SOURAV GHOSH JAIME MARCUS
Exhibit 99.1 SOURAV GHOSH JAIME MARCUS Chief Financial Officer Investor Relations (240) 744-5267 (240) 744-5117 ir@hosthotels.com
Delivered Comparable Hotel RevPAR Growth of 8.8% and Comparable Hotel Total RevPAR Growth of 7.3%
Acquired 1 Hotel Brooklyn Bridge and Renaissance Dallas at Plano Legacy West Hotel
Amended $2.5 Billion Credit Facility, Extending Maturity and Improving Pricing Grid
BETHESDA, Md., November 4, 2026 – Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the nation’s largest lodging real estate investment trust (“REIT”), today announced results for the third quarter of 2026.
* Additional detail on the Company’s results, including data for 24 domestic markets, is available in the Third Quarter 2026 Supplemental Financial Information on the Company’s website at www.hosthotels.com.
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. Comparable hotel RevPAR increased 8.8%, supported by rate growth and broad-based strength in leisure transient, group, and business transient demand. Comparable hotel Total RevPAR grew 7.3%, reflecting higher food and beverage revenues and leisure transient demand. We now expect full year comparable hotel RevPAR growth of approximately 6.75% and comparable hotel Total RevPAR growth of approximately 6.0% over 2025, both of which are above the high end of our previously announced guidance ranges.
Risoleo continued, “The acquisitions of the 1 Hotel Brooklyn Bridge and Renaissance Dallas at Plano Legacy West enhance our diversified portfolio with two market-leading properties that are expected to be immediately accretive to the Company. The 1 Hotel expands our presence in New York into a new submarket, and the Renaissance establishes our presence in the high-growth Dallas/Fort Worth market. Looking ahead, demand remains durable, supported by resilient leisure travel, growth in business travel, and healthy group demand in many markets. With our investment-grade balance sheet, strong liquidity and diversified portfolio, Host Hotels is well positioned to capitalize on favorable industry fundamentals and selectively pursue growth opportunities to deliver long-term value creation.”
(1) NAREIT Funds From Operations (“FFO”) per diluted share, Adjusted FFO per diluted share, EBITDA re , Adjusted EBITDA re and comparable hotel revenues are non-GAAP (U.S. generally accepted accounting principles) financial measures within the meaning of the rules of the Securities and Exchange Commission (“SEC”). See the Notes to Financial Information on why the Company believes these supplemental measures are useful, reconciliations to the most directly comparable GAAP measure, and the limitations on the use of these supplemental measures. Additionally, comparable hotel results and statistics include adjustments for dispositions, acquisitions and non-comparable hotels. See Hotel Operating Data for RevPAR results of the portfolio based on the Company's ownership period without these adjustments.
Comparable hotel Total RevPAR was $348.19 for the third quarter of 2026, an increase of 7.3% compared to the same period in 2025, driven by increases in room rates and continued growth in food and beverage spend. Growth was broad- based, with 11 of the Company's 24 domestic markets achieving double-digit increases in comparable hotel Total RevPAR. Comparable hotel Total RevPAR year- to-date in 2026 was $392.74, an increase of 5.8%.
Comparable hotel RevPAR was $219.50, an increase of 8.8% compared to the same period in 2025, reflecting rate increases of 5.7% and an increase in occupancy of 2.1 points. The growth was driven by very strong transient demand throughout the quarter, boosted by the World Cup and an increase in business transient demand, in addition to an increase in group bookings, and despite the impacts from an active hurricane season in Hawaii during the quarter. Comparable hotel RevPAR year-to-date in 2026 was $237.21, an increase of 6.6%.
GAAP net income was $71 million, a 56.4% decrease compared to the third quarter of 2025, reflecting a decline in gain on asset sales, partially offset by an improvement in GAAP operating profit margin of 140 basis points to 9.0%, as higher room rates offset wage expense increases. Year-to-date, GAAP net income was $813 million, a 27.2% increase compared to 2025, benefiting from gains on asset sales and GAAP operating profit margin of 15.8%, an improvement of 110 basis points compared to 2025.
Comparable hotel EBITDA was $331 million, an increase of 11.4% compared to the third quarter of 2025, reflecting a comparable hotel EBITDA margin increase of 90 basis points to 25.2% due to improvements in operations, largely driven by average room rate increases, which offset increases in wage expenses over the same period in 2025. Year-to-date, comparable hotel EBITDA was $1,327 million, an increase of 8.2% compared to 2025, while comparable hotel EBITDA margin increased 70 basis points to 30.2%. Comparable hotel results for both periods exclude Alila Ventana Big Sur, which was removed from the comparable hotel set in the third quarter after the hotel was closed for one month during an evacuation mandate due to wildfires in the vicinity.
Adjusted EBITDA re was $347 million, an increase of 8.8% compared to the third quarter of 2025. Results benefited from improved operations and comparable hotel EBITDA margins, which more than offset declines due to the 2025 and 2026 dispositions. Year-to-date Adjusted EBITDA re was $1,415 million, exceeding 2025 by 6.5%.
• Subsequent to quarter end, the Company acquired the leasehold interest in the 195-room 1 Hotel Brooklyn Bridge for a total purchase price of $202 million, which is net of the $4 million furniture, fixtures and equipment ("FF&E") reserve. The Company also acquired the fee simple interest in the 308-room Renaissance Dallas at Plano Legacy West Hotel for a total purchase price of $172 million. The 1 Hotel Brooklyn Bridge, a LEED Gold-certified luxury hotel that sits on Pier 1 in Brooklyn Bridge Park, overlooks the East River and the Manhattan skyline. The Renaissance anchors the Legacy West mixed-use development in Plano, Texas and has approximately 35,000 square feet of meeting space.
• Subsequent to quarter end, the Company amended and restated its $2.5 billion credit facility, extending the maturity of the $1.5 billion revolver to January 2031 and the maturities of the two $500 million term loans to January 2031 and January 2032, respectively, with extension options that, if exercised, would align all maturities under the facility at January 2032. Under the amended facility, the Company expanded the accordion feature to $1.25 billion and achieved total reductions of 12.5 basis points on revolver draws, 15 basis points on the term loans, and 5 basis points on the facility fee, reflecting both a reset of the pricing grid to current market levels and a new leverage- based pricing benefit, while maintaining pricing incentives linked to portfolio sustainability initiatives.
Sourav Ghosh, Executive Vice President and Chief Financial Officer, added, "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. Following the recast, our debt has a weighted average maturity of 5.2 years and a weighted average interest rate of 4.8%. The enhancements to our credit facility provide further flexibility as we pursue our successful capital allocation strategy.”
BALANCE SHEET The Company maintains a robust balance sheet, with the following balances at September 30, 2026:
Debt balance of $5.1 billion, with a weighted average maturity of 4.4 years, a weighted average interest rate of 4.8%, and no significant maturities until December 2028. Following the restatement of the credit facility, the weighted average maturity increased to 5.2 years.
Total available liquidity of approximately $3.1 billion, including furniture, fixtures and equipment escrow reserves of $157 million and $1.5 billion available under the revolver portion of the credit facility. Following the transactions noted above, our estimated adjusted cash balance is as follows (in millions):
Cash and cash equivalents at September 30, 2026 $ 1,492 Cash consideration for the acquisition of -162 Renaissance Dallas at Plano Legacy West Hotel(1) Cash consideration for the acquisition of 1 Hotel -202 Brooklyn Bridge Third quarter dividend paid on common stock -137 Cash and cash equivalents adjusted for subsequent $ 991 transactions
(1) Cash paid for acquisition is net of deposits paid prior to September 30, 2026.
The Company paid a third quarter common stock cash dividend of $0.20 per share on October 15, 2026 to stockholders of record on September 30, 2026. All future dividends, including any special dividends, are subject to approval by the Company’s Board of Directors.
The Company’s customers fall into three broad groups: transient, group and contract business, which accounted for approximately 61%, 34%, and 5%, respectively, of its full year 2025 room sales.
The following are the results for transient, group and contract business in comparison to 2025 performance, for the Company's current portfolio:
The following presents the Company’s capital expenditures spend through the third quarter of 2026 and the forecast for the full year 2026 (in millions):
Year-to-date ended September 2026 Full 30, 2026 Year Forecast ────────────────────────────────────────────────────────────────────────────── Actual Low-end of High-end of range range ROI - Marriott and Hyatt $ 121 $ 180 $ 195 Transformat… Capital Programs All other return on investment 53 75 85 ("ROI") projects Total ROI 174 255 280 Projects Renewals and Replacements 213 285 305 ("R&R") R&R and ROI Capital 387 540 585 expenditures R&R - Property 5 10 15 Damage Reconstruct… Total Capital $ 392 $ 550 $ 600 Expenditures Inventory spend for 17 17 17 condo development… Total capital $ 409 $ 567 $ 617 allocation
(1) Represents construction costs for the development of condominium units on a land parcel adjacent to Four Seasons Resort Orlando at Walt Disney World® Resort. Under GAAP, costs to develop units for resale are considered an operating activity on the statement of cash flows, and categorized as inventory. This spend is separate from payments for capital expenditures, which are considered investing activities.
The forecast property damage reconstruction includes estimated spend for damage caused by the Kona Low rainstorm to the Company's properties in Hawaii in March 2026. Remediation efforts are substantially complete, and the hotels remained operational with isolated instances of water damage. The Company is still evaluating the complete property and business interruption impacts of the storm, but currently estimates the total property costs to be approximately $20 million to $25 million, which includes remediation costs of approximately $2 million, and completion of restoration efforts in 2027. The Company expects its insurance coverage to substantially cover the property damage in excess of the insurance deductible.
Under the Hyatt and Marriott Transformational Capital Programs, the Company received $7 million of operating guarantees in the third quarter of 2026 to offset expected business disruption. The Company expects to receive a total of $19 million of operating guarantees in 2026 under the two programs. The transformational renovation at the Ritz-Carlton Naples, Tiburon was substantially completed in the third quarter of 2026.
In the third quarter of 2026, the Company continued to see strong leisure and group demand, which drove an increase in rates, coupled with improving business transient volume. Comparable hotel RevPAR for October also grew approximately 6.5% over 2025. The updated 2026 guidance reflects the Company's strong third quarter results and improved expectations for the fourth quarter driven by strong leisure demand, favorable group booking pace, and improving business transient demand. Full year operating profit margins and comparable hotel EBITDA margins are expected to increase compared to 2025, as rate improvements offset increases in wage expense.
The guidance includes an estimated $3 million and $6 million of net income and Adjusted EBITDA re , respectively, which is expected from the recent acquisitions of 1 Hotel Brooklyn Bridge and Renaissance Dallas at Plano Legacy West Hotel. Due to the timing of the acquisitions, the results for these two hotels will be included in comparable hotel results starting in the fourth quarter. The guidance for net income and Adjusted EBITDA re also includes an estimated $18 million net contribution from sales expected to close at the condominium development adjacent to the Four Seasons Resort Orlando at Walt Disney World® Resort this year, with remaining sales expected to shift into 2027. Additionally, the final determination on insurance claims related to Hurricanes Helene and Milton is expected by the end of the year, but no additional amounts from what was received in first quarter are included in guidance.
The Company anticipates its 2026 operating results as compared to 2025 will be approximately as follows:
Current Full Previous Full Current Full Year 2026 Year 2026 Change in Year 2026 Guidance Guidance Full Year Guidance Change vs. Midpoint 2026 2025 Change vs. Guidance 2025 Comparable hotel Total $392 6.0% 5.0% 100 bps RevPAR Comparable hotel $237 6.75% 5.0% 175 bps RevPAR Total revenues under GAAP $6,213 1.6% 0.4% 120 bps (in millions) Operating profit 15.4% 140 bps 100 bps 40 bps margin under GAAP Comparable hotel 30.0% 80 bps 50 bps 30 bps EBITDA margin
Based upon the above parameters, the Company estimates its 2026 guidance will be approximately as follows:
Current Full Previous Full Change in Full Year 2026 Year 2026 Year 2026 Guidance Guidance Midpoint Guidance Net income (in $978 $953 $25 millions) Adjusted EBITDAre(in $1,865 $1,830 $35 millions) Diluted earnings per $1.40 $1.36 $0.04 common share NAREIT FFO per $2.17 $2.12 $0.05 diluted share Adjusted FFO per diluted $2.21 $2.16 $0.05 share
See the 2026 Forecast Schedules and the Notes to Financial Information for items that may affect forecast results.
Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper- upscale hotels. The Company currently owns 72 properties in the United States and five properties internationally totaling approximately 41,800 rooms. The Company also holds non-controlling interests in seven domestic joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott ® , Ritz- Carlton ® , Westin ® , W ® , The Luxury Collection ® , Hyatt ® , Fairmont ® , 1 Hotels ® , Hilton ® , Swissôtel ® , ibis ® and Novotel ® , as well as independent brands. For additional information, please visit the Company’s website at www.hosthotels.com.
Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements include, but may not be limited to, our expectations regarding the strength of lodging demand, the continued recovery in Maui from the 2023 wildfires, and 2026 estimates with respect to our business, including our anticipated capital expenditures and financial and operating results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to, those described in the Company’s annual report on Form 10-K and other filings with the SEC. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of November 4, 2026, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
* This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks have any responsibility or liability for any information contained in this press release. *** Tables to Follow ***
Host Hotels & Resorts, Inc., herein referred to as “we,” “Host Inc.,” or the “Company,” is a self-managed and self-administered real estate investment trust that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resorts, L.P. (“Host LP”), of which we are the sole general partner. When distinguishing between Host Inc. and Host LP, the primary difference is approximately 1% of the partnership interests in Host LP held by outside partners as of September 30, 2026, which are non-controlling interests in Host LP in our consolidated balance sheets and are included in net (income) loss attributable to non-controlling interests in our condensed consolidated statements of operations. Readers are encouraged to find further detail regarding our organizational structure in our annual report on Form 10-K.
2026 OPERATING RESULTS Condensed Consolidated Balance Sheets (unaudited) September 30, 2026and December 31,2025 Condensed Consolidated Statements of Operations (unaudited) PAGENO. Quarter and Year-to-date endedSeptember 30, 2026and2025 7 Earnings per Common Share (unaudited) 8 Quarter and Year-to-date endedSeptember 30, 2026and2025 9 ──────────────────────────────────────────────────────────────────────── Hotel Operating Data Hotel Operating Data for Consolidated Hotels (by 10 Location) Schedule of Comparable Hotel Results 14 Reconciliation of Net Income to EBITDA, 17 EBITDAreand Adjusted EBITDAre Reconciliation of Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations 18 per Diluted Share 2026 FORECAST INFORMATION Reconciliation of Net Income to EBITDA, EBITDAreand Adjusted EBITDAreand Diluted Earnings per Common Share to NAREIT and Adjusted Funds From 19 Operations per Diluted Share for Full Year 2026Forecasts Schedule of Comparable Hotel Results for Full Year 21 2026Forecasts Notes to Financial Information 22
September 30, 2026 December 31, 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS Property and equipment, net $ 9,625 $ 10,636 Right-of-use assets 557 560 Assets held for sale — 34 Due from managers 50 39 Advances to and investments in 310 259 affiliates Furniture, fixtures and equipment 157 167 replacement fund Notes receivable 114 114 Other 448 472 Cash and cash equivalents 1,492 768 Total assets $ 12,753 $ 13,049 LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY Debt⁽¹⁾ Senior notes $ 3,992 $ 3,986 Credit facility, including the term 999 996 loans of $1,000 and $999, respectively Mortgage and other debt 93 95 Total debt 5,084 5,077 Lease liabilities 561 563 Accounts payable and accrued 286 355 expenses Due to managers 33 76 Other 233 246 Total liabilities 6,197 6,317 Redeemable non-controlling interests - 211 171 Host Hotels & Resorts, L.P. Host Hotels & Resorts, Inc. stockholders’ equity:
Common stock, par value $0.01, 1,050 million shares authorized, 685.1 million 7 7 shares and 687.8 million shares issued and outstanding, respectively Additional paid-in capital 7,180 7,289 Accumulated other comprehensive -66 -68 loss Deficit -780 -670 Total equity of Host Hotels & Resorts, 6,341 6,558 Inc. stockholders Non-redeemable non-controlling interests—other consolidated 4 3 partnerships Total equity 6,345 6,561 Total liabilities, non-controlling $ 12,753 $ 13,049 interests and equity
(1) Please see our Third Quarter 2026 Supplemental Financial Information for more detail on our debt balances and financial covenant ratios under our credit facility and senior notes indentures. PAGE 7 OF 26
(1) Dilutive securities may include shares granted under comprehensive stock plans, preferred operating partnership units (“OP Units”) held by non- controlling limited partners and other non-controlling interests that have the option to convert their limited partnership interests to common OP Units. No effect is shown for any securities that were anti-dilutive for the period. PAGE 9 OF 26
___________ (1) See the Notes to Financial Information for a discussion of comparable hotel operating statistics. CBD of a location refers to the central business district. Hotel RevPAR is calculated as room revenues divided by the available room nights. Hotel Total RevPAR is calculated by dividing the sum of rooms, food and beverage and other revenues by the available room nights. PAGE 10 OF 26
___________ (1) See the Notes to Financial Information for a discussion of comparable hotel operating statistics. CBD of a location refers to the central business district. Hotel RevPAR is calculated as room revenues divided by the available room nights. Hotel Total RevPAR is calculated by dividing the sum of rooms, food and beverage and other revenues by the available room nights. PAGE 11 OF 26
(1) Represents the results of the portfolio for the time period of our ownership, including the results of non-comparable properties, dispositions through their date of disposal and acquisitions beginning as of the date of acquisition. PAGE 12 OF 26
(1) Represents the results of the portfolio for the time period of our ownership, including the results of non-comparable properties, dispositions through their date of disposal and acquisitions beginning as of the date of acquisition. PAGE 13 OF 26
(1) See the Notes to Financial Information for a discussion of comparable hotel results, which are non-GAAP measures, and the limitations on their use. For additional information on comparable hotel EBITDA by location, see the Third Quarter 2026 Supplemental Financial Information posted on our website.
(2) Profit margins are calculated by dividing the applicable operating profit by the related revenue amount. GAAP profit margins are calculated using amounts presented in the unaudited condensed consolidated statements of operations. Comparable hotel margins are calculated using amounts presented in the following tables, which include reconciliations to the applicable GAAP results: PAGE 14 OF 26
(3) Property transaction adjustments represent the following items: (i) the elimination of results of operations of hotels sold or held-for-sale as of the reporting date, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations, and (ii) the addition of results for periods prior to our ownership for hotels acquired as of the reporting date.
(4) Non-comparable hotel results, net, includes the following items: (i) the results of operations of our non-comparable hotels, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations, and (ii) gains on business interruption proceeds covering lost revenues while the property was considered non-comparable.
(5) Includes revenues and costs, including marketing and administrative expenses of approximately $1 million and $3 million for the quarter and year-to-date 2026, respectively, related to the development and sale of condominium units adjacent to the Four Seasons Resort Orlando at Walt Disney World® Resort. PAGE 16 OF 26
(2) Net income, EBITDA, EBITDA re , Adjusted EBITDA re , NAREIT FFO and Adjusted FFO for the year-to-date ended September 30, 2025 include a gain of $4 million from the sale of land adjacent to The Phoenician hotel.
(3) Reflects the sale of four hotels in 2026 and two hotels in 2025, and the sale of the Asia/Pacific joint venture's interest in two separate joint ventures in India in 2025.
(4) Unrealized gains of our unconsolidated investments are not recognized in our EBITDAre, Adjusted EBITDAre, NAREIT FFO or Adjusted FFO until they have been realized by the unconsolidated partnership. PAGE 17 OF 26
___________ (1-4) Refer to the corresponding footnote on the Reconciliation of Net Income to EBITDA, EBITDA re and Adjusted EBITDA re .
(5) Diluted earnings per common share, NAREIT FFO per diluted share and Adjusted FFO per diluted share are adjusted for the effects of dilutive securities. Dilutive securities may include shares granted under comprehensive stock plans, preferred OP units held by non-controlling limited partners and other non- controlling interests that have the option to convert their limited partner interests to common OP units. No effect is shown for securities if they are anti-dilutive. PAGE 18 OF 26
NAREIT and Adjusted Funds From Operations per Diluted Share for Full Year 2026 Forecasts (1)
Full Year 2026 ──────────────────────────────────────────────────────────────────── Net income $ 978 Interest expense 243 Depreciation and amortization 755 Income taxes 56 EBITDA 2,032 Gain on dispositions -235 Non-cash impairment expense 4 Equity investment adjustments: Equity in earnings of affiliates -25 Pro rata EBITDAre of equity investments 62 EBITDAre 1,838 Adjustments to EBITDAre: Non-cash stock-based compensation expense 27 Adjusted EBITDAre $ 1,865
Full Year 2026 ─────────────────────────────────────────────────────────────────────── Net income $ 978 Less: Net income attributable to -14 non-controlling interests Net income attributable to Host Inc. 964 Adjustments: Gain on dispositions -235 Tax on dispositions 5 Depreciation and amortization 753 Non-cash impairment expense 4 Equity investment adjustments: Equity in earnings of affiliates -25 Pro rata FFO of equity investments 34 Consolidated partnership adjustments: FFO adjustment for non-controlling -1 partnerships FFO adjustment for non-controlling -7 interests of Host LP NAREIT FFO 1,492 Adjustments to NAREIT FFO: Non-cash stock-based compensation 27 expense Loss on extinguishment of debt 5 Adjusted FFO $ 1,524 Diluted weighted average shares outstanding - EPS, NAREIT FFO and 688.7 Adjusted FFO Diluted earnings per common share $ 1.40 NAREIT FFO per diluted share $ 2.17 Adjusted FFO per diluted share $ 2.21
• Comparable hotel RevPAR will increase 6.75% compared to 2025 for the full year forecast. This forecast assumes a continued recovery at our Maui properties from the 2023 wildfires, however the timing of Maui's full recovery remains uncertain.
• Comparable hotel EBITDA margins will increase approximately 80 basis points compared to 2025 for the full year forecast.
• We expect to spend approximately $550 million to $600 million on capital expenditures.
• Includes $3 million of net income and $6 million of EBITDA from the 1 Hotel Brooklyn Bridge and the Renaissance Dallas at Plano Legacy West Hotel, acquired in October 2026. Assumes no additional dispositions or acquisitions during the year.
• Assumes an approximate $18 million contribution to net income and Adjusted EBITDAre from the sale of condominium units. PAGE 19 OF 26
NAREIT and Adjusted Funds From Operations per Diluted Share for Full Year 2026 Forecasts (1) (cont.)
(unaudited, in millions) • Includes $7 million of gain from business interruption proceeds related to hurricane claims already received in 2026, but assumes no further business interruption proceeds during the year.
For a discussion of items that may affect forecast results, see the Notes to Financial Information. PAGE 20 OF 26
Operating profit margin(3) 15.4 % Comparable hotel EBITDA margin(3) Full Year 2026 30.0 % ──────────────────────────────────────────────────────────────────── Net income $ 978 Depreciation and amortization 759 Interest expense 243 Provision for income taxes 56 Gain on sale of property and corporate -195 level income/expense Forecast results for subsequent -6 acquisitions(2) Property transaction adjustments(4) -11 Non-comparable hotel results, net(5) -49 Condominium sales(6) -18 Comparable hotel EBITDA(1) $ 1,757
___________ (1) See "Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre and Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share for Full Year 2026 Forecasts" for other forecast assumptions.
(2) Forecast comparable hotel results include 73 hotels (of our 75 hotels owned at September 30, 2026) that we have assumed will be classified as comparable as of December 31, 2026. Comparable hotel metrics do not yet include the results of the 1 Hotel Brooklyn Bridge and the Renaissance Dallas at Plano Legacy West Hotel, which were acquired in October 2026. We expect to include the comparable hotel results for these two hotels beginning in the fourth quarter. See footnote (5) for details on our non-comparable hotel results.
(3) Profit margins are calculated by dividing the applicable operating profit by the related revenue amount. GAAP profit margins are calculated using amounts presented in the unaudited condensed consolidated statements of operations. Comparable hotel margins are calculated using amounts presented in the following tables, which include reconciliations to the applicable GAAP results:
(4) Property transaction adjustments represent the following items: (i) the elimination of results of operations of hotels sold or held-for-sale as of the reporting date, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations, and (ii) the addition of results for periods prior to our ownership for hotels acquired as of the reporting date. Forecast data also eliminates results of hotels assumed to be sold during the year.
(5) Non-comparable hotel results, net, includes the following items: (i) the results of operations of our non-comparable hotels, which operations are included in our condensed consolidated statements of operations as continuing operations, and (ii) gains on business interruption proceeds covering lost revenues while the property was considered non-comparable. The following properties are expected to be non-comparable for full year 2026:
• The Don CeSar (business disruption due to Hurricane Helene resulting in closure of the hotel beginning at the end of September 2024, reopened in March 2025); and
• Alila Ventana Big Sur (business disruption due to local evacuation mandates and regional wildfire activity resulting in closure of the hotel beginning in August 2026, reopened in September 2026).
(6) Includes revenues and costs, including marketing and administrative expenses of approximately $6 million, related to the development and sale of condominium units adjacent to the Four Seasons Resort Orlando at Walt Disney World® Resort. PAGE 21 OF 26
Our forecast of net income, earnings per diluted share, NAREIT and Adjusted FFO per diluted share, EBITDA, EBITDA re, Adjusted EBITDA re and comparable hotel results are forward-looking statements and are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause actual results and performance to differ materially from those expressed or implied by these forecasts. Although we believe the expectations reflected in the forecasts are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that the results will not be materially different. Risks that may affect these assumptions and forecasts include the following: potential changes in overall economic outlook make it inherently difficult to forecast the level of RevPAR, earnings and profitability; the amount and timing of debt payments may change significantly based on market conditions, which will directly affect the level of interest expense and net income; the amount and timing of transactions involving shares of our common stock may change based on market conditions; and other risks and uncertainties associated with our business described herein and in our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC.
