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Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 10:00 a.m. ET Senior Vice President of Investor Relations - Jaime N. Marcus President and Chief Executive Officer - James F. Risoleo Executive Vice President and Chief Financial Officer - Sourav Ghosh Operator: Welcome to the Host Hotels and Resorts Second Quarter 26 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the call over to Jaime N. Marcus, senior vice president of investor relations. Jaime N. Marcus: Thank you, and good morning, everyone. Before we begin, today's call will include forward-looking statements within the meaning of federal securities laws. As described in our filings with the SEC, these statements are subject to risks and uncertainties that could cause future results to differ from those expressed. And we are not obligated to publicly update or revise these forward-looking statements. On today's call, we will also discuss certain non GAAP financial information. Such as FFO, adjusted EBITDAre, and comparable hotel level results. For reconciliations to the most directly comparable GAAP information, please see yesterday's earnings press release, our 8-K filed with the SEC, and the supplemental financial information on our website at hosthotels.com. The operational results discussed today refer to our 74 hotel comparable hotel portfolio in 2026, which excludes the Don CeSar and Sheraton Parsippany, which we sold in June. With me on today's call are Jim Risoleo, president and chief executive officer and Sourav Ghosh, executive vice president and chief financial officer. With that, I would like to turn the call over to Jim. James F. Risoleo: Thank you, Julie, and thanks to everyone for joining us this morning. We delivered a strong second quarter. Building on the momentum of the first quarter and again, exceeding our expectations. We delivered adjusted EBITDAre, of $525 million an increase of 5.8% over last year and adjusted FFO per share of 63¢, an increase of 8.6% over last year. Comparable hotel RevPAR improved 7% compared to the second quarter of 2025 and comparable hotel total RevPAR improved 5.9% driven by rate growth and higher food and beverage revenue. Comparable hotel EBITDA margin improved by 60 basis points year over year to 31.9% driven by rate growth alongside lower fixed expenses. RevPAR growth in the second quarter came in significantly better than our expectations. With broad based strength across markets and business mix. Growth was driven by sustained luxury resort demand, elevated rates associated with the World Cup, and strong group performance. Looking at World Cup performance, we estimate that the event contributed approximately 160 basis points of RevPAR growth in the second quarter. For June alone, RevPAR in our World Cup markets grew 15% compared to 12% in non World Cup markets. For the full year, we expect the World Cup to contribute approximately 70 basis points of gross RevPAR growth a 10 basis point increase over our initial expectation. Turning to business mix. Transient revenue was up 7%, marking the strongest growth in the past 7 quarters driven by higher rates as demand remained relatively stable. Rate growth was supported by major events, citywide compression, and continued leisure strength at our luxury resorts. Growth was led by Maui, New York, and San Francisco. With improvements in key business transient markets also providing a tailwind to performance. Briefly touching on Maui. RevPAR grew 14%, and total RevPAR grew 11%. Reflecting strong demand growth. In fact, occupancy grew more than 8 percentage points in the quarter as the market's recovery continues. We continue to expect our Maui properties to contribute approximately $120 million of EBITDA in 2026. Business transient revenue grew 4%. Driven by strong rate growth. And we were encouraged to see an increase in business transit room nights in several key markets from a variety of industries. Group room revenue for the quarter was up 7% year over year, driven fairly evenly by room night and rate growth. Our property sold 1.1 million room nights in the second quarter, indefinite group room nights on the books for 2026 now stand at 3.8 million. With total group revenue pace up more than 5% to the same time last year. Turning to ancillary spending. Food and beverage revenue grew 6%, and other revenue was approximately flat. As growth in on property spending was offset by a decrease in attrition and cancellation revenue compared to last year's tough comparisons. The broad based growth across food and beverage departments, golf, and spa demonstrates the continued strength of the affluent consumer. As well as the benefits of the strategic investments we have made at many of our properties over the last several years. Turning to capital allocation. In June, we completed the sale of the Sheraton Parsippany for $12 million. This disposition reflects our strategy of selling lower growth assets with near term elevated capital expenditure requirements. In July, we paid a quarterly common dividend of $0.20 per share and a special dividend of $0.72 per share. The special dividend represented the distribution of the approximately $500 million taxable gain from the sale of the 4 Seasons resorts in the first quarter of this year. This is a great example of our commitment to discipline and opportunistic capital allocation. By returning capital to shareholders, through regular quarterly and special dividends, we are enhancing long term value for our investors. Turning to portfolio reinvestment. During the second quarter, we continued the execution of Hyatt transformational capital program, which is nearly 90% complete and on track for completion by the end of 2 thousand 26. Transformational renovations are now finished at 5 of 6 hotels in the program. Including the Grand Hyatt Atlanta and Buckhead the Hyatt Regency Capitol Hill, the Hyatt Regency Austin, the Hyatt Regency Reston, and the Grand Hyatt Washington DC. The Manchester Grand Hyatt San Diego, the final asset in the program, was phased to mitigate business interruption and is expected to be substantially complete by the end of this year. We also made progress on the second Marriott transformational capital program, which is approximately 37% complete and is tracking on time and under budget. Guest room renovations at the New Orleans Marriott are nearing completion. Renovations at the Ritz Carlton Naples Tiburon and Westin Kierland are in progress. And the Ritz Carlton Marina Del Rey is scheduled to start renovations later this month. In the second quarter, we received $5 million of operating guarantees related to our transformational capital programs, As a reminder, we expect to benefit from approximately $19 million of operating profit guarantees in 2026 related to our 2 transformational capital programs which we expect will offset most of the EBITDA disruption at those properties. Looking at other ROI projects. We completed the final phase of the 4 Seasons branded condo development at the Walt Disney World Resort, during the second quarter on time and within budget. To date, we have closed on 28 of the 40 units including 20 of 31 mid rise units and 8 of 9 villas. As a result of the expected timing of the remaining closings, we now anticipate 2026 EBITDA of $16 million to $20 million compared to our prior expectation of $20 million to $25 million with the difference expected to be recognized in 2027. For 2026, our capital expenditure guidance range is approximately $550 million to $630 million This includes approximately $250 million to $285 million of reinvestment focused on redevelopment, repositioning, and ROI projects as well as $25 million to $30 million of property damage reconstruction associated with the Kona low rainstorm in Hawaii. We also anticipate remediation costs of approximately $2 million and we expect insurance coverage to substantially cover the loss in excess of our deductible. In addition to our capital expenditure investment, we spent approximately $17 million to close out the condo development at the 4 Seasons Orlando. Our continued reinvestment across the portfolio remains a key differentiator and is an important driver of Host's sustained outperformance. Once the second Marriott transformational capital program is completed in 2029, we will have reinvested approximately $2.1 billion into comprehensive renovations across 34 hotels. Which are expected to contribute approximately 60% of our hotel EBITDA in 2026. We have stabilized post renovation performance at 21 of these properties. Where we have seen an average stabilized RevPAR index share gain of nearly 9 points. These results underscore how our disciplined capital allocation strategy over the past several years is translating into meaningful value creation for our shareholders. Earlier this week, we released our 2026 corporate responsibility report which outlines our CR strategy and performance, highlighting continued progress across environmental stewardship social impact, and governance in support of our long term responsible investment strategy in 2050 net positive vision. We are proud to again be recognized for our corporate responsibility leadership including NAREIT's 2026 Leader in the Light Award for Operations for Large Cap REITs inclusion in the 2026 Dow Jones Best in Class world and North American indices, revalidation of our emissions reduction target by the science based targets initiative, and an advanced net zero assessment rating from Moody's. The CR report can be found on the corporate responsibility section of our website at hosthotels.com. Turning to our full year outlook. We continue to expect strong leisure demand modest improvements to short term group booking trends, and stable business transient demand. As a result of our second quarter outperformance, and improved outlook for the second half of the year, we are raising our 2026 comparable hotel total RevPAR and RevPAR growth guidance ranges to 4.75% to 5.25% over 2025. It is important to note that our RevPAR and total growth guidance ranges are now in line. This reflects the outsized rate growth we achieved in the first half of the year and our expectation that rate growth will normalize in the second half of the year. Looking ahead, we are optimistic about the travel environment. Which is supported by resilient demand trends and a continued preference among high end consumers for experiential travel. Industry fundamentals in the second quarter reflected strong RevPAR growth driven by sustained rate strength. While new supply across our markets and chain scales remains near historic lows. Against this favorable backdrop, post investment grade balance sheet gives us the flex flexibility to continue reinvesting in our portfolio pursue opportunistic acquisitions and dispositions, and return capital to shareholders in the form of dividends and share repurchases. As our results over the past several years have shown, Host competitive advantages uniquely position the company to continue capturing additional upside in the current environment and over the long term. With that, I will now turn the call over to Saurabh. Sourav Ghosh: Thank you, Jim. Good morning, everyone. Building on Jim's comments, I will go into detail on our second quarter operations, our financial results, our updated 2026 guidance and our balance sheet. Starting with total revenue trends, RevPAR growth outpaced total RevPAR as outsized rates driven by special events boosted rooms growth beyond ancillary revenue growth. Comparable hotel food and beverage revenue for the quarter grew 6% led by widespread improvements in banquet and catering revenues. Banquet and catering revenue increased 7% driven by increases in both group room night volume and contribution per group room night. Approximately half of the growth in the second quarter came from our large convention hotels led by Washington DC, where a 45% increase in banquet and catering revenue reflected a 20% increase in banquet and catering contribution per group room night. From our newly renovated Hyatt properties. Outlook revenue increased 4% driven by growth across resorts, the ongoing ramp of The View at the New York Marriott Marquis, and our newly renovated Hyatt properties. Maui led outlet growth in the quarter with a 14% increase driven by substantial occupancy increases at the Andaz Maui and Hyatt Regency Maui. Other revenues were flat in the quarter. As a decrease in attrition and cancellation revenue from last year's tough comparisons offset strength in golf and spa growth. Spa revenue was up 4% driven by increased capture at our resorts. Notably, spa capture at the Ritz Carlton Naples Ritz Carlton Amelia Island, Andaz Maui, and Hyatt Regency Coconut Point. Was up double digits compared to last year. Golf revenue grew 9%, driven by our courses in Maui and Naples. Further underscoring Maui's robust recovery golf revenue in the second quarter was 9% ahead of prefire levels. These increases reflect continued demand from premium leisure travelers as guests prioritize spending on wellness and experiential offerings. Shifting to rooms revenues, overall transient revenue was up 7% compared to the second quarter of 2025 driven by special events, citywide compression, and continued