Core Insights - Host Hotels & Resorts reported Q2 2025 revenue of $1.59 billion, exceeding analyst expectations of $1.51 billion, with diluted EPS at $0.32, down from $0.34 year-over-year [1][2] - The company experienced solid top-line growth but faced margin pressures due to rising wage costs and lower insurance proceeds [1][9] Financial Performance - Revenue increased by 8.2% year-over-year from $1.47 billion in Q2 2024 [2] - Adjusted EBITDAre reached $496 million, up 3.1% from the previous year [2][8] - Comparable hotel RevPAR grew by 3.0% year-over-year, indicating strong demand and pricing power [2][5] Operational Trends - Transient business saw a 1.6% increase in room nights and a 6.8% rise in related revenue, while group business faced declines due to renovations [6] - Notable geographic performance included an 18.6% increase in RevPAR in Maui, while markets like Washington, D.C. and Nashville saw declines [7] Profitability and Margins - Adjusted EBITDA margin declined to 31.0% from 32.2% year-over-year, attributed to higher wage expenses and lower insurance recoveries [9] - GAAP net income for Q2 2025 was $225 million, down 7.0% year-over-year [9] Capital Management - The company sold The Westin Cincinnati for $60 million and repurchased 6.7 million shares for $105 million, maintaining a quarterly dividend of $0.20 per share [10][11] - Total assets stood at $13.0 billion with $2.3 billion in available liquidity as of June 30, 2025 [12] Future Guidance - Management raised FY2025 revenue guidance to $6,054–$6,109 million, reflecting a growth of 6.5%–7.5% compared to 2024 [13] - Expected comparable hotel EBITDA margin for the full year is projected to be between 28.4% and 28.7% [13]

Company Overview - Host Hotels & Resorts, Inc. is the largest lodging real estate investment trust in the United States and is part of the S&P 500 [2] - The company owns 75 properties in the United States and five properties internationally, totaling approximately 42,900 rooms [2] - Host Hotels & Resorts also holds non-controlling interests in seven domestic and one international joint ventures [2] Recent Developments - The company provided an updated investor presentation for second quarter 2025 results [1]

Financial Performance - Host Hotel 第二季度业绩表现出色，上调全年指导性预期，EBITDA 增加 60 million 美元，达到 10.75 billion 美元的中点 [2] - 过去六年，公司在资产上的投资为 1.7 billion 美元，推动了业绩增长 [2] Market Trends & Industry Dynamics - 高端消费市场依然活跃，未见放缓迹象 [1] - 高端酒店 RevPAR（每间可销售房收入）同比增长 5.9% [6] - 经济型酒店 RevPAR 在本季度下降约 5% [6] - 餐饮收入在本季度增长 4%，主要由门店增长驱动 [3] Investment & Strategy - 公司的战略重点是服务于富裕客户 [2] - 客户对高端酒店的价格不敏感，客房外消费持续增长 [3] - 客户资产负债表现良好，股票和房地产市场创造了大量财富 [6]

Core Insights - Host Hotels & Resorts, Inc. (HST) reported second-quarter adjusted funds from operations (AFFO) per share of 58 cents, exceeding the Zacks Consensus Estimate of 51 cents, marking a 1.8% increase from the prior year [1][8] - The company generated total revenues of $1.59 billion, surpassing the Zacks Consensus Estimate of $1.50 billion, reflecting an 8.2% year-over-year growth [2] - The outlook for 2025 AFFO per share has been raised to a range of $1.98-$2.02, above the previous guidance of $1.88-$1.97 [10] Financial Performance - Comparable hotel RevPAR was $239.64, a 3% increase from the previous year, driven by higher room rates and strong transient leisure demand [3][8] - Comparable hotel EBITDA was $481 million, remaining flat year-over-year, with a margin decrease of 120 basis points to 31% due to $21 million in business interruption proceeds related to the Maui wildfires [4] - The average room rate increased to $324.87 from $313.17 in the prior year [4] Business Segmentation - The comparable average occupancy percentage was 73.8%, down 50 basis points from the prior year [5] - Transient and contract businesses saw room nights increase by 6.8% and 21.7% year-over-year, while group business declined by 4.9% [5] - The transient, group, and contract businesses accounted for approximately 60%, 36%, and 4% of 2024 room sales, respectively [5] Balance Sheet and Capital Management - As of June 30, 2025, Host Hotels had cash and cash equivalents of $490 million, up from $428 million at the end of Q1 2025 [6] - Total liquidity was $2.3 billion, including $279 million in FF&E escrow reserves and $1.5 billion available under the credit facility [6] - In Q2 2025, the company repurchased 6.7 million shares at an average price of $15.56 per share, totaling $105 million, with approximately $480 million remaining under the repurchase program [7] Capital Expenditure - Year-to-date capital expenditure through June 30, 2025, totaled $298 million, with $109 million for return on investment projects, $129 million for renewal and replacement, and $60 million for property damage reconstruction [8][9] - For 2025, total capital expenditure