Latest news with #HostHotels
Globe and Mail
01-08-2025
- Business
- Globe and Mail
Host Hotels (HST) Q2 Revenue Jumps 8%
Key Points Revenue (GAAP) for Q2 2025 reached $1,586 million, topping GAAP expectations by $76.0 million and up 8.2% compared to the prior year (GAAP). Though down 5.9% from the same period in 2024. Comparable hotel RevPAR increased 3.0% in Q2 2025 (non-GAAP) as transient demand offset weaker group trends, while Margins fell in Q2 2025 due to lower insurance proceeds and rising wages. These 10 stocks could mint the next wave of millionaires › Host Hotels & Resorts (NASDAQ:HST), the largest lodging real estate investment trust (REIT) focused on luxury and upper-upscale hotels, published its Q2 2025 results on July 30, 2025. The headline news was a revenue figure of $1.59 billion (GAAP) for Q2 2025, well ahead of analyst expectations for $1.51 billion (GAAP) revenue in Q2 2025. Diluted earnings per share (EPS) landed at $0.32, but marking a slight dip from last year's $0.34. While revenue and adjusted earnings were robust, Margins tightened in Q2 2025 due to lower insurance proceeds and rising wage costs. Overall, the quarter reflected solid top-line growth and strong operating execution—even as profitability came under some pressure in Q2 2025. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Business Overview and Key Priorities Host Hotels & Resorts owns a portfolio of 81 luxury and upper-upscale hotels as of February 21, 2025, mainly located in top U.S. urban and resort destinations, plus a handful of international assets. Its hotels operate under premium brands such as Marriott, Hyatt, Ritz-Carlton, and Four Seasons. Host generates most of its revenue from hotel operations, including room sales, food and beverage, and events, rather than from direct property development or leasing. Recent years have seen the company sharpen its focus on owning a geographically diverse portfolio and maintaining a strong investment-grade balance sheet. Management closely monitors market trends, reinvests heavily in property upgrades, and uses enterprise analytics to benchmark performance and improve returns. Key success factors include capturing high-value demand across business, leisure, and group segments, staying ahead on renovations, and balancing capital allocation between growth investments and shareholder returns. Quarter in Review: Notable Financial and Operational Trends The second quarter brought several standout results. Total revenue (GAAP) reached $1.59 billion in Q2 2025, up 8.2% from the prior-year period and outpacing expectations by 5.0%. This outperformance was supported by both room and food-and-beverage revenue, as well as a notable rebound in leisure travel. Comparable hotel revenue increased 4.2% in Q2 2025 (non-GAAP), and comparable hotel revenue per available room (RevPAR) grew by 3.0% in the second quarter of 2025 compared to the same period in 2024. RevPAR is a core metric in hospitality calculated as room revenues divided by the available room nights.—indicating both pricing power and demand. Performance varied across segments. Transient business (rooms rented to individual travelers and vacationers) grew with a 1.6% year-over-year increase in room nights and a 6.8% rise in related revenue. The contract segment, representing corporate room blocks and airline crew contracts, also saw double-digit gains in both nights and revenue. Group business faced some headwinds: group room nights fell 6.1%, and group revenue declined 4.9%. Management attributed this in part to planned hotel renovations, which disrupted group volumes, especially in Maui, and a short-term shift in business mix away from group bookings. Despite these group pressures, total demand for leisure and contract customers remained healthy. Geographically, certain markets were standouts. Maui led the portfolio with an 18.6% surge in comparable hotel RevPAR. Miami, Atlanta, San Francisco/San Jose, and New York also delivered double-digit RevPAR or Total RevPAR increases. On the flip side, key markets such as Washington, D.C. (Central Business District), Nashville, and Austin underperformed, posting comparable hotel RevPAR declines between 7.3% and 40.9%. Host's diverse portfolio helped balance these swings, mitigating the impact of any single region. Profitability trends revealed both strengths and vulnerabilities. Adjusted EBITDAre, a measure of hotel-level earnings before interest, taxes, depreciation, amortization, and real estate gains or losses, grew to $496 million—up 3.1% compared to the second quarter of 2024. However, the margin story was less favorable: both comparable hotel EBITDA margin and GAAP operating margin declined compared to the prior year. The comparable hotel EBITDA margin (non-GAAP) slipped to 31.0% from 32.2% in Q2 2024, mainly due to lower insurance recoveries and higher wage expenses. Food and beverage profit margin also dropped by 1.5 