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    HST
    Earnings call· Mar 2026(Q1 FY26)

    HOST HOTELS & RESORTS Q1 FY26 earnings call HST

    May 7, 2026 Source

    Executive summary

    Host Hotels & Resorts Q1 FY26 — Strong RevPAR Growth and Capital Allocation

    Host Hotels & Resorts delivered a strong Q1 FY26, exceeding expectations with robust RevPAR growth and improved EBITDA margins, driven by resilient leisure demand and strategic portfolio investments. The company raised its full-year guidance, reflecting an optimistic outlook for the travel environment and continued focus on capital allocation through dividends and share repurchases. Management emphasized the value creation from its comprehensive renovation programs and disciplined approach to acquisitions and dispositions.

    Highlights

    5

    • Adjusted EBITDAre increased 5.6% year-over-year to $543 million in Q1 FY26.

    • Adjusted FFO per share grew 4.7% year-over-year to $0.67 in Q1 FY26.

    • Comparable hotel total RevPAR improved 4.6% and RevPAR improved 4.4% in Q1 FY26.

    • Comparable hotel EBITDA margin improved by 70 basis points year-over-year to 32.7% in Q1 FY26.

    • Repurchased 4 million shares of common stock for $75 million at an average price of $18.97 per share in Q1 FY26.

    Concerns

    3

    • Estimated weather impacts of approximately 120 basis points on RevPAR in Q1 FY26.

    • Maui RevPAR growth of 1.5% was impacted by the Kona Low rainstorm in Q1 FY26.

    • Full-year 2026 wage rates are expected to increase approximately 5%.

    Guidance & targets

    11
    CategoryTargetConfidence
    Comparable hotel RevPAR growth
    3% to 4.5%
    high materiality
    High
    Comparable hotel total RevPAR growth
    3.5% to 5%
    high materiality
    High
    Comparable hotel EBITDA margins
    up 20 basis points to up 50 basis points
    medium materiality
    High
    Comparable hotel RevPAR growth
    similar to that of the first quarter (~4.4%)
    medium materiality
    Medium
    Comparable hotel RevPAR growth
    low single digits
    medium materiality
    Medium
    Adjusted EBITDAre
    $1.810 billion
    high materiality
    High
    Maui EBITDA contribution
    approximately $120 million
    medium materiality
    High
    Capital expenditure
    $545 million to $655 million
    high materiality
    High
    Four Seasons Orlando condo development completion spend
    $15 million
    low materiality
    High
    Operating profit guarantees from Transformational Capital Programs
    approximately $19 million
    medium materiality
    High
    Wage rates increase
    approximately 5%
    medium materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    San Francisco
    Benefited from the Super Bowl and continued demand recovery, with improving office fundamentals driven by AI-related companies.
    		—26% RevPAR growth—>70% EBITDA growth
    Florida and Phoenix Resorts
    Showed particularly strong performance, contributing significantly to overall transient revenue growth.
    Transient revenue growth: ~60% of total transient revenue growth
    		————
    Maui
    Growth was impacted by the Kona Low rainstorm in March, but strong rebookings are expected to maintain the full-year EBITDA contribution target.
    Total RevPAR growth: 1.6%
    		—1.5% RevPAR growth——
    Northeastern Cities (Philadelphia, Washington D.C., New York, Boston)
    Showing early strength in demand and rate for World Cup matches and America 250 celebrations.
    Transient revenue pace for July 4th weekend: up nearly 50% YoY
    		————

    Operational metrics

    53
    Adjusted EBITDAre
    $543 million+5.6% YoY
    Q1 FY26

    Exceeded expectations.

    Adjusted FFO per share
    $0.67+4.7% YoY
    Q1 FY26

    Exceeded expectations.

    Comparable hotel EBITDA margin
    32.7%+70 bps YoY
    Q1 FY26

    Driven by revenue growth.

    Transient revenue growth
    5.5%
    Q1 FY26

    Driven by rate growth and leisure demand.

    Resort transient revenue growth
    >9%
    Q1 FY26

    Benefited from Easter in early April, compressing spring break demand in March.

    Business transient revenue growth
    4%
    Q1 FY26

    Driven by strong rate growth and mix shift from government to corporate-negotiated customers.

    Group room revenue growth
    2.4%
    Q1 FY26

    Driven by improvements in both demand and rate.