is anticipated to be in the range of $590-$660 million [11]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDAre of $496 million, a 3.1% increase year-over-year, and adjusted FFO per share of $0.58, up 1.8% from the previous year [5][19] - Comparable hotel total RevPAR improved by 4.2% compared to 2024, with a 3% increase in comparable hotel RevPAR driven by stronger transient demand and higher ADR [5][19] - Comparable hotel EBITDA margin declined by 120 basis points year-over-year to 31%, impacted by prior year business interruption proceeds [6][26] Business Line Data and Key Metrics Changes - Transient revenue grew by 7%, with Maui accounting for approximately 40% of the transient revenue growth in the quarter [7][21] - Group room revenue decreased by 5% year-over-year, primarily due to the Easter calendar shift and renovation disruptions [8][24] - Ancillary spending by guests remained strong, with total RevPAR growth of 4% in the second quarter, and food and beverage revenue up 4% [9][19] Market Data and Key Metrics Changes - Strong performance was noted in markets such as Maui, Miami, Orlando, Atlanta, New York, the Florida Gulf Coast, and San Francisco [7][8] - The company experienced a 19% RevPAR growth in Maui, contributing significantly to overall portfolio performance [8][45] - Business transient revenue remained relatively flat, with a slight decline in corporate negotiated room night volumes [23][24] Company Strategy and Development Direction - The company is focused on capital allocation, having disposed of approximately $5.1 billion in hotels at a blended 17.2 times EBITDA multiple, while acquiring $4.9 billion at a 13.6 times EBITDA multiple [12][73] - The Hyatt transformational capital program is approximately 50% complete, tracking on time and under budget, with ongoing renovations expected to enhance portfolio value [13][16] - The company plans to continue investing in its assets to drive returns, with a focus on luxury properties due to their long-term RevPAR CAGR potential [89][91] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of Maui, with expectations for continued growth in group bookings as the market stabilizes [45][47] - The company anticipates a gradual improvement in the macroeconomic environment, which could positively impact demand in the second half of the year [27][28] - Despite macroeconomic uncertainties, the company is well-positioned with a strong balance sheet and diversified portfolio [18][32] Other Important Information - The company collected $9 million in business interruption proceeds for Hurricanes Helene and Milton, totaling $19 million for the first half of the year [11][29] - Capital expenditure guidance for 2025 is set between $590 million and $660 million, including significant investments for redevelopment and repositioning projects [15][29] - The company has $2.3 billion in total available liquidity, with a leverage ratio of 2.8 times [31] Q&A Session Summary Question: Group dynamics for the second half and longer term - Management noted that while short-term group pickup has softened, there is strong group booking momentum for 2026 and beyond, with a total of 3.8 million group room nights on the books [38][40] Question: Update on Hawaii's performance - Management confirmed that Maui's recovery is underway, with a 19% RevPAR growth and increased out-of-room spending, supported by a marketing campaign [45][46] Question: Insights on Turtle Bay's performance - Turtle Bay is exceeding pro forma expectations, with no negative surprises in hotel operations, although there are changes in plans for the golf course [53][54] Question: Wages and benefits increase components - The increase in wages and benefits is driven by market conditions and finalized CBA negotiations, with expectations for lower growth next year [60][61] Question: RevPAR growth cadence in the second half - Management expects better performance in Q4 due to favorable calendar shifts and ongoing renovations impacting group pace in Q3 [64][66] Question: Transaction environment and acquisition opportunities - The debt capital markets are active, with a notable pickup in transaction activity, although the company is currently focused on investing in its existing assets rather than acquisitions [70][73]

Host Hotels & Resorts (HST) Q2 2025 Earnings Call July 31, 2025 11:00 AM ET Speaker0Good morning, and welcome to the Host Hotels and Resorts Second Quarter twenty twenty five Earnings Conference Call.Today's conference is being recorded. At this time, I would like to turn the call over to Jamie Marcus, Senior Vice President of Investor Relations. Please go ahead. Thank you and good morning everyone. Before we begin, please note that many of the comments made today are considered to be forward looking statem ...

