Host Hotels & Resorts NASDAQ: HST reported second-quarter results that exceeded its expectations, supported by broad-based RevPAR growth, strong luxury resort demand, group business and event-driven rate strength.
Adjusted EBITDAre rose 5.8% year over year to $525 million, while adjusted FFO per share increased 8.6% to $0.63, President and Chief Executive Officer Jim Risoleo said during the company’s second-quarter 2026 earnings call. Comparable hotel RevPAR increased 7% from the prior-year quarter and comparable hotel total RevPAR rose 5.9%.
Comparable hotel EBITDA margin expanded 60 basis points to 31.9%, which the company attributed to rate growth and lower fixed expenses. The results cover Host’s 74-hotel comparable portfolio, excluding the Don CeSar and Sheraton Parsippany, which were sold in June.
Events, Resorts and Group Business Drive Growth
Risoleo said the FIFA World Cup contributed an estimated 160 basis points to second-quarter RevPAR growth. In June, RevPAR in Host’s World Cup markets rose 15%, compared with 12% growth in non-World Cup markets. For the full year, the company now expects the World Cup to provide roughly 70 basis points of gross RevPAR growth, up from its prior 60-basis-point estimate.
Transient revenue grew 7%, its strongest increase in seven quarters, led by rate gains as demand remained relatively stable. Major events, citywide compression and leisure demand at luxury resorts supported pricing. Maui, New York and San Francisco led growth, while business-transient markets also improved.
Maui RevPAR rose 14% and total RevPAR increased 11%, with occupancy climbing more than 8 percentage points. Host continues to expect its Maui properties to contribute approximately $120 million of EBITDA in 2026.
Business transient revenue increased 4%, driven by rates. The company reported business-transient room-night growth in New York, Washington, D.C., Chicago and San Diego. At the New York Marriott Marquis, business-transient room nights rose 14%, aided by demand from technology, consulting and finance companies.
Group room revenue increased 7%, split relatively evenly between room-night and rate growth. Host sold 1.1 million group room nights during the quarter, and definite group room nights on the books for 2026 totaled 3.8 million. Total group revenue pace was up more than 5% from the same point last year.
Executive Vice President and Chief Financial Officer Sourav Ghosh said corporate groups accounted for about two-thirds of group revenue growth. Host added approximately 210,000 group room nights during the quarter for the remainder of 2026, compared with 167,000 room nights added for the comparable period last year. Fourth-quarter group pace was nearing 10%, he said.
Food, Beverage and Ancillary Spending Increase
Comparable hotel food-and-beverage revenue rose 6%, with banquet and catering revenue up 7%. Washington, D.C., was a major contributor, where banquet and catering revenue increased 45%, aided by newly renovated Hyatt properties.
Outlet revenue increased 4%, supported by resorts, the ramp-up of The View at the New York Marriott Marquis and renovated Hyatt hotels. Maui outlet revenue grew 14%, reflecting occupancy gains at the Andaz Maui and Hyatt Regency Maui.
Other revenue was approximately flat, as higher golf and spa revenue was offset by lower attrition and cancellation revenue against difficult comparisons. Golf revenue rose 9%, driven by Maui and Naples, while spa revenue increased 4%. Ghosh said several resort properties posted double-digit increases in spa capture.
Guidance Raised as July RevPAR Gains Continue
Host raised its 2026 comparable hotel RevPAR and total RevPAR growth outlook to a range of 4.75% to 5.25% over 2025. At the midpoint, the forecast assumes 5% RevPAR growth, representing a 125-basis-point improvement from prior guidance.
The company expects comparable hotel RevPAR to rise approximately 10% in July, with only about 3 percentage points of that growth tied to the World Cup. Ghosh said the third and fourth quarters are now expected to produce similar RevPAR growth, although August is expected to have limited growth and September will be affected by a shift in Jewish holidays.
At the midpoint of guidance, Host expects comparable hotel EBITDA margin of 29.7%, up 50 basis points from 2025. Full-year adjusted EBITDAre guidance has a midpoint of $1.83 billion, a $20 million, or 1%, increase from the previous midpoint.
The updated outlook includes a $2.5 million expense benefit from property insurance renewal rates that came in 6% lower than the prior year. Host continues to expect wage rates to increase about 5% in 2026, although Ghosh said total wage and benefit expense growth is lower after productivity improvements.
Capital Allocation and Renovation Programs
During the quarter, Host sold the Sheraton Parsippany for approximately $12 million, describing the transaction as part of its strategy to exit lower-growth assets with elevated near-term capital needs. In July, the company paid a regular quarterly dividend of $0.20 per share and a special dividend of $0.72 per share. The special dividend represented the distribution of roughly $500 million in taxable gains from the first-quarter sales of two Four Seasons resorts.
The Hyatt Transformational Capital Program is nearly 90% complete, with renovations finished at five of its six hotels. The remaining Manchester Grand Hyatt San Diego project is expected to be substantially complete by year-end. The second Marriott Transformational Capital Program is about 37% complete and tracking on time and under budget, according to management.
Host expects 2026 capital expenditures of approximately $550 million to $630 million, including $250 million to $285 million for redevelopment, repositioning and return-on-investment projects. The company also reduced its expected 2026 EBITDA from the Four Seasons Orlando condo development to $16 million to $20 million from $20 million to $25 million, citing the timing of remaining unit closings. The difference is expected to be recognized in 2027.
Host ended the period with $3 billion of available liquidity, adjusted for the July dividends, and a leverage ratio of 2.2 times. Risoleo said the company continues to evaluate acquisitions, dispositions, reinvestment, dividends and repurchases, but will remain disciplined on potential transactions.
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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
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