percentage points to 34.5% compared to Q2 2024. Management expects margin pressure to persist in 2025 as insurance proceeds normalize and labor costs continue to rise. GAAP net income for Q2 2025 was $225 million, down 7.0% year over year, largely attributed to lower gains from insurance settlements rather than core operations. From a capital management perspective, Host continued to prioritize both reinvestment and shareholder returns. It sold The Westin Cincinnati for $60 million, removing a property with hefty upcoming capital needs, and recorded a $21 million gain on the sale. The company repurchased 6.7 million shares for $105 million, leaving $480 million in remaining authorization for future buybacks as of June 30, 2025. It also paid a quarterly dividend of $0.20 per share, consistent with previous quarters and reflecting ongoing commitment to capital return. Asset reinvestment was another theme. Through the first half of 2025, $298 million was spent on capital projects. Of this, $109 million went to high-ROI renovations for the year-to-date ended June 30, 2025, $129 million to routine replacements and renewals for the year-to-date ended June 30, 2025, and $60 million to reconstruction (mainly related to storm recovery). The major property upgrade program—the Hyatt Transformational Capital Program—accounted for $54 million year-to-date, targeting further improvements across several core assets. Management noted that recently renovated hotels have consistently outperformed peers, with some renovations driving an average RevPAR index share gain of over 8.9 points. Host ended the quarter with $13.0 billion in total assets and $2.3 billion in available liquidity. The company refinanced $500 million in maturing notes at a higher interest rate in May 2025 to extend its debt maturities, with average debt now maturing in 5.4 years at an average cost of 4.9% as of June 30, 2025. Looking Ahead: Guidance and Investor Watchpoints Management raised its financial outlook for FY2025, reflecting the strong first-half results and outperformance seen in the quarter. Revenue guidance under GAAP now stands at $6,054–$6,109 million for 2025, up 6.5%–7.5% compared to 2024. Net income (GAAP) is targeted at $601–$631 million for FY2025, with adjusted EBITDAre of $1,690–$1,720 million for the full year and comparable hotel RevPAR growth of 1.5%–2.5% over 2024. The company expects full-year comparable hotel EBITDA margin (non-GAAP) to range from 28.4% to 28.7%, slightly down from last year, as wage increases and normalized insurance proceeds weigh on profitability. Management also noted ongoing sensitivity to RevPAR swings: a 1 percentage point change in RevPAR can move annual net income and Adjusted EBITDAre by $32–$37 million, based on 2025 guidance. Guidance also calls for capital expenditures of $590–$660 million for the full year, with a continued focus on ROI-driven renovations and property renewals. Investors should continue to monitor trends in group bookings, business mix, and cost inflation, as well as any shifts in market-level demand in cities like Washington, D.C, and Austin. Host's portfolio resilience and strong balance sheet are key watchpoints in sustaining dividend payments and shareholder returns. The quarterly dividend was maintained at $0.20 per share. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,049%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 29, 2025
Yahoo
04-07-2025
- Business
- Yahoo
Stifel Reiterates Buy Rating on Host Hotels & Resorts (HST)
Host Hotels & Resorts, Inc. (NASDAQ:HST) is one of the most undervalued stocks. On June 5, Stifel maintained a Buy rating on HST with a price target of $15.47. The company's 7.11% dividend yield enhances its investment appeal. Analysts noted that the multifamily space delivered quarterly results that largely met anticipated benchmarks. Analysts flagged early signs of improvement in the downtown San Francisco, particularly the Downtown and Peninsula submarkets, historically among the slowest to recover since the pandemic. Analysts observed that multifamily transaction activity is rising, lending credibility to their positive outlook. The continued attention on the sector highlights ongoing interest in its recovery and performance trends. A high-end hotel lobby, with modern furnishings, lush carpeting, and natural light. Stifel's Buy recommendation on Host Hotels & Resorts, Inc. (NASDAQ:HST) indicates confidence in its growth trajectory, and the $15.47 price target implies room for higher valuation. Host Hotels & Resorts, Inc. (NASDAQ:HST) is one of the largest lodging-focused REITs, with a portfolio comprising luxury and upper-upscale properties across domestic and international markets. While we acknowledge the potential of HST as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-06-2025
- Business
- Yahoo
How Is Host Hotels & Resorts' Stock Performance Compared to Other REIT Stocks?
