Host Hotels raises 2026 RevPAR growth outlook to 6.75%

Host Hotels & Resorts (HST) raised its full-year 2026 forecast for comparable hotel RevPAR growth to 6.75% on Nov. 4, when it reported third-quarter results. Revenue of $1.35 billion was below the $1.37 billion consensus estimate.

The company describes itself as the largest lodging real estate investment trust, with 72 properties in the United States, five internationally and about 41,800 rooms.

Here's how the company did:

• Revenue: $1.35 billion vs. $1.33 billion a year earlier
• Diluted earnings per share: 10 cents vs. 23 cents a year earlier
• NAREIT FFO per diluted share: 38 cents vs. 34 cents a year earlier
• Adjusted FFO per diluted share: 39 cents vs. 35 cents a year earlier
• Adjusted EBITDAre: $347 million vs. $319 million a year earlier

Comparable hotel RevPAR, a measure of room revenue per available room, rose 8.8% to $219.50 in the quarter. The company attributed the gain to room rate increases of 5.7% and an occupancy gain of 2.1 points.

GAAP net income fell to $71 million from $163 million, a decline the company tied to a drop in gains on asset sales.

2026 guidance

The company now expects comparable hotel RevPAR growth of approximately 6.75% for 2026 over 2025, up from the 4.75% to 5.25% range it gave on Aug. 5. Comparable hotel Total RevPAR growth is now forecast at 6.0%.

Diluted earnings per share guidance is $1.40, up from the $1.35 to $1.38 range given on Aug. 5. NAREIT FFO per diluted share is now expected at $2.17, against the $2.11 to $2.14 range from August. Adjusted FFO per diluted share is forecast at $2.21, against $2.15 to $2.18 previously.

The company said comparable hotel RevPAR for October grew approximately 6.5% over 2025. It expects capital expenditures of $550 million to $600 million for the year.

James F. Risoleo, President and Chief Executive Officer, said, "We delivered a strong third quarter, driven by the quality of our portfolio, disciplined capital allocation and continued reinvestment in our assets."

Acquisitions and credit facility

After the quarter ended, the company acquired the leasehold interest in the 195-room 1 Hotel Brooklyn Bridge for $202 million. It also acquired the fee simple interest in the 308-room Renaissance Dallas at Plano Legacy West Hotel for $172 million.

Risoleo said the two hotels are expected to be immediately accretive to the company.

The company also amended and restated its $2.5 billion credit facility. The $1.5 billion revolver now matures in January 2031, and the two $500 million term loans mature in January 2031 and January 2032. The accordion feature was expanded to $1.25 billion.

Sourav Ghosh, Executive Vice President and Chief Financial Officer, said, "Subsequent to quarter end, we further strengthened our balance sheet by recasting our $2.5 billion credit facility, extending maturities through 2031 and 2032 and improving pricing."

Debt and cash

At Sept. 30, the company had $5.1 billion of debt with a weighted average interest rate of 4.8%. After the credit facility recast, the weighted average maturity increased to 5.2 years from 4.4 years.

The company's estimated adjusted cash balance was $991 million after the acquisitions and its third-quarter dividend of 20 cents per share, paid on Oct. 15.