Host Hotels & Resorts, Inc.

What they do

Host Inc. is a self-managed, self-administered Maryland REIT that owns hotels and operates through Host L.P., of which it is sole general partner and holds about 99% of the partnership interests. As of February 20, 2026, the consolidated portfolio is 76 hotels primarily in the U.S., with five in Brazil and Canada, plus non-controlling interests in seven domestic lodging joint ventures and minority interests in an additional 90 hotels through U.S. joint ventures. Hotels are run by third-party managers under long-term agreements, mostly under Marriott and Hyatt brands in the luxury and upper-upscale chain scales, with customers split roughly 61% transient, 34% group and 5% contract of 2025 room sales.

Revenue drivers

• Rooms revenue — About 60% of 2025 hotel revenues; driven by occupancy and average daily rate, with business mix (group versus transient, retail versus discount) a significant driver of room rates.
• Food and beverage revenue — About 30% of 2025 hotel revenues; includes group functions such as banquets plus audio and visual, and outlet revenue from hotel restaurants and lounges.
• Other revenues — About 10% of 2025 hotel revenues; includes attrition and cancellation fees, resort and destination fees, parking, golf, spas and other guest services, plus other rental revenue.
• Condominium sales — About 2% of total 2025 revenues, with hotel revenues making up the remaining 98%.

Recent performance

For the quarter ended June 30, 2026, revenues were $1,640 million versus $1,586 million a year earlier, up 3.4%, and net income was $241 million versus $225 million. Comparable hotel RevPAR rose 7.0% to $251.53 and comparable hotel Total RevPAR rose 5.9% to $417.58, which management attributed to rate growth, the World Cup, leisure transient demand and group business, plus higher food and beverage spend. Diluted EPS was $0.35 versus $0.32, and Adjusted FFO per diluted share was $0.63 versus $0.58. Year-to-date through June 30, 2026, revenues were $3,285 million and net income was $742 million, up 55.9%, with comparable hotel RevPAR up 5.7% to $247.84.

Strategy

The stated goal is to be the preeminent owner of high-quality U.S. lodging real estate in growing markets and to generate long-term risk-adjusted returns through asset appreciation, earnings growth and dividends. Pillars include a geographically diverse portfolio in major urban and resort destinations with high barriers to entry, use of scale through enterprise analytics and asset management, and an investment-grade balance sheet. The company targets resorts with limited supply growth, group-oriented convention destination hotels and high-end urban hotels in prime locations, and it allocates and recycles capital seeking returns above its cost of capital while returning capital to stockholders.

Risks

• Lodging cyclicality — Lodging demand follows the general economy, and because most Host hotels are luxury or upper-upscale and target business and high-end leisure travelers, revenue may fall more than at lower-rate hotels during downturns.
• Travel and geopolitical disruption — Immigration policy, border closings, visa processing, travel restrictions, energy prices and foreign exchange can suppress inbound international travel to the U.S. and reduce the labor pool.
• Natural disasters and public health events — Events cited in filings include the 2023 Maui wildfires, 2025 Southern California wildfires, Hurricanes Helene and Milton in 2024, the March 2026 Hawaii Kona Low rainstorm and pandemics, any of which can reduce demand at affected hotels.
• Operating cost and labor pressure — Hotel operating costs are largely labor-driven, and Host cites labor stoppages or strikes, wage inflation, staffing shortages and severance or furlough payments as risks to hotel-level profitability.

Outlook

Management raised full-year 2026 comparable hotel Total RevPAR and RevPAR growth guidance to a range of 4.75% to 5.25% over 2025, citing durable demand, affluent consumers prioritizing travel and healthy group demand across many markets. It pointed to an investment-grade balance sheet, strong liquidity and a diversified portfolio as positioning Host to capitalize on favorable industry fundamentals and selectively pursue growth opportunities.