Host Hotels Q3 revenue slightly misses estimates; raises RevPAR outlook
Overview
U.S. lodging REIT's Q3 revenue rose 1.2% yr/yr, slightly missing analyst expectations
Comparable hotel RevPAR grew 8.8%, driven by leisure, group, and business transient demand
Net income fell 56% yr/yr, reflecting lower gain on asset sales
Outlook
Host Hotels raises 2026 comparable hotel RevPAR growth guidance to 6.75% over 2025
Company lifts 2026 comparable hotel Total RevPAR growth forecast to 6.0% over 2025
Host Hotels expects 2026 net income of $978 mln and adjusted EBITDAre of $1.87 bln
Result Drivers
RATE AND OCCUPANCY GAINS - Comparable hotel RevPAR rose 8.8% as average room rates increased 5.7% and occupancy rose 2.1 percentage points
FOOD AND BEVERAGE GROWTH - Higher food and beverage revenues contributed to a 7.3% increase in comparable hotel Total RevPAR
OPERATING MARGIN IMPROVEMENT - Higher room rates offset wage expense increases, lifting GAAP operating profit margin by 140 basis points to 9.0%
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | $1.35 bln | $1.36 bln (13 Analysts) |
Q3 EPS | $0.10 | ||
Q3 Net Income | $71 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "buy"
Wall Street's median 12-month price target for Host Hotels & Resorts, Inc. is $26.25, about 1.8% above its November 3 closing price of $25.78
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 21 three months ago
Reuters Recommended Reads
Nov 4 - Park Hotels & Resorts Q3 RevPAR rises on group and leisure demand
Nov 3 - DiamondRock Hospitality Q3 net income, adjusted FFO rise
Nov 2 - Marriott lifts annual room revenue growth forecast on resilient travel demand
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)