Host Hotels & Resorts NASDAQ: HST raised its full-year 2026 outlook after third-quarter revenue and profit growth exceeded management’s expectations, driven by stronger leisure, group and business travel demand.
The hotel owner reported adjusted EBITDAre of $347 million for the quarter, up 8.8% from a year earlier. Adjusted funds from operations, or FFO, per share rose 11.4% to $0.39.
Comparable hotel revenue per available room, or RevPAR, increased 8.8%, while total RevPAR rose 7.3%. Comparable hotel EBITDA margin expanded 90 basis points to 25.2%, as room-rate growth more than offset higher wage expense.
President and CEO Jim Risoleo said 23 of the company’s 24 domestic markets posted comparable RevPAR growth. Host estimates the World Cup contributed approximately 100 basis points to third-quarter RevPAR growth.
Host raises full-year outlook
Host increased its 2026 adjusted EBITDAre guidance by $35 million to $1.865 billion. The company now expects comparable hotel RevPAR growth of approximately 6.75% and total RevPAR growth of about 6% for the year, compared with 2025.
CFO Sourav Ghosh said roughly two-thirds of the guidance increase reflected third-quarter results, with the remainder attributable to improved fourth-quarter expectations. Host expects high-single-digit RevPAR growth in the fourth quarter, supported in part by estimated October growth of 6.5%.
The company also expects a full-year comparable hotel EBITDA margin of approximately 30%, up 30 basis points from its prior guidance midpoint and 80 basis points above 2025. Ghosh said Host continues to expect wage rates to rise approximately 5% for the year.
During the question-and-answer session, Ghosh said the implied fourth-quarter guidance points to a margin of around 30%, compared with 25.2% in the seasonally weaker third quarter. Higher occupancy in the third quarter brought additional variable expenses, he said.
Business travel and Maui lead demand gains
Third-quarter transient revenue grew approximately 12%, with increases in both room rates and occupancy. Business transient revenue rose 9%, including a 5% increase in room nights, while group room revenue climbed 5%.
Ghosh said San Francisco and Washington, D.C., generated more than 40% of the business transient growth. San Francisco benefited from technology demand, while D.C. saw gains from corporate and federal government travel.
Risoleo said business transient booking windows remained relatively short and had not changed materially. He added that business transient room nights were still about 24% below their 2019 level.
In Maui, RevPAR grew nearly 14% during the quarter despite weather disruptions. Host raised its forecast for 2026 EBITDA from its Maui properties by $2 million to approximately $122 million. The company estimates Hawaii weather events will reduce full-year EBITDA by about $10 million, including $7 million in Maui.
Food and beverage revenue increased 6% in the third quarter, while golf revenue rose 4% and spa revenue gained 2%.
Two acquisitions expand portfolio
Host announced two fourth-quarter acquisitions for a combined approximately $374 million in cash. It purchased a leasehold interest in the 195-room 1 Hotel Brooklyn Bridge for $202 million and a fee simple interest in the 308-room Renaissance Dallas at Plano Legacy West Hotel for approximately $172 million.
Based on estimated 2026 results, the Brooklyn purchase price represented a 10.2-times EBITDA multiple and an approximately 8.2% capitalization rate. The Plano purchase represented an 11.2-times multiple and an approximately 7.9% capitalization rate.
Risoleo said the acquisitions substantially completed the reallocation of proceeds from Host’s Four Seasons sales earlier in the year. Together, the properties are expected to generate $6 million of EBITDA during Host’s 2026 ownership period, an estimate included in its guidance.
Risoleo described the Plano transaction as a somewhat distressed deal involving a lender-owned property. The Brooklyn acquisition was negotiated directly with Starwood, he said. Neither hotel needs near-term capital investment, according to Risoleo, who added that Host is pursuing other opportunities and is optimistic it could discuss at least one additional transaction within 60 to 90 days.
Management points to 2027 tailwinds
Host has not issued 2027 guidance. Risoleo said the company plans to provide a more specific outlook in February, but cited acquisitions, renovations, business travel and recoveries in Maui and San Francisco among potential benefits next year.
Host’s 2027 total group revenue pace was 6% ahead of the same point a year earlier, supported by room rates, room nights and banquet contributions, Ghosh said.
Risoleo said the Hyatt Transformational Capital Program was approximately 90% complete at the end of the third quarter and remained on track for completion by year-end. The company’s second Marriott Transformational Capital Program was approximately 50% complete, on time and under budget, he said.
Following a recast of its $2.5 billion credit facility and adjusting cash for the acquisitions and October dividend, Host reported $2.6 billion of available liquidity and an adjusted leverage ratio of 2.3 times. The company paid a quarterly cash dividend of $0.20 per share in October.
About Host Hotels & Resorts (NASDAQ:HST)
Host Hotels & Resorts, Inc is a self-managed and self-administered real estate investment trust that owns and operates a portfolio of luxury and upper-upscale hotels. The company's properties are generally located in high-demand business and leisure destinations and include full-service hotels, resorts and convention-oriented lodging facilities.
Host Hotels typically invests in hotel real estate while relying on hotel management companies and major hospitality brands to operate its properties.
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.
Before you consider Host Hotels & Resorts, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Host Hotels & Resorts wasn't on the list.
While Host Hotels & Resorts currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
A strong long-term portfolio starts with companies that can survive recessions, inflation, changing consumer habits, and shifting market leadership.
This report names seven blue-chip stocks across technology, retail, consumer staples, healthcare, networking, sporting goods, and utilities that offer investors a mix of stability, income, growth, and staying power.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
