Q3 2025 Host Hotels & Resorts Inc Earnings Call

November 6, 2025

Jamie Marcus Senior Vice President of Investor Relations. Please go ahead.

Thank you and good morning, everyone.

Before we begin please note that many of the comments made today are considered to be forward looking statements under federal Securities laws.

As described in our filings with the SEC. These statements are subject to numerous risks and uncertainties that could cause future results to differ from those expressed and.

And we are not obligated to publicly update or revise these forward looking statements.

In addition on today's call, we will discuss certain non-GAAP financial information such as <unk>, adjusted EBITDA, Ari and comparable hotel level results.

You can find this information together with reconciliations to the most directly comparable GAAP information in yesterday's earnings press release and.

In our 8-K filed with the SEC and in the supplemental financial information on our website at host hotels Dot com.

With me on today's call are Jim Russolillo, President and Chief Executive Officer, and Sorrow, Gosh, Executive Vice President and Chief Financial Officer.

With that I would like to turn the call over to Jim.

Thank you, Jamie and thanks to everyone for joining us this morning.

We continue to outperform our expectations in the third quarter.

<unk> strong operating and financial results in the first half of 2025.

And the third quarter, we delivered adjusted EBITDA of $319 million, a decrease of three 3% over last year and adjusted <unk> per share of 35 cents, which is down two 8% compared to the third quarter of 2024.

Year to date compared to 2024, adjusted EBIT of our E and adjusted <unk> per share were up two 2% and 60 basis points respectively.

The operational results discussed today refer to our 76 hotel comparable portfolio in 2025, which excludes the Elisa Ventana Big sur and the dances are.

Additionally, we have removed the Washington, Marriott and Metro Center, which was sold in the third quarter and the St Regis Houston, which was held for sale as of the third quarter and is expected to be sold in the fourth quarter.

Comparable hotel total revpar improved by 80 basis points compared to the third quarter of 2024, and comparable hotel Revpar improved by 20 basis points due to better than expected short term transient demand pick up in higher rates across our portfolio.

Operator: At this time, I would like to turn the call over to Jaime Marcus, Senior Vice President of Investor Relations. Please go ahead.

Third quarter 2025 earnings Conference call. Today's conference is being recorded at this time I would like to turn the call over to Jamie Marcus Senior Vice President of Investor Relations. Please go ahead.

Jaime Marcus: Thank you, and good morning, everyone. Before we begin, please note that many of the comments made today are considered to be forward-looking statements under Federal Securities Law. As described in our filings with the SEC, these statements are subject to numerous risks and uncertainties that could cause future results to differ from those expressed, and we are not obligated to publicly update or revise these forward-looking statements. In addition, on today's call, we will discuss certain non-GAAP financial information such as FFO, adjusted EBITDA RE, and comparable hotel-level results. You can find this information, together with reconciliations to the most directly comparable GAAP information, in yesterday's earnings press release, in our 8-K filed with the SEC, and in the supplemental financial information on our website at hosthotels.com.

Thank you and good morning, everyone.

Before we begin please note that many of our comments made today are considered to be forward looking statements under federal Securities laws.

Comparable hotel EBITDA margin for the quarter declined by 50 basis points year over year to 23, 9% driven.

As described in our filings with the SEC. These statements are subject to numerous risks and uncertainties that could cause future results to differ from those expressed.

Driven by expense increases in wages and benefits.

Turning to business mix Revpar growth in the third quarter exceeded our expectations at our resort properties driven by short term leisure transient demand pickup in rate growth despite headwinds from transformational renovations, the Jewish holiday shift and lingering impacts from macroeconomic.

And we are not obligated to publicly update or revise these forward looking statements.

In addition on today's call, we will discuss certain non-GAAP financial information such as <unk>, adjusted EBITDA, Ari and comparable hotel level results.

Uncertainty.

Transient revenue grew by 2% driven by double digit growth at our resorts, we saw particularly strong performance in Maui, San Francisco, New York and Miami.

You can find this information together with reconciliations to the most directly comparable GAAP information in yesterday's earnings press release and.

In our 8-K filed with the SEC and in the supplemental financial information on our website at host hotels Dot com.

Jaime Marcus: With me on today's call are Jim Risoleo, President and Chief Executive Officer, and Sourav Ghosh, Executive Vice President and Chief Financial Officer. With that, I would like to turn the call over to Jim.

Digging into Mali, the leisure transient demand recovery continued but always 20% revpar growth and 19% tread par growth were driven by a substantial increase in occupancy and strong out of room in spending on F&B golf and Spa services.

With me on today's call are Jim Russolillo, President and Chief Executive Officer, I'm, sorry off Gosh, Executive Vice President and Chief Financial Officer.

James Risoleo: Thank you, Jaime, and thanks to everyone for joining us this morning. We continue to outperform our expectations in the third quarter, building on strong operating and financial results in the first half of 2025. In the third quarter, we delivered adjusted EBITDA RE of $319 million, a decrease of 3.3% over last year, and adjusted FFO per share of $0.35, which is down 2.8% compared to the third quarter of 2024. Year-to-date, compared to 2024, adjusted EBITDA RE and adjusted FFO per share were up 2.2% and 60 basis points, respectively. The operational results discussed today refer to our 76-hotel comparable portfolio in 2025, which excludes the Alila Ventana Big Sur and the Don CeSar. Additionally, we have removed the Washington Marriott Metro Center, which was sold in the third quarter, and the St.

With that I would like to turn the call over to Jim.

Looking forward total group revenue pace in Maui is up 13% for 2026.

Thank you, Jamie and thanks to everyone for joining us this morning.

We continue to outperform our expectations in the third quarter.

I think continued momentum behind the recovery.

<unk> strong operating and financial results in the first half of 2025.

Turning to business transient.

<unk> was down 2% in the third quarter driven by a continued reduction in government room nights.

In the third quarter, we delivered adjusted EBITDA of.

$319 million, a decrease of three 3% over last year and adjusted <unk> per share of 35 cents, which is down two 8% compared to the third quarter of 2024.

As expected group room revenue decreased approximately 5% year over year, driven primarily by planned renovation disruption the Jewish holiday calendar shift and reduced short term group pick up.

Year to date compared to 2024, adjusted EBIT of our E and adjusted <unk> per share were up two 2% and 60 basis points respectively.

Our definite group room nights on the books increased two 4 million for 2025 and full year 2025 total group revenue pace is up one 2% to the same time last year.

The operational results discussed today refer to our 76 hotel comparable portfolio in 2025, which excludes the Anita Ventana Big sur and the dances are.

Ancillary spending by guests remains strong as evidenced by our 80 basis point of total revpar growth in the third quarter.

F&B revenue was flat as increases in all of that revenue were offset by decreases in banquet and catering revenue from lower group business volume.

James Risoleo: Regis Houston, which was held for sale as of the third quarter and is expected to be sold in the fourth quarter. Comparable hotel total REPAR improved by 80 basis points compared to the third quarter of 2024. Comparable hotel REPAR improved by 20 basis points due to better-than-expected short-term transient demand pickup and higher rates across our portfolio. Comparable hotel EBITDA margin for the quarter declined by 50 basis points year-over-year to 23.9%, driven by expense increases in wages and benefits. Turning to business mix, REPAR growth in the third quarter exceeded our expectations at our resort properties, driven by short-term leisure transient demand pickup and rate growth despite headwinds from transformational renovations, the Jewish holiday shift, and lingering impacts from macroeconomic uncertainty. Transient revenue grew by 2%, driven by double-digit growth at our resorts. We saw particularly strong performance in Maui, San Francisco, New York, and Miami.

We also saw particularly strong growth in the other revenue, which was up 7% including growth in golf and Spa.

Turning to the Dawn CS are.

We completed the final phase of reconstruction in the third quarter reopening to restaurant outlets and the lower level kitchen.

During the reconstruction, we rebuilt infrastructure to increase resilience, including elevating critical equipment and systems and incorporating flood barriers.

Comparable hotel EBITDA margin for the quarter declined by 50 basis points year over year to 23, 9% driven by expense increases in wages and benefits.

We are continuing to see better than expected near term transient pickup higher F&B capture and increased group bookings, which allows us to raise our full year EBITDA expectations for the resort to $6 billion from $3 million.

We collected $5 million of business interruption proceeds for Hurricanes Helene and building in the third quarter, which we discussed on our second quarter call.

Uncertainty.

Bringing the total business interruption proceeds collected $224 million this year.

Transient revenue grew by 2% driven by double digit growth at our resorts, we saw particularly strong performance in Maui, and San Francisco, New York and Miami.

While we expect to collect additional business interruption proceeds the timing and amounts of additional payments are subject to ongoing discussions with our insurance carriers.

James Risoleo: Digging into Maui, the leisure transient demand recovery continued. Maui's 20% REPAR growth and 19% REPAR growth were driven by a substantial increase in occupancy, and strong out-of-room spending on F&B, golf, and spa services. Looking forward, total group revenue pace in Maui is up 13% for 2026, reflecting continued momentum behind the recovery. Turning to business transient, revenue was down 2% in the third quarter, driven by a continued reduction in government room nights. As expected, group room revenue decreased approximately 5% year-over-year, driven primarily by planned renovation disruption, the Jewish holiday calendar shift, and reduced short-term group pickup. Our definite group room nights on the books increased to 4 million for 2025. In full year 2025, total group revenue pace is up 1.2% to the same time last year.

Digging into Mali, the leisure transient demand recovery continued.

Turning to capital allocation in August we sold the Washington, Marriott Metro Center for $177 million or 12, seven times trailing 12 month EBITDA.

I always 20% Revpar growth and 19% trip hard growth were driven by a substantial increase in occupancy and strong out of room in spending on F&B golf and Spa services.

As part of the transaction, we provided $114 million of seller financing at a six 5% interest rate in order to facilitate a 10 31 exchange for the buyer in a timely manner.

Looking forward total group revenue pace in Maui is up 13% for 2026, reflecting continued momentum behind the recovery.

Turning to business transient.

Since 2018, we have disposed of approximately $5 $2 billion of hotels at a blended 17.1 times EBITDA multiple including estimated foregone capital expenditures of $1 billion, which compares favorably to our $4.9 billion of acquisitions.

Revenue was down 2% in the third quarter driven by a continued reduction in government room nights.

As expected group room revenue decreased approximately 5% year over year, driven primarily by planned renovation disruption the Jewish holiday calendar shift and reduced short term group pickup.

Over the same period at a blended 13 six times EBITDA multiple.

Our definite group room nights on the books increased two 4 million for 2025.

Turning to portfolio reinvestment.

As of the third quarter, the highest transformational capital program is approximately 65% complete and is tracking on time and under budget.

And full year 2025 total group revenue pace is up one 2% to the same time last year.