Core Insights - Host Hotels (HST) reported a revenue of $1.59 billion for the quarter ended June 2025, marking an 8.2% year-over-year increase and a surprise of +5.64% over the Zacks Consensus Estimate of $1.5 billion [1] - The earnings per share (EPS) for the same period was $0.58, compared to $0.34 a year ago, resulting in a surprise of +13.73% over the consensus EPS estimate of $0.51 [1] Financial Performance Metrics - Average Occupancy Percentage was 73.8%, slightly below the estimated 73.9% [4] - Revenue per Available Room (RevPAR) was $239.64, exceeding the average estimate of $232.12 [4] - Average Room Rate stood at $324.87, compared to the estimated $314.09 [4] - The number of rooms was reported at 42,526, lower than the estimated 42,982 [4] - The number of properties was 78, compared to the estimated 79 [4] - Room revenues reached $949 million, surpassing the average estimate of $901.69 million, reflecting a +7.2% year-over-year change [4] - Other revenues totaled $159 million, exceeding the average estimate of $147.71 million, with an 18.7% year-over-year increase [4] - Food and beverage revenues were $478 million, above the average estimate of $457.38 million, representing a +6.9% year-over-year change [4] - Diluted earnings per share were $0.32, compared to the average estimate of $0.22 [4] Stock Performance - Shares of Host Hotels have returned +2.6% over the past month, while the Zacks S&P 500 composite increased by +3.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Host Hotels shares have lost about 7.1% since the beginning of the year versus the S&P 500's gain of 8.3%. What's Next for Host Hotels? While Host Hotels has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but al ...

[Overview](index=2&type=section&id=OVERVIEW) This section introduces Host Hotels & Resorts as a REIT, outlines analyst coverage, clarifies forward-looking statements, and defines non-GAAP financial measures [About Host Hotels & Resorts](index=3&type=section&id=About%20Host%20Hotels%20%26%20Resorts) Host Hotels & Resorts, Inc. is a self-managed and self-administered real estate investment trust (REIT) that owns hotel properties - The company is a self-managed REIT operating through an umbrella partnership structure (UPREIT) via Host Hotels & Resorts, L.P[15](index=15&type=chunk) Company Snapshot (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Market Cap | $10.7 billion | | Enterprise Value | $15.6 billion | [Analyst Coverage](index=3&type=section&id=Analyst%20Coverage) This section lists the investment banks and analysts that follow Host Hotels & Resorts - The company is covered by a wide range of analysts from prominent financial institutions[11](index=11&type=chunk)[12](index=12&type=chunk) - Host Hotels & Resorts disclaims endorsement of any analyst opinions, forecasts, or recommendations[13](index=13&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains a standard safe harbor statement, warning that supplemental information includes forward-looking statements regarding business expectations - The report contains forward-looking statements concerning travel recovery, financial results, and capital expenditures, which are subject to risks and are not guaranteed[16](index=16&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) The report utilizes several non-GAAP financial measures to present historical and future financial performance - The report includes non-GAAP measures such as FFO, EBITDA, EBITDAre, Adjusted EBITDAre, and NOI to supplement GAAP reporting[17](index=17&type=chunk) - Financial covenant ratios, such as leverage and interest coverage, are also presented based on definitions in the company's credit facility and senior notes indentures, with reconciliations to GAAP provided[19](index=19&type=chunk) [Property Level Data and Corporate Measures](index=4&type=section&id=PROPERTY%20LEVEL%20DATA%20AND%20CORPORATE%20MEASURES) This section details comparable hotel operating results by location, historical performance, 2025 forecasts, and ground lease summaries [Comparable Hotel Results by Location](index=4&type=section&id=Comparable%20Hotel%20Results%20by%20Location) This section provides a detailed breakdown of operating performance for the company's 78 comparable hotels, segmented by geographic location All Comparable Hotels Performance (Quarter ended June 