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Host Hotels & Resorts has raised its full-year forecast for adjusted funds from operations (FFO), driven by strong performance in its luxury and upscale hotel portfolio. Higher-income travelers continue to support demand, while mid-scale and budget hotels face slower occupancy and room revenue across the U.S. The REIT reported third-quarter FFO above analysts' expectations and revenues exceeding estimates. The company has also partnered with Marriott for significant renovations at four of its properties, aiming to enhance long-term performance. Shares responded positively to the update in after-hours trading.
Host Hotels & Resorts has increased its annual forecast for adjusted funds from operations, citing strong bookings and sustained demand for its luxury and upscale hotels. This performance reflects continued interest from higher-income travelers who are less affected by broader economic uncertainty. Advertisement
In comparison, the company noted that budget and mid-scale hotels across the U.S. experienced slower occupancy and room revenue, highlighting the differing trends within the hospitality sector.
The REIT reported third-quarter adjusted FFO of 0.35 USD per share, surpassing analysts' expectations of 0.33 USD per share. Total revenue for the quarter reached 1.33 billion USD, slightly above the estimated 1.31 billion USD.
Host Hotels CEO James Risoleo mentioned that the company has signed a new agreement with Marriott to carry out transformational renovations at four properties within its portfolio, which is expected to enhance the long-term value and appeal of these hotels.
For the full year, Host Hotels now expects adjusted FFO to reach 2.03 USD per share, up from the previous midpoint forecast of 2 USD per share. Following the announcement, shares of the company rose 2.4% in extended trading.
Source Reuters
5th Jun, 2025
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