To facilitate a year-to-year comparison of our operations, we present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in our reports on a comparable hotel basis in order to enable our investors to better evaluate our operating performance. We define our comparable hotels as those that: (i) are owned or leased by us as of the reporting date and are not classified as held-for-sale; and (ii) have not sustained substantial property damage or business interruption, or undergone large-scale capital projects, in each case requiring closures lasting one month or longer (as further defined below), during the reporting periods being compared.
We make adjustments to include recent acquisitions to include results for periods prior to our ownership. For these hotels, since the year-over-year comparison includes periods prior to our ownership, the changes will not necessarily correspond to changes in our actual results. Additionally, operating results of hotels that we sell are excluded from the comparable hotel set once the transaction has closed or the hotel is classified as held-for-sale.
The hotel business is capital-intensive and renovations are a regular part of the business. Generally, hotels under renovation remain comparable hotels. A large-scale capital project would cause a hotel to be excluded from our comparable hotel set if it requires the entire property to be closed to hotel guests for one month or longer.
Similarly, hotels are excluded from our comparable hotel set from the date that they sustain substantial property damage or business interruption if it requires the property to be closed to hotel guests for one month or longer. In each case, these hotels are returned to the comparable hotel set when the operations of the hotel have been included in our consolidated results for one full calendar year after the hotel has reopened. Often, related to events that cause property damage and the closure of a hotel, we will collect business interruption insurance proceeds for the near-term loss of business. These proceeds are included in net gain on insurance settlements on our condensed consolidated statements of operations. Business interruption insurance gains covering lost revenues while the property was considered non-comparable also will be excluded from the comparable hotel results.
Of the 75 hotels that we owned as of September 30, 2026, 73 have been classified as comparable hotels. The operating results of the following properties that we owned as of September 30, 2026 are excluded from comparable hotel results for these periods:
• The Don CeSar (business disruption due to Hurricane Helene resulting in closure of the hotel beginning at the end of September 2024, reopened in March 2025);
• Alila Ventana Big Sur (business disruption due to local evacuation mandates and regional wildfire activity resulting in closure of the hotel beginning in August 2026, reopened in September 2026); and
• Operations related to the development and sale of condominium units on a development parcel adjacent to the Four Seasons Resort Orlando at Walt Disney World® Resort.
Comparable hotel metrics do not yet include the results of 1 Hotel Brooklyn Bridge and Renaissance Dallas at Plano Legacy West Hotel, which were acquired in October 2026. We expect to include the comparable hotel results for these two hotels beginning in the fourth quarter.
Operating results denominated in foreign currencies are translated using the prevailing exchange rates on the date of the transaction, or monthly based on the weighted average exchange rate for the period. Therefore, hotel statistics and results for non-U.S. properties include the effect of currency fluctuations, consistent with our financial statement presentation. NON-GAAP FINANCIAL MEASURES Included in this press release are certain “non-GAAP financial measures,” which are measures of our historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules. They are as follows: (i) FFO and FFO per diluted share (both NAREIT and Adjusted), (ii) EBITDA, both at the hotel level and company- wide, (iii) PAGE 22 OF 26
EBITDA re and Adjusted EBITDA re, and (iv) Comparable Hotel Operating Statistics and Results. The following discussion defines these measures and presents why we believe they are useful supplemental measures of our performance.
We present NAREIT FFO and NAREIT FFO per diluted share as non-GAAP measures of our performance in addition to our earnings per share (calculated in accordance with GAAP). We calculate NAREIT FFO per diluted share as our NAREIT FFO (defined as set forth below) for a given operating period, as adjusted for the effect of dilutive securities, divided by the number of fully diluted shares outstanding during such period, in accordance with NAREIT guidelines. As noted in NAREIT’s Funds From Operations White Paper – 2018 Restatement, NAREIT defines FFO as net income (calculated in accordance with GAAP) excluding depreciation and amortization related to certain real estate assets, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment expense of certain real estate assets and investments and adjustments for consolidated partially owned entities and unconsolidated affiliates. Adjustments for consolidated partially owned entities and unconsolidated affiliates are calculated to reflect our pro rata share of the FFO of those entities on the same basis.
We believe that NAREIT FFO per diluted share is a useful supplemental measure of our operating performance and that the presentation of NAREIT FFO per diluted share, when combined with the primary GAAP presentation of diluted earnings per share, provides beneficial information to investors. By excluding the effect of real estate depreciation, amortization, impairment expense and gains and losses from sales of depreciable real estate, all of which are based on historical cost accounting and which may be of lesser significance in evaluating current performance, we believe that such measures can facilitate comparisons of operating performance between periods and with other REITs, even though NAREIT FFO per diluted share does not represent an amount that accrues directly to holders of our common stock. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. As noted by NAREIT in its Funds From Operations White Paper – 2018 Restatement, the primary purpose for including FFO as a supplemental measure of operating performance of a REIT is to address the artificial nature of historical cost depreciation and amortization of real estate and real estate- related assets mandated by GAAP. For these reasons, NAREIT adopted the FFO metric in order to promote a uniform industry-wide measure of REIT operating performance.
We also present Adjusted FFO per diluted share when evaluating our performance because management believes that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. Management historically has made the adjustments detailed below in evaluating our performance, in our annual budget process and for our compensation programs. We believe that the presentation of Adjusted FFO per diluted share, when combined with both the primary GAAP presentation of diluted earnings per share and FFO per diluted share as defined by NAREIT, provides useful supplemental information that is beneficial to an investor’s understanding of our operating performance. We adjust NAREIT FFO per diluted share for the following items, which may occur in any period, and refer to this measure as Adjusted FFO per diluted share:
• Gains and Losses on the Extinguishment of Debt – We exclude the effect of finance charges and premiums associated with the extinguishment of debt, including the acceleration of the write-off of deferred financing costs from the original issuance of the debt being redeemed or retired and incremental interest expense incurred during the refinancing period. We also exclude the gains on debt repurchases and the original issuance costs associated with the retirement of preferred stock. We believe that these items are not reflective of our ongoing finance costs.
• Acquisition Costs – Under GAAP, costs associated with completed property acquisitions that are considered business combinations are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company.
• Litigation Gains and Losses – We exclude the effect of gains or losses associated with litigation recorded under GAAP that we consider to be outside the ordinary course of business. We believe that including these items is not consistent with our ongoing operating performance.
• Severance Expense – In certain circumstances, we will add back hotel-level severance expenses when we do not believe that such expenses are reflective of the ongoing operation of our properties. Situations that would result in a severance add-back include, but are not limited to, (i) costs incurred as part of a broad-based reconfiguration of the operating model with the specific hotel operator for a portfolio of hotels and (ii) costs incurred at a specific hotel due to a broad-based and significant reconfiguration of a hotel and/or its workforce. We do not add back corporate-level severance costs or severance costs at an individual hotel that we consider to be incurred in the normal course of business.
• Non-Cash Stock-Based Compensation - We exclude the expense recorded for non- cash stock-based compensation, as it represents a non-cash transaction and the add back is consistent with the calculation of Adjusted EBITDA for our financial covenant ratios under our credit facility and senior notes indentures and consistent with the presentation of Adjusted FFO per diluted share for the majority of other lodging REIT filers. PAGE 23 OF 26
In unusual circumstances, we also may adjust NAREIT FFO for gains or losses that management believes are not representative of the Company’s current operating performance. For example, in 2017, as a result of the reduction of the U.S. federal corporate income tax rate from 35% to 21% by the Tax Cuts and Jobs Act, we remeasured our domestic deferred tax assets as of December 31, 2017 and recorded a one-time adjustment to reduce our deferred tax assets and to increase the provision for income taxes by approximately $11 million. We do not consider this adjustment to be reflective of our ongoing operating performance and, therefore, we excluded this item from Adjusted FFO.
Earnings before Interest Expense, Income Taxes, Depreciation and Amortization (“EBITDA”) is a commonly used measure of performance in many industries. Management believes EBITDA provides useful information to investors regarding our results of operations because it helps us and our investors evaluate the ongoing operating performance of our properties after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization). Management also believes the use of EBITDA facilitates comparisons between us and other lodging REITs, hotel owners that are not REITs and other capital-intensive companies. Management uses EBITDA to evaluate property-level results and as one measure in determining the value of acquisitions and dispositions and, like FFO and Adjusted FFO per diluted share, it is widely used by management in the annual budget process and for our compensation programs.
We present EBITDA re in accordance with NAREIT guidelines, as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate,” to provide an additional performance measure to facilitate the evaluation and comparison of the Company’s results with other REITs. NAREIT defines EBITDA re as net income (calculated in accordance with GAAP) excluding interest expense, income tax, depreciation and amortization, gains or losses on disposition of depreciated property (including gains or losses on change of control), impairment expense for depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustments to reflect the entity’s pro rata share of EBITDA re of unconsolidated affiliates.
We make additional adjustments to EBITDA re when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. We believe that the presentation of Adjusted EBITDA re , when combined with the primary GAAP presentation of net income, is beneficial to an investor’s understanding of our operating performance. Adjusted EBITDA re also is similar to the measure used to calculate certain credit ratios for our credit facility and senior notes. We adjust EBITDA re for the following items, which may occur in any period, and refer to this measure as Adjusted EBITDA re :
• Property Insurance Gains and Property Damage Losses – We exclude the effect of property insurance gains reflected in our condensed consolidated statements of operations because we believe that including them in Adjusted EBITDA re is not consistent with reflecting the ongoing performance of our assets. In addition, property insurance gains could be less important to investors given that the depreciated asset book value written off in connection with the calculation of the property insurance gain often does not reflect the market value of real estate assets. Similarly, losses from property damage or remediation costs that are not covered through insurance are excluded.
• Acquisition Costs – Under GAAP, costs associated with completed property acquisitions that are considered business combinations are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing performance of the Company.
• Litigation Gains and Losses – We exclude the effect of gains or losses associated with litigation recorded under GAAP that we consider to be outside the ordinary course of business. We believe that including these items is not consistent with our ongoing operating performance.
• Severance Expense – In certain circumstances, we will add back hotel-level severance expenses when we do not believe that such expenses are reflective of the ongoing operation of our properties. Situations that would result in a severance add-back include, but are not limited to, (i) costs incurred as part of a broad-based reconfiguration of the operating model with the specific hotel operator for a portfolio of hotels and (ii) costs incurred at a specific hotel due to a broad-based and significant reconfiguration of a hotel and/or its workforce. We do not add back corporate-level severance costs or severance costs at an individual hotel that we consider to be incurred in the normal course of business.
• Non-Cash Stock-Based Compensation - We exclude the expense recorded for non- cash stock-based compensation, as it represents a non-cash transaction and the add back is consistent with the calculation of Adjusted EBITDA for our financial covenant ratios under our credit facility and senior notes indentures and consistent with the presentation of Adjusted EBITDA re for the majority of other lodging REIT filers.
In unusual circumstances, we also may adjust EBITDA re for gains or losses that management believes are not representative of the Company’s current operating performance. The last adjustment of this nature was a 2013 exclusion of a gain from an eminent domain claim. PAGE 24 OF 26
Limitations on the Use of NAREIT FFO per Diluted Share, Adjusted FFO per Diluted Share, EBITDA, EBITDAre and Adjusted EBITDAre
We calculate EBITDA re and NAREIT FFO per diluted share in accordance with standards established by NAREIT, which may not be comparable to measures calculated by other companies that do not use the NAREIT definition of EBITDA re and FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance. In addition, although EBITDA re and FFO per diluted share are useful measures when comparing our results to other REITs, they may not be helpful to investors when comparing us to non-REITs. We also calculate Adjusted FFO per diluted share and Adjusted EBITDA re , which measures are not in accordance with NAREIT guidance and may not be comparable to measures calculated by other REITs or by other companies. This information should not be considered as an alternative to net income, operating profit, cash from operations or any other operating performance measure calculated in accordance with GAAP. Cash expenditures for various long-term assets (such as renewal and replacement capital expenditures), interest expense (for EBITDA, EBITDA re and Adjusted EBITDA re purposes only), severance expense related to significant property- level reconfiguration and other items have been, and will be, made and are not reflected in the EBITDA, EBITDA re, Adjusted EBITDA re , NAREIT FFO per diluted share and Adjusted FFO per diluted share presentations. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our consolidated statements of operations and consolidated statements of cash flows in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures. Additionally, NAREIT FFO per diluted share, Adjusted FFO per diluted share, EBITDA, EBITDA re and Adjusted EBITDA re should not be considered as measures of our liquidity or indicative of funds available to fund our cash needs, including our ability to make cash distributions. In addition, NAREIT FFO per diluted share and Adjusted FFO per diluted share do not measure, and should not be used as measures of, amounts that accrue directly to stockholders’ benefit.
