Host Hotel's Q2 FFO Beat Estimates on RevPAR & Rate Growth

HST’s Business Mix Supports Revenue Growth

Transient room revenues increased 6.9% to $559 million despite a 0.7% decline in room nights. This indicates that pricing gains more than offset slightly lower transient volume during the second quarter.

Group room revenues rose 7.4% to $332 million as room nights increased 3.5%. Contract room revenues advanced 6.6% to $48 million, accompanied by a 3.4% increase in room nights. Management noted demand remains durable across the portfolio, supported by affluent consumers’ continued prioritization of travel and healthy group demand across many markets.

HST’s Room Rates Drive RevPAR Growth

Comparable hotel RevPAR reached $251.53, up from $235.05 a year earlier. The average room rate increased to $335.83 from $317.39, while occupancy improved to 74.9% from 74.1%.

Management attributed the improvement primarily to solid pricing across the portfolio, supported by strong leisure and group travel and demand associated with FIFA World Cup matches. Comparable hotel Total RevPAR advanced 5.9% to $417.58, reflecting room-rate growth and higher food and beverage spending.

HST Expands Hotel EBITDA Margin

Comparable hotel EBITDA increased 7.8% year over year to $497 million. The corresponding margin expanded 60 basis points (bps) to 31.9% as higher average room rates offset increased wage expense and higher incentive management fees.

Adjusted EBITDAre rose 5.8% to $525 million. GAAP operating profit increased to $293 million from $277 million, producing an operating margin of 17.9%, up 40 bps. Net income advanced 7.1% to $241 million.

HST’s Condo Sales Contribute to Results

The sale of seven villas at the development adjacent to Four Seasons Resort Orlando at Walt Disney World Resort contributed $8 million to net income and adjusted EBITDAre. Condominium sales generated $53 million of revenues during the second quarter, with associated cost of goods sold totaling $44 million.

Capital expenditures totaled $243 million through the first half of 2026. HST expects full-year capital expenditures of $550-$630 million, including spending on transformational programs, other return-on-investment projects, renewals and replacements, and property-damage reconstruction.

HST Maintains Strong Liquidity

Host Hotels ended the second-quarter with total available liquidity of approximately $3.6 billion. This included $1.5 billion of capacity under its revolving credit facility and $156 million in furniture, fixtures and equipment escrow reserves.

Total debt was $5.1 billion, carrying a weighted average interest rate of 4.8% and a weighted average maturity of 4.7 years. The company had no debt maturities in 2026.

It also paid a 92-cent-per-share dividend in July 2026, comprising a regular dividend of 20 cents and a special dividend of 72 cents.

HST Raises Its 2026 Outlook

Management raised its full-year 2026 comparable hotel RevPAR and Total RevPAR growth guidance to 4.75-5.25%. The prior ranges were 3-4.5% for RevPAR and 3.5-5% for Total RevPAR.

Adjusted EBITDAre increased to $1.82-$1.84 billion from the earlier range of $1.785-$1.835 billion.

HST now expects adjusted FFO per share of $2.15-$2.18, up from its previous projection of $2.10-$2.16. The Zacks Consensus Estimate for adjusted FFO per share is pinned at $2.15.

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.

Performance of Other REITs

Cousins Properties Inc. CUZ reported second-quarter 2026 FFO of 75 cents per share, beating the Zacks Consensus Estimate of 74 cents. The metric rose 7.1% from the year-ago quarter.

Rental property revenues increased 11.8% year over year to $265.7 million and surpassed the consensus mark of $263.6 million. The results reflected strong leasing momentum, higher rental revenues and solid same-property NOI growth.

BXP, Inc. BXP reported second-quarter 2026 FFO of $1.78 per share, beating the Zacks Consensus Estimate of $1.71. The metric rose 4.1% from the year-ago period.

Lease revenues increased 3.2% year over year to $831.68 million and surpassed the consensus mark of $812.49 million. Results reflected higher occupancy and same-property NOI growth, which supported the FFO beat.

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.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research