Portfolio Overview - The consolidated lodging portfolio consists of 76 luxury and upper-upscale hotels with approximately 41,700 rooms, primarily located in the U.S.[30] - The company owns 76 hotels and has minority interests in an additional 90 hotels through joint ventures[208] - The consolidated portfolio includes 29 hotels with more than 500 rooms, and the average age of the properties is 38 years, benefiting from significant renovations[82] - The hotel portfolio is primarily luxury and upper upscale, with 62.9% of revenues coming from Marriott-branded hotels, including 25 Marriott hotels contributing 35.3% of total revenues[84] - No individual market represents more than 9% of total hotel revenues, indicating a geographically diverse portfolio[89] Financial Performance - Total revenues for 2025 increased by 7.6% to $6,114 million compared to $5,684 million in 2024[216] - Net income rose by 9.8% to $776 million in 2025, up from $707 million in 2024[216] - Operating profit decreased by 2.3% to $855 million, with an operating profit margin under GAAP of 14.0%, down 140 basis points from 15.4% in 2024[216] - Adjusted EBITDAre for 2025 was $1,757 million, reflecting a 4.6% increase from $1,680 million in 2024[216] - Diluted earnings per common share increased by 11.1% to $1.10, compared to $0.99 in 2024[216] - NAREIT FFO per diluted share rose by 3.0% to $2.03, up from $1.97 in 2024[216] Investment Strategy - The company aims to generate superior long-term risk-adjusted returns through asset appreciation, earnings growth, and dividend payments[32] - The strategy includes a geographically diverse portfolio targeting major urban and resort destinations with favorable supply and demand dynamics[32] - The company focuses on acquisitions in the top 25 U.S. markets and considers high-growth potential hotels in other markets[33] - The investment-grade balance sheet allows for a flexible capital structure, targeting a net debt-to-EBITDA ratio to maintain an investment-grade rating[46] - The company plans to continue its capital recycling program, including strategic dispositions of assets that do not meet return expectations[39] Market Conditions - The U.S. lodging industry is experiencing low overall hotel supply growth, influenced by factors such as capital availability, interest rates, and construction costs[59] - In 2025, there was an increase in supply for upscale and luxury properties due to conversions from independent properties, despite overall hotel supply growth remaining low[59] - The company faces competition from online short-term rentals and other REITs for property acquisitions and investment opportunities[99] - The company’s hotel sales are influenced by economic conditions, including inflation, unemployment rates, and potential economic recessions[111] - Hotel supply growth is anticipated to remain below historical averages due to project delays and financing challenges[227] Operational Challenges - Significant capital expenditures are planned for renovations and enhancements to maintain hotel competitiveness, typically occurring every 7 to 10 years[42] - Ongoing renovations and capital expenditures are necessary to maintain competitiveness, but they may lead to reduced operating performance during construction[136] - Labor disputes and negotiations with unionized labor could disrupt hotel operations and increase costs, particularly in New York City[134] - The company does not control hotel operations directly, relying on third-party managers, which may lead to conflicts of interest and operational risks[130] Environmental and Regulatory Factors - The company is committed to responsible investment strategies, focusing on environmental stewardship, social responsibility, and governance[48] - The company is subject to various environmental laws and regulations that may impose liabilities for hazardous substances, although no material claims are currently pending[102] - Environmental liabilities could arise under various laws, potentially leading to significant costs for investigation and remediation of hazardous substances[176] - Changes in government legislation regarding climate change may lead to increased capital expenditures for energy efficiency improvements[151] - Compliance with the Americans with Disabilities Act and other regulations may require substantial capital expenditures, potentially impacting financial condition and results of operations[174] Cybersecurity and Risk Management - Cybersecurity risks pose a significant threat, with past breaches at Marriott highlighting vulnerabilities in information technology systems[144] - The company maintains cyber insurance, but coverage limits may not fully protect against all potential losses from cybersecurity incidents[147] - The company has developed a cybersecurity risk management program aligned with the NIST Cybersecurity Framework to protect critical systems and information[180] - The Audit Committee oversees the cybersecurity risk management program and receives semi-annual updates on information security and cyber risks[185] - The company relies on third-party managers for hotel operations, which may expose it to cybersecurity risks from those