    Group room nights sold
    1.1 million
    Q1 FY26

    In the first quarter.

    Total group revenue pace
    up nearly 4%YoY
    YoY

    Compared to the same time last year.

    F&B revenue growth
    5%
    Q1 FY26

    Driven by recently repositioned outlets and strong banquet and catering contribution.

    Other revenue growth
    6%
    Q1 FY26

    Propelled by strength in golf and spa operations.

    Banquet and catering revenue growth
    3%
    Q1 FY26

    Led by San Diego properties, San Francisco Marriott Marquis, San Antonio Marriott Rivercenter, and Ritz-Carlton, Amelia Island.

    Outlet revenue growth
    8%
    Q1 FY26

    Driven by New York Marriott Marquis, 1 Hotel South Beach, and Grand Hyatt San Diego.

    Spa revenue growth
    4%
    Q1 FY26

    Driven by improved capture, particularly at Ritz-Carlton, Amelia Island and Westin Kierland.

    Golf revenue growth
    9%
    Q1 FY26

    Despite impacts in Maui, led by strong performance at Naples and Phoenix golf courses.

    Share repurchases
    $75 million
    Q1 FY26

    Executed in the first quarter.

    Cumulative share repurchases
    $1.2 billion
    Since 2017

    Total share repurchases since 2017.

    Quarterly common dividend
    $0.20
    Q2 FY26

    Authorized by the Board of Directors, payable July 15 to stockholders of record on June 30.

    Special dividend
    $0.72
    Q2 FY26

    Authorized by the Board of Directors, representing distribution of approximate $500 million taxable gain from sale of 2 Four Seasons resorts. Payable July 15 to stockholders of record on June 30.

    Condo sales (Four Seasons Orlando)
    28 of 40 units
    To date

    Total sales and deposits for the condo development.

    Redevelopment, repositioning and ROI capex
    $250 million to $300 million
    FY26

    Portion of total capital expenditure focused on these projects.

    Property damage reconstruction (Kona Low)
    $20 million to $30 million
    FY26

    Associated with the Kona Low rainstorm in Hawaii.

    Remediation costs
    approximately $5 million
    FY26

    Anticipated remediation costs related to the Kona Low rainstorm.

    Total investment in comprehensive renovations
    $2.1 billion
    To date

    Investment in 34 hotels, expected to contribute approximately 60% of total hotel EBITDA in 2026.

    RevPAR index share gain
    nearly 9 points
    Post-renovation

    Average gain on 21 stabilized hotels post-renovation.

    Estimated EBITDA from Don CeSar operations
    $28 million
    FY26

    Excluded from comparable hotel set in 2026.

    Business interruption proceeds (Hurricanes Helene and Milton)
    $7 million
    Q1 FY26

    Received in the first quarter.

    Estimated net EBITDA from Four Seasons condo development
    $20 million to $25 million
    FY26

    Expected to be recognized concurrent with condo sale closings.

    EBITDA from condo sales
    $4 million
    Q1 FY26

    Recognized in the first quarter.

    Weighted average maturity (debt)
    4.9 years
    As of Q1 FY26

    Maturity of debt portfolio.

    Weighted average interest rate (debt)
    4.8%
    As of Q1 FY26

    Interest rate on debt portfolio.

    Total available liquidity
    $3.4 billion
    As of Q1 FY26

    Includes FF&E reserves and revolver capacity.

    FF&E reserves
    $151 million
    As of Q1 FY26

    Part of total available liquidity.

    Revolver capacity
    $1.5 billion
    As of Q1 FY26

    Available under the revolver portion of the credit facility.

    Transient revenue pace for Memorial Day weekend
    up 6%YoY
    YoY

    Compared to the same time last year, driven by resorts.

    Transient revenue pace for July 4th weekend
    up nearly 50%YoY
    YoY

    Compared to last year, driven by northeastern cities. Expected to actualize lower but shows early strength.

    Comparable hotel EBITDA margin improvement
    30 bpsover prior guidance
    FY26

    Improvement over prior guidance.

    Comparable hotel RevPAR growth midpoint
    3.75%100 bps improvement over prior guidance
    FY26

    Midpoint of guidance assumes stable operating environment.

    Net benefit from special events
    40 bps
    FY26

    Estimated for the full year.

