Host Hotels & Resorts, Inc. Q1 FY2026 earnings call

• First quarter results exceeded expectations with adjusted EBITDA RE of $543M and adjusted FFO per share of 67 cents. - Benefited from $7M business interruption proceeds from hurricanes. - Comparable hotel REVPAR improved driven by rate growth and out-of-room spending. - Strong rep heart growth, especially in Florida, Phoenix, and San Francisco. - Completed Hyatt Regency Reston renovation; Hyatt Transformational Capital Program over 80% complete. - Board authorized quarterly dividend of 20 cents and special dividend of 72 cents. - Continued portfolio reinvestment with Marriott Transformational Capital Program underway.

Adjusted EBITDA RE was $543 million, up 5.6% year-over-year. Adjusted FFO per share was 67 cents, up 4.7% year-over-year. Comparable hotel total REVPAR improved 4.6% compared to Q1 2025, with REVPAR up 4.4% driven by rate growth and out-of-room spending. Comparable hotel EBITDA margin improved 70 basis points to 32.7% year-over-year. Transient revenue grew 5.5% driven by rate growth, especially at resorts. Business transient revenue grew 4% driven by strong rate growth. Group room revenue was up 2.4% year-over-year. F&B revenue grew 5% and other revenue grew 6% with broad-based strength.

• Raised 2026 comparable hotel REVPAR guidance range to 3%-4.5% over 2025 and total REVPAR growth to 3.5%-5% over last year. - Expect comparable hotel EBITDA margins to be up 20-50 basis points year-over-year. - Second quarter rev par growth expected similar to first quarter driven by World Cup, with second half in low single digits. - 2026 full year adjusted EBITDA RE midpoint is $1,810,000,000, up from prior guidance.

• Weather impacts such as hurricanes and storms can affect results. - Geopolitical uncertainty could impact travel patterns. - Uncertainty around business interruption proceeds from recent storms in Hawaii.

Q: Asked about World Cup impact on REVPAR expectations.

A: Majority of bookings in last 45 days, 40% in last week, pacing well with World Cup matches in 10 markets.

Q: Asked about returns on non-room vs room side of ROI programs.

A: Transformative renovations have served shareholders well with 9 points yield index pickup on stabilized assets.

Q: Asked about Hawaii REVPAR and EBITDA impacts and rebookings.

A: Q1 impact includes Hawaii and winter storm, Maui EBITDA contribution guide maintained, rebookings picking up through remainder of year.

Q: Asked about demand drivers and bookings sustaining.

A: Strong quarter in Florida and Arizona, pent-up demand from international travel restrictions, upcoming holidays show strong transient pace.

Q: Asked about transaction markets and capital allocation.

A: Focus on capital allocation for dividends, share repurchases, portfolio reinvestment, and opportunistic acquisitions, waiting on acquisitions due to high pricing.

Q: Asked about San Francisco market recovery.

A: San Francisco has strong recovery, diversified demand base, assets well positioned to benefit from office recovery and AI.

Q: Asked about Maui RevPAR and confidence in 120M EBITDA.

A: Q1 RevPAR impact includes portfolio, Maui started well, rebookings and group booking pace give confidence.

Q: Asked about Marriott Bonvoy program change impact.

A: Overall helped as largest owner with high redemption, tough to quantify exactly.

Q: Asked about 2Q-4Q rev par breakdown and expense side building blocks.

A: Second half occupancy growth about 80 bps, rate lower than first half; wage and benefit growth 4.5% driven by productivity improvements.

Q: Asked about acquisitions and special dividends.

A: High bar for acquisitions, potential dispositions likely, special dividends not deterred if creates shareholder value.