managers' systems[183] Employee and Workforce Dynamics - As of February 20, 2026, the company had 162 employees with a voluntary turnover rate of 4% and a total turnover rate of 5% in 2025[104] - The workforce consists of 45% men and 55% women, with 37% minorities, and 21% of management positions held by minorities[105] Joint Ventures and Investments - The company has made a $211.5 million capital commitment to Noble Hospitality Fund V, representing a 21.15% ownership interest in the fund, which owns 87 select service and extended stay hotels[92] - The company owns a 67% interest in a joint venture that includes a 131-unit vacation ownership development in Maui, Hawaii[95] - The joint venture with White Lodging Services owns a 255-room Hyatt Place in Nashville, with a $60 million mortgage loan agreement extended to August 2029[96] - The company has a 49.9% interest in a joint venture owning the 650-room Fort Lauderdale Marriott Harbor Beach Resort & Spa, with a $176 million mortgage loan outstanding[97] - In 2025, the company exited its Asia investment by selling its 36% share in two joint ventures in India[98]

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Host Hotels & Resorts (HST) is trading at a new 52-week high. Shares are up more than 20% over the past year. HST has strong technical momentum and maintains a 100% “Buy” opinion from Barchart. Fundamentals remain solid with a 4% dividend yield. Today’s Featured Stock Valued at $13.93 billion, Host Hotel and Resorts (HST) is the largest lodging real estate investment trust (REIT) and one of the largest owners of luxury and upscale hotels. What I’m Watching I found today’s Chart of the Day by u ...

This story was originally published on Hotel Dive. To receive daily news and insights, subscribe to our free daily Hotel Dive newsletter. Dive Brief: Host Hotels & Resorts has sold the 444-key Four Seasons Resort Orlando at Walt Disney World Resort in Florida as well as the 125-key Four Seasons Resort and Residences Jackson Hole in Wyoming for a combined $1.1 billion, according to a fourth-quarter earnings report filed with the U.S. Securities and Exchange Commission. The real estate investment trust ...

Core Viewpoint - Host Hotels & Resorts, Inc. has updated its investor presentation for the fourth quarter of 2025, highlighting its position as the largest lodging real estate investment trust in the United States [1]. Company Overview - Host Hotels & Resorts, Inc. is an S&P 500 company and the largest lodging real estate investment trust, owning 71 properties in the United States and five properties internationally, totaling approximately 41,700 rooms [2]. - The company also holds non-controlling interests in seven domestic joint ventures, further expanding its footprint in the hospitality sector [2].

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]

For the fourth quarter, Host reported Adjusted EBITDAre of $428 million and adjusted FFO per share of $0.51 . Comparable hotel total RevPAR increased 5.4% year over year, while comparable hotel RevPAR rose 4.6% , which management said was driven by strong leisure transient demand, higher room rates, and increased out-of-room spending.Risoleo said full-year RevPAR and Adjusted EBITDAre exceeded the company’s initial 2025 guidance by 2.3 percentage points and 8.5% , respectively, and that Host’s portfolio out ...

Financial Data and Key Metrics Changes - For the full year 2025, the company reported Adjusted EBITDAre of $1.757 billion, a 4.6% increase over 2024, and Adjusted FFO per share of $2.07, a 3.5% increase year-over-year [5][6] - Comparable hotel total RevPAR grew 4.2%, and comparable hotel RevPAR grew 3.8% compared to 2024 [6] - The fourth quarter delivered Adjusted EBITDAre of $428 million and Adjusted FFO per share of $0.51 [6] Business Line Data and Key Metrics Changes - Comparable hotel EBITDA margin was 28.9%, down 40 basis points year-over-year, influenced by $21 million of business interruption proceeds received in 2024 [6][27] - Transient revenue grew by 6% in the fourth quarter, driven primarily by rate increases, with luxury properties seeing over 10% growth [7][23] - Comparable hotel food and beverage revenue grew approximately 6%, with outlet revenue growing 9% [22] Market Data and Key Metrics Changes - Strong transient performance was noted in markets such as Maui, New York, and San Francisco, with Maui contributing over one-third of the transient revenue growth in the fourth quarter [7][8] - The company expects Maui to contribute approximately $120 million of EBITDA in 2026, up from $111 million in 2025 [8][58] - Group revenue for the fourth quarter was up approximately 1% year-over-year, driven by rate increases despite declines in group room nights [8] Company Strategy and Development Direction - The company is focused on capital allocation through dispositions, portfolio reinvestment, share repurchases, and dividends, maintaining an investment-grade balance sheet [5][12] - The recent sale of the Four Seasons properties for $1.1 billion reflects the company's strategy to monetize assets at attractive returns [10][41] - The company plans to evaluate the best use of capital based on market conditions, which