Skip to content
    HST
    Earnings call· Jun 2026(Q2 FY26)

    HOST HOTELS & RESORTS Q2 FY26 earnings call HST

    Aug 6, 2026 Source

    Executive summary

    Host Hotels & Resorts Q2 FY26 — Strong Outperformance and Raised Outlook

    Host Hotels & Resorts delivered a strong second quarter, outperforming expectations with robust RevPAR and FFO per share growth, driven by luxury resort demand, major events like the World Cup, and strong group performance. The company raised its full-year guidance, reflecting continued optimism in the travel environment and the benefits of strategic portfolio reinvestment. Capital allocation remains disciplined, focusing on high-return acquisitions and asset recycling, supported by a strong balance sheet.

    Highlights

    5

    • Adjusted EBITDAre increased 5.8% year-over-year to $525 million, exceeding expectations.

    • Adjusted FFO per share grew 8.6% year-over-year to $0.63.

    • Comparable hotel RevPAR improved 7% and total RevPAR improved 5.9% compared to Q2 FY25.

    • Comparable hotel EBITDA margin improved by 60 basis points year-over-year to 31.9%.

    • Full-year comparable hotel total RevPAR and RevPAR growth guidance raised to 4.75% to 5.25%.

    Concerns

    3

    • EBITDA from Four Seasons branded condo development revised down to $16M-$20M from $20M-$25M for FY26 due to timing of closings.

    • Higher incentive management fees and travel agent commissions impacted flow-through to EBITDA in Q2.

    • Second half RevPAR growth expected to normalize compared to the first half, which benefited from special events and resort seasonality.

    Guidance & targets

    8
    CategoryTargetConfidence
    Comparable hotel total RevPAR growth
    4.75% to 5.25%
    high materiality
    High
    Comparable hotel RevPAR growth
    4.75% to 5.25%
    high materiality
    High
    Comparable hotel EBITDA margin
    Up 40 to 50 basis points year-over-year
    medium materiality
    High
    Adjusted EBITDAre
    $1.830 billion
    high materiality
    High
    Capital expenditure
    $550 million to $630 million
    medium materiality
    High
    Four Seasons Condo development EBITDA
    $16 million to $20 million
    low materiality
    Medium
    Wage rate growth
    Approximately 5%
    medium materiality
    High
    Total expense growth
    Approximately 4.2%
    medium materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    Comparable Hotel Portfolio (74 hotels)
    Strong Q2 performance driven by rate growth and higher F&B revenue, exceeding expectations. EBITDA margin improved due to rate growth and lower fixed expenses.
    RevPAR growth: 7%Total RevPAR growth: 5.9%EBITDA margin improvement: 60 bps
    		———31.9%
    Maui Properties
    Reflecting strong demand growth and continued market recovery. Golf revenue was 9% ahead of pre-fire levels.
    Total RevPAR grew: 11%Occupancy growth: >8 percentage points
    		—RevPAR grew 14%——
    Resorts
    Driven by continued leisure strength, with Maui accounting for nearly 40% of growth. Other standouts include 1 Hotel South Beach and Florida Gulf resorts.
    		—RevPAR grew 9%——
    World Cup Markets
    Outperformed non-World Cup markets in June, contributing approximately 160 basis points to Q2 RevPAR growth.
    		—RevPAR grew 15% (June)——
    New York Marriott Marquis
    Driven by demand from tech, consulting, and finance companies.
    		—Business transient room night growth: 14%——

    Operational metrics

    32
    Adjusted EBITDAre
    $525 millionUp 5.8% YoY
    Q2 FY26

    Exceeded expectations.

    Adjusted FFO per share
    $0.63Up 8.6% YoY
    Q2 FY26
    Transient revenue growth
    7%
    Q2 FY26

    Strongest growth in the past 7 quarters, driven by higher rates.

    Business transient revenue growth
    4%
    Q2 FY26

    Driven by strong rate growth.

    Group room revenue growth
    7%YoY
    Q2 FY26
    Group room nights sold
    1.1 million
    Q2 FY26
    Food and beverage revenue growth
    6%
    Q2 FY26

    Led by widespread improvements in banquet and catering revenues.

    Outlet revenue growth
    4%
    Q2 FY26

    Driven by growth across resorts, The View at New York Marriott Marquis, and newly renovated Hyatt properties.

    Spa revenue growth
    4%
    Q2 FY26

    Driven by increased capture at resorts.

    Golf revenue growth
    9%
    Q2 FY26

    Driven by courses in Maui and Naples.

    Operating guarantees
    $5 million
    Q2 FY26

    Received related to transformational capital programs.

