Host Hotels Raises Outlook on Luxury Demand

Host Hotels & Resorts has increased its full-year financial outlook, signaling confidence from its second-quarter earnings report. Comparable hotel RevPAR saw a significant 7% climb to $251.53, attributed to robust demand in luxury resorts and a calendar filled with major events. The company lifted its 2026 RevPAR growth forecast to a range of 4.75% to 5.25% at the midpoint.

Key demand segments experienced notable growth, with transient revenue up 6.9% and group room revenue rising 7.4%. Major events like the World Cup provided a substantial boost to RevPAR, particularly in host markets. Recovery efforts in Maui have also shown positive results, with RevPAR increasing by 14%.

Strategic reinvestment in 34 hotels, totaling approximately $2.1 billion, is expected to significantly contribute to future EBITDA. This, combined with a $500 million gain from selling resorts, allowed for a special dividend of $0.72 per share in July, alongside regular payouts, while maintaining leverage at 2.2 times.

Looking ahead, the company anticipates moderating margin comparisons in the second half of the year as the impact of strong prior-year comparisons, including major events, diminishes. Rising wage rates, expected to increase 5% for the year, and estimated property damage from a recent storm in Hawaii also present ongoing cost considerations.