Host Hotels Gears Up to Report Q3 Earnings: Key Factors to Consider

Host Hotels & Resorts, Inc. HST is scheduled to release third-quarter 2025 earnings results on Nov. 5, after market close. While the company’s quarterly results are likely to display a year-over-year marginal rise in revenues, adjusted funds from operations (AFFO) per share might display a decline.

In the previous quarter, this Bethesda, MD-based lodging real estate investment trust (REIT) reported an AFFO per share of 58 cents, which surpassed the Zacks Consensus Estimate of 51 cents. Results reflected a year-over-year rise in revenues.

Over the trailing four quarters, Host Hotels’ AFFO per share surpassed estimates on three occasions and met in the remaining period, the average surprise being 9.51%. The graph below depicts this surprise history:

Host Hotels & Resorts, Inc. Price and EPS Surprise

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

Factors to Consider Ahead of HST’s Upcoming Results

Host Hotels enjoys a portfolio of luxury and upper-scale hotels across the top U.S. Markets and the Sunbelt region. These properties are strategically located in central business districts of major cities near airports and resort/conference destinations, which drives demand.

The improvement in transient leisure demand has aided hotel revenue per available room (RevPAR) growth over the past few quarters. This trend is likely to have continued in the third quarter.

Host Hotels’ strategic capital allocations are likely to have improved portfolio quality and strengthened its position in the United States, where it has a greater scale and competitive advantage. This is likely to have given it an edge and driven margin expansion.

However, high interest expenses are likely to have been a spoilsport for HST during the to-be-reported quarter.

HST’s Q3 Estimations

The Zacks Consensus Estimate for HST’s quarterly revenues is presently pegged at $1.32 billion, implying a marginal growth of 0.06% from the prior-year period’s reported figure.

However, the consensus mark for the average occupancy rate in the third quarter is pegged at 69.9%, implying a decrease from the prior-year quarter’s reported figure of 71.7%. The Zacks Consensus Estimate for quarterly RevPAR is pinned at $203.99, indicating a decrease from $206.21 reported in the year-ago quarter.

We expect third-quarter 2025 interest expenses to have risen 1.9% year over year.

The company’s activities during the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for AFFO per share has remained unchanged at 33 cents in the past three months. The figure implies an 8.3% fall from the year-ago reported number.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict a surprise in terms of AFFO per share for Host Hotels this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an AFFO beat, which is not the case here

Host Hotels currently has an Earnings ESP of -3.40% and carries a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are two stocks from the other REIT industry — American Healthcare REIT, Inc. AHR and DiamondRock Hospitality DRH — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

American Healthcare is slated to report quarterly numbers on Nov. 6. AHR has an Earnings ESP of +1.58% and a Zacks Rank of 2 at present.

DiamondRock Hospitality is slated to report quarterly numbers on Nov. 6. DRH has an Earnings ESP of +1.05% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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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