Similarly, EBITDA re, Adjusted EBITDA re , NAREIT FFO and Adjusted FFO per diluted share include adjustments for the pro rata share of our equity investments, and NAREIT FFO and Adjusted FFO per diluted share include adjustments for the pro rata share of non-controlling partners in consolidated partnerships. Our equity investments consist of interests ranging from 11% to 67% in seven domestic partnerships that own a total of 124 properties and a vacation ownership development. Due to the voting rights of the outside owners, we do not control and, therefore, do not consolidate these entities. The non- controlling partners in consolidated partnerships primarily consist of the approximate 1% interest in Host LP held by unaffiliated limited partners and a 15% interest held by an unaffiliated limited partner in a partnership owning one hotel for which we do control the entity and, therefore, consolidate its operations. These pro rata results for NAREIT FFO and Adjusted FFO per diluted share, EBITDA re and Adjusted EBITDA re were calculated as set forth in the definitions above. Readers should be cautioned that the pro rata results presented in these measures for consolidated partnerships (for NAREIT FFO and Adjusted FFO per diluted share) and equity investments may not accurately depict the legal and economic implications of our investments in these entities.
We present certain operating results for our hotels, such as hotel revenues, expenses, food and beverage profit, and EBITDA (and the related margins), on a comparable hotel, or "same store," basis as supplemental information for our investors. Our comparable hotel results present operating results for our hotels without giving effect to dispositions or properties that experienced closures due to renovations or property damage, as discussed in “Comparable Hotel Operating Statistics and Results” above. We present comparable hotel EBITDA to help us and our investors evaluate the ongoing operating performance of our comparable hotels after removing the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization expense). Corporate-level costs and expenses also are removed to arrive at property-level results. We believe these property-level results provide investors with supplemental information about the ongoing operating performance of our comparable hotels. Comparable hotel results are presented both by location and for the Company’s properties in the aggregate. We eliminate from our comparable hotel level operating results severance costs related to broad-based and significant property-level reconfiguration that is not considered to be within the normal course of business, as we believe this elimination provides useful supplemental information that is beneficial to an investor’s understanding of our ongoing operating performance. We also eliminate depreciation and amortization expense because, even though depreciation and amortization expense are property-level expenses, these non-cash expenses, which are based on historical cost accounting for real estate assets, implicitly assume that the value of real estate assets diminishes predictably over time. As noted earlier, because real estate values historically have risen or fallen with market conditions, many real estate industry investors have considered presentation of historical cost accounting for operating results to be insufficient.
Because of the elimination of corporate-level costs and expenses, gains or losses on disposition, certain severance expenses and depreciation and amortization expense, the comparable hotel operating results we present do not represent our total revenues, expenses, operating profit or net income and should not be used to evaluate our performance as a whole. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our condensed consolidated statements of operations include such amounts, all of which should be considered by investors when evaluating our performance.
We present these hotel operating results on a comparable hotel basis because we believe that doing so provides investors and management with useful information for evaluating the period-to-period performance of our hotels and facilitates comparisons with other hotel REITs and hotel owners. In particular, these measures assist management and investors in distinguishing whether increases or decreases in revenues and/or expenses are due to growth or decline of operations at comparable hotels (which represent the vast majority of our portfolio) or from other factors. While management believes that presentation of comparable PAGE 25 OF 26
hotel results is a supplemental measure that provides useful information in evaluating our ongoing performance, this measure is not used to allocate resources or to assess the operating performance of each of our hotels, as these decisions are based on data for individual hotels and are not based on comparable hotel results in the aggregate. For these reasons, we believe comparable hotel operating results, when combined with the presentation of GAAP operating profit, revenues and expenses, provide useful information to investors andmanagement. PAGE 26 OF 26
Full text with the tables
Exhibit 99.1
SOURAV GHOSH JAIME MARCUS
Chief Financial Officer Investor Relations
(240) 744-5267 (240) 744-5117
ir@hosthotels.com
Host Hotels & Resorts, Inc. Reports Results for the Third Quarter of 2026
Delivered Comparable Hotel RevPAR Growth of 8.8% and Comparable Hotel Total
RevPAR Growth of 7.3%
Acquired 1 Hotel Brooklyn Bridge and Renaissance Dallas at Plano Legacy West
Hotel
Amended $2.5 Billion Credit Facility, Extending Maturity and Improving Pricing
Grid
Raising Full Year 2026 Growth Guidance for Comparable Hotel RevPAR to
6.75%
and Total RevPAR to
6.0%
BETHESDA, Md., November 4, 2026 – Host Hotels & Resorts, Inc. (NASDAQ: HST) (the
“Company”), the nation’s largest lodging real estate investment trust (“REIT”),
today announced results for the third quarter of 2026.
OPERATING RESULTS
(unaudited, in millions, except per share and hotel statistics)
Qu… Ye…
en… en…
Se… P… Se… P…
20… 30, 2… C… 2… 30, 2… C…
──────────────────────────────────────────────────────────────────────────────
R… $ 1,… $ 1,… 1.2 % $ 4,… $ 4,… 2.7 %
C…
h… 1,… 1,… 7.4 % 4,… 4,… 5.9 %
r…
C…
h… 34… 32… 7.3 % 39… 37… 5.8 %
T…
R…
C…
h… 21… 20… 8.8 % 23… 22… 6.6 %
R…
N… $ 71 $ 163 (5… %) $ 813 $ 639 27… %
i…
E… 340 314 8.3 % 1,… 1,… 6.3 %
A… 347 319 8.8 % 1,… 1,… 6.5 %
E…
D…
e…
p… $ 0.… $ 0.… (5… %) $ 1.… $ 0.… 27… %
c…
s…
N…
F…
p… 0.… 0.… 11… % 1.… 1.… 7.8 %
d…
s…
A…
F…
p… 0.… 0.… 11… % 1.… 1.… 8.3 %
d…
s…
* Additional detail on the Company’s results, including data for 24 domestic
markets, is available in the Third Quarter 2026 Supplemental Financial
Information on the Company’s website at www.hosthotels.com.
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. Comparable hotel
RevPAR increased 8.8%, supported by rate growth and broad-based strength in
leisure transient, group, and business transient demand. Comparable hotel Total
RevPAR grew 7.3%, reflecting higher food and beverage revenues and leisure
transient demand. We now expect full year comparable hotel RevPAR growth of
approximately 6.75% and comparable hotel Total RevPAR growth of approximately
6.0% over 2025, both of which are above the high end of our previously announced
guidance ranges.
Risoleo continued, “The acquisitions of the 1 Hotel Brooklyn Bridge and
Renaissance Dallas at Plano Legacy West enhance our diversified portfolio with
two market-leading properties that are expected to be immediately accretive to
the Company. The 1 Hotel expands our presence in New York into a new submarket,
and the Renaissance establishes our presence in the high-growth Dallas/Fort
Worth market. Looking ahead, demand remains durable, supported by resilient
leisure travel, growth in business travel, and healthy group demand in many
markets. With our investment-grade balance sheet, strong liquidity and
diversified portfolio, Host Hotels is well positioned to capitalize on favorable
industry fundamentals and selectively pursue growth opportunities to deliver
long-term value creation.”
_______________________ ________
(1) NAREIT Funds From Operations (“FFO”) per diluted share, Adjusted FFO per
diluted share, EBITDA re , Adjusted EBITDA re and comparable hotel revenues are
non-GAAP (U.S. generally accepted accounting principles) financial measures
within the meaning of the rules of the Securities and Exchange Commission
(“SEC”). See the Notes to Financial Information on why the Company believes
these supplemental measures are useful, reconciliations to the most directly
comparable GAAP measure, and the limitations on the use of these supplemental
measures. Additionally, comparable hotel results and statistics include
adjustments for dispositions, acquisitions and non-comparable hotels. See Hotel
Operating Data for RevPAR results of the portfolio based on the Company's
ownership period without these adjustments.
HOST HOTELS & RESORTS, INC. NEWS RELEASE November 4, 2026
──────────────────────────────────────────────────────────────
HIGHLIGHTS:
•
Comparable hotel Total RevPAR was $348.19 for the third quarter of 2026, an
increase of 7.3% compared to the same period in 2025, driven by increases in
room rates and continued growth in food and beverage spend. Growth was broad-
based, with 11 of the Company's 24 domestic markets achieving double-digit
increases in comparable hotel Total RevPAR. Comparable hotel Total RevPAR year-
to-date in 2026 was $392.74, an increase of 5.8%.
•
Comparable hotel RevPAR was $219.50, an increase of 8.8% compared to the same
period in 2025, reflecting rate increases of 5.7% and an increase in occupancy
of 2.1 points. The growth was driven by very strong transient demand throughout
the quarter, boosted by the World Cup and an increase in business transient
demand, in addition to an increase in group bookings, and despite the impacts
from an active hurricane season in Hawaii during the quarter. Comparable hotel
RevPAR year-to-date in 2026 was $237.21, an increase of 6.6%.
•
GAAP net income was $71 million, a 56.4% decrease compared to the third quarter
of 2025, reflecting a decline in gain on asset sales, partially offset by an
improvement in GAAP operating profit margin of 140 basis points to 9.0%, as
higher room rates offset wage expense increases. Year-to-date, GAAP net income
was $813 million, a 27.2% increase compared to 2025, benefiting from gains on
asset sales and GAAP operating profit margin of 15.8%, an improvement of 110
basis points compared to 2025.
•
Comparable hotel EBITDA was $331 million, an increase of 11.4% compared to the
third quarter of 2025, reflecting a comparable hotel EBITDA margin increase of
90 basis points to 25.2% due to improvements in operations, largely driven by
average room rate increases, which offset increases in wage expenses over the
same period in 2025. Year-to-date, comparable hotel EBITDA was $1,327 million,
an increase of 8.2% compared to 2025, while comparable hotel EBITDA margin
increased 70 basis points to 30.2%. Comparable hotel results for both periods
exclude Alila Ventana Big Sur, which was removed from the comparable hotel set
in the third quarter after the hotel was closed for one month during an
evacuation mandate due to wildfires in the vicinity.
•
Adjusted EBITDA re was $347 million, an increase of 8.8% compared to the third
quarter of 2025. Results benefited from improved operations and comparable hotel
EBITDA margins, which more than offset declines due to the 2025 and 2026
dispositions. Year-to-date Adjusted EBITDA re was $1,415 million, exceeding 2025
by 6.5%.
• Subsequent to quarter end, the Company acquired the leasehold interest in the
195-room 1 Hotel Brooklyn Bridge for a total purchase price of $202 million,
which is net of the $4 million furniture, fixtures and equipment ("FF&E")
reserve. The Company also acquired the fee simple interest in the 308-room
Renaissance Dallas at Plano Legacy West Hotel for a total purchase price of $172
million. The 1 Hotel Brooklyn Bridge, a LEED Gold-certified luxury hotel that
sits on Pier 1 in Brooklyn Bridge Park, overlooks the East River and the
Manhattan skyline. The Renaissance anchors the Legacy West mixed-use development
in Plano, Texas and has approximately 35,000 square feet of meeting space.
• Subsequent to quarter end, the Company amended and restated its $2.5 billion
credit facility, extending the maturity of the $1.5 billion revolver to January
2031 and the maturities of the two $500 million term loans to January 2031 and
January 2032, respectively, with extension options that, if exercised, would
align all maturities under the facility at January 2032. Under the amended
facility, the Company expanded the accordion feature to $1.25 billion and
achieved total reductions of 12.5 basis points on revolver draws, 15 basis
points on the term loans, and 5 basis points on the facility fee, reflecting
both a reset of the pricing grid to current market levels and a new leverage-
based pricing benefit, while maintaining pricing incentives linked to portfolio
sustainability initiatives.
Sourav Ghosh, Executive Vice President and Chief Financial Officer, added,
"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. Following the recast, our debt has a weighted
average maturity of 5.2 years and a weighted average interest rate of 4.8%. The
enhancements to our credit facility provide further flexibility as we pursue our
successful capital allocation strategy.”
© Host Hotels & Resorts, Inc. PAGE 2 OF26
HOST HOTELS & RESORTS, INC. NEWS RELEASE November 4, 2026
──────────────────────────────────────────────────────────────
BALANCE SHEET
The Company maintains a robust balance sheet, with the following balances at
September 30, 2026:
•
Total assets of $12.8 billion.
•
Debt balance of $5.1 billion, with a weighted average maturity of 4.4 years, a
weighted average interest rate of 4.8%, and no significant maturities until
December 2028. Following the restatement of the credit facility, the weighted
average maturity increased to 5.2 years.
•
Total available liquidity of approximately $3.1 billion, including furniture,
fixtures and equipment escrow reserves of $157 million and $1.5 billion
available under the revolver portion of the credit facility. Following the
transactions noted above, our estimated adjusted cash balance is as follows (in
millions):
Cash and cash equivalents at September 30, 2026 $ 1,492
Cash consideration for the acquisition of -162
Renaissance Dallas at Plano Legacy West Hotel(1)
Cash consideration for the acquisition of 1 Hotel -202
Brooklyn Bridge
Third quarter dividend paid on common stock -137
Cash and cash equivalents adjusted for subsequent $ 991
transactions
___________________________
(1) Cash paid for acquisition is net of deposits paid prior to September 30,
2026.