James Risoleo: Ancillary spending by guests remains strong, as evidenced by our 80 basis point total REPAR growth in the third quarter. F&B revenue was flat, as increases in outlet revenue were offset by decreases in banquet and catering revenue from lower group business volume. We also saw particularly strong growth in other revenue, which was up 7%, including growth in golf and spa. Turning to the Don CeSar, we completed the final phase of reconstruction in the third quarter, reopening two restaurant outlets and the lower-level kitchen. During the reconstruction, we rebuilt infrastructure to increase resilience, including elevating critical equipment and systems, and incorporating flood barriers. We are continuing to see better-than-expected near-term transient pickup, higher F&B capture, and increased group bookings, which allowed us to raise our full-year EBITDA expectations for the resort to $6 million from $3 million.

Ancillary spending by guests remains strong as evidenced by our 80 basis point of total revpar growth in the third quarter.

Renovations at the Hyatt Regency Capitol Hill are complete and subsequent to quarter end, we substantially completed the Hyatt Regency Austin <unk>.

F&B revenue was flat as increases at all of that revenue were offset by decreases in banquet and catering revenue from lower group business volume.

Renovation of the public and meeting spaces at the Grand Hyatt, Washington D. C has resumed now that the Hyatt Regency Capitol Hill is complete.

We also saw particularly strong growth in the other revenue, which was up 7% including growth in golf and Spa.

Renovations are also well underway at the Hyatt Regency, Reston, and the Manchester Grand Hyatt San Diego.

Final property and the Hyatt transformational capital program, which we expect to complete in early 2027.

Turning to the Dawn CSR.

We completed the final phase of reconstruction in the third quarter.

Reopening to restaurant outlets and the lower level kitchen.

Building on the success of our prior transformational capital programs. We are excited to announce that we have reached a second agreement with Marriott to complete transformational renovations at four properties in our portfolio.

During the reconstruction, we rebuilt infrastructure to increase resilience, including elevating critical equipment and systems and incorporating flood barriers.

The properties include the Ritz Carlton Marina del Rey, the Ritz Carlton Naples resort at Tiburon, the Western Carolyn and the New Orleans, Marriott, which is already underway.

James Risoleo: We collected $5 million of business interruption proceeds for Hurricanes Helene and Milton in the third quarter, which we discussed on our second quarter call, bringing the total business interruption proceeds collected to $24 million this year. While we expect to collect additional business interruption proceeds, the timing and amounts of additional payments are subject to ongoing discussions with our insurance carriers. Turning to capital allocation, in August, we sold the Washington Marriott Metro Center for $177 million, or 12.7x trailing 12-month EBITDA. As part of the transaction, we provided $114 million of seller financing at a 6.5% interest rate in order to facilitate a 1031 exchange for the buyer in a timely manner.

Yeah.

We believe these reinvestments will position the hotels to outperform competitors in their respective markets, while enhancing long term performance.

We collected $5 million of business interruption proceeds for Hurricanes, Helane and building in the third quarter, which we discussed on our second quarter call.

Marriott has agreed to provide $22 million and operating profit guarantees to cover the anticipated disruption associated with our investment.

The total business interruption proceeds collected $224 million this year.

Which is expected to be between 300 and $350 million over the next four years.

While we expect to collect additional business interruption proceeds the timing and amounts of additional payments are subject to ongoing discussions with our insurance carriers.

We are targeting stabilized annual cash on cash returns in the mid teens through a combination of Revpar index share gains and enhanced owner priority returns.

Turning to capital allocation in August we sold the Washington, Marriott Metro Center for $177 million or 12, seven times trailing 12 month EBITDA.

Similar to the first Marriott transformational capital program, we are targeting average Revpar index share gains of three to five points.

As part of the transaction, we provided $114 million of seller financing at a six 5% interest rate in order to facilitate a 10 31 exchange for the buyer in a timely manner.

We also continue to make progress on value enhancing development projects, including the new ballroom at the <unk> and the Phoenician Canyon suites villas, both of which are expected to complete in the fourth quarter of 2025.

James Risoleo: Since 2018, we have disposed of approximately $5.2 billion of hotels at a blended 17.1x EBITDA multiple, including estimated foregone capital expenditures of $1 billion, which compares favorably to our $4.9 billion of acquisitions over the same period at a blended 13.6x EBITDA multiple. Turning to portfolio reinvestment, as of the third quarter, the Hyatt Transformational Capital Program is approximately 65% complete and is tracking on time and under budget. Renovations at the Hyatt Regency Capitol Hill are complete. Subsequent to quarter-end, we substantially completed the Hyatt Regency Austin. Renovation of the public and meeting spaces at the Grand Hyatt, Washington, DC, has resumed now that the Hyatt Regency Capitol Hill is complete. Renovations are also well underway at the Hyatt Regency Reston and the Manchester Grand Hyatt, San Diego, the final property in the Hyatt Transformational Capital Program, which we expect to complete in early 2027.

Since 2018, we have disposed of approximately $5 $2 billion of hotels at a blended 17, one times EBITDA multiple including estimated foregone capital expenditures of $1 billion, which compares favorably to our $4 $9 billion of acquisitions.

We also completed the meeting space expansion project at the New York Marriott, Marquis and made additional progress on the condo development at the four seasons resort Orlando at Walt Disney World Resort.

Construction on the mid rise condominium building at the four seasons Orlando is substantially complete and we are on track to begin closing on sales this quarter.

Over the same period at a blended 13 six times EBITDA multiple.

Turning to portfolio reinvestment.

We now have deposits and purchase agreements for 23 of the 40 units, including eight of the $9.

As of the third quarter, the highest transformational capital program is approximately 65% complete and is tracking on time and under budget.

In 2025, our capital expenditure guidance range is $605 million to $640 million, which.

Renovations at the Hyatt Regency Capitol Hill are complete and subsequent to quarter end, we substantially completed the Hyatt Regency Austin <unk>.

Which includes between $75 million and $80 million for property damage reconstruction, the majority of which we expect to be covered by insurance or Capex guidance also reflects approximately $280 million to $295 million of investment for redevelopment repositioning and.

Renovation of the public and meeting spaces at the Grand Hyatt, Washington D. C has resumed now that the Hyatt Regency Capitol Hill is complete.

Renovations are also well underway at the Hyatt Regency, Reston, and the Manchester Grand Hyatt San Diego.

ROI projects.

Final property and the highest transformational capital program, which we expect to complete in early 2027.

We expect to benefit from approximately $24 million of operating profit guarantees related to the Hyatt transformational capital program in 2025.

James Risoleo: Building on the success of our prior transformational capital programs, we are excited to announce that we have reached a second agreement with Marriott to complete transformational renovations at four properties in our portfolio. The properties include the Ritz-Carlton Marina del Rey, the Ritz-Carlton Naples Resort at Tiburón, the Westin Kierland, and the New Orleans Marriott, which is already underway. We believe these reinvestments will position the hotels to outperform competitors in their respective markets while enhancing long-term performance. Marriott has agreed to provide $22 million in operating profit guarantees to cover the anticipated disruption associated with our investment, which is expected to be between $300 and $350 million over the next four years. We are targeting stabilized annual cash-on-cash returns in the mid-teens through a combination of REPAR index share gains and enhanced owner priority returns.

Which will offset the majority of the EBITDA disruption at those properties.

We also expect to receive $2 million and operating profit guarantees related to the second Marriott transformational capital program. This year.

The properties include the Ritz Carlton Marina del Rey the.

In addition to our capital expenditure investments, we expect to spend $80 million to $85 million on the condo development at the four seasons resort Orlando at Walt Disney World Resort in 2025.

The Ritz Carlton Naples resort at Tiburon, the Western Carolyn and the New Orleans, Marriott, which is already underway.

Okay.

We believe these reinvestments will position the hotels to outperform competitors in their respective markets, while enhancing long term performance.

Looking back at prior transformational renovations and adjusting for the sale of Marriott Metro Center.

<unk> has agreed to provide $22 million and operating profit guarantees to cover the anticipated disruption associated with our investments.

We completed investments in 23 properties between 2018 and 2023.

Which are continuing to provide meaningful tailwind for our portfolio.

Which is expected to be between 300 and $350 million over the next four years.

Of the 20 hotels that have stabilized post renovation operations to date. The average Revpar index share gain is over eight five points, which is well in excess of our targeted gain of three to five points in short the continued reinvestments, we make in our properties yield strong.

We are targeting stabilized annual cash on cash returns in the mid teens through a combination of Revpar index share gains and enhance owner priority returns.

James Risoleo: Similar to the first Marriott Transformational Capital Program, we are targeting average REPAR index share gains of 3 to 5 points. We also continue to make progress on value-enhancing development projects, including the new ballroom at the Don CeSar and the Phoenician Canyon Suites Villas, both of which are expected to complete in the fourth quarter of 2025. We also completed the meeting space expansion project at the New York Marriott Marquis, and made additional progress on the condo development at the Four Seasons Resort Orlando at Walt Disney World Resort. Construction on the Mid-Rise Condominium Building at the Four Seasons Orlando is substantially complete, and we are on track to begin closing on sales this quarter. We now have deposits and purchase agreements for 23 of the 40 units, including 8 of the 9 villas.

Similar to the first Marriott transformational capital program, we are targeting average Revpar index share gains of three to five points.

Our returns and drive continued value creation for shareholders.

In August we released our 2025 corporate responsibility report, which details our CR program are key impact initiatives and industry leading accomplishments.

The report also provides an update on our performance and progress toward our 2030, CR goals, which are aligned with our long term vision to create lasting value and drive positive outcomes for all stakeholders.

Construction on the mid rise condominium building at the four seasons Orlando is substantially complete and we are on track to begin closing on sales this quarter.

The CR report can be found on our corporate responsibility section of our website at host hotels Dot com.

Turning to our outlook for the full year.

We now have deposits and purchase agreements for 23 of the 40 units, including eight of the $9.

James Risoleo: In 2025, our capital expenditure guidance range is $605 to $640 million, which includes between $75 million and $80 million for property damage reconstruction, the majority of which we expect to be covered by insurance. Our CapEx guidance also reflects approximately $280 to $295 million of investment for redevelopment, repositioning, and ROI projects. We expect to benefit from approximately $24 million of operating profit guarantees related to the Hyatt Transformational Capital Program in 2025, which will offset the majority of the EBITDA disruption at those properties. We also expect to receive $2 million in operating profit guarantees related to the second Marriott Transformational Capital Program this year. In addition to our capital expenditure investment, we expect to spend $80 to $85 million on the condo development at the Four Seasons Resort Orlando at Walt Disney World Resort in 2025.

We once again outperformed our expectations in the third quarter.

As a result of our strong performance year to date and improved expectations for the fourth quarter.

In 2025, our capital expenditure guidance range is $605 million to $640 million.

We are increasing our comparable hotel revpar and total revpar guidance estimates to approximately 3% and three 4% respectively.