    Expected operating profit guarantees
    $19 million
    FY26

    Expected to offset most of the EBITDA disruption at properties undergoing transformational capital programs.

    Property damage reconstruction
    $25 million to $30 million
    FY26

    Associated with the Kona low rain storm in Hawaii.

    Remediation costs
    $2 million
    FY26

    Expected to be substantially covered by insurance in excess of deductible.

    Spend to close out Four Seasons Orlando condo development
    $17 million
    Q2 FY26
    EBITDA from Four Seasons Condo sales
    $8 million
    Q2 FY26

    Bringing total recognized EBITDA to $12 million for H1 FY26.

    Weighted average maturity of debt
    4.7 years
    As of Q2 FY26
    Weighted average interest rate
    4.8%
    As of Q2 FY26
    Total available liquidity
    $3 billion
    As of Q2 FY26

    Adjusted for regular and special dividend paid on July 15.

    FF&E reserves
    $156 million
    As of Q2 FY26

    Included in total available liquidity.

    Revolver capacity
    $1.5 billion
    As of Q2 FY26

    Available under the credit facility, included in total available liquidity.

    Quarterly common dividend
    $0.20
    Q2 FY26

    Paid in July.

    Special dividend
    $0.72
    Q2 FY26

    Paid in July, representing distribution of approximately $500 million taxable gain from Two Four Seasons sales.

    Leverage ratio
    2.2x
    As of Q2 FY26

    Adjusted for dividend payment.

    Marriott loyalty charge-out rate reduction benefit
    $3 million to $3.5 million
    Annualized

    Benefit from Marriott reducing its loyalty charge-out rate.

    Marriott account sales and national group sales booking fee savings
    $3 million
    Annual
    Marriott high occupancy reimbursement policy savings
    $0.5 million
    FY26

    Benefit from enhanced policy this year.

    Marriott procurement shift benefit
    $7 million
    Over next few years

    Expected benefit from Marriott shifting procurement in-house.

    Insurance expense reduction
    $2.5 millionDown 6% YoY
    FY26

    From June 1 property renewal coming in better than expected.

    EBITDA from Don CeSar operations
    $29 million
    FY26

    Included in full-year adjusted EBITDAre midpoint; excluded from comparable hotel set.

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

    Received in Q1 FY26.

    EBITDA sensitivity to 1 point of RevPAR growth
    $28 million to $30 millionDown from $32M-$37M last year
    Annual

    Impacted by portfolio makeup change (sale of Two Four Seasons) and total RevPAR growth.

    Industry KPIs

    7
    MetricValueDetails
    Occupancy rate>8percentage points
    Revenue growth7%%
    Disposition volume$12 millionUSD
    Net debt adjusted EBITDA2.2xx
    Leasing bookings volume signed3.8 millionroom nights
    Ffo core ffo normalized ffo per share$0.63USD per share
    Development pipeline under construction34 hotelscount

    Orderbook & backlog

    2
    Definite group room nights on books3.8 millionQ2 FY26

    Up 8% since Q1 FY26

    Total group revenue paceUp >5%Q2 FY26

    YoY

    Compared to same time last year.

    Deals & partnerships

    1
    N/ASale of Sheraton Parsippany hotel$12 million

    Disposition reflects strategy of selling lower growth assets with near-term elevated capital expenditure requirements.

    Capital programs

    3
    Hyatt transformational capital programunderway
    Spent to date: Nearly 90% complete

    Renovations finished at 5 of 6 hotels, with Manchester Grand Hyatt San Diego expected to be substantially complete by year-end.

    Second Marriott transformational capital programunderway
    Spent to date: Approximately 37% complete

    Tracking on time and under budget. Guestroom renovations at New Orleans Marriott nearing completion, others in progress or scheduled to start.

    Four Seasons branded condo developmentcompleted

    Benefit: 40 units (28 closed to date)

    Final phase completed on time and within budget. 20 of 31 mid-rise units and 8 of 9 villas closed.

    Risks & headwinds

    3
    Lower EBITDA from Four Seasons Condo developmentFY26

    $4 million to $9 million reduction for FY26

    Mitigation: Difference expected to be recognized in 2027 due to timing of remaining closings.

    Higher incentive management fees and travel agent commissionsQ2 FY26

    Impacted Q2 EBITDA flow-through

    Mitigation: Travel agent commissions not expected to continue into H2; IMF impact stabilizes once triggered.

    Normalization of rate growth in H2H2 FY26

    Rate growth expected to normalize

    Mitigation: First half benefited from World Cup and resort seasonality; H2 still strong but without these specific tailwinds.

    What to watch in Q3 FY26

    4

    Maui EBITDA contribution

    Next quarter
    Current$120 million expected for FY26
    TargetClarity on 2027 EBITDA and stabilization

    Why it matters

    Maui's recovery is a key driver of portfolio performance and future growth, with significant upside potential.