leisure strength at our resorts. Resort RevPAR grew 9% in the quarter with Maui accounting for nearly 40% of the growth. Other standout resorts include the 1 Hotel South Beach, which benefited from the F1 Grand and our Florida Gulf resorts. Which benefited from an extended spring break. These results continue to underscore the strength of high end demand. As Jim mentioned, the World Cup contributed approximately 160 basis points to RevPAR growth in the second quarter. Overall, RevPAR growth in our World Cup markets outperformed our other markets for the month of June. We also saw strength in non World Cup markets which benefited from travelers avoiding congestion and pricing in host cities. This trend underscores 1 of the many advantages of our diverse portfolio. Looking at recent holidays, revenue growth for Easter and Memorial Day was driven by resorts. With Easter room revenue up 11% and Memorial Day weekend room revenue up nearly 5%. Transient revenue was up 27% for July 4 with broad based growth across our markets and property types driven by America250 celebrations and multiple World Cup matches. Looking ahead to upcoming holidays, transient revenue pace for Labor Day weekend Thanksgiving, and the festive period are all up double digits with strength across property type and markets. Business transient revenue increased 4% compared to the second quarter of 2025 driven by rate growth. Notably, several key markets saw business trends in room night growth in the quarter. Including New York, Washington DC, Chicago, and San Diego. In fact, the New York Marriott Marquis had 14% business transient room night growth in the quarter, driven by demand from tech consulting, and finance companies. Turning to group, revenue was up 7% year over year. Growth was driven fairly evenly by rate and room nights. Which was supported by renovated properties and strong event related demand. Corporate groups were the primary driver of revenue growth, accounting for approximately 2 thirds of the increase while associations and other groups also grew in the low to mid single digits. For full year 2026, we have 3.8 million definite group room nights on the books representing an 8% increase since the first quarter. As Jim mentioned, total group revenue pace is up more than 5% over the same time last year. For the second half of the year, we are seeing meaningful total group revenue pace for the Florida Gulf Coast Miami, Boston, New York, and Maui, and group booking pace remained strongest for the fourth quarter. Shifting gears to margins. Comparable hotel EBITDA margin of 31.9% was 60 basis points above the second quarter of 2025 driven by outsized rate growth alongside lower total fixed costs. We continue to expect year over year margin comparisons to moderate in the second half of the year, primarily due to lower expected rate growth in the second half. On the insurance front, our June 1 property renewal came in better than expected at down 6% compared to last year. Which equates to a $2.5 million expense reduction in 2026 compared to our prior guidance. Those savings are now incorporated in our updated guidance. Turning to our outlook for 2026. As Jim mentioned, we are increasing our comparable hotel total RevPAR and RevPAR growth guidance ranges to 4.75% to 5.25% over the last year. The midpoint of our guidance contemplates a stable operating environment with a continuation of the trends seen in the first half of the year. This includes rate driven leisure transient strength, modest improvements to short term group booking trends, and stable business transient demand. At the low end, we have assumed weaker short term trends in booking trends At the high end, we have assumed better short term transient booking trends. We expect comparable hotel EBITDA margins to be up 40 basis points year over year at the low end of our guidance to up 50 basis points at the high end. A 20 basis point improvement over our prior guidance at the midpoint. For the remainder of the year, we expect comparable hotel RevPAR growth in the mid single digits with both quarters above our prior expectations. Comparable hotel RevPAR for July is expected to increase approximately 10% year over year. At the midpoint, our guidance assumes comparable hotel RevPAR growth of 5% versus 2025. Representing a 125 basis point improvement from our prior. We estimate that roughly half of the increase reflects our quarter outperformance with the balance driven by a stronger outlook for the second half of the year. Our guidance also assumes a 50 basis point net benefit from special events for the full year including an estimated 70 basis point lift from the World Cup partially offset by a 20 basis point headwind from the presidential inauguration in the first quarter of 2025. Maui is expected to contribute approximately 45 basis points to full year RevPAR growth. At the midpoint, we expect a comparable hotel EBITDA margin of 29.7% which is 50 basis points above 2025. Our margin performance reflects our continued success in partnering with our operators to drive productivity gains across our portfolio as well as the capital allocation decisions we have made over the past few years. For the full year, we continue to expect wage rates to increase approximately 5% which comprises approximately 50% of our total comparable hotel operating expenses. Our 2026 full year adjusted EBITDAre, midpoint is $1.83 billion. This implies a $20 million or 1% improvement over our prior guidance midpoint, driven by outperformance in the first half of the year and a more optimistic view of the second half of the year. Our adjusted EBITDA are in mid midpoint includes $29 million of estimated EBITDA from operations of the Don Cesar, which is excluded from our comparable hotel set in 2026. It also includes approximately $7 million of business interruption proceeds related to Hurricanes Helene and Milton which we received in the first quarter. We expect to receive business interruption for the recent Kona Low rainstorm in Hawaii as well. Though it is still too early to estimate the timing or amount of any payments. Lastly, our 2026 full year adjusted EBITDAre, midpoint includes between 16 and $20 million of estimated net EBITDA from the 4 Seasons condo development which we expect to recognize concurrent with condo sale closings. In the second quarter, we recognized $8 million of EBITDA associated with condo sales bringing the total EBITDA recognized to $12 million for the first half of the year. Turning to our balance sheet and liquidity position. Our weighted average maturity is 4 point 7 years at a weighted average interest rate of 4.8%. Adjusted for the regular and special dividend paid on July 15, we currently have $3 million,000 in total available liquidity which includes $156 million of FF and E reserves and $1.5 billion available under the revolver portion of the credit facility. In July, we paid a quarterly cash dividend $0.20 per share and a special dividend of 72¢ per share to shareholders of record as of June 30. Adjusted for this dividend payment, our leverage ratio is 2.2x. As always, any future dividends are subject to approval by the company's board of directors. In closing, we believe our investment grade balance sheet combined with our scale, diversification, and platform strength position Host to drive outperformance and continue capturing incremental upside in the current environment and over the long term. With that, we would be happy to answer your questions. Operator: To ensure we have time to address as many questions as possible please limit yourself to 1 question. We will now begin the question and answer session. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. You are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. The first question comes from the line of Aryeh Klein with BMO Capital Markets. Your line is now open. Aryeh Klein: Thank you, and good morning. On the guide, the flow through to EBITDA from the RevPAR update looks like it was a little bit less than we saw previously. And then somewhat relatedly, Marriott announced an ITR incentive program, and broadly, the brand seems to be looking at ways to lower costs. From your perspective, can you talk about what the impact has been or will be for your portfolio? Thank you. Sourav Ghosh: Good morning, Aryeh. So in terms of the flow through for the second quarter, 1 thing I want to point out is sort of 2 pieces on the expense side. 1 was just higher IMF because of the outperformance of certain properties in terms of top line. We did hit IMF for those assets, and therefore, it did impact overall flow through. But that is only a piece of it. The other piece was given the short term pickup in transient demand, particularly related to the World Cup, the travel agent commissions, expense that we incurred was a little bit higher than expected, and we do not expect that to continue into the second half. that is really what was impacting flow through. Otherwise, flow through would have been even better given the overall total revenue increase. In terms of Marriott, I would start off with sort of what we have seen in terms of benefit over the past couple of years. 2 specific items. Since January 2025, that is when Marriott reduced its loyalty charge out rate by 20 basis points. Which is now at 4%. That annualized is worth about $3 million to $3.5 million for our portfolio. The second thing was that or another reduction over the last several years, I call 3 to 4 years, is the account sales and national group sales, which is a booking fee per booking. That to us, again, approximately $3 million in annual savings. In terms of what is coming ahead, just specifically this year, there was a change to the high occupancy reimbursement policy that was enhanced. that is about a it, a $500 thousand savings to us for our portfolio. In the other thing that is coming forth is, they have shifted procurement and it is they have taken a lot of that procurement in house, and we expect to get about $7 million benefit for our portfolio over the next few years. And then lastly, what you were speaking to is the intent to recommend reimbursement that Marriott talked about on their call in terms of 50 bps back to the owners, that intend to recommend would be a reduction to the program services fund. So effectively, if there the intent to recommend is above a certain threshold for a particular asset, there would be a reduction to the, PSF. I mean, that is up to 50 basis points. No further details have been provided in terms of what that threshold looks like specifically for the intent to recommend threshold. But, obviously, it is gonna be a positive impact for our portfolio, particularly given the fact that we have invested significant amount of capital over the years in our entire portfolio, not just Marriott, but particularly through MTCP 1 and MTCP 2 that is ongoing right now. So can you expect that to be a net benefit for us? And then lastly, will mention is with the rollout of the new PMS system that is supposed to occur in 2027, we expect that to benefit as well from our Marriott portfolio. Aryeh Klein: Appreciate all this color. Thank you. Operator: The next question comes from Chris Woronka with Deutsche Bank. Your line is now open. Chris Woronka: Hey. Good morning, guys. Thanks for taking the question. Jim, where do you think we are on kind of the group pricing? I do not wanna call it reset, but pricing acceleration, just understanding the lead time that it takes. It seems like you had pretty good pretty good rate growth in the quarter on groups. Know there could be a little bit of World Cup noise in that. But I think in the past, you have said, you know, as we go through the year here and then 2027 and beyond, you know, you expect to see continued momentum on group pricing. So can you just kind of give us maybe a data point or 2 on how that is tracking Thanks. James F. Risoleo: Yeah, Chris, we are happy with how group is performing this year. Sourav and I both mentioned that our total group revenue pace is up 5%. For the year. And while it is too early to give color on how group is going to perform in 2027, what I can tell you is that our total group revenue pace is positive. So we like the way we are set up for the year, and you know, I think group is starting to normalize in terms of lead times and booking windows. Sourav Ghosh: Yeah. And I will add a couple of stats to that, particularly the second half of the year, Chris. We talked about how we expected third quarter to be our weakest quarter. what is interesting is the group booking pace since we reported last has actually improved for the third quarter. It was negative low single digits, and that was really because of the Jewish holiday shift. That occurred. Now it is actually positive low single digits. Additionally, our fourth quarter group pace is now close to almost 10%. Previously, that was about 7%. So we certainly saw momentum in terms of group in the year for the year as well as in future years, as Jim mentioned, you know, 2027 and particularly, we are seeing a positive pace, and we will certainly provide that specific number on our next earnings call. James F. Risoleo: And just a couple of other points. We picked up about 61 thousand group room nights in the second quarter