DIVIDENDS
The Company paid a third quarter common stock cash dividend of $0.20 per share
on October 15, 2026 to stockholders of record on September 30, 2026. All future
dividends, including any special dividends, are subject to approval by the
Company’s Board of Directors.
HOTEL BUSINESS MIX UPDATE
The Company’s customers fall into three broad groups: transient, group and
contract business, which accounted for approximately 61%, 34%, and 5%,
respectively, of its full year 2025 room sales.
The following are the results for transient, group and contract business in
comparison to 2025 performance, for the Company's current portfolio:
Q… …
e… …
S… …
3… …
2… …
──────────────────────────────────────────────────────────────────────────────
T… G… C… T… G… C…
…
… 1… 9… 2… … … …
…
…
…
…
…
…
… 4… % 1… % (… … … % … % … %
…
…
…
…
…
…
… $ 5… $ 2… $ 48 $ … $ … $ …
…
…
…
…
…
…
… 1… % 4… % 4… % … % … % … %
…
…
…
…
© Host Hotels & Resorts, Inc. PAGE 3 OF26
HOST HOTELS & RESORTS, INC. NEWS RELEASE November 4, 2026
──────────────────────────────────────────────────────────────
CAPITAL EXPENDITURES
The following presents the Company’s capital expenditures spend through the
third quarter of 2026 and the forecast for the full year 2026 (in millions):
Year-to-date
ended
September 2026 Full
30, 2026 Year Forecast
──────────────────────────────────────────────────────────────────────────────
Actual Low-end of High-end of
range range
ROI -
Marriott and
Hyatt $ 121 $ 180 $ 195
Transformat…
Capital
Programs
All other
return on
investment 53 75 85
("ROI")
projects
Total ROI 174 255 280
Projects
Renewals and
Replacements 213 285 305
("R&R")
R&R and ROI
Capital 387 540 585
expenditures
R&R -
Property 5 10 15
Damage
Reconstruct…
Total
Capital $ 392 $ 550 $ 600
Expenditures
Inventory
spend for 17 17 17
condo
development…
Total
capital $ 409 $ 567 $ 617
allocation
__________
(1) Represents construction costs for the development of condominium units on a
land parcel adjacent to Four Seasons Resort Orlando at Walt Disney World®
Resort. Under GAAP, costs to develop units for resale are considered an
operating activity on the statement of cash flows, and categorized as inventory.
This spend is separate from payments for capital expenditures, which are
considered investing activities.
The forecast property damage reconstruction includes estimated spend for damage
caused by the Kona Low rainstorm to the Company's properties in Hawaii in March
2026. Remediation efforts are substantially complete, and the hotels remained
operational with isolated instances of water damage. The Company is still
evaluating the complete property and business interruption impacts of the storm,
but currently estimates the total property costs to be approximately $20 million
to $25 million, which includes remediation costs of approximately $2 million,
and completion of restoration efforts in 2027. The Company expects its insurance
coverage to substantially cover the property damage in excess of the insurance
deductible.
Under the Hyatt and Marriott Transformational Capital Programs, the Company
received $7 million of operating guarantees in the third quarter of 2026 to
offset expected business disruption. The Company expects to receive a total of
$19 million of operating guarantees in 2026 under the two programs. The
transformational renovation at the Ritz-Carlton Naples, Tiburon was
substantially completed in the third quarter of 2026.
2026 OUTLOOK
In the third quarter of 2026, the Company continued to see strong leisure and
group demand, which drove an increase in rates, coupled with improving business
transient volume. Comparable hotel RevPAR for October also grew approximately
6.5% over 2025. The updated 2026 guidance reflects the Company's strong third
quarter results and improved expectations for the fourth quarter driven by
strong leisure demand, favorable group booking pace, and improving business
transient demand. Full year operating profit margins and comparable hotel EBITDA
margins are expected to increase compared to 2025, as rate improvements offset
increases in wage expense.
The guidance includes an estimated $3 million and $6 million of net income and
Adjusted EBITDA re , respectively, which is expected from the recent
acquisitions of 1 Hotel Brooklyn Bridge and Renaissance Dallas at Plano Legacy
West Hotel. Due to the timing of the acquisitions, the results for these two
hotels will be included in comparable hotel results starting in the fourth
quarter. The guidance for net income and Adjusted EBITDA re also includes an
estimated $18 million net contribution from sales expected to close at the
condominium development adjacent to the Four Seasons Resort Orlando at Walt
Disney World® Resort this year, with remaining sales expected to shift into
2027. Additionally, the final determination on insurance claims related to
Hurricanes Helene and Milton is expected by the end of the year, but no
additional amounts from what was received in first quarter are included in
guidance.
© Host Hotels & Resorts, Inc. PAGE 4 OF26
HOST HOTELS & RESORTS, INC. NEWS RELEASE November 4, 2026
──────────────────────────────────────────────────────────────
The Company anticipates its 2026 operating results as compared to 2025 will be
approximately as follows:
Current Full Previous Full
Current Full Year 2026 Year 2026 Change in
Year 2026 Guidance Guidance Full Year
Guidance Change vs. Midpoint 2026
2025 Change vs. Guidance
2025
Comparable
hotel Total $392 6.0% 5.0% 100 bps
RevPAR
Comparable
hotel $237 6.75% 5.0% 175 bps
RevPAR
Total
revenues
under GAAP $6,213 1.6% 0.4% 120 bps
(in
millions)
Operating
profit 15.4% 140 bps 100 bps 40 bps
margin
under GAAP
Comparable
hotel 30.0% 80 bps 50 bps 30 bps
EBITDA
margin
Based upon the above parameters, the Company estimates its 2026 guidance will be
approximately as follows:
Current Full Previous Full Change in Full
Year 2026 Year 2026 Year 2026
Guidance Guidance Midpoint Guidance
Net income (in $978 $953 $25
millions)
Adjusted
EBITDAre(in $1,865 $1,830 $35
millions)
Diluted
earnings per $1.40 $1.36 $0.04
common share
NAREIT FFO per $2.17 $2.12 $0.05
diluted share
Adjusted FFO
per diluted $2.21 $2.16 $0.05
share
See the 2026 Forecast Schedules and the Notes to Financial Information for items
that may affect forecast results.
ABOUT HOST HOTELS & RESORTS
Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging
real estate investment trust and one of the largest owners of luxury and upper-
upscale hotels. The Company currently owns 72 properties in the United States
and five properties internationally totaling approximately 41,800 rooms. The
Company also holds non-controlling interests in seven domestic joint ventures.
Guided by a disciplined approach to capital allocation and aggressive asset
management, the Company partners with premium brands such as Marriott ® , Ritz-
Carlton ® , Westin ® , W ® , The Luxury Collection ® , Hyatt ® , Fairmont ® , 1
Hotels ® , Hilton ® , Swissôtel ® , ibis ® and Novotel ® , as well as
independent brands. For additional information, please visit the Company’s
website at www.hosthotels.com.
Note: This press release contains forward-looking statements within the meaning
of federal securities regulations. These forward-looking statements include, but
may not be limited to, our expectations regarding the strength of lodging
demand, the continued recovery in Maui from the 2023 wildfires, and 2026
estimates with respect to our business, including our anticipated capital
expenditures and financial and operating results. Forward-looking statements are
not guarantees of future performance and involve known and unknown risks,
uncertainties and other factors which may cause the actual results to differ
materially from those anticipated at the time the forward-looking statements are
made. These risks include, but are not limited to, those described in the
Company’s annual report on Form 10-K and other filings with the SEC. Although
the Company believes the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, it can give no assurance that
the expectations will be attained or that any deviation will not be material.
All information in this release is as of November 4, 2026, and the Company
undertakes no obligation to update any forward-looking statement to conform the
statement to actual results or changes in the Company’s expectations.
* This press release contains registered trademarks that are the exclusive
property of their respective owners. None of the owners of these trademarks have
any responsibility or liability for any information contained in this press
release.
*** Tables to Follow ***
© Host Hotels & Resorts, Inc. PAGE 5 OF26
HOST HOTELS & RESORTS, INC. NEWS RELEASE November 4, 2026
──────────────────────────────────────────────────────────────
Host Hotels & Resorts, Inc., herein referred to as “we,” “Host Inc.,” or the
“Company,” is a self-managed and self-administered real estate investment trust
that owns hotel properties. We conduct our operations as an umbrella partnership
REIT through an operating partnership, Host Hotels & Resorts, L.P. (“Host LP”),
of which we are the sole general partner. When distinguishing between Host Inc.
and Host LP, the primary difference is approximately 1% of the partnership
interests in Host LP held by outside partners as of September 30, 2026, which
are non-controlling interests in Host LP in our consolidated balance sheets and
are included in net (income) loss attributable to non-controlling interests in
our condensed consolidated statements of operations. Readers are encouraged to
find further detail regarding our organizational structure in our annual report
on Form 10-K.
2026 OPERATING RESULTS
Condensed Consolidated Balance Sheets (unaudited)
September 30, 2026and December 31,2025
Condensed Consolidated Statements of Operations (unaudited) PAGENO.
Quarter and Year-to-date endedSeptember 30, 2026and2025 7
Earnings per Common Share (unaudited) 8
Quarter and Year-to-date endedSeptember 30, 2026and2025 9
────────────────────────────────────────────────────────────────────────
Hotel Operating Data
Hotel Operating Data for Consolidated Hotels (by 10
Location)
Schedule of Comparable Hotel Results 14
Reconciliation of Net Income to EBITDA, 17
EBITDAreand Adjusted EBITDAre
Reconciliation of Diluted Earnings per Common
Share to NAREIT and Adjusted Funds From Operations 18
per Diluted Share
2026 FORECAST INFORMATION
Reconciliation of Net Income to EBITDA,
EBITDAreand Adjusted EBITDAreand Diluted Earnings
per Common Share to NAREIT and Adjusted Funds From 19
Operations per Diluted Share for Full Year
2026Forecasts
Schedule of Comparable Hotel Results for Full Year 21
2026Forecasts
Notes to Financial Information 22
© Host Hotels & Resorts, Inc. PAGE 6 OF26
HOST HOTELS & RESORTS, INC.
Condensed Consolidated Balance Sheets
(unaudited, in millions, except shares and per share amounts)
September 30,
2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Property and equipment, net $ 9,625 $ 10,636
Right-of-use assets 557 560
Assets held for sale — 34
Due from managers 50 39
Advances to and investments in 310 259
affiliates
Furniture, fixtures and
equipment 157 167
replacement fund
Notes receivable 114 114
Other 448 472
Cash and cash equivalents 1,492 768
Total assets $ 12,753 $ 13,049
LIABILITIES, NON-CONTROLLING
INTERESTS
AND EQUITY
Debt⁽¹⁾
Senior notes $ 3,992 $ 3,986
Credit facility, including the
term 999 996
loans of $1,000 and $999,
respectively
Mortgage and other debt 93 95
Total debt 5,084 5,077
Lease liabilities 561 563
Accounts payable and accrued 286 355
expenses
Due to managers 33 76
Other 233 246
Total liabilities 6,197 6,317
Redeemable non-controlling
interests - 211 171
Host Hotels & Resorts, L.P.
Host Hotels & Resorts, Inc.
stockholders’ equity:
Common stock, par value $0.01,
1,050
million shares authorized, 685.1
million 7 7
shares and 687.8 million shares
issued
and outstanding, respectively
Additional paid-in capital 7,180 7,289
Accumulated other comprehensive -66 -68
loss
Deficit -780 -670
Total equity of Host Hotels &
Resorts, 6,341 6,558
Inc. stockholders
Non-redeemable non-controlling
interests—other consolidated 4 3
partnerships
Total equity 6,345 6,561
Total liabilities,
non-controlling $ 12,753 $ 13,049
interests and equity
__________
(1) Please see our Third Quarter 2026 Supplemental Financial Information for
more detail on our debt balances and financial covenant ratios under our credit
facility and senior notes indentures.
PAGE 7 OF 26
HOST HOTELS & RESORTS, INC.
Condensed Consolidated Statements of Operations
(unaudited, in millions, except per share amounts)
Quarter Year-to-…
ended ended
September September
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Revenues
Rooms $ 841 $ 826 $ 2,738 $ 2,713
Food and 367 364 1,368 1,345
beverage
Other 132 141 440 453
Condomi… 7 — 86 —
sales
Total 1,347 1,331 4,632 4,511
revenues
Expenses
Rooms 225 222 680 680
Food and 273 278 911 914
beverage
Other
departm…
and 355 357 1,099 1,096
support
expenses
Managem… 56 52 197 191
fees
Other
propert… 94 103 291 321
expenses
Depreci…
and 187 196 570 587
amortiz…
Cost of
goods 6 — 71 —
sold
Corpora…
and 30 27 87 83
other
expense…
Net gain
on — -5 -7 -24
insuran…
settlem…
Total
operati…
costs 1,226 1,230 3,899 3,848
and
expenses
Operati… 121 101 733 663
profit
Interest 17 7 47 22
income
Interest -59 -60 -176 -175
expense
Other
gains -6 122 235 148
(losses)
Equity
in
earnings 5 2 16 16
of
affilia…
Income
before 78 172 855 674
income
taxes
Provisi…
for -7 -9 -42 -35
income
taxes
Net 71 163 813 639
income
Less:
Net
income
attribu… -1 -2 -12 -9
to
non-con…
interes…
Net
income
attribu… $ 70 $ 161 $ 801 $ 630
to Host
Inc.
