Host Hotels & Resorts Q4 2024: Contradictions Unveiled on Maui EBITDA, Labor Challenges, and Asset Strategy

These are the key contradictions discussed in Host Hotels & Resorts' latest 2024Q4 earnings call, specifically including: Maui's EBITDA Projection, Labor Availability, Group and Business Transient Performance Expectations, and Non-Core Asset Disposition Strategy:



Operational Improvements and RevPAR Growth:
- Host Hotels & Resorts, Inc. delivered a 2.1% increase in total RevPAR and a 90 basis points increase in RevPAR for the full year 2024.
- This growth was driven by continued rate growth and increased out-of-room spending.

Maui Leisure Recovery and Business Transient Growth:
- Maui properties saw a 6.4% increase in RevPAR with a significant 50% increase in transient rooms sold.
- The recovery was driven by leisure guests' spending exceeding relief group business and strong business transient demand.

Group and Business Transient Performance:
- Transient revenue grew 8% in Q4, driven by a 3% rate growth, with business transient revenue up 6% due to a shift from government to corporate negotiating segments.
- Corporate groups showed strength with 6% revenue growth, led by rate increases.

Capital Expenditures and Acquisitions:
- The company invested nearly $550 million in capital expenditures and resiliency investments in 2024 and completed acquisitions totaling $1.5 billion.
- The investments focused on renovations and acquisitions of iconic and irreplaceable real estate to drive market share and asset value.

Balance Sheet and Dividend Policy:
- Host maintained an investment-grade balance sheet with a leverage ratio of 2.7 times.
- The company returned over $844 million of capital to stockholders in 2024 through dividends and share repurchases.