HOST HOTELS & RESORTS, INC. Q1 FY2025 earnings call

• Adjusted EBITDAre and FFO per share increased year-over-year, benefited by business interruption proceeds. - Strong performance in certain markets like Washington, D.C., New York, etc. Transient RevPAR drove by resorts and Maui's strong results. - Group RevPAR up 7% due to special events and corporate bookings. - Ancillary spend saw growth in F&B and other revenues. - Completed share repurchases, with $100 million spent in Q1, $415 million since 2022. - Completed renovations at Grand Hyatt Atlanta and Buckhead, and other property developments. - CapEx guidance $580 million to $670 million, including property damage reconstruction and redevelopment projects.

In the first quarter, Host Hotels & Resorts delivered adjusted EBITDAre of $514 million, an increase of 5.1% over last year, and adjusted FFO per share of $0.64, an increase of 4.9% over last year. Comparable hotel total RevPAR improved 5.8% compared to the first quarter of 2024 and comparable hotel RevPAR improved 7% driven by strong rate growth. Comparable hotel EBITDA margin improved by 30 basis points year-over-year to 31.8%. Transient RevPAR grew by 6%, group RevPAR was up 7% year-over-year. Ancillary spend RevPAR growth outpaced total RevPAR growth. The Don CeSar had remediation efforts completed, with total property damage and remediation costs estimated between $100 million and $110 million, insurance deductibles $20 million, and $10 million of business interruption proceeds collected in the first quarter.

• Maintaining comparable hotel RevPAR guidance range with slight reduction in total RevPAR due to moderating group lead volume. - Full year 2025 adjusted EBITDAre midpoint $1.645 billion, a $25 million or 1.5% improvement from prior guidance midpoint. - CapEx guidance $580 million to $670 million. - Dividend of $0.20 per share paid in April, future dividends subject to board approval. - Balance sheet with 2.8x leverage, $2.2 billion total available liquidity.

• Macro economic uncertainty posing potential lodging fundamental deterioration. - Group lead volume moderation. - Wage and benefit expenses pressure, comprising ~57% of hotel operating expenses. - Tariff impact on CapEx, though current guidance maintained. - Uncertainty in timing and amount of additional business interruption proceeds for Don CeSar.

Q: Talk about recent trends in April from a demand standpoint and international travel impact on performance A: Aryeh Klein's question was addressed by James Risoleo and Sourav Ghosh. Top 25 markets performing well, international inbound about 8% of room nights, Maui's luxury resorts holding strong. April upper tier travel data shows upper tier up 2.5%, luxury above that, portfolio trending better than upper tier.

Q: Outlook for remainder of the year in terms of RevPAR and profit growth A: Duane Pfennigwerth's question was answered by Sourav Ghosh. Maui's EBITDA projection improved, RevPAR growth cadence in negative 2% to positive 1% range, Q4 strongest, Q3 weaker. Profit growth impacted by wage and benefit expenses and business interruption proceeds uncertainty.

Q: Acquisition opportunities in uncertain market A: Chris Woronka's question was answered by James Risoleo. Wait-and-see approach in transaction market due to macro uncertainty, but Host positioned to be opportunistic with strong balance sheet and liquidity, investing in portfolio and share repurchases.

Q: Capital return through repurchases or other events A: David Katz's question was answered by James Risoleo. Thoughtful approach to share repurchases and dividends, wait-and-see on deployment based on market conditions.

Q: Consumer environment off-peak periods and high low dynamic A: Shaun Kelley's question was answered by Sourav Ghosh. Off-peak periods still consistent, group booking pace positive, business transient volume down but rate up, no dramatic change in trend.

Q: Margins and cost-cutting initiatives A: Michael Bellisario's question was answered by James Risoleo. Contingency plans property by property, no current pressure on margins, but plans in place if needed.

Q: CapEx budget risk from tariff situation and impact on margins A: Chris Darling's question was answered by James Risoleo. Tariff risk early to tell, CapEx guidance maintained, diverse suppliers, contingency plans for capital projects.

Q: Group and business transient demand details A: Jay Kornreich's question was answered by Sourav Ghosh. Group lead volume moderation in 2025, 2026+ bookings strong. Business transient volume down year-over-year, rate increase moderate due to macro uncertainty.

Q: Labor supply and tariff impact on margins A: Jack Armstrong's question was answered by James Risoleo. No labor supply pressure, tariffs not impacting full year margin guidance currently.

Q: Transaction market and asset testing A: Floris van Dijkum's questions were answered by James Risoleo. Wait-and-see on transaction market, Host not under stress to sell assets, testing assets off-market, no meaningful size listed for sale.

Q: O'ahu performance, specifically The Ritz-Carlton Turtle Bay A: Smedes Rose's question was answered by James Risoleo. Turtle Bay RevPAR up 13% in quarter, strategic decision to delay Palmer Course renovation, Fazio Course renovation expedited, O'ahu performance positive.