Host Hotels' Q3 FFO Tops, Revenues Meet Estimates, Hotel RevPAR Rises

Host Hotels & Resorts, Inc. HST reported third-quarter adjusted funds from operations (AFFO) per share of 35 cents, which surpassed the Zacks Consensus Estimate of 33 cents. However, the figure decreased 2.8% 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, “Our strong third-quarter results reflect our company's continued positive momentum and industry leadership. We delivered better than expected comparable hotel Total RevPAR growth of 0.8% over the third quarter of 2024, driven by strong transient demand leading to improvements in room revenues and ancillary spend.”

Host Hotels generated total revenues of $1.33 billion, meeting the Zacks Consensus Estimate. The top line rose marginally on a year-over-year basis.

HST’s Third Quarter in Detail

Host Hotels’ comparable hotel RevPAR was $208.07 in the reported quarter, increasing marginally 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 $309.4 million, decreasing 1% from the year-ago quarter. The comparable hotel EBITDA margin decreased 50 basis points (bps) to 23.9%. The fall was led by an increase in wages and benefit expenses.

The average room rate of $299.07 in the third quarter increased from $290.27 reported in the year-ago quarter.

The comparable average occupancy percentage in the quarter was 69.6%, down 190 bps from the prior-year quarter.

Room nights for its contract business increased 11.6% year over year. The transient and group businesses witnessed a decline of 1.2% and 7.8% 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.

The company disposed of the Washington Marriott at Metro Center for $177 million.

HST agreed with Marriott International for a second transformational capital program at four properties over four years. The total expenditure is expected to be between $300 and $350 million through 2029.

HST’s Balance Sheet Position

Host Hotels exited the third quarter with cash and cash equivalents of $539 million, up from $490 million as of June 30, 2025.

HST’s liquidity totaled $2.2 billion, including FF&E escrow reserves of $205 million and $1.5 billion available under the revolver portion of the credit facility, as of Sept. 30, 2025.

During the third quarter of 2025, Moody’s upgraded the company’s credit rating to Baa2 with a stable outlook.

HST’s Capital Expenditure

From the beginning of the year through Sept. 30, 2025, Host Hotels’ capital expenditure aggregated $454 million. Of this, $184 million was the total return on investment project spend, $200 million was the renewal and replacement expenditure, and $70 million was the renewal and replacement property damage reconstruction.

2025 Outlook by HST

HST revised its full-year AFFO per share guidance to $2.03 from the earlier guided midpoint of $2. The Zacks Consensus Estimate is pinned at $2.

It expects comparable hotel RevPAR at $227 million, while adjusted EBITDAre is estimated at $1.73 billion.

For 2025, management anticipates total capital expenditure in the range of $605-$640 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 third-quarter 2025 AFFO, attributable to AMT common stockholders per share, of $2.78, beating the Zacks Consensus Estimate of $2.62. This compares favorably with the prior year’s reported figure of $2.64.

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 5% and total tenant billings growth of 5.5%.

Iron Mountain Incorporated IRM reported third-quarter AFFO per share of $1.32, beating the Zacks Consensus Estimate of $1.29. This figure jumped 16.8% year over year.

Iron Mountain’s results reflected solid performances across all segments, including the storage, service, global RIM and data center business. However, higher interest expenses in the quarter undermined the performance to an extent. IRM raised its dividend.

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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