    Do you have an estimate for what stabilization EBITDA would look like? It's a little difficult to give you a precise number just because obviously, you have expense growth as well every single year, but we feel that we should be able to get another $20 million to $25 million additional as to what point it will be, will remain to be seen. Once we have budgets for next year, we'll provide a little bit more clarity in terms of what 2027 looks like.

    Q&A highlights

    6

    Why was Q2 EBITDA flow-through lower than expected, and what is the impact of Marriott's ITR incentive program and other cost-saving initiatives?

    Lower flow-through was due to higher incentive management fees (IMF) from outperforming properties and increased travel agent commissions related to short-term World Cup demand, which is not expected to continue. Marriott's initiatives include a 20 bps reduction in loyalty charge-out rate (worth $3M-$3.5M annually), $3M annual savings from reduced account sales/group sales booking fees, $0.5M savings from enhanced high occupancy reimbursement, and an expected $7M benefit over several years from shifted procurement. The new 50 bps intent-to-recommend reimbursement reduction to the program services fund will be a positive impact, especially for Host's renovated properties.

    “So effectively, if the -- we intend to recommend is above a certain threshold for a particular asset. There would be a reduction to the PFF. I mean that's up to 50 basis points. No further details have been provided in terms of what that threshold looks like, specifically for the intent to recommend threshold. But obviously, it's going to be a positive impact for our portfolio, particularly given the fact that we have invested significant amount of capital over the years in our entire portfolio, not just Marriott, but particularly through MTCP1 and MTCP2 to that's ongoing right now.”

    asked by Aryeh Klein · answered by Sourav Ghosh

    2 min read6 chapters

    Detailed Narrative

    01

    Q2 Performance Highlights

    Host Hotels & Resorts delivered a strong second quarter, exceeding expectations with Adjusted EBITDAre of $525 million, up 5.8% year-over-year, and Adjusted FFO per share of $0.63, an 8.6% increase. Comparable hotel RevPAR improved 7% and total RevPAR grew 5.9%, driven by rate growth and higher food and beverage revenue. The comparable hotel EBITDA margin expanded by 60 basis points to 31.9%, reflecting strong rate performance and lower fixed expenses.

    02

    RevPAR Drivers and Business Mix

    RevPAR growth was broad-based, with significant contributions from sustained luxury resort demand, elevated rates due to the World Cup (contributing 160 bps to Q2 RevPAR growth), and strong group performance. Transient📎 revenue increased 7%, marking the strongest growth in seven quarters, primarily from higher rates. Business transient📎 revenue grew 4%, with notable room night increases in key markets like New York and Washington, D.C. Group room revenue was up 7%, evenly split between room nights and rate growth, with 3.8 million definite group room nights on the books for FY26.

    03

    Capital Allocation and Portfolio Reinvestment

    The company completed the sale of Sheraton Parsippany for $12 million, aligning with its strategy to divest lower-growth assets. A special dividend of $0.72 per share was paid, distributing the $500 million taxable gain from prior asset sales. Host continues to reinvest in its portfolio, with the Hyatt transformational capital program nearly 90% complete and the second Marriott program 37% complete. These programs are expected to contribute significantly to future EBITDA, with 34 renovated hotels projected to account for 60% of 2026 hotel EBITDA.

    04

    Four Seasons Condo Development and Capex

    The final phase of the Four Seasons branded condo development at Walt Disney World Resort was completed on time and within budget. To date, 28 of 40 units have closed. The expected EBITDA contribution from this development for 2026 was revised to $16 million to $20 million, down from $20 million to $25 million, with the difference expected in 2027 due to closing timing. Total capital expenditure guidance for 2026 remains $550 million to $630 million, including significant investment in redevelopment and ROI projects.

    05

    Balance Sheet and Liquidity

    Host maintains an investment-grade balance sheet with a weighted average maturity of 4.7 years and an interest rate of 4.8%. Post-dividend payment, the leverage ratio stands at 2.2x. The company boasts $3 billion in total available liquidity, including $156 million in FF&E reserves and $1.5 billion available under its credit facility revolver. This strong financial position provides flexibility for opportunistic acquisitions, dispositions, and shareholder returns.

    06

    Maui Recovery and Outlook

    Maui's recovery continues robustly, with RevPAR growing 14% and total RevPAR up 11% in Q2, driven by strong demand and occupancy gains. The company expects Maui properties to contribute approximately $120 million of EBITDA in 2026. Group pace for Maui is strong, with Q3 total revenue pace in high single digits and Q4 in high double digits, indicating continued recovery into 2027.

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