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Host Hotels Q4 FFO & Revenues Top Estimates, Hotel RevPAR Rises

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Host Hotels & Resorts, Inc. (HST - Free Report) reported fourth-quarter adjusted funds from operations (AFFO) per share of 44 cents, which surpassed the Zacks Consensus Estimate of 40 cents. The figure remained unchanged from the prior-year quarter.

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Results reflect higher revenues, driven by year-over-year comparable hotel total RevPAR growth. The lodging real estate investment trust issued its outlook for 2025 AFFO per share.

Per James F. Risoleo, president and CEO of the company, “Host delivered comparable hotel Total RevPAR growth of 3.3% over the fourth quarter of 2023, and full year growth of 2.1% driven by improvements in food and beverage revenues from group business.”

Host Hotels generated total revenues of $1.43 billion, beating the Zacks Consensus Estimate of $1.38 billion. The top line rose 7.9% on a year-over-year basis.

In 2024, HST reported AFFO per share of $1.97, up from the prior year’s $1.92. The reported figure outpaced the Zacks Consensus Estimate of $1.92. Total revenues of $5.68 billion increased 7% year over year and beat the consensus mark of $5.63 billion.

HST’s Fourth Quarter in Detail

Host Hotels’ comparable hotel RevPAR was $212.86 in the reported quarter, climbing 3% from the year-ago quarter’s $206.67. The rise was mainly driven by better rates backed by transient leisure demand in the quarter. We projected the same to be $208.72.

Comparable hotel EBITDA came in at $387 million, rising 4.6% from $370 million reported a year ago due to improved rates and higher ancillary spending.

The average room rate of $317.23 in the fourth quarter increased from $307.05 reported in the year-ago quarter.

The comparable average occupancy percentage in the quarter was 67.1%, down 20 basis points from the prior-year quarter.

Room nights for its transient and contract businesses grew 2.8% and 0.3%, respectively, year over year. The group business witnessed a decline of 4.8% from the prior-year period. Host Hotels’ transient, group and contract businesses accounted for roughly 60%, 36% and 4% of its 2024 room sales, respectively.

HST’s Balance Sheet Position

Host Hotels exited the fourth quarter with cash and cash equivalents of $554 million, down from $564 million as of Sept. 30, 2024.

HST’s liquidity totaled $2.3 billion, including FF&E escrow reserves of $242 million as of Dec. 31, 2024. It had $1.5 billion available under the revolver portion of the credit facility as of the same date.

HST’s Capital Expenditure

As of Dec. 31, 2024, Host Hotels’ capital expenditure aggregated $548 million. Of this, $260 million was the total return on investment project spend, $252 million was the renewal and replacement expenditure, and $36 million was the renewal and replacement property damage reconstruction.

2025 Outlook by HST

It projects full-year AFFO to be in the range of $1.82-$1.91. This is lower than the Zacks Consensus Estimate of $1.93.

It expects comparable hotel RevPAR in the range of $221-$225 million, while adjusted EBITDAre is estimated between $1.59 billion and $1.65 billion.

For 2025, management anticipates total capital expenditure in the range of $580-$670 million.

HST’s Dividend Payout

Concurrent with the fourth-quarter 2024 earnings, HST declared its first-quarter 2025 dividend of 20 cents on its common stock, payable on April 15 to stockholders of record on March 31, 2025.

HST’s Zacks Rank

Host Hotels currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Host Hotels & Resorts, Inc. Price, Consensus and EPS Surprise

Host Hotels & Resorts, Inc. Price, Consensus and EPS Surprise

Host Hotels & Resorts, Inc. price-consensus-eps-surprise-chart | Host Hotels & Resorts, Inc. Quote

Performance of Other REITs

Ventas, Inc. (VTR - Free Report) reported a fourth-quarter 2024 normalized FFO per share of 81 cents, beating the Zacks Consensus Estimate by a penny. The reported figure increased 6.6% from the prior-year quarter’s tally.

VTR’s results reflected an increase in same-store cash net operating income (NOI), led by higher Senior Housing Operating Portfolio same-store average occupancy.

Welltower Inc.’s (WELL - Free Report) fourth-quarter 2024 normalized FFO per share of $1.13 surpassed the Zacks Consensus Estimate by a penny. The reported figure improved 17.7% year over year.

Results reflected a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating portfolio. WELL issued its guidance for 2025.

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.


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