    Lift from World Cup
    60 bps
    FY26

    Estimated lift from the World Cup, partially offset by inauguration headwind.

    Headwind from presidential inauguration (2025)
    20 bps
    FY26

    Headwind from the presidential inauguration in Q1 2025.

    Maui contribution to full year RevPAR growth
    35 bps
    FY26

    Expected contribution to full year RevPAR growth.

    Transient revenue pace in World Cup markets
    up nearly 40%YoY
    YoY

    Year-over-year pace, steadily picking up occupancy.

    Comparable hotel EBITDA margin (midpoint)
    29.5%30 bps above 2025
    FY26

    Reflects continued success in driving productivity gains.

    Absolute wage and benefit growth
    4.5%
    Q1 FY26

    Driven by productivity improvements.

    Rooms picked up in Q1 for Q1
    95,000
    Q1 FY26

    Short-term group bookings.

    Rooms picked up in Q1 for Q2-Q4
    280,000
    Q1 FY26 for remainder of year

    Short-term group bookings for the balance of the year.

    Group booking pace Q2 & Q4
    high single digits
    Q2 & Q4 FY26

    Further confidence in outlook for the balance of the year.

    Maui RevPAR growth for full year
    almost 9%
    FY26

    Required to achieve $120 million EBITDA contribution.

    Marriott Bonvoy program change benefit
    beneficial
    Q1 FY26 and full year

    Beneficial due to being the largest owner and high redemption of hotels within portfolio.

    H2 RevPAR occupancy growth
    80 bps
    H2 FY26

    Remainder of H2 RevPAR growth is rate.

    H2 RevPAR rate growth vs H1
    1 point lower
    H2 FY26 vs H1 FY26

    Due to Q1 resort high season and World Cup transient rate pickup in H1.

    H1 occupancy pickup
    70 bps
    H1 FY26

    Similar to H2 in terms of occupancy/demand pickup.

    Industry KPIs

    6
    MetricValueDetails
    Revenue growth4.4%%
    Disposition volume2 Four Seasons resorts sold
    Net debt adjusted EBITDA2.5xx
    Leasing bookings volume signed3.5 millionroom nights
    Ffo core ffo normalized ffo per share$0.67per share
    Development pipeline under construction$2.1 billionUSD

    Orderbook & backlog

    1
    Four Seasons Orlando condo development sales28 of 40 unitsQ1 FY26

    20 of 31 mid-rise units closed, 8 of 9 villas with deposits/purchase agreements.

    Deals & partnerships

    1
    UndisclosedSale of two Four Seasons resorts

    The sale of these two resorts in the first quarter of this year led to a special dividend distribution.

    Capital programs

    3
    Hyatt Transformational Capital Programunderway$2.1 billion
    Spent to date: >80% complete

    Benefit: RevPAR index share gain of nearly 9 points on 21 stabilized assets

    More than 80% complete and tracking on time and under budget. 4 of 6 hotels (Grand Hyatt Atlanta, Hyatt Regency Capitol Hill, Hyatt Regency Austin, Hyatt Regency Reston) are complete. Grand Hyatt Washington D.C. expected to finish later this month. Manchester Grand Hyatt San Diego expected to be substantially complete by year-end.

    Second Marriott Transformational Capital Programunderway
    Spent to date: >25% complete

    Well underway, over 25% complete and tracking on time and under budget. Guestroom renovations at New Orleans Marriott scheduled for Q3 completion. Renovations at The Ritz-Carlton Naples, Tiburon and Westin Kierland scheduled to start later this month.

    Four Seasons Orlando condo developmentunderway
    Period spend: $15 million

    Project is on budget and expected to sell out by the end of this year. $15 million expected to be spent in 2026 to complete the development.

    Risks & headwinds

    6
    Weather impacts on RevPARQ1 FY26

    approximately 120 basis points

    Mitigation: Insurance coverage expected to cover losses in excess of deductible for Kona Low storm.

    Kona Low rainstorm impact on MauiQ1 FY26

    1.5% RevPAR growth (impacted)

    Mitigation: Strong rebookings and increased seat availability from airlines; full-year EBITDA guidance for Maui maintained at $120 million.

    Lower average rate growth expectationsH2 FY26

    Rate growth in H2 is almost 1 point lower than H1

    Mitigation: Focus on productivity improvements and strategic investments to drive margin performance.

