Host Hotels & Resorts (HST) Q3 2024 earnings summary

Executive summary

• Total revenues for Q3 2024 increased 8.6% year-over-year to $1.32 billion, driven by acquisitions and strong group business, with comparable hotel Total RevPAR up 3.1% and RevPAR up 0.8%.

• Net income for Q3 2024 was $84 million, down 25.7% year-over-year, impacted by lower insurance settlement gains; year-to-date net income was $598 million, down 3.2%.

• Adjusted EBITDAre for Q3 2024 was $324 million, a 10.2% decrease year-over-year, reflecting the absence of business interruption proceeds recognized in Q3 2023.

• Recent acquisitions include 1 Hotel Central Park and The Ritz-Carlton O'ahu, Turtle Bay, totaling $945 million, with four properties acquired in 2024 for 1,405 rooms and a combined hotel EBITDA of $104.8 million.

• Group and business transient revenues remained strong, offsetting moderating leisure demand and slow recovery in Maui.

Financial highlights

• Comparable hotel Total RevPAR for Q3 2024 was $328.86, up 3.1% year-over-year; year-to-date was $360.07, up 1.6%.

• Comparable hotel EBITDA margin declined 130 bps to 25.3% in Q3 2024, mainly from wage increases and Maui impacts.

• Q3 diluted EPS was $0.12, down from $0.16 last year; year-to-date diluted EPS was $0.84, down from $0.85.

• NAREIT and Adjusted FFO per diluted share for Q3 2024 were $0.36, down 12.2% year-over-year; year-to-date were $1.53, up 3.4%.

• Food and beverage revenue grew 6% in Q3, with record banquet and catering contribution per group room night up 13%.

Outlook and guidance

• Maintained previous full-year comparable hotel guidance at the midpoint, assuming continued Maui recovery and steady demand despite hurricane impacts.

• 2024 full-year guidance: net income $687 million, Adjusted EBITDAre $1.63 billion, diluted EPS $0.96, NAREIT and Adjusted FFO per diluted share $1.92.

• Comparable hotel Total RevPAR expected to increase 1.2% for 2024; comparable hotel RevPAR expected to be flat; EBITDA margin forecasted at 29.0%.

• Estimated $15 million impact to net income and Adjusted EBITDAre from hurricane-related business loss in 2024.

• Full-year 2024 capital expenditures are forecast at $485–$580 million, including $225–$255 million for ROI projects.