Host Hotels & Resorts, Inc. HST reported first-quarter 2026 adjusted funds from operations (FFO) per share of 67 cents, beating the Zacks Consensus Estimate of 63 cents by 6.3%. The metric increased 4.7% from the prior-year quarter.
Total revenues were $1.65 billion, up 3.2% year over year and ahead of the Zacks Consensus Estimate of $1.63 billion. Results benefited from stronger portfolio-level pricing and demand, with comparable hotel RevPAR rising 4.4% and comparable hotel Total RevPAR up 4.6% from first-quarter 2025.
HST’s RevPAR Gains Led by Room Rate Strength
Comparable hotel RevPAR was $244.11 in the quarter, supported primarily by higher room rates. Average room rate increased to $347.24 from $334.24 a year ago, while comparable average occupancy edged up to 70.3% from 69.9%.
Performance varied by market, with San Francisco/San Jose posting a 25.6% RevPAR gain and Miami up 14.9%. The company also cited strong performances tied to San Francisco around the Super Bowl and strength across the Florida markets, though results in Hawaii reflected impacts from the Kona Low rainstorm in March 2026.
HST Sees Margin Lift on Better Operations
GAAP operating profit improved to $319 million from $285 million in first-quarter 2025, translating to an operating profit margin of 19.4% versus 17.9% a year ago. Net income rose to $501 million from $251 million, aided by asset-sale activity in the period.
Comparable hotel EBITDA increased 7% year over year to $505 million. Comparable hotel EBITDA margin expanded 70 basis points to 32.7%, as rate-driven gains outweighed higher wage expenses, while adjusted EBITDAre increased 5.6% to $543 million.
HST’s Dispositions and Other Items Shaped Results
HST recorded a $242 million gain on dispositions in the quarter, reflecting the sale of three hotels during first-quarter 2026. The company highlighted the February 2026 sales of the Four Seasons Resort Orlando at Walt Disney World Resort and the Four Seasons Resort and Residences Jackson Hole for $1.1 billion, as well as the January 2026 sale of The St. Regis Houston for $51 million.
The quarter also included four condominium sales adjacent to the Four Seasons Resort Orlando development, which contributed $4 million to net income and adjusted EBITDAre. In addition, the company recognized business interruption proceeds of $7 million related to damage caused by Hurricanes Helene and Milton in 2024.
HST Emphasizes Liquidity and Shareholder Returns
Total available liquidity was approximately $3.4 billion, including FF&E escrow reserves of $151 million and $1.5 billion available under its revolver. The company ended the quarter with cash and cash equivalents of $1.703 billion. Total debt was $5.1 billion, with a weighted average maturity of 4.9 years and a weighted average interest rate of 4.8%, and management noted no maturities in 2026.
Capital returns remained active. HST repurchased 4.0 million shares for $75 million during the quarter, leaving $405 million of remaining authorization. The board also declared a second-quarter cash dividend of 92 cents per share, consisting of a 20 cents per share of regular quarterly dividend and a 72 cents per share of special dividend, payable July 15, 2026, to stockholders of record on June 30, 2026.
HST Raises 2026 RevPAR View and Issues FFO Range
Management raised its full-year 2026 comparable hotel RevPAR growth guidance range to 3.0% to 4.5%, compared to the prior range of 2.0% to 3.5%. It lifted comparable hotel Total RevPAR growth guidance to 3.5% to 5.0%, compared to 2.5% to 4.0%. The outlook assumes a stable operating environment, with leisure transient strength supported by special events such as FIFA World Cup games and modest improvements in short-term group booking trends.
For the full-year 2026, HST now projects adjusted EBITDAre of $1.785-$1.835 billion, compared to prior range of $1,740-$1,800. The company also expects adjusted FFO per share of $2.10-$2.16, compared to $2.03-$2.11 previously guided. The Zacks Consensus Estimate is pinned at $2.09.
HST’s Zacks Rank
Host Hotels currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Host Hotels & Resorts, Inc. Price, Consensus and EPS Surprise
Host Hotels & Resorts, Inc. price-consensus-eps-surprise-chart | Host Hotels & Resorts, Inc. Quote
Performance of Other REITs
Vornado Realty Trust VNO posted first-quarter 2026 FFO, as adjusted, of 52 cents per share, in line with the Zacks Consensus Estimate. This compares unfavorably to the FFO of 63 cents a year ago. Total revenues of $459.11 million edged down 0.5% year over year but beat the consensus mark by 3.57%.
Results displayed year-over-year growth in same-store net operating income and occupancy for the New York and THE MART portfolios. The company witnessed decent leasing activities in these portfolios.
Iron Mountain Incorporated IRM reported first-quarter 2026 adjusted FFO per share of $1.43, topping the Zacks Consensus Estimate by 2.88%. The figure grew 22.2% year over year. Total revenues of $1.94 billion beat the consensus mark by 4.31% and rose 21.6% year over year.
The quarter reflected broad-based momentum, led by strong expansion in growth businesses and solid pricing in the core storage franchise. Organic revenue growth was 17.2% year over year, underscoring continued demand and effective revenue management. The company raised its 2026 adjusted FFO per share outlook.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Host Hotels & Resorts, Inc. (HST): Free Stock Analysis Report
Iron Mountain Incorporated (IRM): Free Stock Analysis Report
Vornado Realty Trust (VNO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).