Host Hotels & Resorts (HST) Q1 2025 earnings summary

Executive summary

• Q1 2025 Adjusted EBITDAre was $514M, up 5.1% year-over-year, with net income of $251M, down 7.7% due to lower insurance gains and higher interest expense.

• Comparable hotel RevPAR grew 7.0% and comparable hotel Total RevPAR rose 5.8%, driven by strong rate growth, group demand, and recovery in key markets like Washington, D.C., New York, and Maui.

• Portfolio benefited from robust transient and group demand, with Maui resorts and The Don CeSar showing significant recovery and contributing to RevPAR growth.

• Maintained a strong investment grade balance sheet, $2.2B in liquidity, and net leverage of 2.8x as of March 31, 2025.

• Portfolio quality improved through accretive recycling, reinvestment, and transformational renovations, with 81 hotels and 43,400 rooms primarily in upper upscale and luxury segments.

Financial highlights

• Q1 2025 total revenues were $1.59B, up 8.4% year-over-year; comparable hotel EBITDA margin improved by 30 bps to 31.8%.

• Adjusted FFO per diluted share was $0.64, up 4.9% year-over-year; NAREIT FFO per diluted share was $0.63, up 5.0%.

• Operating profit for Q1 2025 was $285M, with an operating profit margin of 17.9%.

• Free cash flow as a percentage of total revenue (2019-2024) was 9.3%, more than double the peer average.

• Cash and cash equivalents at March 31, 2025, were $428M, with $1.5B available under the revolver.

Outlook and guidance

• 2025 full-year guidance: comparable hotel RevPAR growth of 0.5% to 2.5%, Total RevPAR growth of 0.7% to 2.7%, and Adjusted EBITDAre of $1.61B to $1.68B.

• Net income forecasted at $512M–$581M; diluted EPS $0.72–$0.82; margin declines expected due to wage, tax, and insurance cost growth.

• Capital expenditures for 2025 forecasted at $580M–$670M, including $270M–$315M for ROI projects and $70M–$80M for hurricane restoration.

• Guidance assumes a mild slowdown at the low end and stable macro environment at the high end.

• For every 100 bps change in RevPAR, expect a $32M–$37M change in adjusted EBITDAre.