Host Hotels Outperforms on Strong EBITDA and RevPAR Growth as Top 500 High-Volume Momentum Strategy Surpasses Benchmark by 137.53%

Host Hotels & Resorts (HST) reported Q2 2025 earnings of $0.32 per share, exceeding estimates by 45.45%, and revenue of $1.59 billion, 6% above forecasts. Despite the outperformance, the stock closed 2.17% lower at $16.13, reflecting investor caution amid near-term challenges. The company highlighted robust leisure demand, a 3.1% year-over-year rise in adjusted EBITDAre to $496 million, and 1.8% growth in adjusted FFO per share to $0.58. CEO Jim Rizzolio emphasized a "fortress balance sheet" and long-term growth through capital allocation and luxury portfolio optimization.

Key risks include rising wage and benefit costs, softening group bookings, and macroeconomic uncertainties. Maui’s recovery drove 19% RevPAR growth, with the company raising its EBITDA contribution forecast to $110 million. However, Q3 RevPAR is expected to dip before rebounding in Q4. The firm also repurchased $105 million of shares in Q2 and sold the Western Cincinnati asset for $60 million, part of its $5.1 billion portfolio restructuring since 2018.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to July 30, 2025, outperforming the benchmark by 137.53%. This highlights the effectiveness of liquidity-driven momentum strategies in capturing market shifts, particularly in high-volume equities like HST during its earnings-driven volatility.