Host Hotels Gears Up to Report Q2 Earnings: Key Factors to Consider

Core Viewpoint - Host Hotels & Resorts, Inc. (HST) is expected to report second-quarter 2025 earnings on July 30, with anticipated revenue growth but a decline in adjusted funds from operations (AFFO) per share [1][6]. Financial Performance - In the previous quarter, HST reported an AFFO per share of 64 cents, exceeding the Zacks Consensus Estimate of 56 cents, reflecting a year-over-year revenue increase [2]. - Over the last four quarters, HST's AFFO per share surpassed estimates three times, with an average surprise of 6.52% [2]. Market Position and Strategy - HST has a portfolio of luxury and upper-scale hotels in prime U.S. markets and the Sunbelt region, strategically located to drive demand [2][3]. - Continuous improvement in group business has contributed to hotel revenue per available room (RevPAR) growth, which is expected to continue in Q2 [3]. Revenue and Occupancy Estimates - The Zacks Consensus Estimate for HST's Q2 revenues is $1.50 billion, indicating a 2.1% increase from the previous year [5]. - The estimated RevPAR for Q2 is $232.12, up from $224.29 in the same quarter last year, while the average occupancy rate is expected to decrease to 73.9% from 74.4% [5]. Interest Expenses Impact - Interest expenses for Q2 are projected to rise by 14.7% year over year, which may negatively affect HST's performance [6][7]. - The consensus estimate for AFFO per share has been revised down to 51 cents, reflecting a 10.5% decline from the previous year [6]. Earnings Prediction Model - The quantitative model does not predict a surprise in AFFO per share for HST this quarter, with an Earnings ESP of -2.39% and a Zacks Rank of 3 [7][8].