Basic
earnings
per $ 0.10 $ 0.23 $ 1.17 $ 0.91
common
share
Diluted
earnings
per $ 0.10 $ 0.23 $ 1.16 $ 0.91
common
share
___________
(1) Corporate and other expenses include the following items:
Quarter Year-to-da…
ended ended
September September
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
General
and $ 23 $ 22 $ 68 $ 67
administr…
costs
Non-cash
stock-bas… 7 5 19 16
compensat…
expense
Total $ 30 $ 27 $ 87 $ 83
PAGE 8 OF 26
HOST HOTELS & RESORTS, INC.
Earnings per Common Share
(unaudited, in millions, except per share amounts)
Qu… Ye…
en… en…
Se… Se…
2026 30, 20… 2026 30, 20…
──────────────────────────────────────────────────────────────────────────────
N… $ 71 $ 163 $ 813 $ 639
i…
L…
N…
i…
a… -1 -2 -12 -9
to
n…
i…
N…
i…
a… $ 70 $ 161 $ 801 $ 630
to
H…
I…
B…
w…
a… 685… 68… 685… 69…
s…
o…
A…
d…
of
c…
s…
g…
u…
t…
c… 2.2 2.0 2.1 1.9
s…
p…
l…
s…
a…
p…
at
m…
D…
w…
a… 68… 689… 68… 694…
s…
o…
B…
e…
p… $ 0.… $ 0.23 $ 1.… $ 0.91
c…
s…
D…
e…
p… $ 0.… $ 0.23 $ 1.… $ 0.91
c…
s…
___________
(1) Dilutive securities may include shares granted under comprehensive stock
plans, preferred operating partnership units (“OP Units”) held by non-
controlling limited partners and other non-controlling interests that have the
option to convert their limited partnership interests to common OP Units. No
effect is shown for any securities that were anti-dilutive for the period.
PAGE 9 OF 26
HOST HOTELS & RESORTS, INC.
Hotel Operating Data for Consolidated Hotels
Comparable Hotel Results by Location
(1)
──────────────────────────────────────────────────────────────────────────────
___________
(1) See the Notes to Financial Information for a discussion of comparable hotel
operating statistics. CBD of a location refers to the central business district.
Hotel RevPAR is calculated as room revenues divided by the available room
nights. Hotel Total RevPAR is calculated by dividing the sum of rooms, food and
beverage and other revenues by the available room nights.
PAGE 10 OF 26
HOST HOTELS & RESORTS, INC.
Hotel Operating Data for Consolidated Hotels (cont.)
Comparable Hotel Results by Location
(1)
──────────────────────────────────────────────────────────────────────────────
___________
(1) See the Notes to Financial Information for a discussion of comparable hotel
operating statistics. CBD of a location refers to the central business district.
Hotel RevPAR is calculated as room revenues divided by the available room
nights. Hotel Total RevPAR is calculated by dividing the sum of rooms, food and
beverage and other revenues by the available room nights.
PAGE 11 OF 26
HOST HOTELS & RESORTS, INC.
Hotel Operating Data for Consolidated Hotels (cont.)
Results by Location - actual, based on ownership period
(1)
──────────────────────────────────────────────────────────────────────────────
___________
(1) Represents the results of the portfolio for the time period of our
ownership, including the results of non-comparable properties, dispositions
through their date of disposal and acquisitions beginning as of the date of
acquisition.
PAGE 12 OF 26
HOST HOTELS & RESORTS, INC.
Hotel Operating Data for Consolidated Hotels (cont.)
Results by Location - actual, based on ownership period
(1)
──────────────────────────────────────────────────────────────────────────────
___________
(1) Represents the results of the portfolio for the time period of our
ownership, including the results of non-comparable properties, dispositions
through their date of disposal and acquisitions beginning as of the date of
acquisition.
PAGE 13 OF 26
HOST HOTELS & RESORTS, INC.
Schedule of Comparable Hotel Results
(1)
(unaudited, in millions, except hotel statistics)
Quar… Year…
ended ended
Sept… Sept…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Num…
of 73 73 73 73
hot…
Num…
of 40,9… 40,9… 40,9… 40,9…
roo…
Cha…
in
com… 7.3 % — 5.8 % —
hot…
Tot…
Rev…
Cha…
in
com… 8.8 % — 6.6 % —
hot…
Rev…
Ope…
pro… 9.0 % 7.6 % 15.8 % 14.7 %
mar…
Com…
hot… 25.2 % 24.3 % 30.2 % 29.5 %
EBI…
mar…
Food
and
bev… 25.6 % 23.6 % 33.4 % 32.0 %
pro…
mar…
Com…
hot…
food
and 25.9 % 24.9 % 33.7 % 33.0 %
bev…
pro…
mar…
Net $ 71 $ 163 $ 813 $ 639
inc…
Dep…
and 187 196 570 587
amo…
Int… 59 60 176 175
exp…
Pro…
for 7 9 42 35
inc…
tax…
Gain
on
sale
of
pro… 14 -104 -211 -103
and
cor…
lev…
inc…
Pro…
tra… — -12 -11 -70
adj…
Non…
hot… -7 -15 -40 -37
res…
net…
Con… — — -12 —
sal…
Com…
hot… $ 331 $ 297 $ 1,327 $ 1,226
EBI…
___________
(1) See the Notes to Financial Information for a discussion of comparable hotel
results, which are non-GAAP measures, and the limitations on their use. For
additional information on comparable hotel EBITDA by location, see the Third
Quarter 2026 Supplemental Financial Information posted on our website.
(2) Profit margins are calculated by dividing the applicable operating profit by
the related revenue amount. GAAP profit margins are calculated using amounts
presented in the unaudited condensed consolidated statements of operations.
Comparable hotel margins are calculated using amounts presented in the following
tables, which include reconciliations to the applicable GAAP results:
PAGE 14 OF 26
HOST HOTELS & RESORTS, INC.
Schedule of Comparable Hotel Results
(1) (cont.)
(unaudited, in millions, except hotel statistics)
…
…
…
…
…
──────────────────────────────────────────────────────────────────────────────
…
…
…
$ … … — — … … … … — …
… … — — … … … … — …
… … — — … … … … — …
7 — … — — — — — — —
… … … — … … … … — …
… … — — … … … … — …
… … — — … … … … — …
… … … — … … … … — …
… — — … — … — — … —
6 — … — — — — — — —
… — — … — … — — … —
— — — — — … — 5 — —
… … … … … … … … … …
$ … … — … … … … … … …
PAGE 15 OF 26
HOST HOTELS & RESORTS, INC.
Schedule of Comparable Hotel Results
(1) (cont.)
(unaudited, in millions, except hotel statistics)
… …
… …
… …
… …
… …
──────────────────────────────────────────────────────────────────────────────
… …
… … … … …
… … … … … … … … … … …
… … … … … … … … … … …
… … … … … … … …
… … … …
$ $ $ $ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $ $
(3) Property transaction adjustments represent the following items: (i) the
elimination of results of operations of hotels sold or held-for-sale as of the
reporting date, which operations are included in our unaudited condensed
consolidated statements of operations as continuing operations, and (ii) the
addition of results for periods prior to our ownership for hotels acquired as of
the reporting date.
(4) Non-comparable hotel results, net, includes the following items: (i) the
results of operations of our non-comparable hotels, which operations are
included in our unaudited condensed consolidated statements of operations as
continuing operations, and (ii) gains on business interruption proceeds covering
lost revenues while the property was considered non-comparable.
(5) Includes revenues and costs, including marketing and administrative expenses
of approximately $1 million and $3 million for the quarter and year-to-date
2026, respectively, related to the development and sale of condominium units
adjacent to the Four Seasons Resort Orlando at Walt Disney World® Resort.
PAGE 16 OF 26
HOST HOTELS & RESORTS, INC.
Reconciliation of Net Income to
EBITDA, EBITDA
re
and Adjusted EBITDA
re
(1)
(unaudited, in millions)
Quarter Year-to-d…
ended ended
September September
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 71 $ 163 $ 813 $ 639
income⁽…
Interest 59 60 176 175
expense
Depreci…
and 187 196 566 587
amortiz…
Income 7 9 42 35
taxes
EBITDA⁽… 324 428 1,597 1,436
(Gain)
loss on 6 -122 -235 -143
disposi…
Non-cash
impairm… — — 4 —
expense
Equity
investm…
adjustm…
Equity
in
earnings -5 -2 -16 -16
of
affilia…
Pro rata
EBITDAre
of 15 10 46 36
equity
investm…
EBITDAr… 340 314 1,396 1,313
Adjustm…
to
EBITDAr…
Non-cash
stock-b… 7 5 19 16
compens…
expense
Adjusted $ 347 $ 319 $ 1,415 $ 1,329
EBITDAr…
___________
(1) See the Notes to Financial Information for discussion of non-GAAP measures.
(2) Net income, EBITDA, EBITDA re , Adjusted EBITDA re , NAREIT FFO and Adjusted
FFO for the year-to-date ended September 30, 2025 include a gain of $4 million
from the sale of land adjacent to The Phoenician hotel.
(3) Reflects the sale of four hotels in 2026 and two hotels in 2025, and the
sale of the Asia/Pacific joint venture's interest in two separate joint ventures
in India in 2025.
(4) Unrealized gains of our unconsolidated investments are not recognized in our
EBITDAre, Adjusted EBITDAre, NAREIT FFO or Adjusted FFO until they have been
realized by the unconsolidated partnership.
PAGE 17 OF 26
HOST HOTELS & RESORTS, INC.
Reconciliation of Diluted Earnings per Common Share to
NAREIT and Adjusted Funds From Operations per Diluted Share
(1)
(unaudited, in millions, except per share amounts)
Qu… Ye…
en… en…
Se… Se…
2026 30, 20… 2026 30, 20…
──────────────────────────────────────────────────────────────────────────────
N… $ 71 $ 163 $ 813 $ 639
i…
L…
N…
i…
a… -1 -2 -12 -9
to
n…
i…
N…
i…
a… 70 161 801 630
to
H…
I…
A…
(…
l… 6 -122 -2… -143
on
d…
T…
on — — 5 —
d…
D…
a… 187 196 565 586
a…
N…
i… — — 4 —
e…
E…
i…
a…
E…
in
e… -5 -2 -16 -16
of
a…
P…
r…
F… 6 4 25 20
of
e…
i…
C…
p…
a…
F…
a…
f… — -1 — -1
n…
p…
F…
a…
f…
n… -3 -1 -5 -6
i…
of
H…
L…
N… 261 235 1,… 1,0…
F…
A…
to
N…
F…
N…
s… 7 5 19 16
c…
e…
A… $ 268 $ 240 $ 1,… $ 1,0…
F…
F…
c…
on
a
p…
s…
b…
D…
w…
a…
s…
o…
- 687… 68… 688… 69…
E…
N…
F…
a…
A…
F…
D…
e…
p… $ 0.… $ 0.23 $ 1.… $ 0.91
c…
s…
N…
F…
p… $ 0.… $ 0.34 $ 1.… $ 1.54
d…
s…
A…
F…
p… $ 0.… $ 0.35 $ 1.… $ 1.56
d…
s…
___________
(1-4) Refer to the corresponding footnote on the Reconciliation of Net Income to
EBITDA, EBITDA re and Adjusted EBITDA re .
(5) Diluted earnings per common share, NAREIT FFO per diluted share and Adjusted
FFO per diluted share are adjusted for the effects of dilutive securities.
Dilutive securities may include shares granted under comprehensive stock plans,
preferred OP units held by non-controlling limited partners and other non-
controlling interests that have the option to convert their limited partner
interests to common OP units. No effect is shown for securities if they are
anti-dilutive.
PAGE 18 OF 26
HOST HOTELS & RESORTS, INC.