    Uncertain macro picture for acquisitionsOngoing

    Risk-adjusted returns are just not there for us

    Mitigation: Maintaining discipline and prioritizing capital allocation to dividends, share repurchases, and portfolio reinvestment.

    Presidential inauguration headwindFY26

    20 basis points

    Mitigation: Offset by an estimated 60 basis point lift from the World Cup, resulting in a 40 basis point net benefit from special events.

    Wage rate increasesFY26

    approximately 5%

    Mitigation: Driving productivity improvements and leveraging labor management systems to manage absolute wage and benefit growth to 4.5% in Q1.

    What to watch in Q2 FY26

    5

    Grand Hyatt Washington D.C. renovation completion

    Q2 FY26
    CurrentNearing completion
    TargetCompleted

    Why it matters

    Completion of this renovation is part of the Hyatt Transformational Capital Program, expected to drive RevPAR index share gains and EBITDA growth.

    We are nearing completion on the Grand Hyatt, Washington, D.C., which is expected to be finished later this month.

    Q&A highlights

    7

    How does the current transient revenue pace in World Cup markets align with the 60 bps RevPAR benefit expectation, given that bookings are often last-minute?

    Management explained that World Cup bookings are heavily weighted towards the last 45 days, with 40% of occupancy booked in the final week, consistent with past World Cups. They are pacing well and expect the 60 bps gross benefit (40 bps net) to materialize, with 2/3 in Q2 and the remainder in Q3, primarily driven by transient demand.

    “majority of the bookings really happen within the 45-day window and believe it or not, in sort of the week leading up to the matches, 40% of the occupancy from the World Cup is actually booked in that last week.”

    asked by Bennett Rose · answered by Sourav Ghosh

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Q1 Performance and Raised Outlook

    Host Hotels & Resorts reported a strong Q1 FY26, with adjusted EBITDAre of $543 million (+5.6% YoY) and adjusted FFO per share of $0.67 (+4.7% YoY), both exceeding expectations. Comparable hotel RevPAR grew 4.4%, driven by rate growth and strong out-of-room spending. The company raised its full-year 2026 comparable hotel RevPAR guidance to 3%-4.5% and adjusted EBITDAre midpoint to $1.810 billion, reflecting Q1 outperformance and a more optimistic view for the second half of the year.

    02

    Resilient Demand and Market Highlights

    Leisure demand remained strong, particularly at resorts in Florida and Phoenix, contributing approximately 60% of transient📎 revenue growth. San Francisco showed significant recovery with 26% RevPAR growth and over 70% EBITDA growth, benefiting from the Super Bowl and improving office fundamentals driven by AI-related companies. Group room revenue was up 2.4% year-over-year, with definite group room nights on the books for 2026 up 12% since Q4.

    03

    Strategic Capital Reinvestment Driving Value

    The company's $2.1 billion investment in comprehensive renovations across 34 hotels is yielding significant returns, with 21 stabilized assets showing an average RevPAR index share gain of nearly 9 points. The Hyatt Transformational Capital Program is over 80% complete, and the second Marriott Transformational Capital Program is over 25% complete, both tracking on time and under budget. These renovated properties are expected to contribute approximately 60% of total hotel EBITDA in 2026.

    04

    Disciplined Capital Allocation

    Host maintains a disciplined, return-focused capital allocation strategy. In Q1, the company repurchased 4 million shares for $75 million. The Board authorized a quarterly common dividend of $0.20 per share and a special dividend of $0.72 per share, representing the distribution of a $500 million taxable gain from the sale of two Four Seasons resorts. The company emphasizes returning capital to shareholders while maintaining a fortress balance sheet with an adjusted leverage ratio of 2.5x.

    05

    Hawaii Performance and Recovery

    Maui's RevPAR grew 1.5% in Q1, impacted by the Kona Low rainstorm, which caused an estimated 80 basis points RevPAR impact to the Hawaii portfolio. Despite this, management reaffirmed its expectation for Maui to contribute approximately $120 million of EBITDA in 2026, citing strong rebookings and increased seat availability from airlines. The company expects insurance to cover reconstruction and remediation costs related to the storm.

    AI-generated summary of the company’s earnings call. Not investment advice.