Host Hotels & Resorts (HMT) Q2 2026 Earnings Report

The call portrayed a strong operational quarter with multiple upside drivers: beats on EBITDA and FFO, RevPAR and margin expansion, raised full-year guidance, successful transformational capital programs, robust resort and Maui recoveries, and disciplined capital returns. Lowlights were largely timing- and event-related: incentive fees and higher commissions compressed near-term flow-through, condo closing timing reduced 2026 condo EBITDA, and sizable reinvestment and storm-driven reconstruction add near-term spend. Overall, the positives (organic growth, margin improvement, guidance raise, capital returns and balance sheet flexibility) materially outweigh the limited and largely manageable negatives.

Host raised its 2026 comparable hotel RevPAR and total RevPAR guidance to 4.75%–5.25% (midpoint ~5%, a 125‑bp raise), expects July comparable RevPAR ≈ +10% YoY and mid‑single‑digit RevPAR in H2, and estimates the World Cup added ~160 bps in Q2 and ~70 bps for the full year (special events net +50 bps FY). At the midpoint management now models comparable hotel EBITDA margin of 29.7% (up 50 bps YoY; guidance range +40–50 bps) and a full‑year adjusted EBITDAre midpoint of $1.83 billion (up ~$20M vs. prior), which includes ~$29M Don CeSar operations, ~$7M of business‑interruption proceeds and $16–20M of 4 Seasons condo EBITDA. Capital spending is guided to ~$550M–$630M (including $250M–$285M reinvestment, ~$25M–$30M Kona reconstruction, ~$2M remediation and ~$17M condo close‑out), Host expects ~$19M of operating‑profit guarantees in 2026 (received $5M in Q2), wage‑rate inflation of ~5% (≈50% of comparable hotel opex), an insurance renewal down 6% (≈$2.5M benefit), Maui to contribute ~45 bps to full‑year RevPAR and ~$120M of EBITDA in 2026, and a balance‑sheet with ~4.7‑year weighted average maturity at ~4.8% rate, ~ $1.5B revolver availability and leverage ~2.2x after the July dividends.