A month has gone by since the last earnings report for Host Hotels (HST Quick QuoteHST - Free Report) . Shares have lost about 6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Host Hotels due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Host Hotel's Q2 AFFO Beat Estimates on RevPAR & Rate Growth

Host Hotels & Resorts reported second-quarter 2026 adjusted funds from operations per share of 63 cents, beating the Zacks Consensus Estimate of 62 cents by 1.6%. The metric increased 8.6% from the prior-year quarter.

Total revenues rose 3.4% year over year to $1.64 billion and surpassed the consensus estimate of $1.62 billion by 1.2%. The results benefited from higher room rates, leisure transient demand and group business, with comparable hotel RevPAR increasing 7%.

Business Mix Supports Revenue Growth

Transient room revenues increased 6.9% to $559 million despite a 0.7% decline in room nights. This indicates that pricing gains more than offset slightly lower transient volume during the second quarter.

Group room revenues rose 7.4% to $332 million as room nights increased 3.5%. Contract room revenues advanced 6.6% to $48 million, accompanied by a 3.4% increase in room nights. Management noted demand remains durable across the portfolio, supported by affluent consumers’ continued prioritization of travel and healthy group demand across many markets.

Room Rates Drive RevPAR Growth

Comparable hotel RevPAR reached $251.53, up from $235.05 a year earlier. The average room rate increased to $335.83 from $317.39, while occupancy improved to 74.9% from 74.1%.

Management attributed the improvement primarily to solid pricing across the portfolio, supported by strong leisure and group travel and demand associated with FIFA World Cup matches. Comparable hotel Total RevPAR advanced 5.9% to $417.58, reflecting room-rate growth and higher food and beverage spending.

Host Hotels Expands Hotel EBITDA Margin

Comparable hotel EBITDA increased 7.8% year over year to $497 million. The corresponding margin expanded 60 basis points to 31.9% as higher average room rates offset increased wage expense and higher incentive management fees.

Adjusted EBITDAre rose 5.8% to $525 million. GAAP operating profit increased to $293 million from $277 million, producing an operating margin of 17.9%, up 40 basis points. Net income advanced 7.1% to $241 million.

Condo Sales Contribute to Results

The sale of seven villas at the development adjacent to Four Seasons Resort Orlando at Walt Disney World Resort contributed $8 million to net income and adjusted EBITDAre. Condominium sales generated $53 million of revenues during the second quarter, with associated cost of goods sold totaling $44 million.

Capital expenditures totaled $243 million through the first half of 2026. Host Hotels expects full-year capital expenditures of $550-$630 million, including spending on transformational programs, other return-on-investment projects, renewals and replacements and property-damage reconstruction.

Host Hotels Maintains Strong Liquidity

Host Hotels ended the second quarter with total available liquidity of approximately $3.6 billion. This included $1.5 billion of capacity under its revolving credit facility and $156 million in furniture, fixtures and equipment escrow reserves.

Total debt was $5.1 billion, carrying a weighted average interest rate of 4.8% and a weighted average maturity of 4.7 years. The company had no debt maturities in 2026.

It also paid a 92-cent-per-share dividend in July 2026, comprising a regular dividend of 20 cents and a special dividend of 72 cents.

Host Hotels Raises 2026 Outlook

Management raised its full-year 2026 comparable hotel RevPAR and Total RevPAR growth guidance to 4.75-5.25%. The prior ranges were 3-4.5% for RevPAR and 3.5-5% for Total RevPAR. Adjusted EBITDAre increased to $1.82-$1.84 billion from the earlier range of $1.785-$1.835 billion.

Host Hotels now expects adjusted funds from operations per share of $2.15-$2.18, up from its previous projection of $2.10-$2.16.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

VGM Scores

At this time, Host Hotels has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock has a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Host Hotels has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Host Hotels is part of the Zacks REIT and Equity Trust - Other industry. Over the past month, Crown Castle (CCI Quick QuoteCCI - Free Report) , a stock from the same industry, has gained 3.1%. The company reported its results for the quarter ended June 2026 more than a month ago.

Crown Castle reported revenues of $1.01 billion in the last reported quarter, representing a year-over-year change of -4.9%. EPS of $0.69 for the same period compares with $1.02 a year ago.

For the current quarter, Crown Castle is expected to post earnings of $1.20 per share, indicating a change of +7.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Crown Castle. Also, the stock has a VGM Score of D.