Host Hotels & Resorts posted a 7% year-over-year increase in comparable hotel revenue per available room (RevPAR) in the second quarter of 2026, surpassing earlier projections. Adjusted EBITDAre rose 5.8% to $525 million, and adjusted funds from operations (FFO) per share increased 8.6% to $0.63. Following these results, the company raised its full-year 2026 profit and revenue outlook, with the adjusted EBITDAre midpoint lifted by $20 million to $1.83 billion and 2026 RevPAR growth guidance adjusted to 4.75%-5.25%.
Rate Management Strategy and Event-Driven Demand Lift Q2 Revenues
Host Hotels attributed its RevPAR growth largely to a disciplined revenue management approach focused on rate increases across its portfolio rather than
volume growth. Transient revenue, the company’s largest segment, achieved its strongest quarterly increase in seven quarters at 7% growth. Business transient room nights rose 14% at the New York Marriott Marquis, driven by demand from technology, consulting, and finance sectors. Group room revenue increased 7%, split evenly between rate and room night gains, with 1.1 million group room nights sold during the quarter. Definite group room nights booked for 2026 increased 8% to 3.8 million since March.
The FIFA World Cup contributed approximately 160 basis points to the quarter’s RevPAR growth, as RevPAR at host-city hotels jumped 15% in June.
Even non-World Cup markets saw a 12% RevPAR increase as some travelers avoided congested host cities.
Maui Market Recovery and Luxury Resort Performance
The Maui market demonstrated robust recovery following recent fires, registering a 14% increase in RevPAR and occupancy gains of over eight percentage points. Golf revenue in Maui rose 9% above pre-fire levels. Host Hotels expects its Maui properties to produce about $120 million in EBITDA for 2026, with an additional $20-$25 million potentially unlocked upon full market stabilization. The 1 Hotel South Beach and Florida Gulf properties also contributed to a 9% growth in resort RevPAR, supported by events such as the Formula 1
Grand Prix.
Asset Sales, Reinvestment Programs, and Dividends
As part of portfolio optimization, Host Hotels sold the Sheraton Parsippany for roughly $12 million. The company continued its $2.1 billion reinvestment program on schedule and under budget, with the Hyatt Transformational Capital Program nearly 90% complete and the Marriott program 37% complete. At Four Seasons Orlando, 28 of 40 condo units closed in Q2, generating $8 million in EBITDA; full-year condo EBITDA guidance was reduced to $16-$20 million due to timing shifts.
Following gains from the Four Seasons sale, Host Hotels paid a regular quarterly dividend of $0.20 per share and a special dividend of $0.72 per
share in July 2026.
2026 Guidance Updates, Expense Forecasts, and Financial Health
Host Hotels raised its 2026 comparable hotel EBITDA margin expansion range to 40–50 basis points. Comparable hotel expense growth is forecasted at 4.2% for the full year, lower than wage-rate increases due to productivity and efficiency improvements. A property-insurance renewal reduced expenses by $2.5 million compared to the prior year.
Q2 flow-through was negatively impacted by higher incentive management fees from revenue threshold overachievement and elevated travel-agent commissions related to short-term World Cup bookings; these costs are not expected to recur at the same levels in the second half of the year. The sensitivity of EBITDA
to each point of RevPAR growth is estimated at $28 million to $30 million, adjusted downward due to recent asset sales.
At the end of July, leverage stood at 2.2 times, with $3 billion in total available liquidity. The company’s weighted average debt maturity was 4.7 years, carrying an average interest rate of 4.8%.
Management Confidence and Capital Allocation Discipline
CEO Jim Risoleo said the company exceeded expectations for the second quarter due to its revenue management strategy. He highlighted disciplined and opportunistic capital allocation, noting asset sales like Sheraton Parsippany as examples of portfolio pruning. Risoleo stated, “We’re seeing more activity today. We’ve underwritten a
lot of transactions, and to date, we haven’t been able to cross the bar that we set for ourselves internally.” He emphasized a high unlevered internal rate of return (IRR) threshold for acquisitions.
CFO Sourav Ghosh pointed to strong group bookings, with group room nights up 8% for 2026 and robust holiday booking pacing for the fourth quarter. He confirmed that elevated incentive and commission expenses in Q2 are not anticipated to continue at the same scale in later quarters.