Reconciliation of Net Income to
EBITDA, EBITDA
re
and Adjusted EBITDA
re
and Diluted Earnings per Common Share to
NAREIT and Adjusted Funds From Operations per Diluted Share for Full Year 2026
Forecasts (1)
(unaudited, in millions)
Full Year 2026
────────────────────────────────────────────────────────────────────
Net income $ 978
Interest expense 243
Depreciation and amortization 755
Income taxes 56
EBITDA 2,032
Gain on dispositions -235
Non-cash impairment expense 4
Equity investment adjustments:
Equity in earnings of affiliates -25
Pro rata EBITDAre of equity investments 62
EBITDAre 1,838
Adjustments to EBITDAre:
Non-cash stock-based compensation expense 27
Adjusted EBITDAre $ 1,865
Full Year 2026
───────────────────────────────────────────────────────────────────────
Net income $ 978
Less: Net income attributable to -14
non-controlling interests
Net income attributable to Host Inc. 964
Adjustments:
Gain on dispositions -235
Tax on dispositions 5
Depreciation and amortization 753
Non-cash impairment expense 4
Equity investment adjustments:
Equity in earnings of affiliates -25
Pro rata FFO of equity investments 34
Consolidated partnership adjustments:
FFO adjustment for non-controlling -1
partnerships
FFO adjustment for non-controlling -7
interests of Host LP
NAREIT FFO 1,492
Adjustments to NAREIT FFO:
Non-cash stock-based compensation 27
expense
Loss on extinguishment of debt 5
Adjusted FFO $ 1,524
Diluted weighted average shares
outstanding - EPS, NAREIT FFO and 688.7
Adjusted FFO
Diluted earnings per common share $ 1.40
NAREIT FFO per diluted share $ 2.17
Adjusted FFO per diluted share $ 2.21
_______________
(1) The Forecasts are based on the below assumptions:
• Comparable hotel RevPAR will increase 6.75% compared to 2025 for the full year
forecast. This forecast assumes a continued recovery at our Maui properties from
the 2023 wildfires, however the timing of Maui's full recovery remains
uncertain.
• Comparable hotel EBITDA margins will increase approximately 80 basis points
compared to 2025 for the full year forecast.
• We expect to spend approximately $550 million to $600 million on capital
expenditures.
• Includes $3 million of net income and $6 million of EBITDA from the 1 Hotel
Brooklyn Bridge and the Renaissance Dallas at Plano Legacy West Hotel, acquired
in October 2026. Assumes no additional dispositions or acquisitions during the
year.
• Assumes an approximate $18 million contribution to net income and Adjusted
EBITDAre from the sale of condominium units.
PAGE 19 OF 26
HOST HOTELS & RESORTS, INC.
Reconciliation of Net Income to
EBITDA, EBITDA
re
and Adjusted EBITDA
re
and Diluted Earnings per Common Share to
NAREIT and Adjusted Funds From Operations per Diluted Share for Full Year 2026
Forecasts (1) (cont.)
(unaudited, in millions)
• Includes $7 million of gain from business interruption proceeds related to
hurricane claims already received in 2026, but assumes no further business
interruption proceeds during the year.
For a discussion of items that may affect forecast results, see the Notes to
Financial Information.
PAGE 20 OF 26
HOST HOTELS & RESORTS, INC.
Schedule of Comparable Hotel Results for Full Year 2026 Forecasts (1)(2)
(unaudited, in millions)
Operating profit margin(3) 15.4 %
Comparable hotel EBITDA margin(3) Full Year 2026 30.0 %
────────────────────────────────────────────────────────────────────
Net income $ 978
Depreciation and amortization 759
Interest expense 243
Provision for income taxes 56
Gain on sale of property and corporate -195
level income/expense
Forecast results for subsequent -6
acquisitions(2)
Property transaction adjustments(4) -11
Non-comparable hotel results, net(5) -49
Condominium sales(6) -18
Comparable hotel EBITDA(1) $ 1,757
___________
(1) See "Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre
and Diluted Earnings per Common Share to NAREIT and Adjusted Funds From
Operations per Diluted Share for Full Year 2026 Forecasts" for other forecast
assumptions.
(2) Forecast comparable hotel results include 73 hotels (of our 75 hotels owned
at September 30, 2026) that we have assumed will be classified as comparable as
of December 31, 2026. Comparable hotel metrics do not yet include the results of
the 1 Hotel Brooklyn Bridge and the Renaissance Dallas at Plano Legacy West
Hotel, which were acquired in October 2026. We expect to include the comparable
hotel results for these two hotels beginning in the fourth quarter. See footnote
(5) for details on our non-comparable hotel results.
(3) Profit margins are calculated by dividing the applicable operating profit by
the related revenue amount. GAAP profit margins are calculated using amounts
presented in the unaudited condensed consolidated statements of operations.
Comparable hotel margins are calculated using amounts presented in the following
tables, which include reconciliations to the applicable GAAP results:
F… F… De…
Y… r… Ad… No… and
2… f… Pr… ho… co… Co…
G… O… tr… re… Co… le… ho…
… R… a… ad… net sa… it… Re…
──────────────────────────────────────────────────────────────────────────────
… $ 3… $ -… $ -… $ -… $ — $ — $ 3…
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… 1… -8 -… -… — — 1…
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… 7… -2 -7 -… -… — 5…
… 6… -… -… -… -… — 5…
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… 4… -… -… -… -6 — 4…
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- $ 9… $ -6 $ -… $ -… $ -… $ 8… $ 1…
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(4) Property transaction adjustments represent the following items: (i) the
elimination of results of operations of hotels sold or held-for-sale as of the
reporting date, which operations are included in our unaudited condensed
consolidated statements of operations as continuing operations, and (ii) the
addition of results for periods prior to our ownership for hotels acquired as of
the reporting date. Forecast data also eliminates results of hotels assumed to
be sold during the year.
(5) Non-comparable hotel results, net, includes the following items: (i) the
results of operations of our non-comparable hotels, which operations are
included in our condensed consolidated statements of operations as continuing
operations, and (ii) gains on business interruption proceeds covering lost
revenues while the property was considered non-comparable. The following
properties are expected to be non-comparable for full year 2026:
• The Don CeSar (business disruption due to Hurricane Helene resulting in
closure of the hotel beginning at the end of September 2024, reopened in March
2025); and
• Alila Ventana Big Sur (business disruption due to local evacuation mandates
and regional wildfire activity resulting in closure of the hotel beginning in
August 2026, reopened in September 2026).
(6) Includes revenues and costs, including marketing and administrative expenses
of approximately $6 million, related to the development and sale of condominium
units adjacent to the Four Seasons Resort Orlando at Walt Disney World® Resort.
PAGE 21 OF 26
HOST HOTELS & RESORTS, INC.
Notes to Financial Information
FORECASTS
Our forecast of net income, earnings per diluted share, NAREIT and Adjusted FFO
per diluted share, EBITDA, EBITDA re, Adjusted EBITDA re and comparable hotel
results are forward-looking statements and are not guarantees of future
performance and involve known and unknown risks, uncertainties and other factors
which may cause actual results and performance to differ materially from those
expressed or implied by these forecasts. Although we believe the expectations
reflected in the forecasts are based upon reasonable assumptions, we can give no
assurance that the expectations will be attained or that the results will not be
materially different. Risks that may affect these assumptions and forecasts
include the following: potential changes in overall economic outlook make it
inherently difficult to forecast the level of RevPAR, earnings and
profitability; the amount and timing of debt payments may change significantly
based on market conditions, which will directly affect the level of interest
expense and net income; the amount and timing of transactions involving shares
of our common stock may change based on market conditions; and other risks and
uncertainties associated with our business described herein and in our annual
report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form
8-K filed with the SEC.
COMPARABLE HOTEL OPERATING STATISTICS AND RESULTS
To facilitate a year-to-year comparison of our operations, we present certain
operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average
occupancy) and operating results (revenues, expenses, hotel EBITDA and
associated margins) for the periods included in our reports on a comparable
hotel basis in order to enable our investors to better evaluate our operating
performance. We define our comparable hotels as those that: (i) are owned or
leased by us as of the reporting date and are not classified as held-for-sale;
and (ii) have not sustained substantial property damage or business
interruption, or undergone large-scale capital projects, in each case requiring
closures lasting one month or longer (as further defined below), during the
reporting periods being compared.
We make adjustments to include recent acquisitions to include results for
periods prior to our ownership. For these hotels, since the year-over-year
comparison includes periods prior to our ownership, the changes will not
necessarily correspond to changes in our actual results. Additionally, operating
results of hotels that we sell are excluded from the comparable hotel set once
the transaction has closed or the hotel is classified as held-for-sale.
The hotel business is capital-intensive and renovations are a regular part of
the business. Generally, hotels under renovation remain comparable hotels. A
large-scale capital project would cause a hotel to be excluded from our
comparable hotel set if it requires the entire property to be closed to hotel
guests for one month or longer.
Similarly, hotels are excluded from our comparable hotel set from the date that
they sustain substantial property damage or business interruption if it requires
the property to be closed to hotel guests for one month or longer. In each case,
these hotels are returned to the comparable hotel set when the operations of the
hotel have been included in our consolidated results for one full calendar year
after the hotel has reopened. Often, related to events that cause property
damage and the closure of a hotel, we will collect business interruption
insurance proceeds for the near-term loss of business. These proceeds are
included in net gain on insurance settlements on our condensed consolidated
statements of operations. Business interruption insurance gains covering lost
revenues while the property was considered non-comparable also will be excluded
from the comparable hotel results.
Of the 75 hotels that we owned as of September 30, 2026, 73 have been classified
as comparable hotels. The operating results of the following properties that we
owned as of September 30, 2026 are excluded from comparable hotel results for
these periods:
• The Don CeSar (business disruption due to Hurricane Helene resulting in
closure of the hotel beginning at the end of September 2024, reopened in March
2025);
• Alila Ventana Big Sur (business disruption due to local evacuation mandates
and regional wildfire activity resulting in closure of the hotel beginning in
August 2026, reopened in September 2026); and
• Operations related to the development and sale of condominium units on a
development parcel adjacent to the Four Seasons Resort Orlando at Walt Disney
World® Resort.
Comparable hotel metrics do not yet include the results of 1 Hotel Brooklyn
Bridge and Renaissance Dallas at Plano Legacy West Hotel, which were acquired in
October 2026. We expect to include the comparable hotel results for these two
hotels beginning in the fourth quarter.
FOREIGN CURRENCY TRANSLATION
Operating results denominated in foreign currencies are translated using the
prevailing exchange rates on the date of the transaction, or monthly based on
the weighted average exchange rate for the period. Therefore, hotel statistics
and results for non-U.S. properties include the effect of currency fluctuations,
consistent with our financial statement presentation.
NON-GAAP FINANCIAL MEASURES
Included in this press release are certain “non-GAAP financial measures,” which
are measures of our historical or future financial performance that are not
calculated and presented in accordance with GAAP, within the meaning of
applicable SEC rules. They are as follows: (i) FFO and FFO per diluted share
(both NAREIT and Adjusted), (ii) EBITDA, both at the hotel level and company-
wide, (iii)
PAGE 22 OF 26
HOST HOTELS & RESORTS, INC.
Notes to Financial Information (cont.)
EBITDA re and Adjusted EBITDA re, and (iv) Comparable Hotel Operating Statistics
and Results. The following discussion defines these measures and presents why we
believe they are useful supplemental measures of our performance.
NAREIT FFO AND NAREIT FFO PER D ILUTED S HARE
We present NAREIT FFO and NAREIT FFO per diluted share as non-GAAP measures of
our performance in addition to our earnings per share (calculated in accordance
with GAAP). We calculate NAREIT FFO per diluted share as our NAREIT FFO (defined
as set forth below) for a given operating period, as adjusted for the effect of
dilutive securities, divided by the number of fully diluted shares outstanding
during such period, in accordance with NAREIT guidelines. As noted in NAREIT’s
Funds From Operations White Paper – 2018 Restatement, NAREIT defines FFO as net
income (calculated in accordance with GAAP) excluding depreciation and
amortization related to certain real estate assets, gains and losses from the
sale of certain real estate assets, gains and losses from change in control,
impairment expense of certain real estate assets and investments and adjustments
for consolidated partially owned entities and unconsolidated affiliates.
Adjustments for consolidated partially owned entities and unconsolidated
affiliates are calculated to reflect our pro rata share of the FFO of those
entities on the same basis.
We believe that NAREIT FFO per diluted share is a useful supplemental measure of
our operating performance and that the presentation of NAREIT FFO per diluted
share, when combined with the primary GAAP presentation of diluted earnings per
share, provides beneficial information to investors. By excluding the effect of
real estate depreciation, amortization, impairment expense and gains and losses
from sales of depreciable real estate, all of which are based on historical cost
accounting and which may be of lesser significance in evaluating current
performance, we believe that such measures can facilitate comparisons of
operating performance between periods and with other REITs, even though NAREIT
FFO per diluted share does not represent an amount that accrues directly to
holders of our common stock. Historical cost accounting for real estate assets
implicitly assumes that the value of real estate assets diminishes predictably
over time. As noted by NAREIT in its Funds From Operations White Paper – 2018
Restatement, the primary purpose for including FFO as a supplemental measure of
operating performance of a REIT is to address the artificial nature of
historical cost depreciation and amortization of real estate and real estate-
related assets mandated by GAAP. For these reasons, NAREIT adopted the FFO
metric in order to promote a uniform industry-wide measure of REIT operating
performance.
