Host Hotels' Q4 AFFO & Revenues Top Estimates, Hotel RevPAR Rises

Host Hotels & Resorts, Inc. HST reported fourth-quarter adjusted funds from operations (AFFO) per share of 51 cents, which surpassed the Zacks Consensus Estimate of 47 cents. The figure increased 13.3% from the prior-year quarter.

Host Hotels generated total revenues of $1.60 billion, outpacing the Zacks Consensus Estimate of $1.54 billion. The top line rose 12.3% on a year-over-year basis.

Results reflect higher revenues, driven by year-over-year comparable hotel RevPAR growth. This lodging real estate investment trust issued its outlook for 2026 AFFO per share.

Per James F. Risoleo, president and CEO of the company, “We delivered comparable hotel Total RevPAR growth of 5.4% over the fourth quarter of 2024, and full year growth of 4.2%, reflecting increased transient demand and improvements in food and beverage revenues and ancillary spending. In 2026, we are optimistic about the state of travel for luxury and upper-upscale hotels, as affluent consumers continue to prioritize spending on experiences.”

In 2025, HST reported AFFO per share of $2.07, up from the prior year’s $2.00. The reported figure outpaced the Zacks Consensus Estimate of $2.03. Total revenues of $6.11 billion increased 7.6% year over year and beat the consensus mark of $6.05 billion.

HST’s Fourth Quarter in Detail

Host Hotels’ comparable hotel RevPAR was $227.14 in the reported quarter, increasing 4.6% from the year-ago quarter. The rise was mainly driven by an increase in room rates and strong transient leisure demand.

Comparable hotel EBITDA came in at $411 million, increasing 4.1% from the year-ago quarter. The comparable hotel EBITDA margin decreased 30 basis points (bps) to 28%, as operational improvements were offset by certain one-time benefits recognized in 2024.

The average room rate of $339.44 in the fourth quarter increased from $323.78 reported in the year-ago quarter.

The comparable average occupancy percentage in the quarter was 66.9%, down 20 bps from the prior-year quarter.

Room nights for its contract and transient business increased 8.7% and 0.2%, respectively, year over year. The group business witnessed a decline of 2.5% from the prior-year period. Host Hotels’ transient, group and contract businesses accounted for roughly 61%, 34% and 5% of its 2025 room sales, respectively.

Portfolio Activity

In February 2026, Host Hotels sold the 444-room Four Seasons Resort Orlando at Walt Disney World Resort and the 125-room Four Seasons Resort and Residences Jackson Hole for a sale price of $1.1 billion.

In January 2026, the company sold The St. Regis Houston for $51 million.

HST’s Balance Sheet Position

Host Hotels exited the fourth quarter with cash and cash equivalents of $768 million, up from $539 million as of Sept. 30, 2025.

HST’s liquidity totaled $2.4 billion, including FF&E escrow reserves of $167 million and $1.5 billion available under the revolver portion of the credit facility, as of Dec. 31, 2025.

HST’s Capital Expenditure

For 2025, Host Hotels’ capital expenditure aggregated $644 million. Of this, $282 million was the total return on investment project spend, $287 million was the renewal and replacement expenditure, and $75 million was the renewal and replacement property damage reconstruction.

2026 Outlook by HST

HST projects full-year AFFO per share to be in the range of $2.03-$2.11. The Zacks Consensus Estimate is pinned at $2.05.

It expects comparable hotel RevPAR in the range of $382-$388 million, while adjusted EBITDAre is estimated between $1.74 billion and $1.80 billion.

For 2026, management anticipates total capital expenditure in the range of $525-$625 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

Iron Mountain Incorporated IRM reported fourth-quarter AFFO per share of $1.44, beating the Zacks Consensus Estimate of $1.39. This figure jumped 16.1% year over year.

IRM’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.

Cousins Properties CUZ reported fourth-quarter 2025 FFO per share of 71 cents, in line with the Zacks Consensus Estimate. The figure increased 2.9% on a year-over-year basis.

CUZ experienced healthy leasing activity in the quarter. The weighted average occupancy decreased, while interest expenses increased and marred the growth tempo.

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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