We are also increasing our adjusted EBITDA, our EBITDA guidance to $1 billion $730 million, representing a $25 million or one 5% improvement.

ROI projects.

Rob will discuss the assumptions behind these updated estimates in more detail.

We expect to benefit from approximately $24 million of operating profit guarantees related to the Hyatt transformational capital program in 2025.

It is worth noting that since we laid out our initial full year 2025 guidance in February we have increased our revpar expectations by 150 basis points and our adjusted EBITDA expectations by $110 million.

Which will offset the majority of the EBITDA disruption at those properties.

We also expect to receive $2 million and operating profit guarantees related to the second barrier transformational capital program. This year.

Wrapping up our third quarter commentary, we are pleased with our operating and financial outperformance this year, which.

In addition to our capital expenditure investments, we expect to spend $80 million to $85 million on the condo development at the four seasons resort Orlando at Walt Disney World Resort in 2025.

Which we believe is a direct result of the capital allocation decisions. We have made over the last eight years.

James Risoleo: Looking back at prior transformational renovations and adjusting for the sale of Marriott Metro Center, we completed investments in 23 properties between 2018 and 2023, which are continuing to provide meaningful tailwinds for our portfolio. Of the 20 hotels that have stabilized post-renovation operations to date, the average REPAR index share gain is over 8.5 points, which is well in excess of our targeted gain of 3 to 5 points. In short, the continued reinvestments we make in our properties yield strong returns and drive continued value creation for shareholders. In August, we released our 2025 corporate responsibility report, which details our CR program, our key impact initiatives, and industry-leading accomplishments. The report also provides an update on our performance and progress toward our 2030 CR goals, which are aligned with our long-term vision to create lasting value and drive positive outcomes for all stakeholders.

The bifurcation of the consumer is likely to lead to continued outperformance for upper upscale and luxury hotels.

Looking back at prior transformational renovations and adjusting for the sale of Marriott Metro Center.

And we believe hosts will be a beneficiary given our higher end properties, our size and scale, our diversified business and geographic mix and our continued reinvestment in our portfolio.

We completed investments in 23 properties between 2018 and 2023.

Which are continuing to provide meaningful tailwind for our portfolio.

With our strong investment grade balance sheet and access to many capital allocation levers, we will continue to use our competitive advantages to create value for our shareholders and position hosts to outperform over the long term.

With that I will now turn the call over to Sarath.

The continued reinvestments, we make in our properties yield strong returns and drive continued value creation for shareholders.

Thank you Jim and good morning, everyone building on Jim's comments I will go into detail on our third quarter operations, our updated 2025 guidance and our balance sheet.

In August we released our 2025 corporate responsibility report.

Which details our CR program are key impact initiatives and industry leading accomplishments.

Starting with total revenue trends comparable hotel total revpar growth continued to outpace revpar growth in the third quarter as both group and transient guests maintained elevated levels of out of room spend.

The report also provides an update on our performance and progress toward our 2030 CR goals.

Comparable hotel food and beverage revenue was flat in the quarter as growth in outlets offset declines in banquet and catering.

We are aligned with our long term vision to create lasting value and drive positive outcomes for all stakeholders.

James Risoleo: The CR report can be found on the corporate responsibility section of our website at hosthotels.com. Turning to our outlook for the full year, we once again outperformed our expectations in the third quarter. As a result of our strong performance year-to-date and improved expectations for the fourth quarter, we are increasing our comparable hotel REPAR and total REPAR guidance estimates to approximately 3% and 3.4%, respectively. We are also increasing our adjusted EBITDA RE guidance to $1,730 million, representing a $25 million, or 1.5%, improvement. Sourav will discuss the assumptions behind these updated estimates in more detail. It is worth noting that since we laid out our initial full-year 2025 guidance in February, we have increased our REPAR expectations by 150 basis points and our adjusted EBITDA expectations by $110 million.

Okay.

The <unk> report can be found on our corporate responsibility section of our website at host hotels Dot com.

<unk> revenue grew 6% driven by resorts, particularly Maui, Phoenix, and Orlando as well as the newly renovated view of the New York Marriott Marquis and are we at the one hotel South Beach.

Turning to our outlook for the full year.

We once again outperformed our expectations in the third quarter.

Overall, our total revenue per occupied room was up.

As a result of our strong performance year to date and improved expectations for the fourth quarter, we are increasing our comparable hotel revpar and total revpar guidance estimates to approximately 3% and three 4% respectively.

In the high single digits across our portfolio.

Banquet revenue was down 4% as decreases in group room night volume outpaced increases in banquet and catering contribution co group room night.

We are also increasing our adjusted EBITDA, our EBITDA guidance to $1.730 billion, representing a $25 million or one 5% improvement.

Additional headwinds to growth included a tough comparison from a record banquet revenue in 2024 and planned renovation disruption this year.

Over growth in banquet and catering contribution per group room night was up in the mid single digits, driven by our hotels in Orlando, and New York, Naples, Nashville, Chicago and Houston.

Rob will discuss the assumptions behind these updated estimates in more detail.

Other revenue grew 7% in the third quarter as golf and Spa revenues continued to grow in fact far revenue was up double digits driven by strength across the portfolio and continued tailwind from recent spa renovation at our western Killen and Ritz Carlton.

James Risoleo: Wrapping up our third-quarter commentary, we are pleased with our operating and financial outperformance this year, which we believe is a direct result of the capital allocation decisions we have made over the last eight years. The bifurcation of the consumer is likely to lead to continued outperformance for upper-upscale and luxury hotels, and we believe Host will be a beneficiary given our higher-end properties, our size and scale, our diversified business and geographic mix, and our continued reinvestment in our portfolio. With our strong investment-grade balance sheet and access to many capital allocation levers, we will continue to use our competitive advantages to create value for our shareholders and position Host to outperform over the long term. With that, I will now turn the call over to Sourav. Thank you, Jim, and good morning, everyone.

Wrapping up our third quarter commentary, we are pleased with our operating and financial outperformance this year, which.

The island.

Which we believe is a direct result of the capital allocation decisions. We have made over the last eight years.

Further indications that athlete consumers are continuing to prioritize spending on premium experiences.

The bifurcation of the consumer is likely to lead to continued outperformance for upper upscale and luxury hotels and we believe hosts will be a beneficiary given our higher end properties, our size and scale, our diversified business and geographic mix and our continued reinvestment in our port.

Shifting the business mix overall transient revenue was up approximately 2% compared to the third quarter of 2024, driven by higher rates and the continued growth of transient room nights at our resorts led by Maui.

During the third quarter, our resorts saw 3% transient rate growth year over year, alongside 10% transient room night growth driven by Maui. The recently repositioned singer Island resort.

Polio.

One hotel South Beach, and both of our four seasons resorts.

James Risoleo: Building on Jim's comments, I will go into detail on our third-quarter operations, our updated 2025 guidance, and our balance sheet. Starting with total revenue trends, comparable hotel total REPAR growth continued to outpace REPAR growth in the third quarter, as both group and transient guests maintained elevated levels of out-of-room spend. Comparable hotel food and beverage revenue was flat in the quarter, as growth in outlets offset declines in banquet and catering. Outlet revenue grew 6%, driven by resorts, particularly in Maui, Phoenix, and Orlando, as well as the newly renovated View at the New York Marriott Marquis and Avive at the One Hotel South Beach. Overall, outlet revenue per occupied room was up in the high single digits across our portfolio. Banquet revenue was down 4%, as decreases in group room night volume outpaced increases in banquet and catering contribution per group room night.

Excluding Maui transient revenue at our resorts was up 8%, indicating broad based strength in luxury leisure travel.

With that I will now turn the call over to Sarath.

Thank you Jim and good morning, everyone.

Building on Jim's comments I will go into detail on our third quarter operations, our updated 2025 guidance and our balance sheet.

Looking at recent holiday resort revenue for the fourth of July and Labor day weekend grew 8% and 13% respectively.

Maui drilled results in both cases with other resource up in the mid single digits.

Looking forward transient revenue pace for the total portfolio is up 5% for Thanksgiving week compared to the same time last year and the festive period is up 9% driven by strength across the portfolio.

Comparable hotel food and beverage revenue was flat in the quarter as growth in outlets offset declines in banquet and catering.

Okay.

<unk> revenue grew 6% driven by resorts, particularly Maui, Phoenix, and Orlando as well as the newly renovated view of the New York Marriott Marquis and are we at the one hotel South Beach.

Business transient revenue was down 2% for the third quarter of 2024 as a decline in government room nights outpaced government and special corporate rate increases.

For context government room nights were down 20% in the third quarter, which is in line with decreases we saw in the second quarter.

Overall, our total revenue per occupied room was up.

In the high single digits across our portfolio.

Turning to group as expected revenue was down approximately 5% year over year, driven by planned renovation disruption the Jewish holiday calendar shift and the reduced short term group pickup.

Banquet revenue was down 4% as decreases in group room night volume outpaced increases in banquet and catering contribution per group room night.

James Risoleo: Additional headwinds to growth included a tough comparison from record banquet revenue in 2024 and planned renovation disruption this year. However, growth in banquet and catering contribution per group room night was up in the mid-single digits, driven by our hotels in Orlando, New York, Naples, Nashville, Chicago, and Houston. Other revenue grew 7% in the third quarter, as golf and spa revenues continued to grow. In fact, spa revenue was up double digits, driven by strength across the portfolio and continued tailwinds from recent spa renovations at our Westin Kierland and Ritz-Carlton Amelia Island, a further indication that affluent consumers are continuing to prioritize spending on premium experiences. Shifting to business mix, overall transient revenue was up approximately 2% compared to the third quarter of 2024, driven by higher rates and the continued growth of transient room nights at our resorts led by Maui.

Additional headwinds to growth included a tough comparison from a record banquet revenue in 2024 and planned renovation disruption this year.

We estimate that approximately 70% of the group revenue decline was attributable to planned renovation disruption.

However growth in banquet and catering contribution per group room night was up in the mid single digits driven by our hotels in Orlando, New York, Naples, Nashville, Chicago and Houston.

Despite these headwinds our properties achieved group rate growth of 3%.

Additionally, we remain encouraged by the ongoing recovery in San Francisco with group room revenue was up 14% in the quarter driven by Association group room night growth.

Other revenue grew 7% in the third quarter as golf and Spa revenues continued to grow in fact spot revenue was up double digits driven by strength across the portfolio and continued tailwind from recent spa renovation at our Westin Killen and Ritz Carlton.

For full year 2025, we have 4 million definite group room nights on the books, representing a 5% increase since the second quarter.

As Jim mentioned total group revenue pace is up one 2% over the same time last year.

Amelia Island.

A further indication that affluent consumers.

Total group revenue pace is strong in the fourth quarter, driven by rate and banquet strength at our resorts.

