Host Hotels Q1 FFO & Revenues Top Estimates, Hotel RevPAR Rises

Host Hotels & Resorts, Inc. HST reported first-quarter adjusted funds from operations (AFFO) per share of 64 cents, which surpassed the Zacks Consensus Estimate of 56 cents. The figure increased 4.9% 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, “Host delivered comparable hotel RevPAR growth of 7.0% over the first quarter of 2024 as a result of higher rates, improving leisure transient trends in Maui and strong group demand. Comparable hotel Total RevPAR increased 5.8% over the same period last year, and improvements were led by group banquet and catering business.”

Host Hotels generated total revenues of $1.59 billion, beating the Zacks Consensus Estimate of $1.54 billion. The top line rose 8.4% on a year-over-year basis.

HST’s First Quarter in Detail

Host Hotels’ comparable hotel RevPAR was $240.18 in the reported quarter, climbing 7% from the year-ago quarter. The rise was mainly driven by an increase in room rates.

Comparable hotel EBITDA came in at $504 million, rising 5.9% from year-ago quarter due to improved rates.

The average room rate of $345.86 in the first quarter increased from $327.11 reported in the year-ago quarter.

The comparable average occupancy percentage in the quarter was 69.4%, up 80 basis points from the prior-year quarter.

Room nights for its transient and group businesses declined 0.8% and 0.6%, respectively, year over year. The contract business witnessed a rise of 11.4% 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

Host Hotels exited the first quarter with cash and cash equivalents of $428 million, down from $554 million as of Dec. 31, 2024.

HST’s liquidity totaled $2.2 billion, including FF&E escrow reserves of $264 million and $1.5 billion available under the revolver portion of the credit facility, as of March 31, 2025.

In the first quarter of 2025, the company repurchased 6.3 million shares of common stock at an average price of $15.79 per share, exclusive of commissions, through its common share repurchase program for $100 million. It has approximately $585 million of remaining capacity under the repurchase program.

HST’s Capital Expenditure

As of March 31, 2025, Host Hotels’ capital expenditure aggregated $146 million. Of this, $46 million was the total return on investment project spend, $61 million was the renewal and replacement expenditure, and $39 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 $1.88-$1.97, up from the prior guidance of $1.82-$1.91. This guidance range is higher than the Zacks Consensus Estimate of $1.84.

It expects comparable hotel RevPAR in the range of $221-$225 million, while adjusted EBITDAre is estimated between $1.61 billion and $1.68 billion, up from the prior guidance of $1.59 billion and $1.65 billion.

For 2025, management anticipates total capital expenditure in the range of $580-$670 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 first-quarter 2025 AFFO, attributable to AMT common stockholders per share, of $2.75, beating the Zacks Consensus Estimate of $2.60. However, the figure declined 1.4% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

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 first-quarter 2025 AFFO per share of $2.30, beating the Zacks Consensus Estimate of $2.28. This compares unfavorably to the AFFO of $2.35 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 the results to some extent. ARE has revised its 2025 outlook.

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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