Core Insights - Host Hotels & Resorts, Inc. reported better-than-expected third-quarter financial results, with quarterly FFO of 35 cents, surpassing market estimates of 33 cents, and sales of $1.331 billion, exceeding expectations of $1.313 billion [1] - The company raised its FY2025 FFO guidance from a range of $1.98-$2.02 to $2.03, indicating positive growth expectations [1] Financial Performance - The company achieved comparable hotel Total RevPAR growth of 0.8% over Q3 2024, driven by strong transient demand, which improved room revenues and ancillary spending [2] - Comparable hotel RevPAR increased by 0.2% over the same quarter last year, supported by higher rates across the portfolio and improving leisure transient trends in Maui [2] - The company now expects comparable hotel RevPAR growth of approximately 3.0% and comparable hotel Total RevPAR growth of approximately 3.4% over 2024, exceeding previous guidance ranges [2] Market Reaction - Following the earnings announcement, Host Hotels shares rose by 3.1%, trading at $17.86 [2] Analyst Ratings - Compass Point analyst Floris Van Dijkum upgraded Host Hotels from Neutral to Buy, raising the price target from $18 to $22.5 [5] - JP Morgan analyst Daniel Politzer maintained a Neutral rating but raised the price target from $17 to $18 [5]

Core Insights - Host Hotels & Resorts, Inc. reported a 0.8% increase in comparable hotel Total RevPAR for Q3 2025 compared to Q3 2024, driven by strong transient demand and improvements in room revenues and ancillary spend [1][4][5] - The company raised its full-year guidance for comparable hotel RevPAR growth to approximately 3.0% for 2024, exceeding previous expectations [1][4] - The company completed the sale of the Washington Marriott at Metro Center for $177 million, recording a gain on sale of approximately $122 million [5][10] Financial Performance - Total revenues for Q3 2025 were $1,331 million, a 0.9% increase from $1,319 million in Q3 2024, with year-to-date revenues of $4,511 million, up 6.0% from $4,256 million [3][5] - Net income for Q3 2025 was $163 million, reflecting a 94.0% increase compared to $84 million in Q3 2024, with year-to-date net income of $639 million, a 6.9% increase from $598 million [3][5] - Comparable hotel RevPAR for Q3 2025 was $208.07, a 0.2% increase from $207.58 in Q3 2024, with year-to-date comparable hotel RevPAR of $229.95, up 3.5% from $222.10 [3][5] Operational Highlights - The company reported a decline in comparable hotel EBITDA for Q3 2025 to $309 million, down 1.3% from Q3 2024, with a comparable hotel EBITDA margin decrease of 50 basis points to 23.9% [5][10] - The company anticipates a decline in operating profit margin and comparable hotel EBITDA margin due to rising wages and a decrease in business interruption proceeds compared to 2024 [12][13] - The company has entered into a new agreement with Marriott for a second transformational capital program at four properties, expecting to invest between $300 million and $350 million through 2029 [10][11] Market Trends - The company’s customer mix for 2024 consisted of approximately 60% transient, 36% group, and 4% contract business, with group room nights down year-over-year due to planned renovations [7][8] - The company expects favorable demand trends to continue, supported by its investment-grade balance sheet and diversified portfolio [4][10] Capital Expenditures - Year-to-date capital expenditures through Q3 2025 totaled $454 million, with a full-year forecast of $605 million to $640 million [9][10] - The company has allocated $114 million for ROI projects under the Marriott and Hyatt Transformational Capital Programs [9][10] Outlook - The company revised its 2025 guidance for comparable hotel Total RevPAR to $380, reflecting a 3.4% increase compared to 2024, and comparable hotel RevPAR to $227, a 3.0% increase [14][13] - The anticipated contribution from condominium development adjacent to the Four Seasons Resort Orlando has declined by $5 million from previous guidance, with expected sales prices and project costs remaining on target [13][14]