Continuing to prioritize spending on premium experiences.

Looking ahead, our 2026 total group revenue pace is approximately 5% ahead of the same time last year driven by rate room nights and banquet contribution. In fact 2026, then you wide group room night pace in key markets, including New Orleans, Washington D.

James Risoleo: During the third quarter, our resorts saw 3% transient rate growth year-over-year, alongside 10% transient room night growth driven by Maui, the recently repositioned Singer Island Resort, the One Hotel South Beach, and both of our Four Seasons resorts. Excluding Maui, transient revenue at our resorts was up 8%, indicating broad-based strength in luxury leisure travel. Looking at recent holidays, resort revenue for the 4th of July and Labor Day weekend grew 8% and 13%, respectively. Maui drove results in both cases, with other resorts up in the mid-single digits. Looking forward, transient revenue pace for the total portfolio is up 5% for Thanksgiving week compared to the same time last year, and the festive period is up 9%, driven by strength across the portfolio.

During the third quarter, our resorts saw 3% transient rate growth year over year, alongside 10% transient room night growth driven by Maui. The recently repositioned singer Island resort.

C and San Francisco is up meaningfully compared to the same time last year.

Shifting gears to margins comparable hotel EBITDA margin of 23, 9% was 50 basis points below the third quarter of 2024, driven primarily by elevated wage rate growth.

The one hotel South Beach, and both of our four seasons resorts.

Excluding Maui transient revenue at our resorts was up 8%, indicating broad based strength in luxury leisure travel.

We continue to expect negative year over year margin comparisons for the fourth quarter again, primarily driven by elevated wages and benefits growth.

Looking at recent holiday resort revenue for the fourth of July and Labor day weekend grew 8% and 13% respectively.

Turning to our outlook for 2025 as Jim mentioned, we are increasing our comparable hotel Revpar and total Revpar guidance estimates as a result of our outperformance year to date and improved expectations for the fourth quarter.

Maui Dueled results in both cases with other resorts up in the mid single digits.

We now expect comparable hotel revpar growth of approximately 3% and comparable hotel total revpar growth of three 4% compared to 2024.

James Risoleo: Business transient revenue was down 2% to the third quarter of 2024, as a decline in government room nights outpaced government and special corporate rate increases. For context, government room nights were down 20% in the third quarter, which is in line with decreases we saw in the second quarter. Turning to group, as expected, revenue was down approximately 5% year-over-year, driven by planned renovation disruption, the Jewish holiday calendar shift, and a reduced short-term group pickup. We estimate that approximately 70% of the group revenue decline was attributable to planned renovation disruption. Despite these headwinds, our properties achieved group rate growth of 3%. Additionally, we remain encouraged by the ongoing recovery in San Francisco, where group room revenue was up 14% in the quarter, driven by association group room night growth.

We expect low single digit revpar growth in the fourth quarter, an improvement over our prior guidance, partially driven by strong estimated revpar growth of 5.5% in October.

Business transient revenue was down 2% for the third quarter of 2024 as a decline in government room nights outpaced government and special corporate rate increases.

For context government room nights were down 20% in the third quarter, which is in line with decreases we saw in the second quarter.

Our guidance assumes a continued recovery in Maui no improvement in the international demand imbalance and steady demand trends in the fourth quarter.

Turning to group as expected revenue was down approximately 5% year over year, driven by planned renovation disruption the Jewish holiday calendar shift and the reduced short term group pick up.

Our guidance also takes into account the limited impact we saw from the government shutdown in October primarily in Washington, D C and San Diego.

If the government shutdown continues through the end of the year.

We estimate that approximately 70% of the group revenue decline was attributable to planned renovation disruption.

Full year revpar growth could be negatively impacted.

We expect our comparable hotel EBITDA margin of approximately 28, 8%, a 20 basis point improvement over our prior guidance midpoint, which is 50 basis points below 2024.

Despite these headwinds our properties achieved group rate growth of 3%.

Additionally, we remain encouraged by the ongoing recovery in San Francisco, where group room revenue was up 14% in the quarter driven by Association group room night growth.

James Risoleo: For full year 2025, we have 4 million definite group room nights on the books, representing a 5% increase since the second quarter. As Jim mentioned, total group revenue pace is up 1.2% over the same time last year. Total group revenue pace is strong in the fourth quarter, driven by rate, and banquet strength at our resorts. Looking ahead, our 2026 total group revenue pace is approximately 5% ahead of the same time last year, driven by rate, room nights, and banquet contribution. In fact, 2026 citywide group room night pace in key markets, including New Orleans, Washington, D.C., and San Francisco, is up meaningfully compared to the same time last year. Shifting gears to margins, comparable hotel EBITDA margin of 23.9% was 50 basis points below the third quarter of 2024, driven primarily by elevated rate growth.

Our 2025 full year adjusted EBITDA guidance is $1 billion $730 million.

For full year 2025, we have 4 million definite group room nights on the books, representing a 5% increase since the second quarter.

This represents a $25 million or 1.5% improvement over our prior guidance midpoint, driven by outperformance in the third quarter and improved expectations for the fourth quarter.

As Jim mentioned total group revenue pace is up one 2% over the same time last year.

As a reminder, this includes $24 million of business interruption proceeds that were received for Hurricanes Helene and Milton in 2025.

Total group revenue pace is strong in the fourth quarter, driven by rate and banquet strength at our resorts.

Looking ahead, our 2026 total group revenue pace is approximately 5% ahead of the same time last year, driven by rate room nights and banquet contribution.

Our 2025 full year adjusted EBITDA guidance also includes $16 million up.

Estimated EBITDA from the four seasons condo development.

We expect to recognize concurrent with condo sale closings in the fourth quarter.

In fact, 2026, then you wide group room night pace in key markets, including New Orleans, Washington, D C and San Francisco is up meaningfully compared to the same time last year.

The expected 2025, EBITDA contribution from the condo development has declined by $5 million as eight of the 23 contract signed thus far have been for the villas, which are expected to close in 2026.

Shifting gears to margins comparable hotel EBITDA margin of 23, 9% was 50 basis points below the third quarter of 2024, driven primarily by elevated wage rate growth.

James Risoleo: We continue to expect negative year-over-year margin comparisons for the fourth quarter, again primarily driven by elevated wages and benefits growth. Turning to our outlook for 2025, as Jim mentioned, we are increasing our comparable hotel REPAR and total REPAR guidance estimates as a result of our outperformance year-to-date, and improved expectations for the fourth quarter. We now expect comparable hotel REPAR growth of approximately 3% and comparable hotel total REPAR growth of 3.4% compared to 2024. We expect low single-digit REPAR growth in the fourth quarter, and improvement over our prior guidance, partially driven by strong estimated REPAR growth of 5.5% in October. Our guidance assumes a continued recovery in Maui, no improvement in the international demand imbalance, and steady demand trends in the fourth quarter.

It is important to note that we have not changed our overall EBITDA expectations for the project as sales prices and project cost remain on target.

We continue to expect negative year over year margin comparisons for the fourth quarter again, primarily driven by elevated wages and benefits growth.

Lastly, our adjusted EBITDA guidance includes an estimated $6 million contribution from the dancers or an improvement of $3 million since last quarter.

And an estimated $14 million contribution from elite loved and ton of big sur and improvement of $1 million since last quarter.

We now expect comparable hotel revpar growth of approximately 3% and comparable hotel total revpar growth of three 4% compared to 2024.

As a reminder, both properties are excluded from our comparable hotel set in 2025.

Turning to our strong balance sheet and liquidity position our weighted average maturity is five two years at a weighted average interest rate of four 9%.

We expect low single digit revpar growth in the fourth quarter, an improvement over our prior guidance, partially driven by strong estimated revpar growth of five 5% in October.

We currently have $2 $2 billion in total available liquidity, which includes $205 million of episode E reserves, and a $1 5 billion available under the revolver portion of the credit facility.

Our guidance assumes a continued recovery in Maui no improvement in the international demand imbalance and steady demand trends in the fourth quarter.

James Risoleo: Our guidance also takes into account the limited impact we saw from the government shutdown in October, primarily in Washington, D.C., and San Diego. If the government shutdown continues through the end of the year, full-year REPAR growth could be negatively impacted. We expect a comparable hotel EBITDA margin of approximately 28.8%, a 20 basis point improvement over our prior guidance midpoint, which is 50 basis points below 2024. Our 2025 full-year adjusted EBITDA RE guidance is $1,730 million. This represents a $25 million, or 1.5% improvement over our prior guidance midpoint, driven by outperformance in the third quarter and improved expectations for the fourth quarter. As a reminder, this includes $24 million of business interruption proceeds that were received for Hurricanes Helene and Milton in 2025.

Our quarter end leverage ratio was two eight times and since our last call Moodys upgraded the company's issuer rating from <unk> three to BW too with a stable outlook.

Our guidance also takes into account the limited impact we saw from the government shutdown in October primarily in Washington, D C and San Diego.

If the government shutdown continues through the end of the year.

Our strong balance sheet is an important competitive advantage for.

Full year revpar growth could be negatively impacted.

Facilitating many of the capital allocation decisions that are contributing to our outperformance in the current environment.

We expect our comparable hotel EBITDA margin of approximately 28, 8%, a 20 basis point improvement over our prior guidance midpoint.

In October we paid a quarterly cash dividend of <unk> 20.

Sure.

As always future dividends are subject to approval by the Companys Board of directors, we will continue to be strategic in managing our balance sheet and liquidity position over the near term.

Which is 50 basis points below 2024.

Our 2025 full year adjusted EBITDA guidance is $1 billion $730 million.

Wrapping up we believe our investment grade balance sheet as well as our size scale and diversification uniquely position host to outperform in the current environment, while capitalizing on opportunities for growth in the future.

This represents a $25 million or 1.5% improvement over our prior guidance midpoint, driven by outperformance in the third quarter and improved expectations for the fourth quarter.

With that we would be happy to take your questions to ensure we have time to address as many questions as possible. Please limit yourself to one question.

As a reminder, this includes $24 million of business interruption proceeds that we receive for Hurricanes Helene and Milton in 2025.

James Risoleo: Our 2025 full-year adjusted EBITDA RE guidance also includes $16 million of estimated EBITDA from the Four Seasons condo development, which we expect to recognize concurrent with condo sale closings in the fourth quarter. The expected 2025 EBITDA contribution from the condo development has declined by $5 million, as eight of the 23 contracts signed thus far have been for the villas, which are expected to close in 2026. It is important to note that we have not changed our overall EBITDA expectations for the project, as sales prices and project costs remain on target. Lastly, our adjusted EBITDA RE guidance includes an estimated $6 million contribution from the Don CeSar, an improvement of $3 million since last quarter, and an estimated $14 million contribution from Alila Ventana Big Sur, an improvement of $1 million since last quarter.