for Q2. But most interestingly, we picked up about 210 thousand room nights in the quarter for the remainder of the year. And to put that into perspective, last year, we had picked up, for the balance of the year, only 167 thousand room nights. So definitely group is strong, particularly corporate group at our properties. Chris Woronka: Great. Thanks, guys. Operator: The next question comes from the line of Chris Darling with Green Street. Chris, your line is now open. Chris Darling: Good morning. Jim, hoping you could elaborate on your capital allocation priorities, how they might have changed given the run up in your share price year to date? And just given the significant available dry powder you have, should we expect to see you go on offense sooner than later? James F. Risoleo: Sure, Chris. Capital allocation always is 1 of Host's most important value creation levers. Our approach has not-- you know, we are focused on maximizing long term shareholder return by you know, we look at every use of capital against the available alternatives, including acquisitions, reinvestment in our existing portfolio, share repurchases, dividends, and asset recycling. So you are correct. You know, we are sitting here with an investment grade balance sheet and leverage of approximately 2.2x. After taking into account the July dividend and, you know, a portfolio that continues to work and generates strong free cash flow. So we have a lot of flexibility to play offense when we see opportunities to meet our return thresholds. So you know, we are seeing more activity today. There have been a lot of deals in the market. We have we have underwritten a lot of transactions, and to date, we have not been able to cross the bar that we set for ourselves internally. But there are high quality assets out there, and, you know, we will continue to look for assets with multiple demand drivers, attractive market fundamentals, and, you know, importantly, opportunities where our active management and ownership can create incremental EBITDA. that is where we can be most opportunistic. We have an advantage over others because we are an all cash buyer. We can move quickly. We have deep relationships, and our platform, really gives us the ability to underwrite complex assets, with confidence. So you know, why do we like acquisitions? Because it can do more than just add EBITDA. An acquisition can add to the long-term growth profile of the company. And benefit from our expense benchmarking Renovation is, as you have seen time and again. Branding, repositioning opportunities, and the like. You know, I think the 1 Hotel South Beach stands out as 1 of those acquisitions that has proved out very well for Host, you know, when we bought it, it was doing $35 million in EBITDA. This year, it is gonna do $65 million-plus. So I would say that we are we are gonna remain disciplined. We are not gonna pursue acquisitions simply because we have capital available. We are not gonna overpay. The bar remains high. The math needs to work on an unlevered IRR basis. And we need to see a clear path to value creation through market growth asset management opportunities, and portfolio fit and capital investment upside. Chris Darling: Okay. I appreciate the color. that is all for me. Operator: The next question comes from the line of David Katz with Jefferies. Your line is now open. David Katz: Morning. Thank you for taking my question. Jim, earlier in some of your prepared remarks, you talked about funneling or directing capital into those properties in the portfolio that have, you know, the greatest growth or growth You know, as you look at your portfolio today, assuming there are some properties in there that, you know, perhaps do not have the best, you know, growth prospects and you know, how much of your portfolio in qualitative terms would you know, consider that to be today? I mean, we will take as much specificity as you can offer. James F. Risoleo: You know, let me start by saying that we are very, very happy with the composition of our portfolio today. there is no doubt that the portfolio is working really well, for us. I think if you just step back for a moment and, look at 2025. I think we did about $1.76 billion of EBITDA in 2025, and you know, we sold $84 million of EBITDA where we, sold the 4 Seasons in the St. Regis in Houston, And, you know, this year, our midpoint is $1.83 billion. that is that is $73 million increase. Despite the sale of $84 million in EBITDA. So the portfolio is working really well. And it will continue to work well. We are not under any pressure to sell anything. If we think that, we can improve the overall free cash flow and EBITDA per key, which free cash flow comes from increasing EBITDA per key that is something we will do. Over time. But the pricing has to be right. it is no different than the way we underwrite a potential acquisition. it is how we look at, to potential dispositions as well. So I would tell you, you know, over time, I have said this before, and we proved out the point. You know, we are always testing the market. To see if there are opportunities to recycle capital. Every asset in the portfolio is for sale. I think we proved that out. By selling the 4 seasons. And returning a $500 million in a special dividend to our shareholders. that is that is 1 way to create shareholder return and shareholder value. And we will continue to take a look going forward. But there is no compulsion, and we are under certainly not under any pressure to sell anything, not sitting here with you know, a solid investment grade balance sheet at 2.2x leverage. David Katz: I understood. Was not implying, you know, that there should there should be a lot to sell. Thanks very much. Nice quarter. James F. Risoleo: Sure. Yep. Operator: The next question comes from the line of Smedes Rose with Citi. Your line is now open. Smedes Rose: Hi. Thank you. I wanted to ask a little bit about on the expense side. Sounds like you had some upside surprises around on the insurance savings this year. And I am just wondering, could you just remind us what you think the sort of total pace of property level expenses will be this year, and what are kind of the I mean, I realize it is early, but how are you sort of thinking about the pace of growth into next year? Guess, anything you are seeing on kind of wages and benefits, but also just overall cost? Sourav Ghosh: Sure. In terms of this year's needs, I think, you know, at the midpoint of our guidance at a 5%, total revenue increase for the year, Our total expense, we are estimating at about 4.2%. So when you look into next year and terms of wages and benefits for this year, our estimate has not changed. We still expect wage and benefit rate growth of 5%. Looking into next year, we obviously do not have budgets, but I will tell you what we sort of do expect on the wage and benefits side. it is should end up being lower just given the front loading impact of all the CBA agreements. And if you recall, the prior year was 6%. This year is 5. So net, we should be better off relative to this year. Do not have a number for you, yet. So that should be a tailwind from a wage and benefit standpoint. Smedes Rose: Thank you. Operator: The next question comes from the line of Michael Bellisario with Baird. Your line is now open. Michael Bellisario: Good morning, everyone. My question, sort of want to follow-up on David's prior question a little bit, but want to focus on sort of the hotels you want to keep, not sell. Just when you guys look back in what you are doing now, you have done a lot of heavy lifts in ROI work recently, I guess. Just sort of what is left for you to do beyond the second Marriott program? Are there more projects in the pipeline Just sort of trying to understand where and how your excess capital might be spent beyond potential acquisition opportunities. Thanks. James F. Risoleo: Sure, Mike. We have talked about the transformational renovations that we have undertaken the past. I think it is somewhere around 34 hotels that comprise 60% of this year's EBITDA. And, you know, that is 1 of the reasons you continue to see the outperformance in our RevPAR and total RevPAR going forward. You know, there are always opportunities to deploy capital. I would say, I would agree with you that the heavy lifting is done. But there are other assets in the portfolio where we will take a look and underwrite deployment of capital to see which sort of IRR we can generate. Certainly, by no means are we where we have been because we have repositioned the assets that are going to provide the highest return to our shareholders. So you know, for a little context and you know, you can do the math. I am sure you have. You know, our top 40 hotels generate approximately 80% of our EBITDA. And, you know, those are the hotels that were generally focused on. Not that there is anything wrong with the other 34, 35 that we have. But we will we will continue to look at ways to reposition assets, reposition outlets, We will continue to look at you know, land opportunities, value enhancement opportunities like we did at, you know, the Westin, for example, where we build an AC hotel on excess parking lot space, and, you know, the villas at the Andaz Wailea, the condos at the 4 Seasons, Orlando. So we are always looking for ways to create value that is embedded in the portfolio. Operator: The next question comes from the line of Duane Pfennigwerth with Evercore. Your line is now open. Duane Pfennigwerth: Hey. Thanks for the question. Good morning. Just on the Maui recovery, can you just remind us where that market is on group recovery, your views on full stabilization and if those views have changed at all. Thank you. Sourav Ghosh: So for this year, our estimate has not changed at the 120 million of EBITDA that we had spoken to last quarter. In terms of just group pace, pace is pacing really strong. So when you look at the third quarter, our total revenue pace is in the high single digits, and the fourth quarter is meaningfully high double digits. For the full year, when you look at sort of total revenue pace, it is at about 7.5%. And our expectation in terms of RevPAR growth for Maui is, call it 10% for the year. Still going very strong. Obviously, a lot of the group pace is being driven by the continued ramp up of, our Hyatt. And we are seeing success going into next year. Our pace for next year is also expected to have very, very strong pace, Hopefully, we will give you a number, on our call next time. But it is pacing very well for 2027 as well, and we feel that recovery is ongoing. Duane Pfennigwerth: Thanks, Saurabh. Do you have an estimate for what stabilization EBITDA would look like? Sourav Ghosh: it is a little difficult to give you a precise number just because, obviously, you have expense growth as well every single year. But we feel that we should be able to get another, you know, $20 million to $25 to 25, million additional. And as to what point that will be, remain to be seen. You know, once we have, budgets for next year, we will provide a little clarity in terms of what 2027 looks like. Duane Pfennigwerth: Thank you. Sourav Ghosh: Sure. Operator: The next question comes from the line of Robin Farley with Media. Your line is now open. Robin Farley: I think that is me. Thanks for the question. I wanted to circle back to the comment about the incentive management fees and kind of flow through to EBITDA from the RevPAR growth. Can you give us a little bit of color around what kind of EBITDA sensitivity if we think about does RevPAR growth from this point forward kind of have that IMF, you know, an expense to you kind of in there and how we should think about flow through, kind of from at this level of RevPAR forward? Thanks. Sourav Ghosh: Sure, Robin. I will start off by saying it is somewhat of an art, not a perfect science just because every single contract that we have does have a very different IMF calculation. And all different thresholds that, revenue thresholds or GOP thresholds when certain IMF is triggered. And in some cases, if there is, like, deferred IMF, that will be triggered after reaching a certain amount of performance for that property. That said, if you recall last year, we had talked about how 1 point of RevPAR was somewhere around $32 million to $37 million of EBITDA. That was for last year, and I wanna remind you at that point in time, our overall RevPAR and total RevPAR gap was about 40 to 50 bps. So RevPAR total RevPAR being slightly higher than RevPAR. That rule of thumb is a little bit different now because the portfolio makeup is different. We did sell the 4 Seasons. That by in itself brought that point of RevPAR growth equation to EBITDA down. So you are looking at more like $28 million to $30 million of EBITDA. Then you do have to keep in mind as to what total RevPAR does. So for example, yeah, we raised our RevPAR guide by a 125-bps, but total RevPAR was only raised by 75 basis points. So you have to keep that in mind when you think about sort of the EBITDA impact. 