Host Hotels' Q3 FFO Tops, Revenues Meet Estimates, Hotel RevPAR Rises

Core Insights - Host Hotels & Resorts, Inc. (HST) reported third-quarter adjusted funds from operations (AFFO) per share of 35 cents, exceeding the Zacks Consensus Estimate of 33 cents, but down 2.8% year-over-year [1][9] - The company generated total revenues of $1.33 billion, meeting the Zacks Consensus Estimate, with a slight year-over-year increase driven by comparable hotel RevPAR growth [2][9] - HST raised its outlook for 2025 AFFO per share to $2.03 from the previous midpoint of $2, with expectations for comparable hotel RevPAR at $227 million and adjusted EBITDAre estimated at $1.73 billion [11] Financial Performance - Comparable hotel RevPAR was $208.07, showing a marginal increase from the prior year, primarily due to higher room rates and strong transient leisure demand [3] - Comparable hotel EBITDA was $309.4 million, down 1% year-over-year, with a margin decrease of 50 basis points to 23.9% due to rising wages and benefit expenses [4] - The average room rate increased to $299.07 from $290.27 in the previous year, while the average occupancy rate was 69.6%, down 190 basis points year-over-year [4] Business Segments - Room nights for the contract business increased by 11.6% year-over-year, while transient and group businesses saw declines of 1.2% and 7.8%, respectively [5] - The transient, group, and contract businesses accounted for approximately 60%, 36%, and 4% of total room sales in 2024 [5] Capital Expenditure and Investments - Host Hotels' capital expenditure for the year-to-date through September 30, 2025, totaled $454 million, with allocations for return on investment projects, renewal and replacement expenditures, and property damage reconstruction [10] - The company agreed with Marriott International on a second transformational capital program for four properties, with total expenditures expected between $300 million and $350 million through 2029 [6] Balance Sheet and Credit Rating - As of September 30, 2025, Host Hotels had cash and cash equivalents of $539 million, up from $490 million at the end of June 2025, with total liquidity of $2.2 billion [7] - Moody's upgraded the company's credit rating to Baa2 with a stable outlook during the third quarter of 2025 [7]