We will now begin the question and answer session, if you'd like to ask a question simply press Star then the number one on your telephone keypad to withdraw your question Press Star One again, our first question comes from the line of David Katz with Jefferies. Please go ahead.

Our 2025 full year adjusted EBITDA guidance also include $16 million up.

Estimated EBITDA from the four seasons condo development, which we expect to recognize concurrent with condo sale closings in the fourth quarter.

Hi, good morning, everybody. Thanks for taking my question.

The expected 2025, EBITDA contribution from the condo development has declined by $5 million as eight of the 23 contract signed thus far have been for the villas, which are expected to close in 2026.

A couple of things and this is I hope the broad question, Jim and team that we.

Do you like to answer, but you know the asset sale during the quarter the investments in what you've done and sort of the outperformance that we're seeing in the portfolio.

It is important to note that we have not changed our overall EBITDA expectations for the project as.

Sales prices and project cost remain on target.

It it does suggest some differentiation of yourselves versus the group overall.

Lastly, our adjusted EBITDA guidance includes an estimated $6 million contribution from the dawn says or an improvement of $3 million since last quarter.

But one of the question is can.

Can we take this to expect that there might be some more assets trading in the market based on what Youre seeing.

And an estimated $14 million contribution from elite loved and ton of big sur and improvement of $1 million since last quarter.

James Risoleo: As a reminder, both properties are excluded from our comparable hotel sets in 2025. Turning to our strong balance sheet and liquidity position, our weighted average maturity is 5.2 years at a weighted average interest rate of 4.9%. We currently have $2.2 billion in total available liquidity, which includes $205 million of FS&E reserves and $1.5 billion available under the revolver portion of the credit facility. Our quarter-end to leverage ratio was 2.8 times, and since our last call, Moody's upgraded the company's issuer rating from BAA3 to BAA2 with a stable outlook. Our strong balance sheet is an important competitive advantage, facilitating many of the capital allocation decisions that are contributing to our outperformance in the current environment. In October, we paid a quarterly cash dividend of $0.20 per share. As always, future dividends are subject to approval by the company's board of directors.

Second.

How are you thinking broadly about.

Valuation.

As a reminder, both properties are excluded from our comparable hotel set in 2025.

Other ways that you can capture.

A little differentiated value for host.

Turning to our strong balance sheet and liquidity position our weighted average maturity is five two years at a weighted average interest rate of four 9%.

In the public market I know, there's a lot in there, but I'll take what you got it. Thank you.

I'll start David and then Zurab feel free to jump in along the way.

We currently have $2 2 billion in total available liquidity, which includes $205 million of episode E reserves, and a $1 5 billion available.

I'll answer your first question regarding the asset sales that we have completed.

Completed year to date, and the set up and the market generally for transactions. So.

Available under the revolver portion of the credit facility.

Our quarter end leverage ratio was two eight times and since our last call Moodys upgraded the company's issuer rating from <unk> to <unk> with a stable outlook.

Sure.

On many occasions.

Both.

And meetings and on earnings calls I've said that we will be opportunistic.

With our capital allocation when it comes to dispositions.

Our strong balance sheet is an important competitive advantage facility.

And acquisitions and.

The two deals that we've already announced and provided metrics on this year I think a really strong indications of our ability to execute.

Facilitating many of the capital allocation decisions that are contributing to our outperformance in the current environment.

In October we paid a quarterly cash dividend of <unk> 20.

To sell the Washington, Marriott Metro Center.

James Risoleo: We will continue to be strategic in managing our balance sheet and liquidity position over the near term. Wrapping up, we believe our investment-grade balance sheet, as well as our size, scale, and diversification, uniquely position Host Hotels & Resorts to outperform in the current environment while capitalizing on opportunities for growth in the future. With that, we would be happy to take your questions. To ensure we have time to address as many questions as possible, please limit yourself to one question. We will now begin the question and answer session. If you'd like to ask a question, simply press Star, then the number one on your telephone keypad. To withdraw your question, press Star one again. Our first question comes from the line of David Katz with Jefferies. Please go ahead. Hi, good morning, everybody. Thanks for taking my question.

Sure.

A 12 seven times trailing 12 months EBITDA.

As always future dividends are subject to approval by the Companys Board of directors, we will continue to be strategic in managing our balance sheet and liquidity position over the near term.

Six five cap rate.

Urban hotel.

You know is a.

I think a solid read through in many ways with respect to.

Wrapping up we believe our investment grade balance sheet as well as our size scale and diversification.

What sort of value was locked in this company.

<unk> position host to outperform in the current environment, while capitalizing on opportunities for growth in the future.

It's not one of our best assets.

And you know we're trading at nine four times, plus EBITDA, plus or minus and we're able to execute on that deal with 12 seven times come on guys. You know where's the multiple let's go.

With that we would be happy to take your questions to ensure we have time to address as many questions as possible. Please limit yourself to one question.

And you know.

The same with the disposition of the Western Cincinnati.

As well as when we're in a position to talk about it I think youll be pleased with the metrics on the St Regis in Houston as well we were not in a position to talk about that today. So we continue to.

James Risoleo: Look, you know, a couple of things, and this is, you know, I hope the broad question, you know, Jim and team, that you like to answer. You know, the asset sale during the quarter, the investments in what you've done, and sort of the outperformance that we're seeing in the portfolio, you know, it does suggest that, you know, some differentiation of yourselves versus the group overall. Part one of the question is, you know, can we take this to expect that there might be some more asset trading in the market based on what you're seeing? You know, second, how are you thinking broadly about, you know, valuation and, you know, other ways that you can capture a little differentiated value for Host in the public market? I know there's a lot in there, but I'll take what you got. Thank you.

To test the market, we don't have to sell anything I'll make that perfectly clear if we're sitting here with over $2 billion of liquidity today.

Hi, good morning, everybody. Thanks for taking my question.

It looked like a couple of things and this is I hope the broad question, Jim and team that.

Average ratio of two eight times a true differentiator.

Not only among lodging Reits are the only investment grade balance sheet better mining in general.

Would you like to answer, but you know the asset sale during the quarter the investments in what you've done and sort of the outperformance that we're seeing.

It is truly a fortress balance sheet.

And that leads to what we've been able to accomplish with the portfolio.

Being in the portfolio.

Yeah.

It does suggest some differentiation of yourselves versus the group overall.

We are we have a differentiated portfolio I mean, the performances is proof that the capital allocation decisions that we've made since 2018 had paid off.

But one of the question is yes.

Can we take this to expect that there might be some more assets trading in the market based on what Youre seeing.

In a material way, we have raised our guidance, both revpar and EBITDA every quarter of this year.

Second.

How are you thinking broadly about it.

We went from one 5%.

No valuation.

Revpar guide in the February call.

Other ways that you can capture.

A little differentiated value for host.

$8.620 billion of EBITDA guide to the bottom line today.

James Risoleo: I'll start, David, and then Sourav, feel free to jump in along the way. I'll answer your first question regarding the asset sales that we have completed year-to-date and the setup in the market generally for transactions. On many occasions, both in meetings and on earnings calls, I've said that we will be opportunistic with our capital allocation when it comes to dispositions and acquisitions. The two deals that we've already announced and provided metrics on this year, I think, are really strong indications of our ability to execute. To sell the Washington Marriott Metro Center at a 12.7x trailing 12-month yield, a 6.5% cap rate, urban hotel, you know, is, I think, a solid read-through in many ways with respect to what sort of value is locked in this company. I mean, that's not one of our best assets.

In the public market I know, there's a lot in there, but I'll take what you got it. Thank you.

We raised that to 3% Revpar guide topline and we raised our EBITDA guidance by $110 million. So.

I'll start David and then Zurab feel free to jump in and along the way.

I'll answer your first question regarding.

The investments we made in our assets from 2019 to 2023, we've invested over $2 billion and ROI projects throughout the portfolio.

As the asset sales that we have.

Completed year to date, and the set up and the market generally for transactions. So.

Marriott transformational capital program 16 hotels, we completed another eight.

Sure.

On many occasions both.

And meetings and on earnings calls I've said that we will be opportunistic.

Properties that were outside of the Mtc P program.

With our capital allocation when it comes to dispositions and.

No.

Rob mentioned and we both mentioned in our comments, we anticipated three to five points in yield index gains well for the for the 23 properties that.

In acquisitions and.

The two deals that we've already announced and provided metrics on this year I think a really strong indications of our ability to execute.

That are left I mean Metro center was one of them. We've achieved eight five points in yield index gains that is meaningfully above.

To sell the Washington, Marriott Metro Center.

A 12 seven times trailing 12 months EBITDA.

Six five cap rate.

Mid digits.

Urban hotel.

Mid teens cash on cash returns.

Is.

I think a solid read through in many ways with respect to.

If you look at the composition of our portfolio, our top 40 assets contribute 80% of our EBITDA.

James Risoleo: We're trading at 9.4x EBITDA, ±, and we're able to execute on that deal at 12.7x. Come on, guys, where's the multiple? Let's go. You know, the same with the disposition of the Westin Cincinnati. As well as, you know, when we're in a position to talk about it, I think you'll be pleased with the metrics on the St. Regis Houston as well. We're not in a position to talk about that today. We continue to test the market. We don't have to sell anything. I'll make that perfectly clear. You know, we're sitting here with over $2 billion of liquidity today and a leverage ratio of 2.8x. A true differentiator, not only among lodging REITs, the only investment-grade balance sheet, but among REITs in general. It is truly a fortress balance sheet.

What sort of value was locked in this company.

And you can do the math I mean, we did 24 assets already transformational we doing six with Hyatt we're doing another four with Marriott, we're well on the way and we will continue to deploy capital in our assets because it is a clearer line of sight to see improvements in bottom line performance and that coupled.

It's not one of our best assets.

And we're trading at nine four times, plus EBITDA, plus or minus and we're able to execute on that deal with 12 seven times come on guys. You know where's the multiple let's go.

And.

The same with the disposition of the Western Cincinnati.

With I.

As well as when we're in a position to talk about it I think you'll be pleased with the metrics on the St Regis in Houston as well, we're not in a position to talk about that today. So we continue to.

I would say, what we acquired but as importantly, what we sold is really leading to the outperformance today and where we're just really excited with how things are.

Evolving here and what we're seeing in our 2026, the set up going forward. So.

To test the market, we don't have to sell anything I'll make that perfectly clear if we're sitting here with over $2 billion of liquidity today.

You know the transaction market itself.

<unk> ratio of two eight times a true differentiator.

I would say still tepid theres not a lot of flow.

Not only among lodging Reits are the only investment grade balance sheet better mining in general.