1 of the things is once you reach that IMF payment, that will stabilize. So it is not like the IMF continues to, have meaningful jumps for the balance of the year. With the outperformance and the trigger of the IMF, I just wanna remind folks that we are in times of high performance, it is a more normalized IMF that we are seeing. So this is just that certain properties are triggering IMF, which is frankly a good thing. That means they are outperforming. And we do not expect that to meaningfully jump once it has been triggered. So in other words, what we saw in Q2, was more, and we are not expecting as much of a jump into the second half, if that makes sense, Robin. Robin Farley: Great. Thanks very much. Sourav Ghosh: Yeah. Thank you. Operator: The next question comes from the line of Daniel Politzer with JPMorgan. Your line is now open. Daniel Politzer: Hey. Good morning, everyone, and thanks for the question. I wanted to just zoom in a little bit on terms of the RevPAR cadence I think you guys mentioned third quarter would be a little bit softer or maybe the weakest quarter of the year. Maybe I misheard that and it was a reference to group. But I was just hoping you could kind of talk us through the RevPAR cadence and specifically as it relates to kind of puts and takes just given Julie is off to such a strong start thus far. Sourav Ghosh: Sure. Yes. What we have talked about, yeah, the cadence of RevPAR last quarter We had talked about how Q3 was expected to be the slowest, the weakest quarter, and that typically is for us. With July coming in at 10%, we expect our Q3 to be pretty similar to Q4, so not very far off. being really driven by July. We expect August to not have meaningful growth. That always is sort of just a weak month. And then September, because of the Jewish holiday shift, you do have group pace, which is lower. While that has improved from, as I said earlier, our group pace was negative for the third quarter. That is now actually positive low single digits. It certainly moved in the right direction. But what is really driving third quarter now being similar to fourth quarter in terms of RevPAR is the July outperformance of 10%. And I do wanna mention, that on the July number of 10%, only 3% of that 10% is really World Cup driven. So the rest of the portfolio is outperforming meaningfully. It was not just a World Cup outperformance. Daniel Politzer: Got it. That makes sense. I appreciate all the detail. Operator: The next question comes from the line of Richard Hightower with Barclays. Your line is now open. Richard Hightower: Hi. Good morning, guys. Thanks for taking the question. I know transient revenue in the quarter was obviously up, very strongly along with the other segments, but room nights were down slightly. And I am wondering if that was entirely World Cup driven or if there is more sort of going on under the hood there. And then secondly, just on the rate outlook, you said you expect the second half generally to normalize. relative to the first half. And so, you know, does that indicate you are seeing pushback anywhere? in the system, from different segments, or is that just simply a comment that Q2 was insanely good because of World Cup and just that is just not gonna be sustainable for that reason. Thanks. James F. Risoleo: Yeah, Richard. Let me start and then Sourav can jump in with additional color But you know, the rate driven RevPAR growth was, not an accident. That was a revenue management strategy that we employed, across the portfolio. You know, we are set up very, very well. With the luxury resort market in particular. We saw very strong growth in revenues in our luxury resorts. World Cup played out as we anticipated that it would. The bookings were very close to the matches. They were they were close in. And you know, the intent was to drive rate. And take occupancy where you could get premium rate. So I think that is a good strategy, and, you know, demand is there for it. And that would be our strategy going forward. Sourav Ghosh: And, Richard, on the rate front, when you look at sort of first half versus second half, and that is why you call it normalizing, The first half is obviously not only being driven by the outperformance in world Cup, but do remember that given our resort portfolio and the outperformance of resort portfolio is more skewed towards the first half, that also is driving the first half rate higher. So second half, rate is strong. it is it is just not being aided by any special events, but we feel very good about sort of the rate growth in the third quarter and fourth quarter based on the business we have Also, we talked about this in prepared remarks, is you look at the holidays and how they are pacing, all double digits, Labor Day, festive, Thanksgiving, we are very encouraged with know, the rate growth we are seeing for those quarters. So all in all, we look at the 5% midpoint for RevPAR Rate is still a big piece of that. For the full year, it is a 4% rate growth, and occupancy is about 60 bps better than last year. Richard Hightower: Alright. Thanks, guys. Operator: The next question comes from Jackson Armstrong with Wells Fargo. Your line is now open. Jackson Armstrong: Hey. Good morning. Thanks for taking the question. Coming back over to the expense side, it seems like the 5% labor expense growth is a little bit higher than what we have seen from your peers. Can you break that growth number down between the wage rate and your level of FTEs? And talk about what we might be driving that variance versus your peers and how we should expect your labor expense growth to develop in the back half of this crisis? Sourav Ghosh: Yeah, I am not sure what comparison you are looking at, but our commentary has been pretty consistent in terms of the expected wage rate growth of 5%. We actually with the New York CBA, coming to a head. That was ended up being a slight positive overall in terms of what we were forecasting relative to what we were forecasting. So and our 5% has not changed throughout the year. And we expect, like I said earlier, that to have a step-down next year because of the CB agreements that were done 2 years ago, it was more front loaded. Therefore, we had 6% wage rate growth. This year, it is 5%. And next year, at least for certain markets, it is going to be lower just because it is a step down. But overall, our commentary on this wage rate growth has been pretty consistent, across the board. Jackson Armstrong: I guess I was just referring to, some of your peers are coming in at, you know, closer to 2% or 3% on the labor expense growth, maybe net of some full time employee cuts. Is that a lever that you are thinking about pulling here over the next 18 months? Sourav Ghosh: Yeah. So just to clarify, what I am referring to in terms of 5% is wage rate growth. It is not absolute wage and benefit growth. That is meaningfully lower. That is why we can achieve a total expense growth of only 4.2% for the year. If we did not have any productivity benefits and we did not have, efficiencies, we would not be able to deliver the total expense growth of, of 4.2%. So the absolute wage and benefit growth is lower, Every whenever we talk about the growth in terms of wages, I am always referring to wage rate growth. So it is not the actual wage and benefit growth. That the absolute growth is net of all productivity improvements. Jackson Armstrong: Okay. Thank you. Operator: This concludes today's Q&A session. I will now turn the call back to Jim Risoleo for closing remarks. James F. Risoleo: Well, thank you again for joining us today. We always appreciate the opportunity to discuss our quarterly results. And we look forward to seeing many of you at conferences this fall. Enjoy the rest of your summer. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Host Hotels & Resorts, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Host Hotels & Resorts wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Host Hotels & Resorts (HST) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Host Hotels & Resorts, Inc.? Here are five stocks we like better. Host Hotels & Resorts exceeded second-quarter expectations: Adjusted EBITDAre rose 5.8% year over year to $525 million and adjusted FFO per share increased 8.6% to $0.63. Comparable hotel RevPAR grew 7%, while EBITDA margins expanded 60 basis points to 31.9%. Growth was driven by events, resorts and group demand, including a 160-basis-point RevPAR boost from FIFA World Cup markets, strong Maui performance and a 7% increase in group room revenue. Management expects July RevPAR to rise about 10% and raised full-year 2026 RevPAR growth guidance to 4.75%–5.25%. The company strengthened shareholder returns and maintained financial flexibility: Host paid a regular $0.20-per-share dividend and a $0.72 special dividend, ended the period with $3 billion of liquidity and a 2.2-times leverage ratio, and continues renovation programs while remaining disciplined on acquisitions and dispositions. 3 Hotel REITs Poised to Benefit from the World Cup Host Hotels & Resorts (NASDAQ:HST) reported second-quarter results that exceeded its expectations, supported by broad-based RevPAR growth, strong luxury resort demand, group business and event-driven rate strength. Adjusted EBITDAre rose 5.8% year over year to $525 million, while adjusted FFO per share increased 8.6% to $0.63, President and Chief Executive Officer Jim Risoleo said during the company’s second-quarter 2026 earnings call. Comparable hotel RevPAR increased 7% from the prior-year quarter and comparable hotel total RevPAR rose 5.9%. → 3 Drone Stocks That Should Soar After the Summer Slump 3 High-Yield Stocks with Major Upside, According to Analysts Comparable hotel EBITDA margin expanded 60 basis points to 31.9%, which the company attributed to rate growth and lower fixed expenses. The results cover Host’s 74-hotel comparable portfolio, excluding the Don CeSar and Sheraton Parsippany, which were sold in June. Risoleo said the FIFA World Cup contributed an estimated 160 basis points to second-quarter RevPAR growth. In June, RevPAR in Host’s World Cup markets rose 15%, compared with 12% growth in non-World Cup markets. For the full year, the company now expects the World Cup to provide roughly 70 basis points of gross RevPAR growth, up from its prior 60-basis-point estimate. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Transient revenue grew 7%, its strongest increase in seven quarters, led by rate gains as demand remained relatively stable. Major events, citywide compression and leisure demand at luxury resorts supported pricing. Maui, New York and San Francisco led growth, while business-transient markets also improved. Maui RevPAR rose 14% and total RevPAR increased 11%, with occupancy climbing more than 8 percentage points. Host continues to expect its Maui properties to contribute approximately $120 million of EBITDA in 2026. → Jersey Mike's Serves Fresh Gains After IPO Stumble Business transient revenue increased 4%, driven by rates. The company reported business-transient room-night growth in New York, Washington, D.C., Chicago and San Diego. At the New York Marriott Marquis, business-transient room nights rose 14%, aided by demand from technology, consulting and finance companies. Group room revenue increased 7%, split relatively evenly between room-night and rate growth. Host sold 1.1 million group room nights during the quarter, and definite group room nights on the books for 2026 totaled 3.8 million. Total group revenue pace was up more than 5% from the same point last year. Executive Vice President and Chief Financial Officer Sourav Ghosh said corporate groups accounted for about two-thirds of group revenue growth. Host added approximately 210,000 group room nights during the quarter for the remainder of 2026, compared with 167,000 room nights added for the comparable period last year. Fourth-quarter group pace was nearing 10%, he said. Comparable hotel food-and-beverage revenue rose 6%, with banquet and catering revenue up 7%. Washington, D.C., was a major contributor, where banquet and catering revenue increased 45%, aided by newly renovated Hyatt properties. Outlet revenue increased 4%, supported by resorts, the ramp-up of The View at the New York Marriott Marquis and renovated Hyatt hotels. Maui outlet revenue grew 14%, reflecting occupancy gains at the Andaz Maui and Hyatt Regency Maui. Other revenue was approximately flat, as higher golf and spa revenue was offset by lower attrition and cancellation revenue against difficult comparisons. Golf revenue rose 9%, driven by Maui and Naples, while spa revenue increased 4%. Ghosh said several resort properties posted double-digit increases in spa capture. Host raised its 2026 comparable hotel RevPAR and total RevPAR growth outlook to a range of 4.75% to 5.25% over 2025. At the midpoint, the forecast assumes 5% RevPAR growth, representing a 125-basis-point improvement from prior guidance. The company expects comparable hotel RevPAR to rise approximately 10% in July, with only about 3 percentage points of that growth tied to the World Cup. Ghosh said the third and fourth quarters are now expected to produce similar RevPAR growth, although August is expected to have limited growth and September will be affected by a shift in Jewish holidays. At the midpoint of guidance, Host expects comparable hotel EBITDA margin of 29.7%, up 50 basis points from 2025. Full-year adjusted EBITDAre guidance has a midpoint of $1.83 billion, a $20 million, or 1%, increase