30, YoY) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | RevPAR | $239.64 | $232.63 | +3.0% | | Occupancy | 73.8% | 74.3% | -0.5 p.p. | | Average Room Rate | $324.87 | $313.17 | +3.7% | | Total Revenues (in millions) | $1,554.2 | $1,491.4 | +4.2% | | Hotel EBITDA (in millions) | $481.3 | $479.6 | +0.4% | All Comparable Hotels Performance (YTD ended June 30, YoY) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | RevPAR | $240.78 | $229.31 | +5.0% | | Occupancy | 71.7% | 71.5% | +0.2 p.p. | | Average Room Rate | $335.72 | $320.61 | +4.7% | | Total Revenues (in millions) | $3,133.1 | $2,998.8 | +4.5% | | Hotel EBITDA (in millions) | $984.6 | $955.8 | +3.0% | [Historical Comparable Hotel Results](index=8&type=section&id=Historical%20Comparable%20Hotel%20Results) This section presents historical quarterly and full-year operating metrics for the 78 hotels that constitute the 2025 comparable hotel set Historical Comparable Hotel Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Comparable hotel RevPAR | $239.64 | $232.63 | | Comparable hotel occupancy | 73.8% | 74.3% | | Comparable hotel ADR | $324.87 | $313.17 | | Comparable hotel revenues (in millions) | $1,554 | $1,491 | | Comparable hotel EBITDA (in millions) | $481 | $480 | [Comparable Hotel Results 2025 Forecast and Full Year 2024](index=9&type=section&id=Comparable%20Hotel%20Results%202025%20Forecast%20and%20Full%20Year%202024) This section provides the company's full-year 2025 forecast for its comparable hotel set, alongside actual results from 2024 Full Year 2025 Forecast vs. 2024 Actuals | Metric | 2025 Forecast | 2024 Actual | | :--- | :--- | :--- | | Comparable hotel RevPAR | $224.97 | $220.57 | | Comparable hotel Total RevPAR | $375.01 | $366.00 | | Comparable hotel EBITDA (in millions) | $1,665 | $1,671 | | Net income (in millions) | $616 | $707 | - The 2025 forecast assumes the midpoint of the company's RevPAR guidance, representing **2.0% growth** over 2024[66](index=66&type=chunk) - Two properties, Alila Ventana Big Sur and The Don CeSar, are expected to be non-comparable for the full year 2025 due to business disruptions[66](index=66&type=chunk) [Reconciliation of 2025 Forecasts](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%2C%20EBITDAre%20and%20Adjusted%20EBITDAre%20and%20Diluted%20Earnings%20per%20Common%20Share%20to%20NAREIT%20and%20Adjusted%20Funds%20From%20Operations%20per%20Diluted%20Share%20for%20Full%20Year%202025%20Forecasts) This section details the reconciliation of the company's full-year 2025 forecast for Net Income to key non-GAAP metrics Full Year 2025 Forecast Metrics | Metric | Forecast Value | | :--- | :--- | | Net Income | $616 million | | Adjusted EBITDAre | $1,705 million | | NAREIT FFO | $1,365 million | | Adjusted FFO | $1,389 million | | Diluted EPS | $0.88 | | NAREIT FFO per diluted share | $1.97 | | Adjusted FFO per diluted share | $2.00 | - Key 2025 forecast assumptions include: comparable hotel RevPAR growth of **2.0%** compared to 2024, a decline in comparable hotel EBITDA margins by **70 basis points**, capital expenditures of approximately **$590 million to $660 million**, and no additional acquisitions or dispositions[70](index=70&type=chunk)[71](index=71&type=chunk) [Ground Lease Summary](index=11&type=section&id=Ground%20Lease%20Summary%20as%20of%20June%2030%2C%202025) This table summarizes the ground lease agreements for 18 of the company's properties as of June 30, 2025 - The company has **18 properties** subject to ground leases with a weighted average remaining lease term of **48 years**, assuming all extension options are exercised[74](index=74&type=chunk) - Based on room count, **70%** of the ground leases are with public lessors, **23%** with private lessors, and **7%** with non-profit lessors[74](index=74&type=chunk) [Capitalization](index=12&type=section&id=CAPITALIZATION) This section presents the company's capitalization, consolidated debt profile, maturity schedule, and property transaction summaries [Comparative Capitalization](index=12&type=section&id=Comparative%20Capitalization) This section provides a comparative overview of the company's capitalization over the past five quarters, from June 30, 2024, to June 30, 2025 Capitalization as of June 30, 2025 | Metric | Value | | :--- | :--- | | Market value of common equity | $10,697 million | | Consolidated debt | $5,077 million | | Pro rata total