Host Hotels & Resorts (HST) Q4 2024 earnings summary

Executive summary

• Achieved operational improvements in 2024, driven by rate growth, out-of-room spending, and $1.5 billion in acquisitions across four properties, expanding into three new markets and reinvesting significantly in the portfolio.

• Returned over $844 million to shareholders via dividends and share repurchases, while maintaining an investment-grade balance sheet and robust liquidity.

• Ended 2024 with 81 hotels and 43,400 rooms, maintaining a premier U.S. lodging REIT position with a $12.4 billion market cap and $17.2 billion enterprise value.

• Finished 2024 above guidance estimates, with strong performance in transient and leisure segments, especially in Maui, New York, and O'ahu.

• Net income for 2024 was $707 million, down 6% from 2023, due to lower asset sale gains and higher interest expense.

Financial highlights

• 2024 revenues reached $5.68 billion, up 7% year-over-year; adjusted EBITDAre was $1.656 billion, up 1.7%; adjusted FFO per share was $1.97, up 2.6%.

• Comparable hotel Total RevPAR grew 2.1% for the year and 3.3% in Q4; comparable hotel RevPAR was $219.49, up 6.2% year-over-year.

• Comparable hotel EBITDA for 2024 was $1.68 billion, up from $1.6758 billion in 2023; margin declined 60 bps to 29.2%.

• Food & beverage revenue grew nearly 3% in Q4 and 3.6% for the year; other revenue up 8% in Q4.

• Hurricanes Helene and Milton negatively impacted 2024 Adjusted EBITDAre by $15 million.

Outlook and guidance

• 2025 guidance assumes stable operations, gradual Maui recovery, and continued group and business transient improvement, with comparable hotel RevPAR growth of 0.5%–3% over 2024.

• 2025 revenues projected at $5.996–$6.102 billion; adjusted EBITDAre midpoint is $1.62 billion; net income guidance is $486–$546 million.

• EBITDA margin expected to decline 150–210 bps year-over-year; operating profit margin and comparable hotel EBITDA margin expected to decline due to wage, tax, and insurance cost growth.

• Q1 2025 expected to see mid-single digit RevPAR growth, with January up 9.5%; remaining quarters to see low single-digit growth.

• 2025 CapEx guidance is $580–$670 million, including $70–$80 million for property damage reconstruction and $270–$315 million for redevelopment and ROI projects.