said booking pace is strongest for the second and fourth quarters.

Out-of-room spending lifts total RevPAR

Ghosh said total RevPAR growth outpaced RevPAR growth due to strength in food and beverage and other department revenues, reflecting the benefits of the company’s recent investments. Comparable hotel food and beverage revenue increased 5%, and other revenues increased 6%.

Banquet and catering revenue rose 3%, led by properties including the San Francisco Marriott Marquis, the San Antonio Marriott Rivercenter, and The Ritz-Carlton, Amelia Island, according to Ghosh. He said The Ritz-Carlton, Amelia Island posted 24% growth in banquet and catering contribution, driven by incentive groups and upsells. Outlet revenue grew 8%, which he tied to recently renovated restaurants at properties including the New York Marriott Marquis, the 1 Hotel South Beach, and the Grand Hyatt San Diego.

Other revenues were supported by golf and spa operations. Ghosh said spa revenue increased 4% on improved capture, including at The Ritz-Carlton, Amelia Island and Westin Kierland following spa renovations, while golf revenue grew 9% despite impacts in Maui.

Hawaii weather impacts and Maui outlook

Management addressed weather impacts in Hawaii, including the Kona low rainstorm. Risoleo said Maui RevPAR rose 1.5% and total RevPAR increased 1.6%, with results affected by the March storm. He added that the impacts were contained and not ongoing, and said the company has seen strong rebookings. Risoleo reiterated the company expects Maui to contribute approximately $120 million of EBITDA in 2026.

In the Q&A, Ghosh said the quarter’s estimated weather impact of 120 basis points included 80 basis points of RevPAR impact from Hawaii and 40 basis points from Winter Storm Fern. He estimated EBITDA impacts of roughly $5 million for Maui and about $1 million for Oahu in the quarter. On rebookings, Ghosh said the company is seeing pickup in late April through May and June, with additional rebookings continuing through the remainder of the year.

Asked about the confidence behind the $120 million Maui EBITDA expectation, Ghosh said Maui was pacing ahead of expectations before the storm and that rebookings and group pace support the outlook. He also said the company’s expectation for Maui RevPAR for the full year “in order to get to the $120 million is almost close to 9%.”

Guidance raised, World Cup expected to drive second quarter

Host raised its full-year 2026 comparable hotel RevPAR growth guidance range to 3% to 4.5% and its comparable hotel total RevPAR growth range to 3.5% to 5%. Ghosh said the midpoint assumes a stable operating environment with continued leisure strength around special events, modest improvements in short-term group booking trends, and stable business transient demand.

Management highlighted the World Cup as a key special event. Ghosh said the company expects a 60 basis point lift from the World Cup, contributing to an estimated 40 basis point net benefit for the year after a 20 basis point headwind from the presidential inauguration in the first quarter of 2025. He also said the bulk of World Cup demand is expected to materialize within a 30-day booking window, while transient revenue pace for the portfolio in World Cup markets is up nearly 40% year-over-year.

Risoleo added that the company expects about two-thirds of the World Cup benefit to occur in the second quarter, with the remainder in the third quarter, noting forecasting is more difficult later in the event due to uncertainty around which teams advance to knockout rounds.

For cadence, Ghosh said the company expects second-quarter RevPAR growth to be similar to the first quarter, driven by the World Cup, and said comparable hotel RevPAR for April is expected to increase about 4.4% year-over-year. He said second-half RevPAR growth is expected to be in the low single digits.

Ghosh also lifted the company’s full-year adjusted EBITDAre midpoint guidance to $1.81 billion, which he said is a $40 million improvement over the prior midpoint, driven by first-quarter outperformance and a “slightly more optimistic view” of the second half. He noted the midpoint includes $28 million of EBITDA from The Don CeSar, which is excluded from the comparable hotel set in 2026, as well as the $7 million in hurricane-related business interruption proceeds received in the first quarter. The outlook also includes between $20 million and $25 million of estimated net EBITDA from the Four Seasons condo development, recognized as condo sale closings occur; Ghosh said the company recognized $4 million of EBITDA from condo sales in the first quarter.

On expenses, Ghosh said absolute wage and benefit growth was 4.5% in the first quarter, which he said reflected productivity improvements. He reiterated the company expects wage rates to increase approximately 5% for the full year, with wages representing about half of comparable hotel operating expenses.

Capital allocation: buybacks, dividends, renovations, and liquidity

Host repurchased 4 million shares at an average price of $18.97 per share for $75 million in the first quarter, Risoleo said. He also noted that since 2017, the company has repurchased 73.2 million shares at an average price of $16.76 per share, totaling about $1.2 billion.

The board authorized a quarterly dividend of $0.20 per share and a special dividend of $0.72 per share, payable July 15 to stockholders of record on June 30. Risoleo said the special dividend represents the distribution of an approximate $500 million taxable gain from the sale of two Four Seasons resorts in the first quarter.

Ghosh said the company had $3.4 billion of total available liquidity, including $151 million of FF&E reserves and $1.5 billion available under the revolver. He said payment of the quarterly and special dividends will reduce liquidity by about $770 million and bring the adjusted leverage ratio to 2.5 times.

On portfolio investment, Risoleo said the Hyatt Transformational Capital Program is more than 80% complete and tracking on time and under budget, with renovations complete at four of six hotels and the Grand Hyatt Washington, D.C. expected to finish later in the month. He said the Manchester Grand Hyatt San Diego is expected to be substantially complete by the end of the year. Risoleo said the second Marriott Transformational Capital Program is more than 25% complete and also tracking on time and under budget, with guest room renovations underway at the New Orleans Marriott and additional projects scheduled to start later in the month.

For 2026 capital expenditures, management guided to $545 million to $655 million, including $250 million to $300 million for redevelopment, repositioning, and ROI projects, and $20 million to $30 million for property damage reconstruction associated with the Kona low rainstorm in Hawaii. Risoleo also said the company anticipates remediation costs of about $5 million and expects insurance coverage to cover losses beyond its deductible, while noting the company is still evaluating total impacts.

In response to questions on acquisition conditions, Risoleo said the company is seeing many potential opportunities but that “risk adjusted returns are just not there” at current pricing. He said Host continues to evaluate acquisitions and will “hang around” and see what clears the market, emphasizing discipline over activity given macro uncertainty. On dispositions, he said the company constantly tests the market and is prepared to be a seller, while also expressing hope it can be a buyer when conditions allow.

About Host Hotels & Resorts NASDAQ: HST

Host Hotels & Resorts, Inc is a real estate investment trust (REIT) focused on owning and managing premium lodging properties. The company's portfolio predominantly comprises luxury and upper-upscale hotels and resorts operated under leading global brands. Through strategic acquisitions, dispositions and capital investments, Host Hotels & Resorts seeks to enhance long-term value by aligning property-level operating performance with broader market trends in hospitality demand.

The company's holdings span major urban, resort and conference destinations across North America, Europe and the Asia-Pacific region.

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