capitalization | $15,568 million | | Dividends declared per common share (Q2 2025) | $0.20 | [Consolidated Debt Summary](index=13&type=section&id=Consolidated%20Debt%20Summary) This section details the company's consolidated debt as of June 30, 2025, compared to December 31, 2024 Debt Profile as of June 30, 2025 | Metric | Value | | :--- | :--- | | Total Debt | $5,077 million | | Percentage of fixed rate debt | 80% | | Weighted average interest rate | 4.9% | | Weighted average debt maturity | 5.4 years | - The company has **$1,495 million** available capacity under its **$1,500 million** credit facility revolver[82](index=82&type=chunk) [Consolidated Debt Maturity](index=13&type=section&id=Consolidated%20Debt%20Maturity) A chart in this section illustrates the company's consolidated debt maturity schedule as of June 30, 2025 - The company's debt maturity schedule shows no senior note maturities in 2025, with the next tranches due in **2026 ($400 million)** and **2027 ($499 million term loan)**[86](index=86&type=chunk)[87](index=87&type=chunk) [Property Transactions](index=14&type=section&id=Property%20Transactions) This section provides details on the company's property acquisition and disposition activities from 2018 through July 30, 2025 Summary of Property Transactions (2018-2025) | Transaction Type | No. of Rooms | Price (in millions) | Net Income Cap Rate | EBITDA Multiple | | :--- | :--- | :--- | :--- | :--- | | Dispositions | 19,501 | $5,063 | 3.3% | 17.2x | | Acquisitions | 5,273 | $4,909 | 4.3% | 13.6x | - The company sold The Westin Cincinnati for **$60 million** at an **8.8% net income cap rate** and a **14.3x net income multiple**[89](index=89&type=chunk) [Financial Covenants](index=15&type=section&id=FINANCIAL%20COVENANTS) This section details the company's compliance with credit facility and senior notes financial covenants, including GAAP reconciliations [Credit Facility and Senior Notes Financial Performance Tests](index=15&type=section&id=Credit%20Facility%20and%20Senior%20Notes%20Financial%20Performance%20Tests) This section outlines the key financial covenants for the company's credit facility and senior notes, demonstrating compliance as of June 30, 2025 Covenant Compliance as of June 30, 2025 | Covenant | Permitted | Actual Covenant Ratio | | :--- | :--- | :--- | | **Credit Facility** | | | | Leverage Ratio | Max 7.25x | 2.8x | | Unsecured Interest Coverage Ratio | Min 1.75x | 6.9x | | Fixed Charge Coverage Ratio | Min 1.25x | 5.3x | | **Senior Notes** | | | | Indebtedness Test | Max 65% | 23% | | EBITDA-to-interest Coverage ratio | Min 1.5x | 6.8x | [Reconciliations of GAAP Ratios to Covenant Ratios](index=15&type=section&id=Reconciliations%20of%20GAAP%20Ratios%20to%20Covenant%20Ratios) This part of the report provides detailed reconciliations for various financial ratios, showing calculations from GAAP measures to specific covenant definitions [Leverage Ratio Reconciliation](index=15&type=section&id=Leverage%20Ratio%20Reconciliation) This section reconciles the GAAP leverage ratio to the credit facility's leverage ratio - As of June 30, 2025, the GAAP Leverage Ratio was **7.6x**, while the Leverage Ratio per the credit facility was **2.8x**[98](index=98&type=chunk) [Unsecured Interest Coverage Ratio Reconciliation](index=16&type=section&id=Unsecured%20Interest%20Coverage%20Ratio%20Reconciliation) This section reconciles the GAAP interest coverage ratio to the credit facility's unsecured interest coverage ratio - As of June 30, 2025, the GAAP Interest Coverage Ratio was **2.9x**, while the Unsecured Interest Coverage Ratio per the credit facility was **6.9x**[100](index=100&type=chunk) [Fixed Charge Coverage Ratio Reconciliation](index=16&type=section&id=Fixed%20Charge%20Coverage%20Ratio%20Reconciliation) This section reconciles the GAAP interest coverage ratio to the credit facility's fixed charge coverage ratio - As of June 30, 2025, the GAAP ratio was **2.9x**, while the Credit Facility Fixed Charge Coverage Ratio was **5.3x**[101](index=101&type=chunk) [Indebtedness Test Reconciliation](index=17&type=section&id=Indebtedness%20Test%20Reconciliation) This section reconciles the GAAP total indebtedness to total assets ratio with the version used in the senior notes indenture - As of June 30, 2025, the GAAP Total Indebtedness to Total Assets ratio was **39%**, while the ratio per the senior