may include returning capital to shareholders or pursuing acquisitions [12][74] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the travel environment, particularly at the upper end of the chain scale, and confidence in the company's ability to capitalize on future opportunities [20] - The guidance for 2026 anticipates comparable hotel total RevPAR growth of between 2.5% and 4%, with EBITDA margins expected to be stable [28][30] - Management highlighted the importance of the World Cup in 2026, expecting a 60 basis point benefit to RevPAR from the event [85] Other Important Information - The company repurchased 13.1 million shares at an average price of $15.68 per share in 2025, returning nearly $860 million of capital to shareholders [14][33] - The company completed approximately $644 million in capital expenditures in 2025, focusing on resiliency initiatives and hurricane restoration [15][18] - The 2026 capital expenditure guidance is set between $525 million and $625 million, with a focus on redevelopment and ROI projects [17] Q&A Session Summary Question: Insights on the Four Seasons sales and future high-value dispositions - Management confirmed a deep buyer pool for luxury assets and indicated that they are open to selling top assets if it maximizes shareholder value [36][40] Question: Details on the Transformational Capital Program - Management explained that the program targets great assets needing repositioning, with expectations of mid-teens cash on cash returns [48][49] Question: Outlook for Maui's EBITDA and growth potential - Management expressed confidence in the $120 million EBITDA forecast for Maui, citing significant growth expected from the Hyatt Regency [58][59] Question: Future capital allocation strategies - Management stated that they will take a measured approach to the remaining proceeds from asset sales, considering market conditions before making decisions [74][75] Question: Expense outlook and labor availability - Management indicated that total expense growth is expected to be 3.3%, with wage rates anticipated to increase by 5% [78][79]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported Adjusted EBITDAre of $1.757 billion, a 4.6% increase over 2024, and adjusted FFO per share of $2.07, a 3.5% increase year-over-year [5][6] - Comparable hotel total RevPAR grew 4.2%, and comparable hotel RevPAR grew 3.8% compared to 2024 [6] - The fourth quarter adjusted EBITDAre was $428 million, with adjusted FFO per share of $0.51 [6] Business Line Data and Key Metrics Changes - Comparable hotel EBITDA margin was 28.9%, down 40 basis points year-over-year, influenced by $21 million of business interruption proceeds received in 2024 [6][27] - Transient revenue grew by 6% in the fourth quarter, primarily driven by rate increases, with luxury properties seeing over 10% growth [7][23] - Comparable hotel food and beverage revenue grew approximately 6%, with strong performance in outlet revenue and banquet contributions [22][23] Market Data and Key Metrics Changes - Strong transient performance was noted in markets such as Maui, New York, and San Francisco, with Maui contributing over one-third of the transient revenue growth in the fourth quarter [7][8] - The company expects Maui to contribute approximately $120 million of EBITDA in 2026, up from $111 million in 2025 [8][58] - Group revenue for the fourth quarter was up approximately 1% year-over-year, driven by rate increases despite declines in group room nights [8][25] Company Strategy and Development Direction - The company is focused on capital allocation through dispositions, portfolio reinvestment, share repurchases, and dividends, while maintaining an investment-grade balance sheet [5][12] - The recent sale of the Four Seasons properties for $1.1 billion reflects the company's strategy to monetize assets at attractive returns [10][41] - The company plans to evaluate the best use of capital based on market conditions, which may include returning capital to shareholders or pursuing acquisitions [12][76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the travel environment, particularly at the upper end of the chain scale, and believes the company is well-positioned to capitalize on future opportunities [20][30] - For 2026, the company anticipates comparable hotel total RevPAR growth of between 2.5% and 4%, and comparable hotel RevPAR growth of between 2% and 3.5% over 2025 [28][30] - The company expects wage rates to increase approximately 5% in 2026, with total expense growth assumed at 3.3% [30][81] Other Important Information - The company completed approximately $644 million in capital expenditures in 2025, focusing on resiliency initiatives and hurricane restoration [15] - The company has a weighted average maturity of 5.1 years on its debt, with no maturities in 2026, and ended 2025 with a leverage ratio of 2.6 times [32] - The company returned nearly $860 million of capital to shareholders in 2025, including share repurchases and dividends [14] Q&A Session Summary Question: Insights on the Four Seasons sales and future high-value dispositions - Management highlighted the depth of the buyer pool for luxury assets and indicated that