Host Hotels & Resorts, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Total revenues for the quarter ended September 30, 2026, were $1,347 million, a 1.2% increase compared to $1,331 million in the same period in 2025; 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%).
• Comparable hotel RevPAR was $219.50 for the quarter (up 8.8% year-over-year) and $237.21 year-to-date (up 6.6%); comparable hotel Total RevPAR was $348.19 for the quarter (up 7.3%) and $392.74 year-to-date (up 5.8%).
• Net income was $71 million for the quarter, a 56.4% decrease from $163 million in 2025; year-to-date net income was $813 million, a 27.2% increase from $639 million.
• Diluted earnings per common share were $0.10 for the quarter (down from $0.23) and $1.16 year-to-date (up from $0.91).
• NAREIT FFO per diluted share was $0.38 for the quarter (up 11.8%) and $1.66 year-to-date (up 7.8%); Adjusted FFO per diluted share was $0.39 for the quarter (up 11.4%) and $1.69 year-to-date (up 8.3%).
• EBITDAre was $340 million for the quarter (up 8.3%) and $1,396 million year-to-date (up 6.3%); Adjusted EBITDAre was $347 million for the quarter (up 8.8%) and $1,415 million year-to-date (up 6.5%).
• GAAP operating profit margin was 9.0% for the quarter, an improvement of 140 basis points from 2025; year-to-date margin was 15.8%, an improvement of 110 basis points.
• 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).
• Total assets were $12.8 billion; debt balance 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 $1.5 billion available under the revolver portion of the credit facility.

Guidance and Future Outlook

• Full year 2026 comparable hotel RevPAR growth guidance raised to 6.75% (previously 5.0% midpoint); Total RevPAR growth guidance raised to 6.0% (previously 5.0% midpoint).
• Full year 2026 Total revenues under GAAP guidance is $6,213 million, representing a 1.6% increase over 2025.
• Full year 2026 operating profit margin under GAAP guidance is 15.4%, an increase of 140 basis points over 2025.
• Full year 2026 comparable hotel EBITDA margin guidance is 30.0%, an increase of 80 basis points over 2025.
• Full year 2026 Net income guidance is $978 million; Adjusted EBITDAre guidance is $1,865 million.
• Full year 2026 Diluted earnings per common share guidance is $1.40; NAREIT FFO per diluted share is $2.17; Adjusted FFO per diluted share is $2.21.
• Guidance includes estimated contributions of $3 million net income and $6 million Adjusted EBITDAre from the acquisitions of 1 Hotel Brooklyn Bridge and Renaissance Dallas at Plano Legacy West Hotel.
• Guidance includes an estimated $18 million net contribution from condominium sales adjacent to the Four Seasons Resort Orlando.
• Full year 2026 capital expenditures are forecasted between $550 million and $600 million.
• Comparable hotel RevPAR for October 2026 grew approximately 6.5% over 2025.

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.
• Transient business accounted for 61% of full year 2025 room sales; Group business accounted for 34%; Contract business accounted for 5%.
• Quarter ended September 30, 2026: Transient room nights increased 4.8% and revenues increased 11.5%; Group room nights increased 1.3% and revenues increased 4.5%; Contract room nights decreased 2.3% and revenues increased 4.6%.
• Year-to-date 2026: Transient room nights increased 1.2% and revenues increased 7.9%; Group room nights increased 1.8% and revenues increased 4.7%; Contract room nights increased 2.8% and revenues increased 7.1%.
• 11 of the Company's 24 domestic markets achieved double-digit increases in comparable hotel Total RevPAR for the quarter.
• The transformational renovation at the Ritz-Carlton Naples, Tiburon was substantially completed in the third quarter.
• Received $7 million of operating guarantees in the third quarter under Hyatt and Marriott Transformational Capital Programs; expects $19 million total in 2026.

Market and Competitive Landscape

• Demand drivers included broad-based strength in leisure transient, group, and business transient demand.
• Rate growth of 5.7% and an occupancy increase of 2.1 points drove comparable hotel RevPAR growth in the quarter.
• The World Cup boosted transient demand during the quarter.
• An active hurricane season in Hawaii impacted results during the quarter.
• The Company owns 72 properties in the United States and five properties internationally, totaling approximately 41,800 rooms.
• The Company holds non-controlling interests in seven domestic joint ventures.

Risks and Challenges

• Kona Low rainstorm in Hawaii caused property damage; estimated total property costs are $20 million to $25 million, including $2 million in remediation costs, with restoration efforts expected to complete in 2027.
• Insurance coverage is expected to substantially cover property damage in excess of the deductible.
• Final determination on insurance claims related to Hurricanes Helene and Milton is expected by year-end; no additional amounts beyond Q1 receipts are included in guidance.
• The Don CeSar was non-comparable due to business disruption from Hurricane Helene (closed end of September 2024, reopened March 2025).
• Alila Ventana Big Sur was non-comparable due to evacuation mandates and wildfire activity (closed August 2026, reopened September 2026).
• Forward-looking statements involve risks including economic outlook, debt payment timing, and share transaction timing.

Management Commentary and Tone

• James F. Risoleo, President and CEO, described the quarter as "strong," driven by portfolio quality, disciplined capital allocation, and asset reinvestment.
• Risoleo noted demand remains durable with resilient leisure travel, growing business travel, and healthy group demand.
• Sourav Ghosh, CFO, stated the credit facility recast further strengthened the balance sheet, providing flexibility for capital allocation.
• Management highlighted the portfolio's investment-grade status, strong liquidity, and diversified nature as positioning factors for long-term value creation.

Other Key Points

• Amended and restated the $2.5 billion credit facility, extending the $1.5 billion revolver maturity to January 2031 and term loan maturities to January 2031 and January 2032, with extension options to align all maturities at January 2032.
• The amended facility expanded the accordion feature to $1.25 billion and reduced pricing by 12.5 basis points on revolver draws, 15 basis points on term loans, and 5 basis points on facility fees.
• Following the recast, debt has a weighted average maturity of 5.2 years and a weighted average interest rate of 4.8%.
• Paid a third quarter common stock cash dividend of $0.20 per share on October 15, 2026.
• Adjusted cash balance after subsequent transactions (acquisitions and dividend) is estimated at $991 million.
• Inventory spend for condo development adjacent to Four Seasons Resort Orlando was $17 million year-to-date.
• The Company partners with premium brands including Marriott, Ritz-Carlton, Westin, W, The Luxury Collection, Hyatt, Fairmont, 1 Hotels, Hilton, Swissôtel, ibis, and Novotel.