Host Hotels reported stronger-than-expected Q1 results, driven by resilient luxury demand, and raised its full-year 2026 guidance. The company highlighted strong resort performance, a recovering San Francisco market, and the upcoming World Cup as key drivers. Management emphasized a disciplined capital allocation strategy, returning cash to shareholders and reinvesting in its portfolio. Q1 comparable hotel RevPAR grew 4.4% YoY, beating expectations; adjusted EBITDA RE was $543m, up 5.6%.
Host Hotels reported stronger-than-expected Q1 results, driven by resilient luxury demand, and raised its full-year 2026 guidance. The company highlighted strong resort performance, a recovering San Francisco market, and the upcoming World Cup as key drivers. Management emphasized a disciplined capital allocation strategy, returning cash to shareholders and reinvesting in its portfolio. Q1 comparable hotel RevPAR grew 4.4% YoY, beating expectations; adjusted EBITDA RE was $543m, up 5.6%.
Host Hotels reported stronger-than-expected Q1 results, driven by resilient luxury demand, and raised its full-year 2026 guidance. The company highlighted strong resort performance, a recovering San Francisco market, and the upcoming World Cup as key drivers. Management…
Guidance tone
Host Hotels continues to invest heavily in portfolio redevelopment and repositioning, with 2026 capex guidance of $545-$655 million, including $250-$300 million for ROI projects. The transformational capital programs are tracking on time and under budget, and management expects…
Strong performance at resorts in Florida and Phoenix, with San Francisco RevPAR up 26%.
AI is discussed as a demand driver for San Francisco, where AI-related companies are supporting office recovery and lodging fundamentals.
World Cup expected to add 60 basis points to RevPAR growth.. Management raised guidance and emphasized strong demand, successful capital projects, and a fortress balance sheet, reflecting optimism about the travel environment.
Host Hotels continues to invest heavily in portfolio redevelopment and repositioning, with 2026 capex guidance of $545-$655 million, including $250-$300 million for ROI projects. The transformational capital programs are tracking on time and under budget, and management expects mid-teens cash-on-cash returns on these investments.
Management raised guidance and emphasized strong demand, successful capital projects, and a fortress balance sheet, reflecting optimism about the travel environment.
“Feedback from our properties indicates that ongoing geopolitical uncertainty supported travelers favoring U.S. luxury destinations over international destinations.”
“40% of the occupancy from the World Cup is actually booked in that last week. So there is, we are pacing well relative to where we stand right now. But it's really a last minute buildup”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| Op marginCOMPARABLE_HOTEL_EBITDA_ | FY2026 | 20%–50% | 35% | RAISED |
| RevenueREVPAR_GROWTH | FY2026 | 3%–4.5% | 3.75% | RAISED |
| RevenueTOTAL_REVPAR_GROWTH | FY2026 | 3.5%–5% | 4.25% | RAISED |
| UnitsCAPEX | FY2026 | $0.545B–$0.655B | $0.6B | MAINTAINED |
A significant portion of World Cup-related bookings occurs within the 30-day window, with 40% of occupancy booked in the week leading up to matches, creating high uncertainty and potential upside/downside surprises. — HST's guidance assumes a 60bps RevPAR benefit from the World Cup, but the actual impact is highly unpredictable due to the last-minute booking pattern, creating a potential guidance miss/beat.
“In the case of Marriott, that's Atlas, and you have Olympia. In the case of Hyatt, particularly focused on a really driving labor standards.”
Thank you, Maura. Thanks for taking the question. Can you take us through some of the building blocks on the expense side that are assumed in your annual guidance? And we've heard from some of your peers over the last few days that total wage and benefits came in below expectations in the first quarter, but partially as a function of lower headcount. Is that something you're seeing in your portfolio?
So for us in the first quarter, absolute wage and benefit growth was only 4.5%. And that really is being driven by productivity improvements. I mean, we work extremely closely with the operators and are very, very focused in terms of how they are leveraging their labor management systems. In the case of Marriott, that's Atlas, and you have Olympia. In the case of Hyatt, particularly focused on a really driving labor standards. And each of the labor standards, given how unique our properties are, they are very unique to each property and to setting sort of best in class labor standards and then scheduling and forecasting based on the labor standards becomes critical. So there is, as you will see in the income statement, our comp numbers, rooms profit margin improved meaningfully. soda, food, and beverage profit margin. It's all being driven by this honed in focus on productivity across the portfolio. So that's why despite wage rates going up 5%, and that's what the expectation that we set out at the beginning of the year for the full year. And we saw that as wage rates are sort of sticking to that 5% increase. Our absolute dollar amount, when you look at wage and benefit, that was only a 4.5% increase. So I would say it's really driving more productivity and efficiencies across the portfolio.
A significant portion of World Cup-related bookings occurs within the 30-day window, with 40% of occupancy booked in the week leading up to matches, creating high uncertainty and potential upside/downside surprises. — HST's guidance assumes a 60bps RevPAR benefit from the World Cup, but the actual impact is highly unpredictable due to the last-minute booking pattern, creating a potential guidance miss/beat.
“not only are we the largest, we also have a very high redemption of hotels within our portfolio. And certainly the way the program works, it has been beneficial to us with the changes that have occurred”
Great. Thank you. Most of my questions have been answered already. I guess a smaller one. I think you're still the largest hotel owner for Marriott. And I wonder if you could quantify if their recent change in the split of economics with the Bonvoy program, did that help or hurt you for Q1 or for the full year in either direction? Thanks.
Hey Robin, overall it has helped us because not only are we the largest, we also have a very high redemption of hotels within our portfolio. And certainly the way the program works, it has been beneficial to us with the changes that have occurred, both in Q1 and that expectation is that it would continue to benefit us for the full year.
HST's strong Q1 resort performance is partly attributed to geopolitical uncertainty diverting high-end travelers from international destinations to U.S. luxury properties, a trend that may reverse if international travel normalizes.
… San Francisco achieved 26% rep part growth and more than 70% EBITDA growth in the quarter, reflecting continued momentum in the market's recovery. Turning to business mix, transient revenue grew by 5.5%, driven by rate growth, particularly at our resorts. First quarter transient results benefited from Easter in early April, which compressed spring break demand in March, contributing to 9% transient revenue growth at our resorts. Feedback from our properties indicates that ongoing geopolitical uncertainty supported travelers favoring U.S. luxury destinations over international destinations. As a result, resort properties delivered particularly strong performance in the first quarter. Briefly touching on Maui, REPPAR grew 1.5% and total REPPAR grew 1.6% as growth was impacted by the Kona low rainstorm in March. Prior to the storm, overall demand at our Maori resorts was tracking ahead of our expectations for the first quarter. It is important to note that the impacts from the storm were contained and are not ongoing. We have also seen strong rebookings since the storm, and as a result, we continue to expect Maui to contribute approximately $120 million of EBITDA in 2026. Business …