Host Hotels & Resorts, Inc. Q4 FY2025 earnings call

2025 was a strong year for Host with operational improvements across the portfolio. Capital allocation included dispositions, portfolio reinvestment, share repurchases and dividends. In 2025, Host sold The Westin Cincinnati and Washington Marriott at Metro Center, and in December 2025 announced the sale of the Four Seasons Resort Orlando at Walt Disney World Resort and the Four Seasons Resort and Residences Jackson Hole. Host invested approximately $644 million in capital expenditures in 2025. The Hyatt Transformational Capital Program is over 75% complete. 2026 capital expenditure guidance is $525 million to $625 million. Host has been recognized for corporate responsibility with climate risk and resiliency initiatives.

For the full year 2025, Host delivered adjusted EBITDAre of $1,757 million, a 4.6% increase over 2024, and adjusted FFO per share of $2.07, a 3.5% increase year-over-year. Comparable hotel total RevPAR grew 4.2% and comparable hotel RevPAR grew 3.8% compared to 2024. During the fourth quarter, adjusted EBITDAre was $428 million and adjusted FFO per share was $0.51. Comparable hotel total RevPAR improved 5.4% compared to the fourth quarter of 2024, and comparable hotel RevPAR was up 4.6%. Maui was a standout market, contributing more than 1/3 of the transient revenue growth in the fourth quarter. Maui contributed $111 million of EBITDA for 2025 and is expected to contribute approximately $120 million of EBITDA in 2026.

2026 comparable hotel total RevPAR growth is expected to be between 2.5% and 4%, and comparable hotel RevPAR growth is between 2% and 3.5%. Adjusted EBITDAre midpoint is $1,770 million. 2026 capital expenditure range is $525 million to $625 million. Expected to recognize approximately $19 million of operating profit guarantees related to Transformational Capital Programs in 2026.

Q: Good questions on the Four Seasons sales, how deep is the buyer pool today and outlook on more high-value dispositions?

A: James Risoleo said there is a market for these assets, the buyer pool for luxury hotels is deeper than people realize with sovereigns, high net worth individuals and private equity firms interested, and Host is opportunistic on more high-value dispositions.

Q: David Katz asked about the Transformational Capital Program, color on why those hotels, why now and back end?

A: James Risoleo said those are great assets needing repositioning, expected to increase yield index and realize mid-teens cash-on-cash returns. Sourav Ghosh expanded on operating profit guarantees.

Q: Dan Politzer asked about Maui outlook, conservatism and puts and takes?

A: Sourav Ghosh said based on current booking pace feel confident in $120 million guide for 2026, Hyatt Regency Maui has progress and potential upside.

Q: Bennett Rose asked about CapEx programs finishing, CapEx trend and dividend?

A: James Risoleo said stay tuned for other investment opportunities, dividend objective is to pay sustainable dividend, on track for $0.20 dividend.

Q: Aryeh Klein asked about acquisition side with $500 million capital gains?

A: James Risoleo said acquisition market better than last year but not robust, looking for accretive asset acquisitions or reverse like-kind exchange, likely to return taxable gain to shareholders as special dividend if no accretive acquisition.

Q: Cooper Clark asked about allocation of $600 million proceeds?

A: James Risoleo said will take measured approach, evolve based on market and operating performance.

Q: Chris Darling asked about expense outlook, wage growth, labor availability?

A: Sourav Ghosh said wage rates expected to grow 5% for 2026, productivity enhancements and insurance down help, no labor availability challenges due to brand-managed hotels.

Q: Duane Pfennigwerth asked about group pacing in Maui, San Francisco and other material driver markets?

A: James Risoleo said World Cup expected to benefit RevPAR, Sourav Ghosh talked about Maui group pacing and strong pacing in other markets like Nashville, Atlanta, etc.

Q: Robin Farley asked about proceeds from Four Seasons sale and assets looking to use proceeds for?

A: James Risoleo said looking for assets with geographic diversification, strong growth drivers, diverse demand generators and good asset management platform.