they are open to selling top-performing assets if it maximizes shareholder value [36][40] Question: Details on the Transformational Capital Program - Management explained that the program targets great assets needing repositioning, with expectations of mid-teens cash on cash returns from the investments [48][50] Question: Outlook for Maui's EBITDA and recovery - Management expressed confidence in the $120 million EBITDA forecast for Maui in 2026, noting significant growth expected from the Hyatt Regency Maui [58][59] Question: Future capital allocation strategies - Management stated that they will take a measured approach to capital allocation, considering market conditions and operational performance before making decisions [75][76] Question: Expense outlook and labor availability - Management indicated that total expense growth is expected to be 3.3%, with wage rates projected to increase by 5%, but overall expenses may be lower due to productivity enhancements [80][81]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported Adjusted EBITDAre of $1.757 billion, a 4.6% increase over 2024, and adjusted FFO per share of $2.07, a 3.5% increase year-over-year [3][4] - Comparable hotel total RevPAR grew 4.2%, while comparable hotel RevPAR increased by 3.8% compared to 2024 [4] - The full-year RevPAR and adjusted EBITDAre exceeded initial 2025 guidance by 2.3 percentage points and 8.5% respectively [4] Business Line Data and Key Metrics Changes - Comparable hotel EBITDA margin was 28.9%, down 40 basis points year-over-year, influenced by $21 million of business interruption proceeds received in 2024 [4][27] - In the fourth quarter, comparable hotel total RevPAR improved by 5.4%, and comparable hotel RevPAR was up 4.6%, driven by strong leisure transient demand and higher room rates [5] - Transient revenue grew by 6%, primarily due to rate increases, with luxury resorts showing particularly strong performance [5][22] Market Data and Key Metrics Changes - Strong transient performance was noted in markets such as Maui, New York, and San Francisco, with Maui contributing over one-third of the transient revenue growth in the fourth quarter [5][6] - The company expects Maui to contribute approximately $120 million of EBITDA in 2026, up from $111 million in 2025 [6][60] - Group revenue for the fourth quarter was up approximately 1% year-over-year, driven by rate increases despite a decline in group room nights [6][25] Company Strategy and Development Direction - The company is focused on capital allocation through dispositions, portfolio reinvestment, share repurchases, and dividends, while maintaining an investment-grade balance sheet [3][11] - The recent sale of the Four Seasons properties for $1.1 billion reflects the company's strategy to monetize assets at attractive returns [9][42] - The company plans to evaluate the best use of capital based on market conditions, which may include returning capital to shareholders or pursuing acquisitions [11][76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the travel environment, particularly at the upper end of the chain scale, and believes the company is well-positioned to capitalize on future opportunities [20] - For 2026, the company anticipates comparable hotel total RevPAR growth of between 2.5% and 4%, and comparable hotel RevPAR growth of between 2% and 3.5% [28] - The company expects stable operating conditions with continued leisure transient strength and modest improvements in group booking trends [27][31] Other Important Information - The company repurchased 13.1 million shares at an average price of $15.68 per share in 2025, returning nearly $860 million of capital to shareholders [13][34] - The company invested approximately $644 million in capital expenditures and renovations across its portfolio in 2025 [14][17] - The company has a weighted average maturity of 5.1 years on its debt with no maturities in 2026, ending 2025 with a leverage ratio of 2.6 times [33] Q&A Session Summary Question: Depth of buyer pool for Four Seasons sales and outlook for high-value dispositions - Management indicated that there is a deep buyer pool for luxury assets, including sovereigns and private equity firms, and they are open to selling top assets at the right price [36][41] Question: Details on the Transformational Capital Program - Management explained that the selected hotels for the program are great assets needing repositioning, with expectations of mid-teens cash on cash returns from the investments [50][51] Question: Outlook for Maui's EBITDA and potential upside - Management expressed confidence in the $120 million EBITDA forecast for Maui in 2026, with potential for upside based on group pace and short-term bookings [59][61] Question: Future capital allocation strategies - Management stated that they will take a measured approach to capital allocation, considering market conditions and operational performance before deciding on the use of proceeds [76] Question: Expense outlook and labor availability - Management expects total expense growth of 3.3% with wage rates increasing by 5%, but productivity enhancements and lower insurance costs may help manage overall expenses [80][82]