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, aided by insurance gains and acquisitions.

• Comparable hotel RevPAR was nearly flat, up 0.1%, while Total RevPAR increased 0.5% year-over-year, with group business offsetting softer leisure demand and Maui wildfire impacts.

• Acquisitions included 1 Hotel Central Park ($265M) and The Ritz-Carlton Oahu Turtle Bay ($680M), expanding presence in key markets.

• Group and business transient segments remained strong, but leisure demand moderated as outbound international travel increased.

• Host Hotels & Resorts operates as a leading U.S. lodging REIT with 81 hotels and 43,400 rooms in 21 top U.S. markets.

Financial highlights

• Q2 2024 revenues: $1.47 billion (+5.2% YoY); net income: $242 million (+13.1% YoY); Adjusted EBITDAre: $476 million (+6.7% YoY); Adjusted FFO per share: $0.57 (+7.5% YoY).

• Comparable hotel EBITDA margin: 32.6%, down 10 bps year-over-year, impacted by higher wages and insurance costs.

• Business interruption proceeds: $21M (Maui wildfires), $9M (Hurricane Ian); insurance settlements contributed $53M in Q2.

• Q2 group revenue up 8%, business transient up 4%, leisure revenue slightly down but rates 51% above 2019.

• Dividend declared per common share was $0.20 for Q2 2024.

Outlook and guidance

• 2024 comparable hotel RevPAR growth expected between -1% and +1% over 2023; minimal RevPAR growth anticipated in H2 2024.

• Comparable hotel EBITDA margins projected to decline 60–110 bps year-over-year; operating profit margin expected to be flat.

• Full-year adjusted EBITDAre midpoint revised to $1.645B, with net income guidance of $683–$741 million.

• Maui wildfires expected to impact full-year comparable hotel total RevPAR by 120 bps and RevPAR by 180 bps.

• 2024 capital expenditures expected at $500M–$600M, including $220M–$260M for ROI projects.