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Total revenues rose 1.2% year over year to $1.35 billion but missed the consensus estimate of $1.38 billion by 2.5%. Results benefited from higher room rates, strong leisure transient demand and improving business travel, with comparable hotel revenue per available room (RevPAR) increasing 8.8%.
HST's Business Mix Reflects Strong Transient Demand
Transient room revenues increased 11.5% year over year to $528 million, supported by a 4.8% increase in room nights. Growth was driven by strong leisure demand, higher room rates and increased business transient activity during the third quarter.
Group room revenues rose 4.5% to $251 million as room nights increased 1.3%. Contract room revenues advanced 4.6% to $48 million despite a 2.3% decline in room nights. Management highlighted broad-based demand strength across leisure, group and business transient segments.
HST's Room Rates Drive RevPAR Growth
Comparable hotel RevPAR increased to $219.50 from $201.71 a year earlier. The average room rate increased 5.7% to $305.20 from $288.73, while occupancy improved 210 basis points (bps) to 71.9%.
Management attributed the improvement to strong transient demand, boosted by FIFA World Cup activity, increased business transient demand and higher group bookings. Comparable hotel Total RevPAR advanced 7.3% to $348.19, supported by higher room rates and increased food and beverage spending.
Growth was broad-based, with 11 of the company's 24 domestic markets reporting double-digit increases in comparable hotel Total RevPAR.
HST Expands Hotel EBITDA Margin
Comparable hotel EBITDA increased 11.4% year over year to $331 million, while the corresponding margin expanded 90 bps to 25.2%. The improvement was primarily driven by higher average room rates and operational improvements, which offset increases in wage expenses.
Adjusted EBITDAre rose 8.8% to $347 million. GAAP operating profit increased to $121 million from $101 million, with the operating margin expanding 140 bps to 9%. However, net income declined 56.4% to $71 million, primarily reflecting lower gains on asset sales.
HST Expands Its Portfolio With Acquisitions
Subsequent to quarter-end, Host Hotels acquired the 195-room 1 Hotel Brooklyn Bridge for $202 million, net of the furniture, fixtures and equipment reserve. The luxury property expands the company's presence in New York into a new submarket.
The company also acquired the fee simple interest in the 308-room Renaissance Dallas at Plano Legacy West Hotel for $172 million. The property establishes Host Hotels' presence in the Dallas/Fort Worth market and features approximately 35,000 square feet of meeting space. Management expects both acquisitions to be immediately accretive.
HST Maintains Strong Liquidity
Host Hotels ended September 2026 with approximately $3.1 billion in available liquidity, including $1.5 billion under its revolving credit facility and $157 million in furniture, fixtures and equipment escrow reserves.
Total debt stood at $5.1 billion, with a weighted average interest rate of 4.8%. Subsequent to quarter-end, the company amended its $2.5 billion credit facility, extending maturities and improving borrowing costs. Following the amendment, the weighted average debt maturity increased to 5.2 years.
HST Raises Its 2026 Outlook
Management raised its full-year 2026 comparable hotel RevPAR growth guidance to 6.75% from the previous midpoint of 5%. Comparable hotel Total RevPAR growth is now projected at 6% compared with the earlier midpoint of 5%. Adjusted EBITDAre guidance increased to $1.865 billion from $1.83 billion.
HST now expects adjusted FFO per share of $2.21, up from its previous projection of $2.16. The Zacks Consensus Estimate for adjusted FFO per share is pinned at $2.19.
The company also raised its full-year revenue growth guidance to 1.6% from 0.4%, with total revenues projected at $6.21 billion. Management cited resilient leisure demand, favorable group booking trends and improving business transient activity as key factors supporting the upward revisions.
BXP, Inc. (BXP - Free Report) reported third-quarter 2026 FFO of $1.89 per share, beating the Zacks Consensus Estimate of $1.80 by 5%. FFO increased 8.6% from the year-ago quarter. Lease revenues increased 4.5% year over year to $846.2 million, surpassing the consensus mark of $839.9 million by 0.7%. Total revenues rose 4.6% to $911.4 million.
BXP’s results reflected better-than-projected portfolio performance, higher occupancy and growth in same-property net operating income (NOI), which supported the FFO and revenue beat.
Welltower Inc. (WELL - Free Report) reported third-quarter 2026 normalized FFO of $1.67 per share, beating the Zacks Consensus Estimate of $1.64 by 1.8%. The metric increased 24.6% year over year. Total revenues of $3.72 billion surpassed the consensus mark of $3.63 billion by 2.5% and rose 38.4% year over year.
WELL’s results benefited from robust senior housing operating portfolio performance, with same-store NOI growth and improvement in average occupancy.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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Host Hotels' Q3 FFO Beat Estimates on Strong RevPAR Growth
Key Takeaways
Host Hotels & Resorts, Inc. (HST - Free Report) reported third-quarter 2026 adjusted funds from operations (FFO) per share of 39 cents, beating the Zacks Consensus Estimate of 38 cents by 2.6%. The metric increased 11.4% from the prior-year quarter.