from the previous midpoint. The updated outlook includes a $2.5 million expense benefit from property insurance renewal rates that came in 6% lower than the prior year. Host continues to expect wage rates to increase about 5% in 2026, although Ghosh said total wage and benefit expense growth is lower after productivity improvements. During the quarter, Host sold the Sheraton Parsippany for approximately $12 million, describing the transaction as part of its strategy to exit lower-growth assets with elevated near-term capital needs. In July, the company paid a regular quarterly dividend of $0.20 per share and a special dividend of $0.72 per share. The special dividend represented the distribution of roughly $500 million in taxable gains from the first-quarter sales of two Four Seasons resorts. The Hyatt Transformational Capital Program is nearly 90% complete, with renovations finished at five of its six hotels. The remaining Manchester Grand Hyatt San Diego project is expected to be substantially complete by year-end. The second Marriott Transformational Capital Program is about 37% complete and tracking on time and under budget, according to management. Host expects 2026 capital expenditures of approximately $550 million to $630 million, including $250 million to $285 million for redevelopment, repositioning and return-on-investment projects. The company also reduced its expected 2026 EBITDA from the Four Seasons Orlando condo development to $16 million to $20 million from $20 million to $25 million, citing the timing of remaining unit closings. The difference is expected to be recognized in 2027. Host ended the period with $3 billion of available liquidity, adjusted for the July dividends, and a leverage ratio of 2.2 times. Risoleo said the company continues to evaluate acquisitions, dispositions, reinvestment, dividends and repurchases, but will remain disciplined on potential transactions. Host Hotels & Resorts, Inc is a real estate investment trust (REIT) focused on owning and managing premium lodging properties. The company's portfolio predominantly comprises luxury and upper-upscale hotels and resorts operated under leading global brands. Through strategic acquisitions, dispositions and capital investments, Host Hotels & Resorts seeks to enhance long-term value by aligning property-level operating performance with broader market trends in hospitality demand. The company's holdings span major urban, resort and conference destinations across North America, Europe and the Asia-Pacific region. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Host Hotels & Resorts Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Second quarter outperformance was primarily driven by a deliberate revenue management strategy to prioritize rate growth over occupancy, particularly during the World Cup and citywide compression events. The World Cup contributed approximately 160 basis points to RevPAR growth in Q2, with host markets seeing 15% growth compared to 12% in non-host markets for the month of June. Luxury resort demand remains robust among affluent consumers, with Maui RevPAR growing 14% as the market continues its recovery toward a projected $120 million EBITDA contribution for 2026. Transient revenue growth of 7% marked the strongest performance in seven quarters, supported by stable demand and the ability to push rates at high-end experiential properties. Group revenue growth of 7% was balanced between rate and volume, with corporate groups serving as the primary driver and accounting for two-thirds of the total increase. Strategic capital allocation remains focused on high-growth assets, evidenced by the sale of the Sheraton Parsippany to exit a lower-growth property with high near-term capital requirements. The portfolio's diverse geographic footprint allowed non-World Cup markets to capture demand from travelers seeking to avoid congestion and peak pricing in host cities. Full-year RevPAR and total RevPAR guidance was raised to 4.75% to 5.25%, reflecting first-half outperformance and a stronger outlook for the second half of the year. Management expects rate growth to normalize in the second half of 2026 as the outsized benefits from special events and seasonal resort strength moderate. The 2026 outlook assumes a 50 basis point net benefit from special events, including a 70 basis point lift from the World Cup partially offset by a 20 basis point headwind from the 2025 presidential inauguration. Capital expenditure for 2026 is projected between $550 million and $630 million, with a focus on completing the Hyatt and Marriott transformational renovation programs. Wage rate growth is expected to step down in 2027 as the front-loaded impacts of current collective bargaining agreements begin to moderate. A special dividend of $0.72 per share was paid in July to distribute the $500 million taxable gain from the sale of the Four Seasons resorts. The Kona low rainstorm in Hawaii necessitated $25 million to $30 million in property damage reconstruction, though insurance is expected to cover most losses in excess of the deductible. EBITDA expectations for the Four Seasons Orlando condo development were lowered to $16 million to $20 million for 2026 due to the timing of remaining unit closings. Property insurance renewals came in 6% lower than expected, providing a $2.5 million expense reduction benefit to the updated 2026 guidance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Q2 flow-through was impacted by higher incentive management fees (IMF) due to property outperformance and increased travel agent commissions from short-term World Cup bookings. Management expects a $7 million benefit over the next few years as Marriott shifts procurement in-house and anticipates further gains from a new property management system in 2027. Host remains disciplined in its acquisition strategy, maintaining a high bar for unlevered IRR despite having significant liquidity and a 2.2x leverage ratio. The company views its all-cash buyer status as a competitive advantage in a market where high-quality assets are becoming more active. Management estimates that Maui could provide an additional $20 million to $25 million in EBITDA beyond the current $120 million target as the market fully stabilizes. Group booking pace for Maui in the fourth quarter is showing significantly high double-digit growth, signaling a strong ongoing recovery. Total group revenue pace is up 5% for the year, with fourth-quarter group pace accelerating to nearly 10% from a previous 7%. Management noted that group booking windows are beginning to normalize, with corporate group demand showing particular strength.

Host Hotels (HST) reported $1.64 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 3.4%. EPS of $0.63 for the same period compares to $0.32 a year ago. The reported revenue represents a surprise of +1.18% over the Zacks Consensus Estimate of $1.62 billion. With the consensus EPS estimate being $0.62, the EPS surprise was +1.61%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Host Hotels performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Number of Rooms: 40,974 compared to the 40,974 average estimate based on three analysts. RevPAR: $251.53 versus the three-analyst average estimate of $244.77. Number of Properties: 74 compared to the 74 average estimate based on two analysts. Average Room Rate: $335.83 compared to the $341.70 average estimate based on two analysts. Average Occupancy Percentage: 74.9% versus 72.1% estimated by two analysts on average. Revenues- Rooms: $954 million versus the five-analyst average estimate of $957.04 million. The reported number represents a year-over-year change of +0.5%. Revenues- Other: $149 million versus the five-analyst average estimate of $169.75 million. The reported number represents a year-over-year change of -6.3%. Revenues- Food and beverage: $484 million compared to the $489.18 million average estimate based on five analysts. The reported number represents a change of +1.3% year over year. Earnings (loss) per Share- (Diluted): $0.35 versus $0.33 estimated by four analysts on average. View all Key Company Metrics for Host Hotels here>>> Shares of Host Hotels have returned +7% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. 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 This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Delivered Comparable Hotel RevPAR Growth of 7.0% and Comparable Hotel Total RevPAR Growth of 5.9% Raises Full Year 2026 Comparable Hotel Total RevPAR and RevPAR Growth Guidance Ranges to 4.75% to 5.25% BETHESDA, Md., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the nation’s largest lodging real estate investment trust (“REIT”), today announced results for the second quarter of 2026. * Additional detail on the Company’s results, including data for 24 domestic markets, is available in the Second Quarter 2026 Supplemental Financial Information on the Company’s website at www.hosthotels.com. James F. Risoleo, President and Chief Executive Officer, said, “We are pleased to have delivered a strong second quarter underscoring the success of our capital allocation strategy, the quality of our portfolio, and the continued benefits of reinvesting in our assets. We achieved comparable hotel RevPAR growth of 7.0% for the quarter, driven by solid rate growth across the portfolio, bolstered by the World Cup and broad-based strength in leisure transient demand and group business. Comparable hotel Total RevPAR grew 5.9% year-over-year, driven by leisure transient business as well as increases in food and beverage revenues. Risoleo continued, "We are encouraged by the durability of demand across our portfolio, as affluent consumers continue to prioritize travel and group demand remains healthy across many of our markets. As a result, we are increasing our 2026 comparable hotel Total RevPAR and RevPAR growth guidance ranges to 4.75% to 5.25% over 2025. We believe our investment-grade balance sheet, strong liquidity, and a diversified portfolio position Host to deliver long-term value, capitalize on favorable industry fundamentals, and selectively pursue growth opportunities.” _______________________________ HIGHLIGHTS: Comparable hotel Total RevPAR was $417.58 for the second quarter of 2026, an increase of 5.9% compared to the same period in 2025, driven by increases in room rates and continued growth in food and beverage spend. Growth was broad-based and improved throughout the quarter with markets both hosting and not hosting FIFA World Cup matches demonstrating solid revenue performance. Comparable hotel Total RevPAR year-to-date in 2026 was $417.89, an increase of 5.3%. Comparable hotel RevPAR was $251.53, an increase of 7.0%, compared to the same period in 2025, primarily due to increases in room rates, driven by strong transient leisure business, particularly at resorts and in connection with the FIFA World Cup matches, and robust group business. Comparable hotel RevPAR year-to-date in 2026 was $247.84, an increase of 5.7%. GAAP net income was $241 million, a 7.1% increase compared to the second quarter of 2025, reflecting GAAP operating profit margin of 17.9%, an improvement of 40 basis points compared to the second quarter of 2025, as higher room rates offset wage expense increases and a $9 million decrease in net gains on insurance settlements. Year-to-date, GAAP net income was $742 million, a 55.9% increase compared to 2025, benefitting from gains on asset sales and GAAP operating profit margin of 18.6%, an improvement of 90 basis points compared to 2025. Comparable hotel EBITDA was $497 million, an increase of 7.8% compared to the second quarter of 2025, reflecting a comparable hotel EBITDA margin increase of 60 basis points to 31.9% due to improvements in operations, largely driven by average room rate increases, which offset increases in wage expense, higher incentive management fees, and reductions in operating profit guarantee payments and attrition and cancellation fees over the same period in 2025. Year-to-date, comparable hotel EBITDA was $1,002 million, an increase of 7.4% compared to 2025, while comparable hotel EBITDA margin increased 60 basis points to 32.3%. Adjusted EBITDAre was $525 million, an increase of 5.8% compared to the second quarter of 2025. Results benefited from improved operations and comparable hotel EBITDA margins, which more than offset declines due to the sale of six hotels in 2025 and 2026. In addition, the sale of seven villas at the recently completed development adjacent to the Four Seasons Resort Orlando at Walt Disney World® Resort contributed $8 million to net income and Adjusted EBITDAre. Year-to-date Adjusted EBITDAre was $1,068 million, exceeding 2025 by 5.7%. BALANCE SHEET The Company maintains a robust balance sheet, with the following balances at June 30, 2026: Total assets of $13.3 billion. Debt balance of $5.1 billion, with a weighted average maturity of 4.7 years, a weighted average interest rate of 4.8%, and no maturities in 2026. Total available liquidity of approximately $3.6 billion, including furniture, fixtures and equipment escrow reserves of $156 million and $1.5 billion available under the revolver portion of the credit facility. The payment of the second quarter regular and special dividend on July 15 