Host Hotels & Resorts — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues were $1,347 million for the quarter ended September 30, 2026, a 1.2% increase compared to $1,331 million in the prior year period; year-to-date revenues were $4,632 million, up 2.7% from $4,511 million.
• Comparable hotel revenues were $1,312 million for the quarter (up 7.4% year-over-year) and $4,392 million year-to-date (up 5.9%).
• Net income was $71 million for the quarter, a 56.4% decrease from $163 million in the prior year; year-to-date net income was $813 million, up 27.2% from $639 million.
• Diluted earnings per common share were $0.10 for the quarter (down 56.5% from $0.23) and $1.16 year-to-date (up 27.5% from $0.91).
• Adjusted EBITDAre was $347 million for the quarter (up 8.8% year-over-year) and $1,415 million year-to-date (up 6.5%).
• Comparable hotel EBITDA was $331 million for the quarter (up 11.4%) with a margin of 25.2% (up 90 basis points); year-to-date comparable hotel EBITDA was $1,327 million (up 8.2%) with a margin of 30.2% (up 70 basis points).
• GAAP operating profit margin improved 140 basis points to 9.0% for the quarter and 110 basis points to 15.8% year-to-date.
• Total assets were $12.8 billion as of September 30, 2026.
• Total debt was $5.1 billion with a weighted average maturity of 4.4 years and a weighted average interest rate of 4.8%.
• Total available liquidity was approximately $3.1 billion, including $157 million in FF&E reserves and $1.5 billion available under the revolver.

Guidance and Future Outlook:

• Full year 2026 comparable hotel RevPAR growth guidance was raised to 6.75% (previously 5.0% midpoint change vs. 2025).
• Full year 2026 comparable hotel Total RevPAR growth guidance was raised to 6.0% (previously 5.0% midpoint change vs. 2025).
• Full year 2026 total revenues under GAAP are now expected to be $6,213 million, representing a 1.6% increase over 2025.
• Full year 2026 operating profit margin under GAAP is expected to be 15.4%, an increase of 140 basis points over 2025.
• Full year 2026 comparable hotel EBITDA margin is expected to be 30.0%, an increase of 80 basis points over 2025.
• Full year 2026 net income guidance was raised to $978 million (up $25 million from previous guidance).
• Full year 2026 Adjusted EBITDAre guidance was raised to $1,865 million (up $35 million from previous guidance).
• Full year 2026 diluted earnings per share guidance was raised to $1.40 (up $0.04).
• Full year 2026 NAREIT FFO per diluted share guidance was raised to $2.17 (up $0.05).
• Full year 2026 Adjusted FFO per diluted share guidance was raised to $2.21 (up $0.05).
• Guidance includes estimated contributions of $3 million net income and $6 million Adjusted EBITDAre from recent acquisitions.
• Guidance includes an estimated $18 million net contribution from condominium sales expected to close in 2026.
• Insurance claims determination for Hurricanes Helene and Milton is expected by year-end; no additional amounts beyond Q1 receipts are included in guidance.

Business Segments and Product Lines:

• Acquired the leasehold interest in the 195-room 1 Hotel Brooklyn Bridge for $202 million (net of $4 million FF&E reserve).
• Acquired the fee simple interest in the 308-room Renaissance Dallas at Plano Legacy West Hotel for $172 million.
• Both acquisitions are expected to be immediately accretive and will be included in comparable hotel results starting in the fourth quarter.
• Transient business accounted for approximately 61% of full-year 2025 room sales; Group accounted for 34%; Contract accounted for 5%.
• Quarter-to-date transient room revenues grew 11.5% and room nights grew 4.8%.
• Quarter-to-date group room revenues grew 4.5% and room nights grew 1.3%.
• Quarter-to-date contract room revenues grew 4.6% and room nights declined 2.3%.
• Year-to-date transient room revenues grew 7.9% and room nights grew 1.2%.
• Year-to-date group room revenues grew 4.7% and room nights grew 1.8%.
• Year-to-date contract room revenues grew 7.1% and room nights grew 2.8%.
• 11 of the 24 domestic markets achieved double-digit increases in comparable hotel Total RevPAR for the quarter.
• The portfolio includes 72 properties in the United States and 5 properties internationally, totaling approximately 41,800 rooms.

Market and Competitive Landscape:

• Comparable hotel RevPAR growth was driven by rate increases of 5.7% and an occupancy increase of 2.1 points.
• Demand was supported by resilient leisure travel, growth in business travel, and healthy group demand.
• The World Cup boosted transient demand during the quarter.
• An active hurricane season in Hawaii impacted results during the quarter.
• The Alila Ventana Big Sur was removed from the comparable hotel set after being closed for one month due to an evacuation mandate from wildfires.
• The Kona Low rainstorm caused property damage in Hawaii in March 2026; remediation is substantially complete, with total property costs estimated at $20 million to $25 million.
• Insurance coverage is expected to substantially cover property damage in excess of the deductible.

Risks and Challenges:

• Property damage reconstruction costs related to the Kona Low rainstorm are estimated at $20 million to $25 million, including $2 million in remediation costs, with restoration efforts continuing into 2027.
• Business interruption impacts from the Kona Low rainstorm are still being evaluated.
• Final determination on insurance claims for Hurricanes Helene and Milton is pending.
• Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from expectations.

Management Commentary and Tone:

• James F. Risoleo, President and CEO, described the third quarter as "strong," driven by portfolio quality, disciplined capital allocation, and asset reinvestment.
• Risoleo noted broad-based strength in leisure transient, group, and business transient demand.
• Risoleo stated the company is "well positioned to capitalize on favorable industry fundamentals" due to its investment-grade balance sheet and strong liquidity.
• Sourav Ghosh, CFO, highlighted that the credit facility recast provides further flexibility for the capital allocation strategy.
• Management expressed confidence in durable demand and favorable group booking pace for the fourth quarter.

Other Key Points:

• The $2.5 billion credit facility was amended and restated subsequent to quarter end, extending the revolver maturity to January 2031 and term loan maturities to January 2031 and January 2032.
• The amended facility includes an accordion feature expanded to $1.25 billion.
• Pricing grid improvements included reductions of 12.5 basis points on revolver draws, 15 basis points on term loans, and 5 basis points on the facility fee.
• Following the credit facility recast, the weighted average debt maturity increased to 5.2 years.
• A third quarter common stock cash dividend of $0.20 per share was paid on October 15, 2026.
• Capital expenditures for the year-to-date period ended September 30, 2026, were $392 million.
• Full year 2026 capital expenditure forecast is $550 million to $600 million.
• Inventory spend for condo development was $17 million year-to-date.
• The Company received $7 million in operating guarantees under Hyatt and Marriott Transformational Capital Programs in the quarter, with $19 million expected for the full year.
• The transformational renovation at the Ritz-Carlton Naples, Tiburon was substantially completed in the third quarter.