Total revenues rose 1.2% year over year to $1.35 billion but missed the consensus estimate of $1.38 billion by 2.5%. Results benefited from higher room rates, strong leisure transient demand and improving business travel, with comparable hotel revenue per available room (RevPAR) increasing 8.8%.
HST's Business Mix Reflects Strong Transient Demand
Transient room revenues increased 11.5% year over year to $528 million, supported by a 4.8% increase in room nights. Growth was driven by strong leisure demand, higher room rates and increased business transient activity during the third quarter.
Group room revenues rose 4.5% to $251 million as room nights increased 1.3%. Contract room revenues advanced 4.6% to $48 million despite a 2.3% decline in room nights. Management highlighted broad-based demand strength across leisure, group and business transient segments.
HST's Room Rates Drive RevPAR Growth
Comparable hotel RevPAR increased to $219.50 from $201.71 a year earlier. The average room rate increased 5.7% to $305.20 from $288.73, while occupancy improved 210 basis points (bps) to 71.9%.
Management attributed the improvement to strong transient demand, boosted by FIFA World Cup activity, increased business transient demand and higher group bookings. Comparable hotel Total RevPAR advanced 7.3% to $348.19, supported by higher room rates and increased food and beverage spending.
Growth was broad-based, with 11 of the company's 24 domestic markets reporting double-digit increases in comparable hotel Total RevPAR.
HST Expands Hotel EBITDA Margin
Comparable hotel EBITDA increased 11.4% year over year to $331 million, while the corresponding margin expanded 90 bps to 25.2%. The improvement was primarily driven by higher average room rates and operational improvements, which offset increases in wage expenses.
Adjusted EBITDAre rose 8.8% to $347 million. GAAP operating profit increased to $121 million from $101 million, with the operating margin expanding 140 bps to 9%. However, net income declined 56.4% to $71 million, primarily reflecting lower gains on asset sales.
HST Expands Its Portfolio With Acquisitions
Subsequent to quarter-end, Host Hotels acquired the 195-room 1 Hotel Brooklyn Bridge for $202 million, net of the furniture, fixtures and equipment reserve. The luxury property expands the company's presence in New York into a new submarket.
The company also acquired the fee simple interest in the 308-room Renaissance Dallas at Plano Legacy West Hotel for $172 million. The property establishes Host Hotels' presence in the Dallas/Fort Worth market and features approximately 35,000 square feet of meeting space. Management expects both acquisitions to be immediately accretive.
HST Maintains Strong Liquidity
Host Hotels ended September 2026 with approximately $3.1 billion in available liquidity, including $1.5 billion under its revolving credit facility and $157 million in furniture, fixtures and equipment escrow reserves.
Total debt stood at $5.1 billion, with a weighted average interest rate of 4.8%. Subsequent to quarter-end, the company amended its $2.5 billion credit facility, extending maturities and improving borrowing costs. Following the amendment, the weighted average debt maturity increased to 5.2 years.
HST Raises Its 2026 Outlook
Management raised its full-year 2026 comparable hotel RevPAR growth guidance to 6.75% from the previous midpoint of 5%. Comparable hotel Total RevPAR growth is now projected at 6% compared with the earlier midpoint of 5%. Adjusted EBITDAre guidance increased to $1.865 billion from $1.83 billion.
HST now expects adjusted FFO per share of $2.21, up from its previous projection of $2.16. The Zacks Consensus Estimate for adjusted FFO per share is pinned at $2.19.
The company also raised its full-year revenue growth guidance to 1.6% from 0.4%, with total revenues projected at $6.21 billion. Management cited resilient leisure demand, favorable group booking trends and improving business transient activity as key factors supporting the upward revisions.
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-eps-surprise-chart | Host Hotels & Resorts, Inc. Quote
Performance of Other REITs
BXP, Inc. (BXP - Free Report) reported third-quarter 2026 FFO of $1.89 per share, beating the Zacks Consensus Estimate of $1.80 by 5%. FFO increased 8.6% from the year-ago quarter. Lease revenues increased 4.5% year over year to $846.2 million, surpassing the consensus mark of $839.9 million by 0.7%. Total revenues rose 4.6% to $911.4 million.
BXP’s results reflected better-than-projected portfolio performance, higher occupancy and growth in same-property net operating income (NOI), which supported the FFO and revenue beat.
Welltower Inc. (WELL - Free Report) reported third-quarter 2026 normalized FFO of $1.67 per share, beating the Zacks Consensus Estimate of $1.64 by 1.8%. The metric increased 24.6% year over year. Total revenues of $3.72 billion surpassed the consensus mark of $3.63 billion by 2.5% and rose 38.4% year over year.
WELL’s results benefited from robust senior housing operating portfolio performance, with same-store NOI growth and improvement in average occupancy.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.