Bethesda, Maryland-based Host Hotels & Resorts, Inc. (HST) is the world's largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. With a market cap of $10.9 billion, Host Hotels & Resorts owns and operates several properties in the United States and internationally. Companies worth $10 billion or more are generally described as "large-cap stocks." Host Hotels & Resorts fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the hotel & motel REIT industry. The Next Trillion-Dollar Boom? 3 Stocks to Buy with 300 Million Humanoid Robots on the Horizon. Warren Buffett's Berkshire Hathaway Now Pays 5% of All Corporate Income Taxes in America Meta's Mark Zuckerberg Says the Technology They're Developing Will 'See What You See and Hear What You Hear' Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. HST touched its 52-week high of $19.36 on Dec. 11, 2024, and is currently trading 18.5% below that peak. Over the past three months, HST stock has gained 7.4%, outperforming the Nuveen Short-Term REIT ETF's (NURE) 2.3% decline during the same time frame. However, Host's performance has remained grim over the longer term. HST stock has plunged 10% on a YTD basis and 14% over the past 52 weeks, underperforming NURE's 4.7% decline in 2025 and 2.4% dip over the past year. HST stock has traded consistently below its 200-day moving average since mid-December 2024, but climbed above its 50-day moving average in May, underscoring its overall bearish trend and recent upturn. Host Hotels & Resorts' stock prices gained 2.9% in the trading session after the release of its impressive Q1 results on Apr. 30. The company's comparable hotel revenue par room surged by 7% compared to the year-ago quarter, this led to a 8.4% year-over-year growth in overall revenues to $1.6 billion, exceeding the Street's expectations by a notable 3%. Meanwhile, its adjusted funds from operations (AFFO) increased by a modest 3.2% year-over-year to $446 million, but its AFFO per share of $0.64 surpassed the consensus estimates by 14.3%, boosting investor confidence. Host Hotels & Resorts has also outperformed its peer Park Hotels & Resorts Inc.'s (PK) 27% drop on a YTD basis and 30.7% plunge over the past 52 weeks. Among the 16 analysts covering the HST stock, the consensus rating is a 'Moderate Buy.' Its mean price target of $17.79 suggests a 12.8% upside potential from current price levels. On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-06-2025
- Business
- Yahoo
Host Hotels Stock Rises 10.3% Quarter to Date: Will the Trend Last?
Shares of Host Hotels & Resorts Inc. HST have gained 10.3% in the quarter-to-date period against the industry's decline of 0.6%. The Bethesda, MD-based lodging real estate investment trust (REIT) owns a portfolio of luxury and upper-upscale hotels in the top U.S. markets and the Sunbelt region. The recovery in demand for the company's well-located properties in markets with strong demand drivers has benefited the company lately. Image Source: Zacks Investment Research Let us decipher the possible factors behind the surge in the stock price. This Zacks Rank #3 (Hold) company has a strong Sunbelt exposure and presence in the top 21 U.S. markets. Its properties are advantageously located in central business districts of major cities, thus driving demand. The improvement in group travel demand and business transient demand has aided occupancy and revenue per available room growth over the past few quarters. In 2025, the company expects comparable hotel RevPAR growth between 0.5% and 2.5%. Host Hotels undertakes strategic capital allocations to improve its portfolio quality and strengthen its position in the United States, where it has a greater scale and competitive advantage. In the first quarter of 2025, the company incurred $146 million in capital expenditure. For 2025, management expects total capital expenditures to be within $580-$670 million. The company disposes of non-strategic assets with lower growth potential or properties with significant capital expenditure requirements through its capital-recycling program. It has redeployed the proceeds to acquire or invest in premium properties in markets expected to recover faster. Per the company's May 2025 Investor Presentation, from 2021 through the end of the fourth quarter of 2024, total dispositions amounted to $1.5 billion, which is 17.5 times the EBITDA multiple. Its acquisitions during this period amounted to $3.3 billion, which is 13.3 times the EBITDA multiple. Such efforts highlight its prudent capital-management practices, preserve balance sheet strength and pave the way to capitalize on long-term growth opportunities. Host Hotels has a healthy balance sheet and has been undertaking steps to fortify its balance sheet. As of March 31, 2025, the company had $2.2 billion in total available liquidity. Moreover, it is the only company with an investment-grade rating among the lodging REITs, having ratings of Baa3/Positive from Moody's, BBB-/Stable from S&P Global and BBB/Stable from Fitch. This renders access to the debt market at favorable costs. Therefore, Host Hotels has ample financial flexibility for deploying capital for long-term growth opportunities while carrying out redevelopment initiatives. Solid dividend payouts are a massive enticement for REIT investors, and Host Hotels has remained committed to that. HST has increased its dividend eight times in the last five years and has a 40% payout ratio. Such efforts boost investors' confidence in the stock. Check out Host Hotels & Resorts' dividend history here. With the above-mentioned factors, we believe the rising trend in the stock is expected to continue in the near term. On the macroeconomic front, recent heightened uncertainty surrounding trade policy and government spending is expected to weigh on the company's growth through the remainder of 2025. Historically, economic uncertainty has hindered business investment, which is strongly correlated to business transient and group demand. Moreover, challenges in the supply chain have led to project delays across the United States, and a restrictive lending environment has made it difficult to obtain construction financing for future projects. Some better-ranked stocks from the broader REIT sector are VICI Properties VICI and Medical Properties Trust MPW, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for VICI's 2025 FFO per share has moved one cent northward to $2.35 over the past week. The Zacks Consensus Estimate for MPW's 2025 FFO per share has moved one cent northward to 57 cents over the past month. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Host Hotels & Resorts, Inc. (HST) : Free Stock Analysis Report Medical Properties Trust, Inc. (MPW) : Free Stock Analysis Report VICI Properties Inc. (VICI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
