Host Hotels Resorts 2025 Q2 Earnings Misses Targets as Net Income Declines 7%

Host Hotels & Resorts (HST) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. The company’s earnings results fell short of expectations, with a 7% decline in net income. However, Host Hotels raised its full-year guidance for RevPAR growth, indicating confidence in continued lodging sector recovery. The revised outlook suggests stronger performance for the remainder of the year, driven by strategic investments and a diversified portfolio.

Revenue
Host Hotels & Resorts experienced a 7.1% increase in total revenue, reaching $1.43 billion in 2025 Q2, compared to $1.33 billion in 2024 Q2. Revenue growth was driven by the rooms segment, contributing $949 million, followed by food and beverage at $478 million, and other sources at $159 million, culminating in total revenues of $1.59 billion.

Earnings/Net Income
Host Hotels & Resorts saw its EPS decline by 5.9% to $0.32 in 2025 Q2, compared to $0.34 in 2024 Q2. The company's net income also fell to $225 million, down 7.0% from $242 million in the previous year. These figures indicate a challenging quarter for Host Hotels & Resorts.

Price Action
The stock price of Host Hotels & Resorts has edged down 1.71% during the latest trading day, has edged down 2.83% during the most recent full trading week, and has edged up 2.35% month-to-date.

Post-Earnings Price Action Review
Investors who adopted a strategy of purchasing Host Hotels & Resorts shares following a quarter marked by increased revenue and holding them for 30 days experienced moderate returns, albeit underperforming the broader market. With a compound annual growth rate of 9.98%, the strategy lagged behind the benchmark by 24.04%. Despite a maximum drawdown of 0.00%, the strategy presented low risk but modest returns, making it ideal for investors prioritizing stability. Although the Sharpe ratio stood at 0.29, indicating a balance between risk and return, the approach did not yield substantial gains compared to market averages.

CEO Commentary
James F. Risoleo, President and Chief Executive Officer, expressed satisfaction with Host Hotels & Resorts' operational and financial performance, highlighting a 4.2% increase in comparable hotel Total RevPAR driven by strong transient demand that boosted room and food & beverage revenues. Comparable hotel RevPAR rose 3.0%, attributed to higher room rates and improving leisure trends, particularly in Maui. He noted the company's proactive measures, including the sale of The Westin Cincinnati and $105 million in common stock repurchases, emphasizing Host's robust market positioning, investment-grade balance sheet, and ongoing portfolio reinvestment as key strengths for navigating the current environment.

Guidance
Host Hotels & Resorts increased its 2025 guidance for comparable hotel RevPAR growth to a range of 1.5% to 2.5% and for comparable hotel Total RevPAR growth to a range of 2.0% to 3.0%, reflecting the company’s strong performance in the first half of the year. The outlook indicates confidence in continued recovery and growth in the lodging sector, underpinned by the firm’s strategic investments and diversified portfolio.

Additional News
Within recent weeks, Host Hotels & Resorts completed the sale of The Westin Cincinnati for $60 million, registering a $21 million gain from the transaction. This move reflects the company’s strategic focus on optimizing its portfolio by disposing of underperforming assets. Additionally, Host Hotels & Resorts repurchased $105 million in common stock, demonstrating a commitment to enhancing shareholder value. The company also received $9 million in business interruption settlements related to hurricane damages, further strengthening its financial position amidst ongoing market challenges. These developments highlight Host Hotels & Resorts' proactive approach to capital allocation and financial management.