Financial Data and Key Metrics Changes - In Q4 2025, RevPAR was approximately $182, reflecting a nearly 1% year-over-year increase, or nearly 3% when excluding the Royal Palm [20] - For the full year, RevPAR declined 2% versus 2024, while hotel adjusted EBITDA margin was 26.5%, a reduction of 130 basis points from the prior year [21] - Core hotel adjusted EBITDA margin improved by 230 basis points to 30%, contrasting with a 280 basis point contraction in the non-core portfolio [20][21] Business Line Data and Key Metrics Changes - The core portfolio delivered a RevPAR increase of 6% to nearly $216, significantly outperforming the non-core portfolio by nearly 1,500 basis points [20] - Fourth quarter group revenue for the core portfolio increased 13% year-over-year, with double-digit growth in banquet and catering revenues across key markets [11] - The Royal Palm renovation is expected to generate a 15%-20% return on invested capital, with projected EBITDA doubling from $14 million to nearly $28 million once stabilized [16] Market Data and Key Metrics Changes - The core portfolio outperformed the non-core hotels by an average of 480 basis points in 2025, reinforcing the company's strategic focus [10] - Hawaii is expected to be a significant contributor to earnings growth, with a multiyear recovery anticipated as demand trends improve [12] - New York delivered its highest fourth quarter group revenue in hotel history, up over 8% year-over-year, indicating strong market performance [14] Company Strategy and Development Direction - The company is focused on reshaping its portfolio by concentrating ownership in 21 core hotels with superior growth prospects and aggressively exiting non-core assets [6][8] - Over $120 million in non-core sales were executed at a blended multiple of 21x, with a strong track record of successfully recycling capital [7] - The company aims to complete its transition to a streamlined portfolio of high-quality hotels located in premium gateway cities and resort markets [18] Management's Comments on Operating Environment and Future Outlook - The U.S. economy remains on firm footing, with modestly higher growth expectations and easing inflation, which should support consumer demand [16] - The company remains cautious in its guidance due to potential geopolitical or macroeconomic volatility impacting booking decisions [17] - Management is optimistic about the setup for 2026, with anticipated demand boosts from major events like the World Cup [17] Other Important Information - The company invested nearly $300 million across the portfolio in 2025, with a planned reduction in capital investment for 2026 to $230 million-$260 million [22][24] - As of year-end 2025, liquidity was approximately $2 billion, including $200 million in cash and $1 billion in available capacity under the revolver [25] - The company returned a total of $245 million of capital in 2025, including $200 million in dividends and $45 million in share repurchases [32] Q&A Session Summary Question: Earnings trajectory for Hawaii properties - Management indicated that Hawaii properties should see mid-single-digit EBITDA growth, with RevPAR growth expected to be on the higher end of the 2% range [36][38] Question: Sequential change in Hilton Hawaiian Village performance - Management noted a 37% decrease in group pace for Q1, impacting expected performance despite a strong Q4 [45] Question: Non-core asset sales and potential for core hotel sales - Management emphasized a focus on non-core asset sales, with core hotels accounting for 90% of EBITDA and value, making them less likely to be sold [70][72] Question: Impact of World Cup on Miami property - Management expressed confidence in capturing demand from the World Cup, with the Royal Palm expected to open in early June [49][75] Question: Future growth and potential acquisitions - Management is optimistic about transitioning to an offensive strategy post non-core asset sales, with potential for acquisitions in the future [81][82]

Core Insights - Marriott International Inc continues to outperform in the competitive hotel industry, maintaining a strong position against competitors like Hilton and Hyatt [1] - BMO Capital has reaffirmed its "Outperform" rating for Marriott, raising the price target from $370 to $400 [1] Financial Performance - Marriott reported revenue of $6.69 billion for Q4 2025, slightly above analysts' expectations of $6.67 billion, leading to an 8.5% stock surge to $359.35 [2][6] - The adjusted earnings per share (EPS) were $2.58, slightly below the consensus of $2.61, while worldwide revenue per available room (RevPAR) increased by 1.9% [3][6] - International RevPAR growth was 6.1%, which helped offset flat performance in the US and Canada [3] Future Projections - For Q1, Marriott projects adjusted EPS between $2.50 and $2.55, aligning with Wall Street expectations, and anticipates worldwide RevPAR growth of 1% to 2% [4] - For the full year, adjusted EPS is expected to range from $11.32 to $11.57, with RevPAR growth projected between 1.5% and 2.5% [4] Growth Strategy - Marriott aims for net room growth of 4.5% to 5% and plans for capital returns exceeding $4.3 billion [5] - The stock has fluctuated between a low of $347.36 and a high of $363.54, with a market capitalization of approximately $96.43 billion [5]

