Adjusted EBITDAre and FFO Growth
Adjusted EBITDAre of $543 million, up 5.6% year-over-year; adjusted FFO per share of $0.67, up 4.7% year-over-year.
Host Hotels & Resorts
· HST
May 6th, 2026
Summary
- Earnings Call Date:
- 2026-05-06
- Change Since:
- +13.38%
- Next Earnings Date:
- 2026-08-05
Earnings Call Sentiment
PositiveThe call conveyed strong operational and financial momentum: solid Q1 results with mid-single-digit RevPAR growth, margin expansion, raised full-year guidance, active capital returns (share buybacks and a special dividend), and disciplined, value-creating portfolio reinvestment. Key risks noted include weather-related disruption (notably in Hawaii), concentrated and late-booking benefits from the World Cup, only modest improvement in business transient and group demand, meaningful ongoing capex, and limited acquisition opportunities due to high pricing. Overall, positives (outperformance, guidance raise, capital returns, strong balance sheet) outweigh the highlighted challenges.
Company Guidance
Host raised 2026 guidance: comparable hotel RevPAR growth to 3.0%–4.5% and comparable hotel total RevPAR to 3.5%–5.0% (midpoint 3.75%, a 100‑bp improvement), expects a ~40‑bp net benefit from special events (≈60‑bp World Cup lift less a 20‑bp 2025 inauguration headwind) plus ~35 bps from Maui, expects Q2 RevPAR similar to Q1 with April ≈+4.4% and H2 in the low single digits, projects comparable hotel EBITDA margins up 20–50 bps (midpoint comparable EBITDA margin 29.5%; Q1 comparable hotel EBITDA margin was 32.7%, +70 bps YoY), full‑year adjusted EBITDAre midpoint $1.810 billion (includes ~$28M from Don CeSar, ~$7M of business‑interruption proceeds and ~$20–25M net EBITDA from Four Seasons condo sales), Q1 adjusted EBITDAre was $543M (+5.6% YoY) and Q1 adjusted FFO/share $0.67 (+4.7%), 2026 capex guidance $545M–$655M (including ~$250M–$300M for redevelopment/repositioning, $20M–$30M for storm reconstruction, ~$5M remediation and ~$15M to complete Four Seasons condos), expect ~5% wage rate increases (≈50% of comparable hotel operating expenses), ~$19M of operating profit guarantees tied to transformational programs, available liquidity $3.4B (including $151M FF&E reserves and $1.5B revolver), paying the declared $0.20 quarterly and $0.72 special dividend will reduce liquidity by ~$770M and result in adjusted leverage of ~2.5x, and weighted‑average debt maturity is 4.9 years at a 4.8% rate.
RevPAR and Revenue Momentum
Comparable hotel total RevPAR +4.6% and comparable hotel RevPAR +4.4% versus Q1 2025, driven by rate growth and strong out-of-room spending.
Margin Expansion and Productivity
Comparable hotel EBITDA margin improved 70 basis points to 32.7% year-over-year; Q1 absolute wage and benefit growth only +4.5% (versus ~5% wage rate expectation) due to productivity gains.
Strong Market and Department Performance
San Francisco RevPAR +26% and EBITDA >70% growth in Q1; transient revenue +5.5% (resorts >9%); F&B revenue +5%, other revenue +6%, outlet revenue +8%, golf +9%, spa +4%, banquet & catering contribution growth notably high in several properties.
Capital Allocation and Shareholder Returns
Repurchased 4 million shares for $75 million in Q1 (avg $18.97); total repurchases since 2017 ~73.2 million shares (~$1.2 billion); Board authorized quarterly dividend $0.20 and a special dividend $0.72 (≈$500M taxable gain distribution).
Portfolio Reinvestment Success
Hyatt Transformational Capital Program >80% complete and tracking on time/under budget; Marriott program >25% complete and on time/budget; $2.1 billion invested across 34 hotels expected to contribute ~60% of hotel EBITDA in 2026; stabilized data on 21 hotels show average RevPAR index share gain ~9 points.
Improved 2026 Outlook
Raised 2026 comparable hotel RevPAR guidance to +3.0% to +4.5% (total RevPAR +3.5% to +5%); full-year adjusted EBITDAre midpoint increased to $1.810 billion (≈$40 million, >2% improvement vs prior midpoint).
Strong Balance Sheet and Liquidity
Weighted average debt maturity 4.9 years, weighted average interest rate 4.8%; $3.4 billion total available liquidity (including $1.5 billion revolver availability); adjusted leverage of 2.5x after planned dividend payout.
Operator
Good morning, and welcome to the Host Hotels & Resorts First Quarter 2026 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the call over to Jaime Marcus, Senior Vice President of Investor Relations. Jaime, please go ahead.
Jaime Marcus
Thank you, and good morning, everyone. Before we begin, please note that many of the comments made today are considered to be forward-looking statements under federal securities laws. As described in our filings with the SEC, these statements are subject to numerous risks and uncertainties that could cause future results to differ from those expressed, and we are not obligated to publicly update or revise these forward-looking statements. In addition, on today's call, we will discuss certain non-GAAP financial information, such as FFO, adjusted EBITDAre and comparable hotel-level results. You can find this information together with reconciliations to the most directly comparable GAAP information in yesterday's earnings press release, in our 8-K filed with the SEC and in the supplemental financial information on our website at hosthotels.com. The operational results discussed today refer to our 74-hotel comparable hotel portfolio in 2026, which excludes the Don CeSar and Sheraton Parsippany. With me on today's call are Jim Risoleo, President and Chief Executive Officer; and Sourav Ghosh, Executive Vice President and Chief Financial Officer. With that, I would like to turn the call over to Jim.
James Risoleo
Thank you, Jaime, and thanks to everyone for joining us this morning. Our first quarter results exceeded our expecta...
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