Adjusted FFO per Diluted Share
We also present Adjusted FFO per diluted share when evaluating our performance
because management believes that the exclusion of certain additional items
described below provides useful supplemental information to investors regarding
our ongoing operating performance. Management historically has made the
adjustments detailed below in evaluating our performance, in our annual budget
process and for our compensation programs. We believe that the presentation of
Adjusted FFO per diluted share, when combined with both the primary GAAP
presentation of diluted earnings per share and FFO per diluted share as defined
by NAREIT, provides useful supplemental information that is beneficial to an
investor’s understanding of our operating performance. We adjust NAREIT FFO per
diluted share for the following items, which may occur in any period, and refer
to this measure as Adjusted FFO per diluted share:
• Gains and Losses on the Extinguishment of Debt – We exclude the effect of
finance charges and premiums associated with the extinguishment of debt,
including the acceleration of the write-off of deferred financing costs from the
original issuance of the debt being redeemed or retired and incremental interest
expense incurred during the refinancing period. We also exclude the gains on
debt repurchases and the original issuance costs associated with the retirement
of preferred stock. We believe that these items are not reflective of our
ongoing finance costs.
• Acquisition Costs – Under GAAP, costs associated with completed property
acquisitions that are considered business combinations are expensed in the year
incurred. We exclude the effect of these costs because we believe they are not
reflective of the ongoing performance of the Company.
• Litigation Gains and Losses – We exclude the effect of gains or losses
associated with litigation recorded under GAAP that we consider to be outside
the ordinary course of business. We believe that including these items is not
consistent with our ongoing operating performance.
• Severance Expense – In certain circumstances, we will add back hotel-level
severance expenses when we do not believe that such expenses are reflective of
the ongoing operation of our properties. Situations that would result in a
severance add-back include, but are not limited to, (i) costs incurred as part
of a broad-based reconfiguration of the operating model with the specific hotel
operator for a portfolio of hotels and (ii) costs incurred at a specific hotel
due to a broad-based and significant reconfiguration of a hotel and/or its
workforce. We do not add back corporate-level severance costs or severance costs
at an individual hotel that we consider to be incurred in the normal course of
business.
• Non-Cash Stock-Based Compensation - We exclude the expense recorded for non-
cash stock-based compensation, as it represents a non-cash transaction and the
add back is consistent with the calculation of Adjusted EBITDA for our financial
covenant ratios under our credit facility and senior notes indentures and
consistent with the presentation of Adjusted FFO per diluted share for the
majority of other lodging REIT filers.
PAGE 23 OF 26
HOST HOTELS & RESORTS, INC.
Notes to Financial Information (cont.)
In unusual circumstances, we also may adjust NAREIT FFO for gains or losses that
management believes are not representative of the Company’s current operating
performance. For example, in 2017, as a result of the reduction of the U.S.
federal corporate income tax rate from 35% to 21% by the Tax Cuts and Jobs Act,
we remeasured our domestic deferred tax assets as of December 31, 2017 and
recorded a one-time adjustment to reduce our deferred tax assets and to increase
the provision for income taxes by approximately $11 million. We do not consider
this adjustment to be reflective of our ongoing operating performance and,
therefore, we excluded this item from Adjusted FFO.
EBITDA
Earnings before Interest Expense, Income Taxes, Depreciation and Amortization
(“EBITDA”) is a commonly used measure of performance in many industries.
Management believes EBITDA provides useful information to investors regarding
our results of operations because it helps us and our investors evaluate the
ongoing operating performance of our properties after removing the impact of the
Company’s capital structure (primarily interest expense) and its asset base
(primarily depreciation and amortization). Management also believes the use of
EBITDA facilitates comparisons between us and other lodging REITs, hotel owners
that are not REITs and other capital-intensive companies. Management uses EBITDA
to evaluate property-level results and as one measure in determining the value
of acquisitions and dispositions and, like FFO and Adjusted FFO per diluted
share, it is widely used by management in the annual budget process and for our
compensation programs.
EBITDAre and Adjusted EBITDAre
We present EBITDA re in accordance with NAREIT guidelines, as defined in its
September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and
Amortization for Real Estate,” to provide an additional performance measure to
facilitate the evaluation and comparison of the Company’s results with other
REITs. NAREIT defines EBITDA re as net income (calculated in accordance with
GAAP) excluding interest expense, income tax, depreciation and amortization,
gains or losses on disposition of depreciated property (including gains or
losses on change of control), impairment expense for depreciated property and of
investments in unconsolidated affiliates caused by a decrease in value of
depreciated property in the affiliate, and adjustments to reflect the entity’s
pro rata share of EBITDA re of unconsolidated affiliates.
We make additional adjustments to EBITDA re when evaluating our performance
because we believe that the exclusion of certain additional items described
below provides useful supplemental information to investors regarding our
ongoing operating performance. We believe that the presentation of Adjusted
EBITDA re , when combined with the primary GAAP presentation of net income, is
beneficial to an investor’s understanding of our operating performance. Adjusted
EBITDA re also is similar to the measure used to calculate certain credit ratios
for our credit facility and senior notes. We adjust EBITDA re for the following
items, which may occur in any period, and refer to this measure as Adjusted
EBITDA re :
• Property Insurance Gains and Property Damage Losses – We exclude the effect of
property insurance gains reflected in our condensed consolidated statements of
operations because we believe that including them in Adjusted EBITDA re is not
consistent with reflecting the ongoing performance of our assets. In addition,
property insurance gains could be less important to investors given that the
depreciated asset book value written off in connection with the calculation of
the property insurance gain often does not reflect the market value of real
estate assets. Similarly, losses from property damage or remediation costs that
are not covered through insurance are excluded.
• Acquisition Costs – Under GAAP, costs associated with completed property
acquisitions that are considered business combinations are expensed in the year
incurred. We exclude the effect of these costs because we believe they are not
reflective of the ongoing performance of the Company.
• Litigation Gains and Losses – We exclude the effect of gains or losses
associated with litigation recorded under GAAP that we consider to be outside
the ordinary course of business. We believe that including these items is not
consistent with our ongoing operating performance.
• Severance Expense – In certain circumstances, we will add back hotel-level
severance expenses when we do not believe that such expenses are reflective of
the ongoing operation of our properties. Situations that would result in a
severance add-back include, but are not limited to, (i) costs incurred as part
of a broad-based reconfiguration of the operating model with the specific hotel
operator for a portfolio of hotels and (ii) costs incurred at a specific hotel
due to a broad-based and significant reconfiguration of a hotel and/or its
workforce. We do not add back corporate-level severance costs or severance costs
at an individual hotel that we consider to be incurred in the normal course of
business.
• Non-Cash Stock-Based Compensation - We exclude the expense recorded for non-
cash stock-based compensation, as it represents a non-cash transaction and the
add back is consistent with the calculation of Adjusted EBITDA for our financial
covenant ratios under our credit facility and senior notes indentures and
consistent with the presentation of Adjusted EBITDA re for the majority of other
lodging REIT filers.
In unusual circumstances, we also may adjust EBITDA re for gains or losses that
management believes are not representative of the Company’s current operating
performance. The last adjustment of this nature was a 2013 exclusion of a gain
from an eminent domain claim.
PAGE 24 OF 26
HOST HOTELS & RESORTS, INC.
Notes to Financial Information (cont.)
Limitations on the Use of NAREIT FFO per Diluted Share, Adjusted FFO per Diluted
Share, EBITDA, EBITDAre and Adjusted EBITDAre
We calculate EBITDA re and NAREIT FFO per diluted share in accordance with
standards established by NAREIT, which may not be comparable to measures
calculated by other companies that do not use the NAREIT definition of EBITDA re
and FFO or do not calculate FFO per diluted share in accordance with NAREIT
guidance. In addition, although EBITDA re and FFO per diluted share are useful
measures when comparing our results to other REITs, they may not be helpful to
investors when comparing us to non-REITs. We also calculate Adjusted FFO per
diluted share and Adjusted EBITDA re , which measures are not in accordance with
NAREIT guidance and may not be comparable to measures calculated by other REITs
or by other companies. This information should not be considered as an
alternative to net income, operating profit, cash from operations or any other
operating performance measure calculated in accordance with GAAP. Cash
expenditures for various long-term assets (such as renewal and replacement
capital expenditures), interest expense (for EBITDA, EBITDA re and Adjusted
EBITDA re purposes only), severance expense related to significant property-
level reconfiguration and other items have been, and will be, made and are not
reflected in the EBITDA, EBITDA re, Adjusted EBITDA re , NAREIT FFO per diluted
share and Adjusted FFO per diluted share presentations. Management compensates
for these limitations by separately considering the impact of these excluded
items to the extent they are material to operating decisions or assessments of
our operating performance. Our consolidated statements of operations and
consolidated statements of cash flows in the Company’s annual report on Form
10-K and quarterly reports on Form 10-Q include interest expense, capital
expenditures, and other excluded items, all of which should be considered when
evaluating our performance, as well as the usefulness of our non-GAAP financial
measures. Additionally, NAREIT FFO per diluted share, Adjusted FFO per diluted
share, EBITDA, EBITDA re and Adjusted EBITDA re should not be considered as
measures of our liquidity or indicative of funds available to fund our cash
needs, including our ability to make cash distributions. In addition, NAREIT FFO
per diluted share and Adjusted FFO per diluted share do not measure, and should
not be used as measures of, amounts that accrue directly to stockholders’
benefit.
Similarly, EBITDA re, Adjusted EBITDA re , NAREIT FFO and Adjusted FFO per
diluted share include adjustments for the pro rata share of our equity
investments, and NAREIT FFO and Adjusted FFO per diluted share include
adjustments for the pro rata share of non-controlling partners in consolidated
partnerships. Our equity investments consist of interests ranging from 11% to
67% in seven domestic partnerships that own a total of 124 properties and a
vacation ownership development. Due to the voting rights of the outside owners,
we do not control and, therefore, do not consolidate these entities. The non-
controlling partners in consolidated partnerships primarily consist of the
approximate 1% interest in Host LP held by unaffiliated limited partners and a
15% interest held by an unaffiliated limited partner in a partnership owning one
hotel for which we do control the entity and, therefore, consolidate its
operations. These pro rata results for NAREIT FFO and Adjusted FFO per diluted
share, EBITDA re and Adjusted EBITDA re were calculated as set forth in the
definitions above. Readers should be cautioned that the pro rata results
presented in these measures for consolidated partnerships (for NAREIT FFO and
Adjusted FFO per diluted share) and equity investments may not accurately depict
the legal and economic implications of our investments in these entities.
Comparable Hotel Property Level Operating Results
We present certain operating results for our hotels, such as hotel revenues,
expenses, food and beverage profit, and EBITDA (and the related margins), on a
comparable hotel, or "same store," basis as supplemental information for our
investors. Our comparable hotel results present operating results for our hotels
without giving effect to dispositions or properties that experienced closures
due to renovations or property damage, as discussed in “Comparable Hotel
Operating Statistics and Results” above. We present comparable hotel EBITDA to
help us and our investors evaluate the ongoing operating performance of our
comparable hotels after removing the impact of the Company’s capital structure
(primarily interest expense) and its asset base (primarily depreciation and
amortization expense). Corporate-level costs and expenses also are removed to
arrive at property-level results. We believe these property-level results
provide investors with supplemental information about the ongoing operating
performance of our comparable hotels. Comparable hotel results are presented
both by location and for the Company’s properties in the aggregate. We eliminate
from our comparable hotel level operating results severance costs related to
broad-based and significant property-level reconfiguration that is not
considered to be within the normal course of business, as we believe this
elimination provides useful supplemental information that is beneficial to an
investor’s understanding of our ongoing operating performance. We also eliminate
depreciation and amortization expense because, even though depreciation and
amortization expense are property-level expenses, these non-cash expenses, which
are based on historical cost accounting for real estate assets, implicitly
assume that the value of real estate assets diminishes predictably over time. As
noted earlier, because real estate values historically have risen or fallen with
market conditions, many real estate industry investors have considered
presentation of historical cost accounting for operating results to be
insufficient.
Because of the elimination of corporate-level costs and expenses, gains or
losses on disposition, certain severance expenses and depreciation and
amortization expense, the comparable hotel operating results we present do not
represent our total revenues, expenses, operating profit or net income and
should not be used to evaluate our performance as a whole. Management
compensates for these limitations by separately considering the impact of these
excluded items to the extent they are material to operating decisions or
assessments of our operating performance. Our condensed consolidated statements
of operations include such amounts, all of which should be considered by
investors when evaluating our performance.
We present these hotel operating results on a comparable hotel basis because we
believe that doing so provides investors and management with useful information
for evaluating the period-to-period performance of our hotels and facilitates
comparisons with other hotel REITs and hotel owners. In particular, these
measures assist management and investors in distinguishing whether increases or
decreases in revenues and/or expenses are due to growth or decline of operations
at comparable hotels (which represent the vast majority of our portfolio) or
from other factors. While management believes that presentation of comparable
PAGE 25 OF 26
HOST HOTELS & RESORTS, INC.
Notes to Financial Information (cont.)
hotel results is a supplemental measure that provides useful information in
evaluating our ongoing performance, this measure is not used to allocate
resources or to assess the operating performance of each of our hotels, as these
decisions are based on data for individual hotels and are not based on
comparable hotel results in the aggregate. For these reasons, we believe
comparable hotel operating results, when combined with the presentation of GAAP
operating profit, revenues and expenses, provide useful information to investors
andmanagement.
PAGE 26 OF 26