Financial Data and Key Metrics Changes - Global RevPAR grew by 0.1% in Q3 2025, consistent with Q2 performance, driven by strong trading in EMEA-A and improvement in Greater China [5][6] - Year-to-date global RevPAR increased by 1.4% [22] - In the Americas, RevPAR decreased by 0.9% in Q3, with the U.S. down 1.6% due to slower trading conditions [5][6] - EMEA-A RevPAR increased by 2.8% in Q3, with year-to-date growth at 3.8% [6][7] - Greater China saw a 1.8% decline in RevPAR in Q3, an improvement from previous quarters [7][8] Business Line Data and Key Metrics Changes - Rooms revenue for business days increased by 4% globally, while leisure and groups decreased by 2% and 4% respectively [8] - System growth included the opening of 14,500 rooms across 99 hotels globally, marking a 17% year-on-year increase [9] - The Americas saw a gross system growth of 3.6% year-on-year, with 2,700 rooms opened in Q3 [10] - EMEA-A region experienced a gross system growth of 10.4% year-on-year, with 4,200 rooms opened [11] - Greater China achieved a gross system growth of 12.8% year-on-year, with 7,600 rooms opened [12] Market Data and Key Metrics Changes - In EMEA-A, RevPAR growth varied by market, with the UK up 2.8% and the Middle East up 9.5% [7] - Greater China showed strong growth in Tier 1 cities, while Tiers 2 to 4 faced declines [8] - U.S. government travel remained about 20% lower than the previous year, impacting overall demand [6] Company Strategy and Development Direction - The company plans to launch a new collection brand targeting the upscale to upper upscale segment, initially focusing on the EMEA-A region [19][20] - The new brand aims to complement existing brands like Voco and Vignette Collection, which have seen success in the market [19][20] - The company is optimistic about long-term demand drivers, despite short-term challenges in the U.S. market [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in the U.S. as economic uncertainty subsides [6][18] - The outlook for 2025 includes expectations for 12% EBIT growth and 15% EPS growth [22] - Management highlighted strong fundamentals in the U.S. economy, including employment and consumer spending, as positive indicators for future performance [32][34] Other Important Information - The company is 78% through its $900 million share buyback program, reducing share count by 3.9% [14] - IHG plans to change the currency of its ordinary shares traded on the London Stock Exchange from British pounds to U.S. dollars starting January 2026 [15][16] Q&A Session Summary Question: Net system growth for 2026 and RevPAR outlook - Management is comfortable with a consensus of around 4.5% net system growth for 2025, with strong signings and conversions expected to continue [25][27] - RevPAR for the fourth quarter is expected to be similar to Q3, with short booking windows impacting performance [30][31] Question: New brand launch and U.S. demand weakness - The new brand launch is focused on the EMEA region due to a higher proportion of independent hotels available for conversion [42][43] - Weakness in U.S. leisure demand is attributed to several factors, including lower international inbound travel and economic uncertainties [47][48] Question: Timing of new brand launch and performance in China - Details on the new brand launch will be provided in the coming months, with expectations for continued improvement in China [55][56] Question: Ruby brand performance and churn rates - The Ruby brand is performing well with multiple signings and openings planned [62] - Management aims to reduce churn rates to 1.5% over the long term, with no immediate need for brand refreshes [66][67] Question: Buyback completion - Management is confident in completing the buyback program by the end of the year [67]

Core Insights - Host Hotels & Resorts Inc. (HST) shares have increased by 9.8% over the past three months, outperforming the industry average of 1.7% [1] - The company reported second-quarter adjusted funds from operations (AFFO) per share of 58 cents, exceeding the Zacks Consensus Estimate of 51 cents, and reflecting a 1.8% increase year-over-year [2] - The company anticipates comparable hotel RevPAR growth of 1.5% to 2.5% in 2025, driven by strong demand in group travel and business transient segments [4] Financial Performance - HST's revenue growth is attributed to higher year-over-year comparable hotel revenue per available room (RevPAR) [2] - The company has executed $1.6 billion in asset dispositions and $3.3 billion in acquisitions since 2021, demonstrating effective capital management [6][7] Capital Management - HST has a strategic capital-recycling program that disposes of non-strategic assets and reinvests in premium properties, enhancing portfolio quality [6] - The company incurred $298 million in capital expenditures in the first half of 2025, with total expected capital expenditures for the year between $590 million and $660 million [5] Balance Sheet Strength - As of June 30, 2025, HST had $2.3 billion in total available liquidity, a weighted average debt maturity of 5.4 years, and a weighted average interest rate of 4.9% [7] - HST holds an investment-grade rating among lodging REITs, which allows access to debt markets at favorable costs [8] Dividend Policy - HST has increased its dividend eight times over the past five years, maintaining a payout ratio of 40%, which enhances investor confidence [9] Analyst Outlook - Analysts have a positive outlook on HST, with a Zacks Rank of 3 (Hold) and a revised consensus estimate for 2025 FFO per share increased by 2.6% to $1.97 [10]