reduced the cash balance by $630 million. DIVIDENDS The Company paid a second quarter common stock cash dividend of $0.92 per share on July 15, 2026 to stockholders of record on June 30, 2026. The dividend included a $0.72 per share special dividend representing the distribution of the approximately $500 million taxable gain resulting from the Four Seasons sales completed in the first quarter of 2026. All future dividends, including any special dividends, are subject to approval by the Company’s Board of Directors. HOTEL BUSINESS MIX UPDATE The Company’s customers fall into three broad groups: transient, group and contract business, which accounted for approximately 61%, 34%, and 5%, respectively, of its full year 2025 room sales. The following are the results for transient, group and contract business in comparison to 2025 performance, for the Company's current portfolio: CAPITAL EXPENDITURES The following presents the Company’s capital expenditures spend through the second quarter of 2026 and the forecast for the full year 2026 (in millions): __________ The forecast property damage reconstruction includes estimated spend for damage caused by the Kona Low rainstorm to the Company's properties in Hawaii in March 2026. Remediation efforts are substantially complete, and the hotels remained operational with isolated instances of water damage. The Company is still evaluating the complete property and business interruption impacts of the storm, but currently estimates the total property costs to be approximately $27 million to $32 million, which includes remediation costs of approximately $2 million. The Company expects its insurance coverage to substantially cover the property damage in excess of the insurance deductible. Under the Hyatt and Marriott Transformational Capital Programs, the Company received $5 million of operating guarantees in the second quarter of 2026 to offset expected business disruption. The Company expects to receive a total of $19 million of operating guarantees in 2026 under the two programs. The transformational renovation at the Grand Hyatt Washington was completed in the second quarter of 2026. 2026 OUTLOOK In the first half of 2026, the Company saw strong leisure and group demand, which drove an increase in rates. Comparable hotel RevPAR for July also grew approximately 10% over 2025, with a continued boost from the FIFA World Cup games. The 2026 guidance range includes the benefits from the FIFA World Cup as well as improved expectations in the second half of the year driven by leisure demand and modest improvements to short-term group booking trends. Full year operating profit margins and comparable hotel EBITDA margins are expected to increase slightly compared to 2025, as first half rate improvements offset increases in wage expense, while year-over-year comparisons are expected to moderate, primarily due to lower room rate growth expectations in the second half of the year. In comparison to 2025, the guidance reflects a reduction in earnings due to the 2026 and 2025 dispositions. The guidance for net income and Adjusted EBITDAre also includes an estimated $16 million to $20 million net contribution from total sales expected to close at the condominium development adjacent to the Four Seasons Resort Orlando at Walt Disney World® Resort this year, and remaining sales expected to shift into 2027. Additionally, the final determination on insurance claims related to Hurricanes Helene and Milton is expected in 2026, but no additional amounts from what was received in first quarter are included in guidance. The Company anticipates its 2026 operating results as compared to 2025 will be in the following range: Based upon the above parameters, the Company estimates its 2026 guidance as follows: See the 2026 Forecast Schedules and the Notes to Financial Information for items that may affect forecast results and the Second Quarter 2026 Supplemental Financial Information for additional detail on the mid-point of full year 2026 guidance. ABOUT HOST HOTELS & RESORTS Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 70 properties in the United States and five properties internationally totaling approximately 41,300 rooms. The Company also holds non-controlling interests in seven domestic joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, W®, The Luxury Collection®, Hyatt®, Fairmont®, 1 Hotels®, Hilton®, Swissôtel®, ibis® and Novotel®, as well as independent brands. For additional information, please visit the Company’s website at www.hosthotels.com. Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements include, but may not be limited to, our expectations regarding the strength of lodging demand, the continued recovery in Maui from the 2023 wildfires, and 2026 estimates with respect to our business, including our anticipated capital expenditures and financial and operating results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to, those described in the Company’s annual report on Form 10-K and other filings with the SEC. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of August 5, 2026, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations. * This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks have any responsibility or liability for any information contained in this press release. *** Tables to Follow *** Host Hotels & Resorts, Inc., herein referred to as “we,” “Host Inc.,” or the “Company,” is a self-managed and self-administered real estate investment trust that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resorts, L.P. (“Host LP”), of which we are the sole general partner. When distinguishing between Host Inc. and Host LP, the primary difference is approximately 1% of the partnership interests in Host LP held by outside partners as of June 30, 2026, which are non-controlling interests in Host LP in our consolidated balance sheets and are included in net (income) loss attributable to non-controlling interests in our condensed consolidated statements of operations. Readers are encouraged to find further detail regarding our organizational structure in our annual report on Form 10-K. __________ ___________ ___________ ___________ Comparable Hotel Results by Location(1) ___________ (1)  See the Notes to Financial Information for a discussion of comparable hotel operating statistics. CBD of a location refers to the central business district. Hotel RevPAR is calculated as room revenues divided by the available room nights. Hotel Total RevPAR is calculated by dividing the sum of rooms, food and beverage and other revenues by the available room nights. Results by Location - actual, based on ownership period(1) ___________ Results by Location - actual, based on ownership period(1) ___________ ___________ ___________ ___________ _______________ ___________ FORECASTS Our forecast of net income, earnings per diluted share, NAREIT and Adjusted FFO per diluted share, EBITDA, EBITDAre, Adjusted EBITDAre and comparable hotel results are forward-looking statements and are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause actual results and performance to differ materially from those expressed or implied by these forecasts. Although we believe the expectations reflected in the forecasts are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that the results will not be materially different. Risks that may affect these assumptions and forecasts include the following: potential changes in overall economic outlook make it inherently difficult to forecast the level of RevPAR, earnings and profitability; the amount and timing of debt payments may change significantly based on market conditions, which will directly affect the level of interest expense and net income; the amount and timing of transactions involving shares of our common stock may change based on market conditions; and other risks and uncertainties associated with our business described herein and in our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC. COMPARABLE HOTEL OPERATING STATISTICS AND RESULTS To facilitate a year-to-year comparison of our operations, we present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in our reports on a comparable hotel basis in order to enable our investors to better evaluate our operating performance. We define our comparable hotels as those that: (i) are owned or leased by us as of the reporting date and are not classified as held-for-sale; and (ii) have not sustained substantial property damage or business interruption, or undergone large-scale capital projects, in each case requiring closures lasting one month or longer (as further defined below), during the reporting periods being compared. We make adjustments to include recent acquisitions to include results for periods prior to our ownership. For these hotels, since the year-over-year comparison includes periods prior to our ownership, the changes will not necessarily correspond to changes in our actual results. Additionally, operating results of hotels that we sell are excluded from the comparable hotel set once the transaction has closed or the hotel is classified as held-for-sale. The hotel business is capital-intensive and renovations are a regular part of the business. Generally, hotels under renovation remain comparable hotels. A large-scale capital project would cause a hotel to be excluded from our comparable hotel set if it requires the entire property to be closed to hotel guests for one month or longer. Similarly, hotels are excluded from our comparable hotel set from the date that they sustain substantial property damage or business interruption if it requires the property to be closed to hotel guests for one month or longer. In each case, these hotels are returned to the comparable hotel set when the operations of the hotel have been included in our consolidated results for one full calendar year after the hotel has reopened. Often, related to events that cause property damage and the closure of a hotel, we will collect business interruption insurance proceeds for the near-term loss of business. These proceeds are included in net gain on insurance settlements on our condensed consolidated statements of operations. Business interruption insurance gains covering lost revenues while the property was considered non-comparable also will be excluded from the comparable hotel results. Of the 75 hotels that we owned as of June 30, 2026, 74 have been classified as comparable hotels. The operating results of the following properties that we owned as of June 30, 2026 are excluded from comparable hotel results for these periods: The Don CeSar (business disruption due to Hurricane Helene resulting in closure of the hotel beginning at the end of September 2024, reopened in March 2025); and Operations related to the development and sale of condominium units on a development parcel adjacent to the Four Seasons Resort Orlando at Walt Disney World® Resort. FOREIGN CURRENCY TRANSLATION Operating results denominated in foreign currencies are translated using the prevailing exchange rates on the date of the transaction, or monthly based on the weighted average exchange rate for the period. Therefore, hotel statistics and results for non-U.S. properties include the effect of currency fluctuations, consistent with our financial statement presentation. NON-GAAP FINANCIAL MEASURES Included in this press release are certain “non-GAAP financial measures,” which are measures of our historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules. They are as follows: (i) FFO and FFO per diluted share (both NAREIT and Adjusted), (ii) EBITDA, both at the hotel level and company-wide, (iii) EBITDAre and Adjusted EBITDAre, and (iv) Comparable Hotel Operating Statistics and Results. The following discussion defines these measures and presents why we believe they are useful supplemental measures of our performance. NAREIT FFO AND NAREIT FFO PER DILUTED SHARE We present NAREIT FFO and NAREIT FFO per diluted share as non-GAAP measures of our performance in addition to our earnings per share (calculated in accordance with GAAP). We calculate NAREIT FFO per diluted share as our NAREIT FFO (defined as set forth below) for a given operating period, as adjusted for the effect of dilutive securities, divided by the number of fully diluted shares outstanding during such period, in accordance with NAREIT guidelines. As noted in NAREIT’s Funds From Operations White Paper – 2018 Restatement, NAREIT defines FFO as net income (calculated in accordance with GAAP) excluding depreciation and amortization related to certain real estate assets, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment expense of certain real estate assets and investments and adjustments for consolidated partially owned entities and unconsolidated affiliates. Adjustments for consolidated partially owned entities and unconsolidated affiliates are calculated to reflect our pro rata share of the FFO of those entities on the same basis. We believe that NAREIT FFO per diluted share is a useful supplemental measure of our operating performance and that the presentation of NAREIT FFO per diluted share, when combined with the primary GAAP presentation of diluted earnings per share, provides beneficial information to investors. By excluding the effect of real estate depreciation, amortization, impairment expense and gains and losses from sales of depreciable real estate, all of which are based on historical cost accounting and which may be of lesser significance in evaluating current performance, we believe that such measures can facilitate comparisons of operating performance between periods and with other REITs, even though NAREIT FFO per diluted share does not represent an amount that accrues directly to holders of our common stock. