It has been about a month since the last earnings report for Host Hotels (HST). Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Host Hotels due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Host Hotels' Q3 FFO Tops, Revenues Meet Estimates, Hotel RevPAR Rises
Host Hotels & Resorts 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 reflected higher revenues, driven by year-over-year comparable hotel RevPAR growth. This lodging REIT 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.
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.
Host Hotels 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.
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.
Its 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.
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
Host Hotels revised its full-year AFFO per share guidance to $2.03 from the earlier guided midpoint of $2.00.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
Currently, Host Hotels has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a score of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Host Hotels has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Host Hotels belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Extra Space Storage (EXR), has gained 0% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Extra Space Storage reported revenues of $858.46 million in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $0.78 for the same period compares with $2.07 a year ago.
For the current quarter, Extra Space Storage is expected to post earnings of $2.04 per share, indicating a change of +0.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
Extra Space Storage has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Host Hotels & Resorts, Inc. (HST): Free Stock Analysis Report Extra Space Storage Inc (EXR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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