James Risoleo: You know, that leads to what we've been able to accomplish with the portfolio. You know, we have a differentiated portfolio. I mean, the performance is proof that the capital allocation decisions that we made since 2018 have paid off in a material way. We have raised guidance, both REPAR and EBITDA, every quarter this year. We went from a 1.5% REPAR guide in the February call and $1,620 million of EBITDA guide to the bottom line. Today, we raised that to a 3% REPAR guide top line, and we raised our EBITDA guide by $110 million. You know, the investments we made in our assets from 2019 to 2023, we've invested over $2 billion in ROI projects throughout the portfolio. Marriott Transformational Capital Program, 16 hotels. We completed another eight properties that were outside of the MTCP program.

Going back to Metro Center Island.

It is truly a fortress balance sheet.

Ill end with how I began I mean, the fact that we have relationships and that people see us when they need a an.

And that leads to what we've been able to accomplish with the portfolio.

Yeah.

And asset to effectuate, a lifetime exchange and we have the balance sheet that allows us to provide seller financing to give that buyer. The added assurance that theres not going to be a hiccup and theyre going to miss the window.

We have a differentiated portfolio I mean, the performances is proof that the capital allocation decisions that we've made since 2018 had paid off.

In a material way, we have raised our guidance, both revpar and EBITDA every quarter this year.

Differentiator hundred percent.

Thank you.

Our next question will come from the line of Michael Bellisario with Baird. Please go ahead.

We went from one 5%.

Revpar guide in the February call.

Thanks, Good morning, everyone.

$8.620 billion of EBITDA guide to the bottom line today.

Jim My question is on Capex.

Kind of seems broadly that renovation returns have been coming down, but you've been bucking that trend. So I guess two parts I guess, one how are you picking the hotels and markets to invest in and two is it fair to assume that maybe you didn't buy back stock in the quarter because you see better returns on these transformational capex projects. Thanks.

We raised that to 3% Revpar guide topline and we raised our EBITDA guidance by $110 million. So.

The investments we made in our assets from 2019 to 2023, we've invested over $2 billion and ROI projects throughout the portfolio.

Sure Mike.

Yeah.

We are.

Obviously screen all of our assets.

Marriott transformational capital program 16 hotels, we completed another eight.

To determine what assets.

James Risoleo: You know, as Sourav mentioned, and we both mentioned in our comments, we anticipated 3% to 5% in yield index gains. Well, for the 23 properties that are left—I mean, Metro Center was one of them—we've achieved 8.5% in yield index gains. That is meaningfully above mid-teens cash-on-cash returns. If you look at the composition of our portfolio, our top 40 assets contribute 80% of our EBITDA, and you can do the math. I mean, we did 24 assets already, transformational. We're doing six with Hyatt, we're doing another four with Marriott, we're well on the way, and we will continue to deploy capital in our assets because it's our clearest line of sight to see improvements in bottom-line performance. That, coupled with, you know, I would say what we acquired, but as importantly, what we sold, is really leading to the outperformance today.

We should be.

Putting capital in.

Properties that were outside of the Mtc P program.

And the level of Capex that should be <unk>.

As Rob mentioned and we both mentioned in our comments, we anticipated three to five points in yield index gains well for the for the 23 properties that.

And any particular property so as.

As an example, the the four new assets in the Marriott transformational capital program.

Were decided upon after.

That are left I mean Metro center was one of them. We've achieved eight five points in yield index gains that is meaningfully above.

We as a team are designing construction group, our asset management group, our enterprise analytics group.

Mid digits.

Looked at with sort of a lift we believe that we could get through transformational renovations and I do want to emphasize the word transformational because.

Mid teens cash on cash returns.

If you look at the composition of our portfolio, our top 40 assets contribute 80% of our EBITDA.

It's one thing to just do a rooms redo that could be deemed to be somewhat defensive you have to do it but if we see an opportunity to completely reposition a property.

And you can do the math I mean, we did 24 assets already transformational we'd only six with Hyatt we're doing another four with Marriott, we're well underway and we will continue to deploy capital in our assets because it is a clearer line of sight to see improvements in bottom line performance and that coupled.

Including a new arrival experience new lobby new F&B.

Platform.

And.

It <unk>, Linda we redid the spa.

With <unk>.

James Risoleo: We're just really excited with how things are evolving here and what we're seeing in 2026, the setup going forward. You know, the transaction market itself is, I would say, still tepid. There is not a lot of flow. You know, going back to Metro Center, I'll end with how I began. I mean, the fact that we have relationships and that people seek out us when they need an asset to effectuate a lifetime exchange, and we have the balance sheet that allows us to provide seller financing to give that buyer the added assurance that there's not going to be a hiccup and they're going to miss the window. Differentiator, 100%. Thank you. Our next question will come from the line of Michael Bellisario with Baird. Please go ahead. Thanks. Good morning, everyone. Jim, my question's on CapEx.

I would say, what we acquired but as importantly, what we sold is really leading to the outperformance today and we're just really excited with how things are.

And now we're doing the rest of the hotel.

That is how our decision is made.

To allocate capital and obviously you know we work very collaboratively with our operators that we work collaboratively with them with Hyatt on the six assets that we selected.

Evolving here and what we're seeing in 2026, the set up going forward. So.

And the scope of the renovation and we work collaboratively with Marriott.

The transaction market itself is I would say still tepid theres not a lot of flow.

As well so we're delighted that.

Going back to Metro Center Island.

Not only given our size and scale, but our relationships.

I'll end with how I began I mean, the fact that we have relationships and the people see us when they need a an asset to effectuate a lifetime exchange and we have the balance sheet that allows us to provide seller financing to give that buyer. The added assurance that there is not going to be a hiccup.

And our ability to perform has allowed us to.

Again distinguish ourselves through the.

The <unk> program http program.

And now Mtc P to where the operators to support our capital investment and I think that's really important too to.

They're going to Miss the window dip.

Differentiator, 100%.

To stay focused on.

Are they supported through providing operating profit guarantees for anticipated disruption and enhanced other priority returns, which.

Thank you.

Our next question will come from the line of Michael Bellisario with Baird. Please go ahead.

James Risoleo: It kind of seems broadly that renovation returns have been coming down, but you've been bucking that trend. I guess two parts. One, how are you picking the hotels and markets to invest in? Two, is it fair to assume that maybe you didn't buy back stock in the quarter because you see better returns on these transformational CapEx projects? Thanks. Sure, Mike. Yeah, you know, we obviously screen all of our assets to determine what assets we should be putting capital in, and the level of CapEx that should be invested in any particular property. You know, as an example, the four new assets in the Marriott Transformational Capital Program were decided upon after we, as a team—our design and construction group, our asset management group, our enterprise analytics group—really looked at what sort of.

Thanks, Good morning, everyone.

It gives us an opportunity to really.

Jim My question is on Capex.

Kind of anchor the underwriting.

For the capital that we're putting into.

These assets. So we'll continue to do this going forward. It's a clear line of sight. We have two strong cash on cash returns in this environment and yes, you're absolutely right, we didn't buy back stock in the quarter.

We bought back $200 million of stock this year.

Sure Mike.

Yeah.

We are.

But capital allocation in our mind is a a decision of where are we going to drive the greatest long term value for our shareholders.

Obviously screen all of our assets.

To determine what assets.

We should be.

Putting capital in.

And we believe investing in our assets are at least at this point in time with our stock price not disrupted.

And the level of Capex.

Should be.

And any particular property so as.

Is where we will derive the better returns.

As an example will be the four new assets in the Marriott transformational capital program.

We bought back $200 million worth of stock.

And you know there is a methodology to determine what the IRR is on those stock buybacks, it's where you can reissue the stock price at a down the road.

Were decided upon after.

We as a team are designing construction group, our asset management group, our enterprise analytics group.

James Risoleo: Lift we believe that we could get through transformational renovations. I do want to emphasize the word transformational because, you know, it's one thing to just do a rooms redo. That could be deemed to be somewhat defensive. You have to do it. If we see an opportunity to completely reposition a property, you know, including a new arrival experience, a new lobby, a new F&B platform, and, you know, at Kierland, you know, we redid the spa, and now we're doing the rest of the hotel. You know, that is how our decision is made to allocate capital. Obviously, you know, we work very collaboratively with our operators. You know, we work collaboratively with Hyatt on the six assets that we selected and the scope of the renovation. We work collaboratively with Marriott as well. You know, we're delighted that.

Over a period of time, well you know the multiple hasnt moved anything so we're still where we were and it's very difficult to see a clear line of sight.

Looked at would sort of.

Lift we believe that we could get through transformational renovations and I do want to emphasize the word transformational because.

To underwrite a.

And a strong IRR on a stock buyback when we have a clear line of sight to investing in our assets.

It's one thing to just do a rooms redo that could be deemed to be somewhat defensive you have to do it but if we see an opportunity to completely reposition a property.

Our next question will come from the line of Cooper Clark with Wells Fargo. Please go ahead.

Including a new arrival experience a new lobby new F&B.

Great. Thanks for taking the question Maui continues to have strong momentum and appreciate the early color on occupancy in out of room spend could you provide any early thoughts and color about how we should be thinking about the pace of recovery in the 26 from an earnings perspective within the context of the $110 million guide implied in 25 guidance and then the strong.

<unk> platform.

And.

It <unk>, Linda we redid the spa.

And now we're doing the rest of the hotel.

That is how our decision is made.

To allocate capital and obviously you know we work very collaboratively with our operators.

26 group pace.

Sure. So my only continues to recover really well all total group revenue pace for 2026 is a positive 13% versus same time last year just to put this in perspective in terms of group room nights.

Work collaboratively with them with Hyatt on the six assets that we selected.

And the scope of the renovation and we work collaboratively with Marriott.

James Risoleo: Not only given our size and scale, but our relationships and our ability to perform has allowed us to, again, distinguish ourselves through the MTCP program, HTCP program, and now MTCP2, where the operators support our capital investment. I think that's really important to stay focused on. You know, they support it through providing operating profit guarantees for anticipated disruption and enhanced owner priority returns, which gives us an opportunity to really, you know, kind of anchor the underwriting for the capital that we're putting into these assets. We'll continue to do this going forward. It's the clearest line of sight we have to strong cash-on-cash returns in this environment. Yes, you're absolutely right. We didn't buy back stock in the quarter. You know, we bought back $200 million of stock this year.

As well so we're delighted that.

Not only given our size and scale, but our relationships.

Already have 67000 group room nights on the books for 2026.

And our ability to perform has allowed us to.

And last year at the same time, we had 55000 on the books.

Again distinguish ourselves through the.

Compare that to back in 2019 at the same time, we had 73000 group room nights on the books. So in other words, we are effectively 92% of the way already there relative to 2019 at a pretty attractive rate. So we feel pretty confident that.

The <unk> program http program.

And now <unk> to where the operators to support our capital investment and I think that's really important tubes to stay focused on.

Or are they supported through providing operating profit guarantees for anticipated disruption and enhanced other priority returns.

He is going to continue to recover in terms of exactly how much incremental EBITDA. We expect in addition to the 110 million of EBITDA that we are forecasting for this year.