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. As noted by NAREIT in its Funds From Operations White Paper – 2018 Restatement, the primary purpose for including FFO as a supplemental measure of operating performance of a REIT is to address the artificial nature of historical cost depreciation and amortization of real estate and real estate-related assets mandated by GAAP. For these reasons, NAREIT adopted the FFO metric in order to promote a uniform industry-wide measure of REIT operating performance. Adjusted FFO per Diluted Share We also present Adjusted FFO per diluted share when evaluating our performance because management believes that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. Management historically has made the adjustments detailed below in evaluating our performance, in our annual budget process and for our compensation programs. We believe that the presentation of Adjusted FFO per diluted share, when combined with both the primary GAAP presentation of diluted earnings per share and FFO per diluted share as defined by NAREIT, provides useful supplemental information that is beneficial to an investor’s understanding of our operating performance. We adjust NAREIT FFO per diluted share for the following items, which may occur in any period, and refer to this measure as Adjusted FFO per diluted share: Gains and Losses on the Extinguishment of Debt – We exclude the effect of finance charges and premiums associated with the extinguishment of debt, including the acceleration of the write-off of deferred financing costs from the original issuance of the debt being redeemed or retired and incremental interest expense incurred during the refinancing period. We also exclude the gains on debt repurchases and the original issuance costs associated with the retirement of preferred stock. We believe that these items are not reflective of our ongoing finance costs. Acquisition Costs – Under GAAP, costs associated with completed property acquisitions that are considered business combinations are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company. Litigation Gains and Losses – We exclude the effect of gains or losses associated with litigation recorded under GAAP that we consider to be outside the ordinary course of business. We believe that including these items is not consistent with our ongoing operating performance. Severance Expense – In certain circumstances, we will add back hotel-level severance expenses when we do not believe that such expenses are reflective of the ongoing operation of our properties. Situations that would result in a severance add-back include, but are not limited to, (i) costs incurred as part of a broad-based reconfiguration of the operating model with the specific hotel operator for a portfolio of hotels and (ii) costs incurred at a specific hotel due to a broad-based and significant reconfiguration of a hotel and/or its workforce. We do not add back corporate-level severance costs or severance costs at an individual hotel that we consider to be incurred in the normal course of business. Non-Cash Stock-Based Compensation - We exclude the expense recorded for non-cash stock-based compensation, as it represents a non-cash transaction and the add back is consistent with the calculation of Adjusted EBITDA for our financial covenant ratios under our credit facility and senior notes indentures and consistent with the presentation of Adjusted FFO per diluted share for the majority of other lodging REIT filers. In unusual circumstances, we also may adjust NAREIT FFO for gains or losses that management believes are not representative of the Company’s current operating performance. For example, in 2017, as a result of the reduction of the U.S. federal corporate income tax rate from 35% to 21% by the Tax Cuts and Jobs Act, we remeasured our domestic deferred tax assets as of December 31, 2017 and recorded a one-time adjustment to reduce our deferred tax assets and to increase the provision for income taxes by approximately $11 million. We do not consider this adjustment to be reflective of our ongoing operating performance and, therefore, we excluded this item from Adjusted FFO. EBITDA Earnings before Interest Expense, Income Taxes, Depreciation and Amortization (“EBITDA”) is a commonly used measure of performance in many industries. Management believes EBITDA provides useful information to investors regarding our results of operations because it helps us and our investors evaluate the ongoing operating performance of our properties after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization). Management also believes the use of EBITDA facilitates comparisons between us and other lodging REITs, hotel owners that are not REITs and other capital-intensive companies. Management uses EBITDA to evaluate property-level results and as one measure in determining the value of acquisitions and dispositions and, like FFO and Adjusted FFO per diluted share, it is widely used by management in the annual budget process and for our compensation programs. EBITDAre and Adjusted EBITDAre We present EBITDAre in accordance with NAREIT guidelines, as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate,” to provide an additional performance measure to facilitate the evaluation and comparison of the Company’s results with other REITs. NAREIT defines EBITDAre as net income (calculated in accordance with GAAP) excluding interest expense, income tax, depreciation and amortization, gains or losses on disposition of depreciated property (including gains or losses on change of control), impairment expense for depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustments to reflect the entity’s pro rata share of EBITDAre of unconsolidated affiliates. We make additional adjustments to EBITDAre when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. We believe that the presentation of Adjusted EBITDAre, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s understanding of our operating performance. Adjusted EBITDAre also is similar to the measure used to calculate certain credit ratios for our credit facility and senior notes. We adjust EBITDAre for the following items, which may occur in any period, and refer to this measure as Adjusted EBITDAre: Property Insurance Gains and Property Damage Losses – We exclude the effect of property insurance gains reflected in our condensed consolidated statements of operations because we believe that including them in Adjusted EBITDAre is not consistent with reflecting the ongoing performance of our assets. In addition, property insurance gains could be less important to investors given that the depreciated asset book value written off in connection with the calculation of the property insurance gain often does not reflect the market value of real estate assets. Similarly, losses from property damage or remediation costs that are not covered through insurance are excluded. Acquisition Costs – Under GAAP, costs associated with completed property acquisitions that are considered business combinations are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company. Litigation Gains and Losses – We exclude the effect of gains or losses associated with litigation recorded under GAAP that we consider to be outside the ordinary course of business. We believe that including these items is not consistent with our ongoing operating performance. Severance Expense – In certain circumstances, we will add back hotel-level severance expenses when we do not believe that such expenses are reflective of the ongoing operation of our properties. Situations that would result in a severance add-back include, but are not limited to, (i) costs incurred as part of a broad-based reconfiguration of the operating model with the specific hotel operator for a portfolio of hotels and (ii) costs incurred at a specific hotel due to a broad-based and significant reconfiguration of a hotel and/or its workforce. We do not add back corporate-level severance costs or severance costs at an individual hotel that we consider to be incurred in the normal course of business. Non-Cash Stock-Based Compensation - We exclude the expense recorded for non-cash stock-based compensation, as it represents a non-cash transaction and the add back is consistent with the calculation of Adjusted EBITDA for our financial covenant ratios under our credit facility and senior notes indentures and consistent with the presentation of Adjusted EBITDAre for the majority of other lodging REIT filers. In unusual circumstances, we also may adjust EBITDAre for gains or losses that management believes are not representative of the Company’s current operating performance. The last adjustment of this nature was a 2013 exclusion of a gain from an eminent domain claim. Limitations on the Use of NAREIT FFO per Diluted Share, Adjusted FFO per Diluted Share, EBITDA, EBITDAre and Adjusted EBITDAre We calculate EBITDAre and NAREIT FFO per diluted share in accordance with standards established by NAREIT, which may not be comparable to measures calculated by other companies that do not use the NAREIT definition of EBITDAre and FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance. In addition, although EBITDAre and FFO per diluted share are useful measures when comparing our results to other REITs, they may not be helpful to investors when comparing us to non-REITs. We also calculate Adjusted FFO per diluted share and Adjusted EBITDAre, which measures are not in accordance with NAREIT guidance and may not be comparable to measures calculated by other REITs or by other companies. This information should not be considered as an alternative to net income, operating profit, cash from operations or any other operating performance measure calculated in accordance with GAAP. Cash expenditures for various long-term assets (such as renewal and replacement capital expenditures), interest expense (for EBITDA, EBITDAre and Adjusted EBITDAre purposes only), severance expense related to significant property-level reconfiguration and other items have been, and will be, made and are not reflected in the EBITDA, EBITDAre, Adjusted EBITDAre, NAREIT FFO per diluted share and Adjusted FFO per diluted share presentations. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our consolidated statements of operations and consolidated statements of cash flows in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures. Additionally, NAREIT FFO per diluted share, Adjusted FFO per diluted share, EBITDA, EBITDAre and Adjusted EBITDAre should not be considered as measures of our liquidity or indicative of funds available to fund our cash needs, including our ability to make cash distributions. In addition, NAREIT FFO per diluted share and Adjusted FFO per diluted share do not measure, and should not be used as measures of, amounts that accrue directly to stockholders’ benefit. Similarly, EBITDAre, Adjusted EBITDAre, NAREIT FFO and Adjusted FFO per diluted share include adjustments for the pro rata share of our equity investments, and NAREIT FFO and Adjusted FFO per diluted share include adjustments for the pro rata share of non-controlling partners in consolidated partnerships. Our equity investments consist of interests ranging from 11% to 67% in seven domestic partnerships that own a total of 120 properties and a vacation ownership development. Due to the voting rights of the outside owners, we do not control and, therefore, do not consolidate these entities. The non-controlling partners in consolidated partnerships primarily consist of the approximate 1% interest in Host LP held by unaffiliated limited partners and a 15% interest held by an unaffiliated limited partner in a partnership owning one hotel for which we do control the entity and, therefore, consolidate its operations. These pro rata results for NAREIT FFO and Adjusted FFO per diluted share, EBITDAre and Adjusted EBITDAre were calculated as set forth in the definitions above. Readers should be cautioned that the pro rata results presented in these measures for consolidated partnerships (for NAREIT FFO and Adjusted FFO per diluted share) and equity investments may not accurately depict the legal and economic implications of our investments in these entities. Comparable Hotel Property Level Operating Results We present certain operating results for our hotels, such as hotel revenues, expenses, food and beverage profit, and EBITDA (and the related margins), on a comparable hotel, or "same store," basis as supplemental information for our investors. Our comparable hotel results present operating results for our hotels without giving effect to dispositions or properties that experienced closures due to renovations or property damage, as discussed in “Comparable Hotel Operating Statistics and Results” above. We present comparable hotel EBITDA to help us and our investors evaluate the ongoing operating performance of our comparable hotels after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization expense). Corporate-level costs and expenses also are removed to arrive at property-level results. We believe these property-level results provide investors with supplemental information about the ongoing operating performance of our comparable hotels. Comparable hotel results are presented both by location and for the Company’s properties in the aggregate. We eliminate from our comparable hotel level operating results severance costs related to broad-based and significant property-level reconfiguration that is not considered to be within the normal course of business, as we believe this elimination provides useful supplemental information that is beneficial to an investor’s understanding of our ongoing operating performance. We also eliminate depreciation and amortization expense because, even though depreciation and amortization expense are property-level expenses, these non-cash expenses, which are based on historical cost accounting for real estate assets, implicitly assume that the value of real estate assets diminishes predictably over time. As noted earlier, because real estate values historically have risen or fallen with market conditions, many real estate industry investors have considered presentation of historical cost accounting for operating results to be insufficient. Because of the elimination of corporate-level costs and expenses, gains or losses on disposition, certain severance expenses and depreciation and amortization expense, the comparable hotel operating results we present do not represent our total revenues, expenses, operating profit or net income and should not be used to evaluate our performance as a whole. