Host Hotels & Resorts (HST) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 5.2% year-over-year to $1.47 billion, with net income up 13.1% to $242 million and Adjusted EBITDAre up 6.7% to $476 million, including business interruption proceeds from Maui wildfires and Hurricane Ian.

• Comparable hotel Total RevPAR increased 0.5% year-over-year, while comparable hotel RevPAR was nearly flat at 0.1% growth; group business and banquet/catering revenue offset softer leisure demand.

• Major acquisitions included 1 Hotel Central Park ($265M) and Ritz-Carlton Oahu Turtle Bay ($630M–$680M), expected to generate $22 million Adjusted EBITDAre for 2024.

• Group and business transient segments showed strength, while leisure demand moderated due to increased outbound international travel and Maui wildfire impacts.

Financial highlights

• Q2 2024 comparable hotel EBITDA margin was 32.6%, down 10 basis points year-over-year, with Maui operations impacting margin by 60 basis points excluding insurance proceeds.

• Q2 2024 net income was $242 million, up 13.1% year-over-year; diluted EPS was $0.34, up 17.2%.

• Adjusted FFO per share was $0.57 for Q2 2024, up 7.5% year-over-year.

• Share repurchases totaled $50 million in Q2 at an average price of $17.81 per share; $742 million remains under the repurchase program.

• Total available liquidity was $1.4 billion, with $805 million in cash and $1.5 billion available under the revolver as of June 30, 2024.

Outlook and guidance

• 2024 full-year comparable hotel RevPAR growth expected between -1% and +1% over 2023; total RevPAR growth midpoint at 1.2%.

• Comparable hotel EBITDA margin expected to decline 60–110 basis points year-over-year; midpoint margin at 29.3%.

• Net income guidance for 2024 is $683–$741 million; Adjusted EBITDAre $1,615–$1,675 million; Adjusted FFO per diluted share $1.90–$1.98.

• Guidance assumes continued Maui recovery headwinds and moderating domestic leisure demand due to international travel imbalance.

• Capital expenditures for 2024 are expected to be $500–$600 million, including $220–$260 million for redevelopment and ROI projects.