notes indenture was **23%**[104](index=104&type=chunk) [Secured Indebtedness Test Reconciliation](index=17&type=section&id=Secured%20Indebtedness%20Test%20Reconciliation) This section shows the calculation for the secured indebtedness test, comparing GAAP and senior notes indenture ratios - As of June 30, 2025, both the GAAP and senior notes indenture ratios for secured indebtedness to total assets were **less than 1%**[104](index=104&type=chunk) [EBITDA-to-Interest Coverage Ratio Reconciliation](index=18&type=section&id=EBITDA-to-Interest%20Coverage%20Ratio%20Reconciliation) This section reconciles the GAAP interest coverage ratio to the senior notes indenture's EBITDA-to-interest coverage ratio - For the trailing twelve months ended June 30, 2025, the GAAP Interest Coverage Ratio was **2.9x**, while the EBITDA to Interest Coverage Ratio per the senior notes indenture was **6.8x**[107](index=107&type=chunk)[111](index=111&type=chunk) [Unencumbered Assets to Unsecured Indebtedness Test Reconciliation](index=18&type=section&id=Unencumbered%20Assets%20to%20Unsecured%20Indebtedness%20Test%20Reconciliation) This section reconciles the GAAP total assets to total debt ratio with the senior notes indenture's test of unencumbered assets to unsecured debt - As of June 30, 2025, the GAAP Total Assets to Total Debt ratio was **255%**, while the Unencumbered Assets to Unsecured Debt ratio per the senior notes indenture was **442%**[110](index=110&type=chunk) [Notes to Supplemental Financial Information](index=19&type=section&id=NOTES%20TO%20SUPPLEMENTAL%20FINANCIAL%20INFORMATION) This section provides disclaimers for forecasts, defines comparable hotel criteria, and details non-GAAP financial measure definitions [Forecasts](index=19&type=section&id=Forecasts) This section serves as a disclaimer, stating that all forecasts provided in the report are forward-looking statements and not guarantees of future performance - The company's forecasts are subject to significant risks and uncertainties, and actual results may differ materially from projections[115](index=115&type=chunk) [Comparable Hotel Operating Statistics and Results](index=20&type=section&id=Comparable%20Hotel%20Operating%20Statistics%20and%20Results) This note defines the criteria for classifying a hotel as "comparable" - Comparable hotels are defined as properties owned for the entire period that have not undergone significant closures (one month or longer) due to damage or major renovations[116](index=116&type=chunk) - As of June 30, 2025, two properties are excluded from comparable results due to business disruption: The Don CeSar (Hurricane Helene) and Alila Ventana Big Sur (highway collapse)[120](index=120&type=chunk)[123](index=123&type=chunk) [Non-GAAP Financial Measures Definitions](index=20&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) This section provides detailed definitions and justifications for the various non-GAAP financial measures used throughout the report [NAREIT FFO and NAREIT FFO per Diluted Share](index=20&type=section&id=NAREIT%20FFO%20and%20NAREIT%20FFO%20per%20Diluted%20Share) The company presents NAREIT Funds From Operations (FFO) as defined by the National Association of Real Estate Investment Trusts - NAREIT FFO is defined as net income excluding real estate depreciation, gains/losses on sales of depreciable assets, and impairment expenses[121](index=121&type=chunk) [Adjusted FFO per Diluted Share](index=21&type=section&id=Adjusted%20FFO%20per%20Diluted%20Share) Adjusted FFO is a further modification of NAREIT FFO - Adjusted FFO further adjusts NAREIT FFO by excluding items like non-cash stock-based compensation to better reflect ongoing operating performance[124](index=124&type=chunk)[125](index=125&type=chunk) [EBITDA and NOI](index=21&type=section&id=EBITDA%20and%20NOI) EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) is used to evaluate property-level results and the value of acquisitions and dispositions - Management uses EBITDA to evaluate property-level results and NOI (EBITDA less replacement reserves) to calculate capitalization rates for acquisitions and dispositions[126](index=126&type=chunk) [EBITDAre and Adjusted EBITDAre](index=21&type=section&id=EBITDAre%20and%20Adjusted%20EBITDAre) The company presents EBITDAre as defined by NAREIT, with further adjustments for Adjusted EBITDAre - EBITDAre is