Host Hotels Resorts 2025 Q1 Earnings Mixed Results with Net Income Down 7.7%

Host Hotels & Resorts Inc. (HST) reported its fiscal 2025 first-quarter earnings on April 30, 2025. The company posted revenues of $1.59 billion, exceeding analyst expectations of $1.545 billion, though earnings per share (EPS) fell short, at $0.35 compared to the forecasted $0.29. Host Hotels & Resorts maintained its 2025 guidance for comparable hotel RevPAR growth but slightly adjusted the range for Total RevPAR due to moderating group lead volume amid uncertain macroeconomic conditions.

Revenue

The total revenue for Host Hotels & Resorts in the first quarter of 2025 reached $1.59 billion, marking an 8.7% increase from the previous year. The rooms segment contributed significantly with $938 million, complemented by food and beverage revenues amounting to $503 million. Additional revenues from other segments totaled $153 million, showcasing a diversified income stream.

Earnings/Net Income

Host Hotels & Resorts experienced a decline in EPS, dropping 7.9% to $0.35 compared to $0.38 in Q1 2024. Net income also decreased by 7.7% to $251 million from $272 million a year earlier. Despite these declines, the company's earnings per share were slightly better than analyst expectations, indicating a mixed performance.

Price Action

The stock price of Host Hotels & Resorts edged up 2.21% during the latest trading day, increased 2.54% over the past week, but declined 1.05% month-to-date.

Post-Earnings Price Action Review

Following the earnings report, Host Hotels & Resorts' stock saw a varied response, reflecting a combination of investor sentiment influenced by different financial metrics. While revenue figures generally tend to enhance investor confidence, the specific impact on HST's stock price was not detailed. Positive net income typically signals profitability, favorably affecting the market, but this quarter's decline in net income may have dampened investor enthusiasm. Earnings per share figures showed potential for positive market reaction, as HST experienced a maximum return of 3.76% over a 30-day period post-earnings release when EPS was reported. This suggests investor sentiment could be swayed by anticipated profitability and shareholder value, despite the mixed results.

CEO Commentary

James F. Risoleo, President and CEO, emphasized the company's strong performance, noting a 7.0% growth in comparable hotel RevPAR driven by higher rates and strong group demand. He expressed confidence in Host's investment-grade balance sheet and liquidity, asserting the company's capacity to navigate current challenges and seize opportunities through strategic portfolio reinvestment.

Guidance

The company is maintaining its 2025 guidance for comparable hotel RevPAR growth, ranging from 0.5% to 2.5% over 2024. However, it has slightly lowered its guidance for comparable hotel Total RevPAR growth to 0.7% to 2.7%, reflecting a cautious outlook due to moderating group lead volume.

Additional News

In recent developments, Host Hotels & Resorts announced the repurchase of 6.3 million shares of common stock at an average price of $15.79 per share, totaling $100 million in the first quarter of 2025. This move is part of the company's ongoing commitment to return capital to shareholders, with approximately $585 million remaining under the repurchase program. Furthermore, Host Hotels & Resorts declared a quarterly dividend of $0.20 per share, payable on April 15, 2025, continuing its track record of consistent dividend payouts. In leadership news, Host Hotels & Resorts is preparing for its Annual General Meeting scheduled for May 14, 2025, where strategic initiatives and shareholder interests will be discussed.