Host Hotels & Resorts(US:HST) ZACKS·2025-07-31 16:56Core 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]