Host Hotels & Resorts Q2 2025: Navigating Contradictions in Group Demand, Hawaii Recovery, and Labor Market Challenges

Outperformance and Financial Results:
- Host Hotels & Resorts, Inc. achieved adjusted EBITDAre of $496 million in the second quarter of 2025, marking a 3.1% increase over the previous year.
- The company’s adjusted FFO per share grew by 1.8% compared to the previous year.
- The strong financial performance was supported by $9 million in business interruption proceeds related to Hurricanes Helene and Milton.

Transient Revenue and Demand Trends:
- The company saw 7% growth in transient revenue, driven by leisure transient demand and rate growth.
- Maui's performance was particularly strong, with 19% RevPAR growth, which contributed significantly to the portfolio's overall RevPAR growth.
- The increase in transient demand was supported by an Easter calendar shift and recovery in Maui.

Group Room Revenue and Mix:
- Group room revenue decreased 5% year-over-year, influenced by a calendar shift and planned renovations.
- Group demand was impacted by a shift from group to transient business in Maui and reduced group pickup.
- The decrease in group rooms was nearly offset by rate increases, with definite group room nights increasing to 3.8 million for 2025.

Capital Allocation and Dispositions:
- Host Hotels & Resorts sold the Westin Cincinnati for $60 million, reflecting a 14.3x trailing 12-month EBITDA multiple.
- Since 2018, the company has disposed of approximately $5.1 billion of hotels at a blended 17.2x EBITDA multiple.
- The capital raised was used for share repurchases, with $205 million repurchased year-to-date at an average price of $15.68 per share.