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our condensed consolidated statements of operations include such amounts, all of which should be considered by investors when evaluating our performance. We present these hotel operating results on a comparable hotel basis because we believe that doing so provides investors and management with useful information for evaluating the period-to-period performance of our hotels and facilitates comparisons with other hotel REITs and hotel owners. In particular, these measures assist management and investors in distinguishing whether increases or decreases in revenues and/or expenses are due to growth or decline of operations at comparable hotels (which represent the vast majority of our portfolio) or from other factors. While management believes that presentation of comparable hotel results is a supplemental measure that provides useful information in evaluating our ongoing performance, this measure is not used to allocate resources or to assess the operating performance of each of our hotels, as these decisions are based on data for individual hotels and are not based on comparable hotel results in the aggregate. For these reasons, we believe comparable hotel operating results, when combined with the presentation of GAAP operating profit, revenues and expenses, provide useful information to investors and management. A PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/ada59729-2db1-46e5-82f2-a79f2cd8c1a2

With the second-quarter earnings season underway, the early results are drawing investor interest as companies report strong profits. Instead of buying stocks that have already rallied on solid results, it may make more sense to focus on companies that still have room to surprise positively. Earnings beat often serve as catalysts, boosting sentiment and pushing shares higher. This is likely to be reflected in the earnings releases of Host Hotels & Resorts HST, Realty Income O and Simon Property Group SPG. REITs play a vital role in both the physical and digital sides of the economy and often show resilience even in challenging markets. Taking a closer look at the sector’s fundamentals can help investors identify areas of steady performance and long-term growth potential. Here’s a look at where the industry’s strengths lie and how it could still present value amid broader market uncertainty. The hotel industry, in particular, demonstrated resilient growth in the second quarter of 2026. According to CBRE data, overall hotel occupancy increased 0.8% year over year as demand growth of 1.7% surpassed the 0.4% rise in supply during the quarter. Revenue per available room (RevPAR) climbed 5.7% year over year, bolstered by a 4.4% increase in the average daily rate (ADR), with real (inflation-adjusted) RevPAR growth settling at 1.8% after accounting for a 3.8% inflation rate. For the retail industry, Cushman & Wakefield’s report shows that net absorption reached 708,000 square feet in the second quarter of 2026. National vacancy remained broadly stable at 6%, up only three basis points sequentially, while remaining below the historical average of 7.4%. Limited construction continued to support market fundamentals, with just 2.3 million square feet delivered during the quarter. Asking rents increased 2.2% year over year to $25.65 per square foot, supported by tight availability and muted new supply. Picking the right stock could be difficult unless one knows the proper method. To make the task simple, we rely on the Zacks methodology, combining a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Our proprietary methodology, Earnings ESP, shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Research shows that stocks with a favorable Zacks Rank and a positive Earnings ESP have as high as a 70% chance of delivering a positive earnings surprise. Here are three REITs that have the right combination of elements to deliver positive surprises this earnings season. Host Hotels & Resorts currently has an Earnings ESP of +1.48% and carries a Zacks Rank #2. Over the trailing four quarters, the company’s adjusted funds from operations (AFFO) per share outpaced the Zacks Consensus Estimate on all occasions, with the average beat being 8.66%. You can see the complete list of today’s Zacks #1 Rank stocks here. Host Hotels & Resorts, Inc. price-eps-surprise | Host Hotels & Resorts, Inc. Quote Host Hotels is likely to have benefited from its portfolio of luxury and upper-scale hotels across the top U.S. markets and the Sunbelt region. The improvement in group and transient demand, including leisure and resort demand, is expected to have supported its hotel RevPAR growth in the to-be-reported quarter. The company’s strategic capital allocations are likely to have improved portfolio quality and strengthened its position in key U.S. markets, where it has a greater scale and competitive advantage. This is likely to have given it an edge and driven margin expansion. However, high interest expenses are likely to have been a spoilsport for HST during the to-be-reported quarter. Host Hotels is scheduled to release its second-quarter earnings on Aug. 5, after market close. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.62 billion, which suggests a 2.2% increase from the year-ago quarter’s reported figure. The consensus mark for second-quarter 2026 AFFO per share is pegged at 62 cents, implying a 6.9% increase year over year. Realty Income currently has an Earnings ESP of +0.92% and carries a Zacks Rank of 2. Over the trailing four quarters, the company’s AFFO per share surpassed the Zacks Consensus Estimate on two occasions, met once and missed another, the average beat being 0.68%. Realty Income Corporation price-eps-surprise | Realty Income Corporation Quote Realty Income is likely to have delivered stable operating performance in the second quarter, supported by its diversified net lease portfolio. The company’s sustained occupancy and resilient tenant demand are likely to have supported earnings stability. Its disciplined acquisition strategy and emphasis on high-performing assets are likely to have underpinned portfolio strength and operational consistency during the to-be-reported period. On the balance sheet side, the company is expected to have experienced a continued focus on liquidity, funding costs and leverage control. Realty Income is slated to report second-quarter 2026 results on Aug. 5, after market close. The Zacks Consensus Estimate for quarterly revenues is presently pegged at $1.54 billion, which indicates an increase of 8.98% year over year. The consensus mark for the quarterly AFFO per share is pegged at $1.09, which calls for 3.81% year-over-year growth. Simon Property Group has an Earnings ESP of +0.39% and carries a Zacks Rank #3 at present. Over the trailing four quarters, SPG’s FFO per share surpassed the Zacks Consensus Estimate in each quarter, with the average beat being 2.88%. Simon Property Group, Inc. price-eps-surprise | Simon Property Group, Inc. Quote Simon Property Group’s second-quarter 2026 results are expected to show steady operating momentum, supported by healthy demand across its high-quality retail portfolio. The company is likely to have benefited from strong leasing activity. Occupancy is also expected to have remained firm, backed by demand from new tenants. However, its second-quarter performance may have been pressured by higher interest expenses and tariff-related stress on tenants. Simon Property is scheduled to report its quarterly figures on Aug. 10, after market close. The Zacks Consensus Estimate for second-quarter total revenues is pegged at $1.71 billion, indicating a 14.37% increase year over year. The consensus mark for the quarterly FFO per share stands at $3.18, suggesting a 4.26% increase year over year. 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 Simon Property Group, Inc. (SPG) : Free Stock Analysis Report Realty Income Corporation (O) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Host Hotels & Resorts, Inc. HST is scheduled to release second-quarter 2026 earnings results on Aug. 5, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues and adjusted funds from operations (AFFO) per share. In the previous quarter, this Bethesda, MD-based lodging real estate investment trust (REIT) reported an AFFO per share of 67 cents, which surpassed the Zacks Consensus Estimate of 63 cents. The results reflected higher revenues, driven by year-over-year comparable hotel RevPAR growth. Over the trailing four quarters, Host Hotels’ AFFO per share surpassed estimates on all occasions, the average surprise being 8.66%. The graph below depicts this surprising history: Host Hotels & Resorts, Inc. price-eps-surprise | Host Hotels & Resorts, Inc. Quote Host Hotels & Resorts benefits from a portfolio of luxury and upper-upscale hotels across key U.S. markets, including gateway cities and resort destinations. The company’s properties are strategically positioned in high-demand locations, which continue to support steady room pricing. The continued recovery in group demand, along with stable transient and leisure travel, is likely to have supported revenue per available room (RevPAR) growth in the to-be-reported quarter. Host Hotels’ disciplined capital allocation strategy and ongoing reinvestment in its portfolio are likely to have enhanced asset quality and strengthened its competitive positioning. This, along with rate-led growth, is expected to have aided EBITDA growth and modest margin expansion, even in a rising cost environment. However, elevated interest expenses are expected to have acted as a headwind to the bottom-line growth during the second quarter. The Zacks Consensus Estimate for HST’s quarterly revenues is presently pegged at $1.62 billion, implying growth of 2.2% from the prior-year period’s reported figure. The Zacks Consensus Estimate for quarterly RevPAR is pinned at $244.77, indicating an increase from $239.64 reported in the year-ago quarter. The company’s activities during the to-be-reported quarter were adequate to garner analysts’ confidence. The Zacks Consensus Estimate for AFFO per share has moved northward to 62 cents over the past month. The figure implies a 6.90% rise from the year-ago reported number. However, the consensus mark for the average occupancy rate in the second quarter is pegged at 72.09%, implying a decrease from the prior-year quarter’s reported figure of 73.80%. We expect second-quarter 2026 interest expenses to rise 3.8% year over year. Our proven model predicts a likely surprise in terms of AFFO per share for Host Hotels this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an AFFO beat, which is the case here. Host Hotels currently has an Earnings ESP of +1.48% and carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Here are two stocks from the broader REIT industry — Ryman Hospitality Properties RHP and Lamar Advertising LAMR — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter. RHP, scheduled to report quarterly numbers on Aug. 6, has an Earnings ESP of +0.25% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Lamar Advertising is slated to report quarterly numbers on Aug. 6. LAMR has an Earnings ESP of +0.22% and a Zacks Rank of 3 at present. 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 Lamar Advertising Company (LAMR) : Free Stock Analysis Report Ryman Hospitality Properties, Inc. (RHP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research