Host Hotels' Q4 AFFO & Revenues Top Estimates, Hotel RevPAR Rises

Core Insights - Host Hotels & Resorts, Inc. (HST) reported fourth-quarter adjusted funds from operations (AFFO) per share of 51 cents, exceeding the Zacks Consensus Estimate of 47 cents, marking a 13.3% increase from the prior-year quarter [1] - Total revenues reached $1.60 billion, surpassing the Zacks Consensus Estimate of $1.54 billion, and reflecting a year-over-year growth of 12.3% [1] Financial Performance - Comparable hotel RevPAR was $227.14 in the fourth quarter, up 4.6% from the previous year, driven by increased room rates and strong transient leisure demand [4] - Comparable hotel EBITDA was $411 million, a 4.1% increase year-over-year, although the EBITDA margin decreased by 30 basis points to 28% due to one-time benefits recognized in 2024 [4] - The average room rate rose to $339.44 from $323.78 in the prior year, while the comparable average occupancy percentage was 66.9%, down 20 basis points from the previous year [5] Business Segments - Room nights for contract and transient business increased by 8.7% and 0.2% year-over-year, while group business declined by 2.5% [6] - The transient, group, and contract businesses accounted for approximately 61%, 34%, and 5% of 2025 room sales, respectively [6] Portfolio Activity - In February 2026, Host Hotels sold the 444-room Four Seasons Resort Orlando and the 125-room Four Seasons Resort and Residences Jackson Hole for a total of $1.1 billion [7] - The company also sold The St. Regis Houston for $51 million in January 2026 [7] Balance Sheet Position - Host Hotels ended the fourth quarter with cash and cash equivalents of $768 million, an increase from $539 million as of September 30, 2025 [8] - Total liquidity amounted to $2.4 billion, including $167 million in FF&E escrow reserves and $1.5 billion available under the revolver portion of the credit facility [10] Capital Expenditure - For 2025, capital expenditure totaled $644 million, with $282 million allocated to total return on investment projects, $287 million for renewal and replacement, and $75 million for property damage reconstruction [11] 2026 Outlook - HST projects full-year AFFO per share to be in the range of $2.03-$2.11, with the Zacks Consensus Estimate at $2.05 [12] - Expected comparable hotel RevPAR is projected between $382-$388 million, and adjusted EBITDAre is estimated to be between $1.74 billion and $1.80 billion [12] - Total capital expenditure for 2026 is anticipated to be in the range of $525-$625 million [12]