Host Hotels & Resorts(HST) - 2025 Q2 - Quarterly Results

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 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] Company Snapshot (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Market Cap | $10.7 billion | | Enterprise Value | $15.6 billion | Analyst Coverage 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][12] - Host Hotels & Resorts disclaims endorsement of any analyst opinions, forecasts, or recommendations[13] Forward-Looking Statements 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] Non-GAAP Financial Measures 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] - 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] Property Level Data and Corporate Measures This section details comparable hotel operating results by location, historical performance, 2025 forecasts, and ground lease summaries Comparable Hotel Results by Location 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 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 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] - 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] Reconciliation of 2025 Forecasts 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][71] Ground Lease Summary 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] - Based on room count, 70% of the ground leases are with public lessors, 23% with private lessors, and 7% with non-profit lessors[74] Capitalization This section presents the company's capitalization, consolidated debt profile, maturity schedule, and property transaction summaries Comparative Capitalization 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 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] Consolidated Debt Maturity 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][87] Property Transactions 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] Financial Covenants 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 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 This part of the report provides detailed reconciliations for various financial ratios, showing calculations from GAAP measures to specific covenant definitions Leverage Ratio Reconciliation 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] Unsecured Interest Coverage Ratio Reconciliation 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] Fixed Charge Coverage Ratio Reconciliation 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] Indebtedness Test Reconciliation 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] Secured Indebtedness Test Reconciliation 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] EBITDA-to-Interest Coverage Ratio Reconciliation 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][111] Unencumbered Assets to Unsecured Indebtedness Test Reconciliation 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] Notes to Supplemental Financial Information This section provides disclaimers for forecasts, defines comparable hotel criteria, and details non-GAAP financial measure definitions 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] Comparable Hotel Operating Statistics and Results 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] - 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][123] Non-GAAP Financial Measures Definitions 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 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] Adjusted FFO per Diluted Share 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][125] EBITDA and NOI 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] EBITDAre and Adjusted EBITDAre 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][135] Limitations on Use of Non-GAAP Measures 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] Comparable Hotel Property Level Operating Results 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][138] Credit Facility and Senior Notes Covenant Ratio Definitions 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][141] - 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]