Host Hotels Q2 FFO & Revenues Top Estimates, Hotel RevPAR Rises

Host Hotels & Resorts, Inc. HST reported second-quarter adjusted funds from operations (AFFO) per share of 58 cents, which surpassed the Zacks Consensus Estimate of 51 cents. The figure increased 1.8% from the prior-year quarter.

Results reflect higher revenues, driven by year-over-year comparable hotel RevPAR growth. This lodging real estate investment trust increased its outlook for 2025 AFFO per share.

Per James F. Risoleo, president and CEO of the company, “We continue to believe Host is well positioned to successfully navigate the current environment as a result of our investment-grade balance sheet, our size and scale, our diversified business and geographic mix, and our continued reinvestment in our portfolio.”

Host Hotels generated total revenues of $1.59 billion, beating the Zacks Consensus Estimate of $1.50 billion. The top line rose 8.2% on a year-over-year basis.

HST’s Second Quarter in Detail

Host Hotels’ comparable hotel RevPAR was $239.64 in the reported quarter, climbing 3% from the year-ago quarter. The rise was mainly driven by an increase in room rates across the portfolio, strong transient leisure demand and the continuing recovery in Maui, partially offset by a decrease in group demand.

Comparable hotel EBITDA came in at $481 million, remaining relatively flat from the year-ago quarter. Comparable hotel EBITDA margin decreased 120 basis points (bps) to 31%. The fall was driven by $21 million of business interruption proceeds that were received in the second quarter of 2024 for the Maui wildfires.

The average room rate of $324.87 in the second quarter increased from $313.17 reported in the year-ago quarter.

The comparable average occupancy percentage in the quarter was 73.8%, down 50 bps from the prior-year quarter.

Room nights for its transient and contract businesses increased 6.8% and 21.7%, respectively, year over year. The group business witnessed a decline of 4.9% from the prior-year period. Host Hotels’ transient, group and contract businesses accounted for roughly 60%, 36% and 4% of its 2024 room sales, respectively.

HST’s Balance Sheet Position & Share Repurchases

Host Hotels exited the second quarter with cash and cash equivalents of $490 million, up from $428 million as of March 31, 2025.

HST’s liquidity totaled $2.3 billion, including FF&E escrow reserves of $279 million and $1.5 billion available under the revolver portion of the credit facility, as of June 30, 2025.

In the second quarter of 2025, the company repurchased 6.7 million shares of common stock at an average price of $15.56 per share, exclusive of commissions, through its common share repurchase program for $105 million. It has approximately $480 million of remaining capacity under the repurchase program.

HST’s Capital Expenditure

From the beginning of the year through June 30, 2025, Host Hotels’ capital expenditure aggregated $298 million. Of this, $109 million was the total return on investment project spend, $129 million was the renewal and replacement expenditure, and $60 million was the renewal and replacement property damage reconstruction.

2025 Outlook by HST

It revised full-year AFFO per share guidance in the range of $1.98-$2.02, up from the prior guidance of $1.88-$1.97. This guidance range is higher than the Zacks Consensus Estimate of $1.91.

It expects comparable hotel RevPAR in the range of $224-$226 million, while adjusted EBITDAre is estimated between $1.69 billion and $1.72 billion, up from the prior guidance of $1.61 billion and $1.68 billion.

For 2025, management anticipates total capital expenditure in the range of $590-$660 million.

HST’s Zacks Rank

Host Hotels currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Host Hotels & Resorts, Inc. Price, Consensus and EPS Surprise

Host Hotels & Resorts, Inc. price-consensus-eps-surprise-chart | Host Hotels & Resorts, Inc. Quote

Performance of Other REITs

American Tower Corporation AMT reported its second-quarter 2025 AFFO, attributable to AMT common stockholders per share, of $2.60, meeting the Zacks Consensus Estimate. This compares favorably with the prior year’s reported figure of $2.54.

Results reflected a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment. AMT recorded healthy year-over-year organic tenant billings growth of 4.7% and total tenant billings growth of 5.2%.

Alexandria Real Estate Equities, Inc. ARE reported second-quarter 2025 AFFO per share of $2.33, beating the Zacks Consensus Estimate of $2.29. This compares unfavorably to the AFFO of $2.36 reported in the prior year.

Results reflected decent leasing activity and rental rate growth. However, lower occupancy and higher interest expenses year over year undermined ARE’s results to some extent.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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