Which.

It gives us an opportunity to really.

Of anchor the underwriting for the capital that we're putting into.

Obviously, we are still very preliminary reviews of the the budgets. We don't have an exact number but we are very hopeful that it's going to be positive.

These assets. So we'll continue to do this going forward. It's a clear line of sight. We have two strong cash on cash returns in this environment and yes, youre absolutely right, we didn't buy back stock in the quarter.

And it's gonna be a REIT that I'll, just say, it's a wide range between the 110 and the 160 that we talked about so hopefully we will make.

James Risoleo: You know, capital allocation in our mind is a decision of where are we going to drive the greatest long-term value for our shareholders. We believe investing in our assets, at least at this point in time, with our stock price not disrupted, is where we will derive the better returns. You know, we bought back $200 million worth of stock. You know, there is a methodology to determine what the IRR is on those stock buybacks. It's what you can reissue the stock price at down the road over a period of time. Well, you know, the multiple hasn't moved anything, so we're still where we were. It's very difficult to see a clear line of sight to underwrite a strong IRR on a stock buyback when we have a clear line of sight to investing in our assets.

We bought back $200 million of stock this year.

But capital allocation in our mind is a a decision of where are we going to drive the greatest long term value for our shareholders.

Incremental progress next year.

Things are looking really good as it relates to group pace for 'twenty 'twenty six.

Great. Thank you.

We believe investing in our assets.

Our next question will come from the line of Chris Darling with Green Street. Please go ahead.

At this point in time with our stock price not disrupted.

Thanks, Good morning.

Is where we will derive the better returns, we bought back $200 million worth of stock.

Jim you alluded to you know feeling good about host set up for 2026, I'm, hoping you could elaborate just an anecdotal fashion and specifically I'm thinking about some of the lower hanging items, you know across your portfolio, whether it be Maui that Don Turtle day, maybe theres, others that you'd call out so any way you could see.

There is a methodology to determine what the IRR is on those stock buybacks, it's where you can reissue the stock price at a down the.

Good.

Over a period of time, well you know the multiple hasnt moved anything.

So where we were and it's very difficult to see a clear line of sight.

To that and perhaps quantify to some extent as well.

Sure happy to Chris.

To underwrite a a a strong IRR on a stock buyback when we have a clear line of sight to investing in our assets.

We have.

James Risoleo: Our next question will come from the line of Cooper Clark with Wells Fargo. Please go ahead. Great. Thanks for taking the question. Maui continues to have strong momentum and appreciate the early color on occupancy and out-of-room spend. Could you provide any early thoughts and color about how we should be thinking about the pace of a recovery into 2026 from an earnings perspective within the context of the $110 million guide implied in 2025 guidance, and then the strong 2026 group pace? Sure. Maui continues to recover really well. Our total group revenue pace for 2026 is a positive 13% versus same time last year. Just to put this into perspective in terms of group room nights, we already have 67,000 group room nights on the books for 2026. Last year, at the same time, we had 55,000 on the books.

And a number of our key markets. We are seeing really strong total group revenue pace for 2026, so Rob touched on Maui.

Our next question will come from the line of Cooper Clark with Wells Fargo. Please go ahead.

As one example, a San Francisco is another one I mean, San Francisco is recovering really well is recovering nicely.

2026, total group revenue pace for San Fran is up over 20% for our portfolio and.

Group rate is pacing up 10% group room nights are pacing up 3%. So we feel really good about that in 'twenty.

Six group pace.

Sure. So Maui continues to recover really well our total group revenue pace for 2026 is a positive 13% versus same time last year.

Twenty-six citywide group room night pace is up 7%.

To.

Last year.

In.

Following 54% increase in 2025 so.

Put this in perspective.

Perspective in terms of group room nights.

San Fran has I think turned to corner it it really has the mayor and.

We already have 67000 group room nights on the books for 2026.

James Risoleo: Compare that to back in 2019. At the same time, we had 73,000 group room nights on the books. In other words, we're effectively 92% of the way already there relative to 2019 at a pretty attractive rate. We feel pretty confident that Maui is going to continue to recover. In terms of exactly how much incremental EBITDA we expect in addition to the $110 million of EBITDA that we are forecasting for this year, obviously, we're still very preliminary reviews of the budgets. We don't have an exact number, but we are very hopeful that it's going to be positive. It's going to be, you know, right now, I'll just say it's a wide range between the $110 and the $160 that we talked about. Hopefully we will make.

The president of the San Francisco travel are are really out there taking the lead for positive change for the city.

And last year at the same time, we had 55000 on the books.

Compare that to back in 2019 at the same time, we have 73000 group room nights on the books. So in other words, we are effectively 92% of the way already there relative to 2019 at a pretty attractive rate. So we feel pretty confident that.

Violent crime is down 22% in the city and properties and crime is down 25%. So.

We're optimistic about San Francisco and we also have a Super Bowl in San Francisco as well next year.

And the other broad.

He has been a continued to recover in terms of exactly how much incremental EBITDA. We expect in addition to the $110 million of EBITDA, we are forecasting for this year.

The broad.

Positive for our portfolio and I'll give you some color on a couple of other major markets, but we have.

10 markets, where we're going to see benefits from the World Cup as well and.

Obviously, we are still very preliminary reviews of the the budgets. We don't have an exact number but we are very hopeful that it's going to be positive.

And.

That's going to provide a.

A big positive for US as an example, I think in New York.

And it's gonna be a REIT that I'll, just say, it's a wide range between the 110 and below the 160 that we talked about so hopefully we will make.

You know world Cups will be very positive for the market.

James Risoleo: Incremental progress next year, but things are looking really, really good as it relates to group pace for 2026. Great. Thank you. Our next question will come from the line of Chris Darling with Green Street. Please go ahead. Thanks. Good morning. Jim, you alluded to, you know, feeling good about Host's setup for 2026. I'm hoping you could elaborate, you know, just in anecdotal fashion. Specifically, I'm thinking about some of the lower-hanging items, you know, across your portfolio, whether it be Maui, the Don, Turtle Bay, maybe there's others that you'd call out. Any way you could speak to that and perhaps quantify to some extent as well. Sure. Happy to, Chris. You know, we have a number of our key markets. We are seeing really strong total group revenue pace for 2026. Sourav touched on Maui as one example. San Francisco is another one.

We're hosting a total of eight games.

Including the the final EIS.

Incremental progress next year.

So it's.

It's going to bring.

Things are looking really good as it relates to group pace for 'twenty 'twenty six.

Additional tourism to New York City, as well, a Washington D. C is another bright star for US next year.

Great. Thank you.

Our next question will come from the line of Chris Darling with Green Street. Please go ahead.

Total group revenue pace is up 13%.

Thanks, Good morning.

So we feel good about that Nashville, a total group revenue pace is up 26%.

Jim you alluded to feeling good about host setup for 2026, I'm, hoping you could elaborate just an anecdotal fashion and specifically I'm thinking about some of the lower hanging items across your portfolio, whether it be Maui, the Don Turtle day, maybe theres, others that you would call out so any way you could see.

So there are a lot of really positive things out there.

On the group side of the business and were about 36% group. So it's meaningful to US absolutely. Our total group revenue pace for the year at this point is up 5% in the mid single digits.

To that and perhaps quantify to some extent as well.

We'll be watching that very closely to see how it evolves.

Sure happy to Chris.

Over the next couple of months.

Sure.

But you know.

We have.

With all that said.

And a number of our key markets. We are seeing really strong total group revenue pace for 2026, so Rob touched on Maui.

We do believe that the assets that we have.

The fact that we have strong geographic diversification, we have no no one market that delivers more than 8% of our EBITDA and that's been very thoughtful as we assembled this portfolio and as we run the business.

James Risoleo: I mean, San Francisco is recovering really well. It's recovering nicely. 2026 total group revenue pace for San Francisco is up over 20% for our portfolio, and group rate is pacing up 10%. Group room nights are pacing up 3%. We feel really good about that. The 2026 citywide group room night pace is up 7% to last year, following a 54% increase in 2025. You know, San Francisco has, I think, turned the corner. It really has. The mayor and the president of the San Francisco Travel are really out there taking the lead for positive change for the city. You know, violent crime is down 22% in the city, and property crime is down 25%. We're optimistic about San Francisco. We also have a Super Bowl in San Francisco as well next year. The other broad. The broad.

As one example, a San Francisco is another one I mean, San Francisco is recovering really well is recovering nicely.

And the quality of the assets, we have and the.

2026, total group revenue pace for San Fran is up over 20% for our portfolio and.

Where customers are saying today, and where they're spending money. The fact that the affluent customer continues to.

Group rate is pacing up 10% group room nights are pacing up 3%. So we feel really good about that in the 20.

To prioritize premium experiences.

And we see it not only quarter by quarter or year over year, we see a weekly we track our properties weekly to see what is happening with Revpar.

Twenty-six citywide group room night pace is up 7%.

To.

Until last year.

In.

Following 54% increase in 2025 so.

And you know, we're not seeing any any slowdown Chris I'll tell you that we just continue to see the affluent customers spend money. So that's what gives us.

San Fran has I think turned to corner it really has the mayor and.

The president of the San Francisco travel are are really out there taking the lead for positive change for the city.

Confidence that we're set up well for 2026.

Okay I appreciate the detail. Thank you.

Violent crime was down 22% in the city and property crime is down 25%. So.

Our next question will come from the line of Ari Klein with BMO capital markets. Please go ahead.

We're optimistic about San Francisco and we also have a Super Bowl in San Francisco.

Thanks, and good morning.

On the group side near term crude, but it sounds like they've been maybe a touch softer oh, he can provide a little bit more color on that and maybe how broad base.

James Risoleo: Positive for our portfolio, and I'll give you some color on a couple of other major markets. We have 10 markets where we're going to see benefits from the World Cup as well. That's going to provide a big positive for us. As an example, I think in New York, you know, World Cups would be very positive for the market, you know, hosting a total of eight games, including the final. It's going to bring additional tourism to New York City as well. Washington, D.C. is another bright star for us next year. Total group revenue pace is up 13%, so we feel good about that. Nashville, total group revenue pace is up 26%. There are a lot of really positive things out there on the group side of the business, and we're about 36% group, so it's meaningful to us. Absolutely.

As well next year.

And the other broad.

The broad.

Positive for our portfolio and I'll give you some color on a couple of other major markets, but we have to.

That might be across.

Business verticals and any change in cancellation or attrition or lead volume more.

In markets, where we're going to see benefits from the World Cup as well.

Broadly from a bookings standpoint, thank you.

<unk>.

That's going to provide a.

Hey.

There hasn't really been any sort of meaningful cancellation.

A big positive for US as an example, I think.

In New York.