calculated per NAREIT guidelines. Adjusted EBITDAre further excludes items like acquisition costs, property insurance gains, and non-cash stock-based compensation[127](index=127&type=chunk)[135](index=135&type=chunk) [Limitations on Use of Non-GAAP Measures](index=22&type=section&id=Limitations%20on%20Use%20of%20Non-GAAP%20Measures) This section cautions investors about the limitations of non-GAAP measures like FFO and EBITDA - The company warns that its non-GAAP measures may not be comparable to other companies' metrics and do not reflect all cash expenditures, such as capital improvements and interest expense[131](index=131&type=chunk) [Comparable Hotel Property Level Operating Results](index=23&type=section&id=Comparable%20Hotel%20Property%20Level%20Operating%20Results) This note explains the rationale for presenting comparable hotel results - Comparable hotel results are presented to help investors evaluate period-to-period performance of the core hotel portfolio, separate from the impact of acquisitions, dispositions, or major disruptions[136](index=136&type=chunk)[138](index=138&type=chunk) [Credit Facility and Senior Notes Covenant Ratio Definitions](index=23&type=section&id=Credit%20Facility%20and%20Senior%20Notes%20Covenant%20Ratio%20Definitions) This section defines the financial ratios used in the covenants of the company's credit facility and senior notes indentures - The credit facility and senior notes covenants use specifically defined, non-GAAP calculations for key financial ratios like leverage and interest coverage[139](index=139&type=chunk)[141](index=141&type=chunk) - These covenant calculations are based on pro forma results for the prior four quarters, giving effect to transactions as if they occurred at the beginning of the period, and are not reflective of actual GAAP performance[144](index=144&type=chunk)

Core Insights - Host Hotels & Resorts, Inc. reported a strong operational performance with a 4.2% growth in comparable hotel Total RevPAR and a 3.0% increase in comparable hotel RevPAR for Q2 2025, leading to an increase in full-year guidance [1][5][12] - The company completed the sale of The Westin Cincinnati for $60 million, which is part of its ongoing portfolio management strategy [1][5] - The company has repurchased $105 million of common stock and continues to maintain a robust balance sheet with total assets of $13.0 billion and a debt balance of $5.1 billion [5][6][7] Financial Performance - Total revenues for Q2 2025 reached $1,586 million, an 8.2% increase from $1,466 million in Q2 2024, while year-to-date revenues were $3,180 million, up 8.3% from $2,937 million [3][5] - Net income for Q2 2025 was $225 million, a decrease of 7.0% compared to $242 million in Q2 2024, with year-to-date net income at $476 million, down 7.4% from $514 million [3][5] - Adjusted EBITDAre for Q2 2025 was $496 million, a 3.1% increase from $481 million in Q2 2024, and year-to-date Adjusted EBITDAre was $1,010 million, exceeding 2024 by 4.1% [3][5] Operational Highlights - Comparable hotel Total RevPAR for Q2 2025 was $400.91, reflecting a 4.2% increase year-over-year, driven by strong transient demand and improvements in food & beverage revenues [5][10] - Comparable hotel RevPAR for Q2 2025 was $239.64, up 3.0% from the previous year, primarily due to higher room rates and recovering leisure demand in Maui [5][10] - The company anticipates a decline in operating profit margin and comparable hotel EBITDA margin due to rising wage costs and reduced business interruption proceeds compared to 2024 [12][13] Guidance and Outlook - The company has raised its 2025 guidance for comparable hotel RevPAR growth to a range of 1.5% to 2.5% and Total RevPAR growth to 2.0% to 3.0% over 2024 [1][12] - The guidance reflects expected year-over-year RevPAR decline in Q3 2025, with moderate growth anticipated in Q4 2025 [12][13] - The company estimates that for every 100-basis point change in RevPAR, there would be an expected $32 million to $37 million change in both net income and Adjusted EBITDAre [12][13] Capital Expenditures - Year-to-date capital expenditures through Q2 2025 totaled $298 million, with a full-year forecast ranging from $590 million to $660 million [11] - The company plans to invest in ROI projects and renewals and replacements, with a focus on the Hyatt Transformational Capital Program [11]