Host Hotels & Resorts Q1 2025: Unraveling Contradictions in EBITDA, RevPAR Growth, and Market Dynamics

Maui's EBITDA projections and recovery timing, RevPAR growth and flow-through assumptions, transaction market activity and acquisition opportunities, labor market and workforce issues, luxury asset pricing and transaction market dynamics are the key contradictions discussed in Host Hotels & Resorts' latest 2025Q1 earnings call.



Strong First Quarter Performance:
- Host Hotels & Resorts reported adjusted EBITDAre of $514 million, an increase of 5.1% over the previous year, and adjusted FFO per share of $0.64, an increase of 4.9%.
- The growth was driven by $10 million in business interruption proceeds related to Hurricanes Helene and Milton, and a 5.8% improvement in comparable hotel total RevPAR.
- Comparable hotel EBITDA margin improved by 30 basis points to 31.8% due to higher rates outpacing expenses.

Maui Market Recovery:
- Maui's RevPAR growth in the first quarter was 16%, contributing a 70 basis point benefit to portfolio RevPAR growth.
- Transient rooms sold increased approximately 70% year-over-year, with strong performance in leisure transient demand.
- The recovery was driven by increased demand following a challenging comparison from tough group comparisons in the previous year.

Capital Allocation and Repurchase:
- Host repurchased 6.3 million shares of common stock at an average price of $15.79 per share for a total of $100 million.
- Since 2022, the company has repurchased $415 million of stock at an average repurchase price of $16.16 per share.
- This strategic capital allocation reflects confidence in the company's financial position and long-term growth prospects.

Geographic Performance Variability:
- Top international markets performed well, with international inbound representing 8% of total room nights.
- Secondary and tertiary markets experienced slower growth compared to major cities and luxury resorts.
- The performance disparity is attributed to strong leisure demand in luxury resort locations and more stable macroeconomic conditions in top markets.