Besides maybe a little bit where we have seen in D. C are tied with our government business, but in general I would say there is not a significant drop in terms of group pace by any means for Q4, we are set up really well our fourth quarter group pace is actually up over 7%.

World Cup should be very positive for the market.

We're hosting a total of eight games.

Including the the final so it's.

It's going to bring.

Additional tourism to New York City as well.

<unk> is another bright star for Us next year.

Almost 88% so still have a very strong quarter.

Total group revenue pace is up 13%.

The third quarter, we always knew going in that it would be a soft boot quarter.

So we feel good about that Nashville total group revenue pace is up 26%.

Given the shift in Jewish holidays, and you saw that with the outperformance of October at five 5% you kind of have to look at sort of September October together to see the Jewish holiday shift impact, but that's really why group was down in the third quarter and some of the softness is really related more to.

So there are a lot of really positive things out there.

James Risoleo: Our total group revenue pace for the year at this point is up 5%, mid-single digits. You know, we'll be watching that very closely to see how it evolves over the next couple of months. You know, with all that said, we do believe that the assets that we have, the fact that we have strong geographic diversification, we have no one market that delivers more than 8% of our EBITDA, and that's been very thoughtful as we assemble this portfolio and as we run the business. The quality of the assets we have and, you know, where customers are staying today and where they're spending money, the fact that the affluent customer continues to prioritize premium experiences, and we see it not only quarter by quarter or, you know, year over year. We see it weekly.

On the group side of the business and were about 36% group. So it's meaningful to US absolutely. Our total group revenue pace for the year at this point is up 5% mid single digits.

We'll be watching that very closely to see how it evolves.

Government and government adjacent businesses.

Over the next couple of months.

<unk> wise overall, even though volume was down as you saw in Q3, which was expected a banquet and catering revenue per group room night was actually up.

But.

With all that said.

We do believe that the assets that we have.

So it shows that the groups are still willing to spend when they do show up at the properties. So we don't see any specific.

Perhaps in terms of driving group volume, but as we look at our group pace numbers into Q4 and into the future.

And the quality of the assets, we have and the.

Where customers are saying today, and where they're spending money. The fact that the affluent customer continues to.

Thank you.

Our next question comes from the line of the Crystal Ranke with Deutsche Bank. Please go ahead.

To prioritize premium experiences.

James Risoleo: We track our properties weekly to see what is happening with RedPAR. You know, we're not seeing any slowdown, Chris. I'll tell you that. We just continue to see the affluent customer spend money. That's what gives us confidence that we're set up well for 2026. Okay. Appreciate the detail. Thank you. Our next question will come from the line of Ari Kline with BMO Capital Markets. Please go ahead. Thanks, and good morning. Yeah, on the group side, near-term group booking sounds like they've been maybe a touch softer. Hopefully, you can provide a little bit more color on that and maybe how broad-based that might be across business verticals, and any change in cancellation or attrition or lead volume more broadly from a floor booking standpoint. Thank you. Hey, Ari. There hasn't really been any sort of meaningful cancellation.

Hey, good morning, guys. Thanks for taking the questions.

And we see it not only quarter by quarter or year over year, we see a weekly we track our properties weekly to see what is happening with Revpar.

Congratulations on a very good year to date.

Just wanted to ask on the you guys have I think over time see more success on some of the outbound spend growth, especially on the I think on the group side can.

<unk>.

And you know.

We're not seeing any any slowdown Chris I'll tell you that we just continue to see the affluent customers spend money. So that's what gives us.

Can you maybe talk a little bit about what's driving that it happened.

And to that and you know what it's comprised of whether it's.

Confidence that we're set up well for 2026.

Just more a higher menu prices or more.

Hillary Simon on things like retail spot and just your level of comfort that that can continue thanks.

Okay I appreciate the detail. Thank you.

Our next question will come from the line of Ari Klein with BMO capital markets. Please go ahead.

But there definitely is just increased spend.

Thanks, and good morning.

And whether that's fall, whether that's Wolff, obviously resort destination fee as a component of that.

On the group side near term crude, but it sounded like they've been maybe a touch softer.

Well as.

You provided a little bit more color on that and maybe how broad base.

As we get into next year, you'll obviously get into tougher comps just given how much we have moved particularly on the ancillary revenue.

That might be across.

Business verticals and any change in cancellation or attrition or lead volume more.

In coatings hindering group room night, so if you're looking at next year, we had almost a point of.

Broadly from a bookings standpoint, thank you.

James Risoleo: Besides maybe a little bit what we have seen in D.C. tied with government business, I would say there is not a significant drop in terms of group pace by any means. For Q4, we are set up really well. Our fourth quarter group pace is actually up over 7%. It's almost 8%, so still have a very strong group quarter. The third quarter, we always knew going in that it would be a soft group quarter, given the shift in Jewish holidays. You saw that with the outperformance of October at 5.5%. You kind of have to look at September, October together to see the Jewish holiday shift impact. That's really why group was down in the third quarter, and some of the softness is really related more to government and government-adjacent businesses.

Hey Ali.

There hasnt really been any sort of meaningful cancellation.

Delta between Revpar and total Revpar for for this year that is probably going to swing for next year, just given the tougher comps, but we just given the consumer that we are.

Besides maybe a little bit what we have seen in D. C are tied with our government business, but in general I would say there is not a significant.

We are seeing they continue to spend more and the other thing is also reinventing and repositioning our outlets, which has really benefited.

Drop in terms of group pace by any means for Q4, we are set up really well our fourth quarter group pace is actually up over 7% is almost 8% so still have a very strong quarter.

This year with the.

With a view.

My T and Aviva, the one hotel South Beach, obviously, that's driven meaningful growth. So we're continuing to look at outlet opportunities, where we could really drive incremental returns and incremental EBITDA.

Third quarter, we always knew going in that it would be a soft boot quarter.

From repositioning these outlets. So while there are other opportunities I think next year suddenly you will run into just tougher year over year comps just given a ton of the initiatives that came to fruition for 2025.

James Risoleo: Otherwise, overall, even though group volume was down, as you saw in Q3, which was expected, our banquet and catering revenue per group room night was actually up, which shows that the groups are still willing to spend when they do show up at the properties. We do not see any specific cracks in terms of, you know, driving group volume as we look at our group pace numbers into Q4 and into the future. Thank you. Our next question comes from the line of Chris Woronka with Deutsche Bank. Please go ahead. Hey, good morning, guys. Thanks for taking the questions, and congratulations on a very good year to date. Just wanted to ask on the, you guys have, I think, over time, seen more success on some of the out-of-room spend growth, especially on the, I think, on the group side.

And government adjacent businesses.

Yes.

Otherwise overall, even though grew volume was down as you saw in Q3, which was expected a banquet and catering revenue per group room night was actually up.

Our next question will come from the line of Robin Farley with UBS. Please go ahead.

Great. Thanks.

Just wanted to get a little more.

So it shows that the groups are still willing to spend when they do show up at the properties. So we don't see any specific crops in terms of.

Insight into the group booking pace for next year and when you mentioned its up 5% for 2026.

Room nights and rate and and I think forward banquet revenues just wondering if you could give us a little color on the nights increase versus rate increase just since.

Driving group volume, but as we look at our group pace numbers into Q4 and into the future.

Thank you.

It feels like.

Our next question comes from the line of Christopher <unk> with Deutsche Bank. Please go ahead.

Overall group.

Yes.

But.

But across the industry just wondering if you know.

Hey, good morning, guys. Thanks for taking the questions.

<unk> seen real room night demand coming there or if it's still sort of mostly rate driven which is that's kind of been the case this year. Thanks.

Congratulations on very good year to date.

Just wanted to ask on the you guys have I think over time.

James Risoleo: Can you maybe talk a little bit about what's driving that and what visibility you have into that and, you know, what it's comprised of, whether it's, you know, just more higher menu prices or more ancillary spend on things like, you know, retail and spa, and just your level of comfort that that can continue? Thanks. There definitely is just increased spend, and whether that's spa, whether that's golf, obviously resort destination fee is a component of it as well. As we get into next year, you'll obviously get into tougher comps just given how much we have moved, particularly on the ancillary revenue and banquet and catering group room night. If you're looking at next year, you know, we had almost a point of delta between RevPAR and total RevPAR for this year.

Hey, Robyn so as of where we stand right now it is more room night driven.

See more success on some of the room spend growth, especially on the I think on the group side.

Effectively almost all room night, driven our rate is very slight improvement year over year.

Can you maybe talk a little bit about what's driving that facility into that and you know what it's comprised of whether it's.

And I'm talking about the pace, so the 5% that Jim referred to.

Just just more higher than your prices or more.

We have effectively the same amount.

Ancillary spend on things like retail spot and just your level of comfort that that can continue thanks.

Our group room nights on the books at slightly above relative to last last year in terms of percentage of what we're expecting for next year, but we would expect that group room nights to be more just given the current pacing, but right now as we stand on the 5% just over 3% as group room nights.

Well there definitely is just increased spend.

And whether Thats fall, whether that's Wolff, obviously resort destination fee as a component of it.

As well.

As we get into next year, you'll obviously get into tougher comps just given how much we have moved particularly on the ancillary revenue and.

Okay great.

Perhaps some thanks and maybe just as a quick follow up I know you talked about.

Your priorities and senior on multiple diesel now.

Banquet and catering group room night.

When you do you think about potential.

If you're looking at next year, we had almost a point of <unk>.

James Risoleo: That is probably going to, you know, shrink for next year just given the tougher comps. Just given the consumer that we are seeing, they continue to spend more. The other thing is us also reinventing and repositioning our outlets, which has really benefited this year with the View at the Marriott Marquis and Aviva at the One Hotel South Beach. Obviously, that's driven meaningful growth. We are continuing to look at outlet opportunities where we could really drive incremental returns and incremental EBITDA, you know, from repositioning these outlets. While there are other opportunities, I think next year, certainly you will run into just tougher year-over-year comps just given a ton of the initiatives that came to fruition for 2025. Our next question will come from the line of Robin Farley with UBS. Please go ahead. Great. Thanks.

The acquisitions that you know.

Kind of what could interest you is there anything can you characterize if you feel like there is a market or a type of or just anything that you feel like you would any.

Delta between Revpar and total Revpar for for this year that is probably going to swing for next year, just given the tougher comps, but we just given the consumer that we are we.

Enhance your portfolio just to give us a sense of where your interests might lie. Thanks.

We're seeing they continue to spend more and the other thing is also reinventing and repositioning our outlets, which has really benefited.

Yeah.

I would tell you robin that our asset acquisitions today are very low priority for us.

This year with the.

It just started we don't think today.

With a view at Meredith.

In this environment with what we're seeing in the marketplace that are that we can.

Can generate the types of returns.

Through acquisitions that we can generate through other capital allocation decisions are so.

That includes continuing to invest in our assets continuing to pay a sustainable dividend to our shareholder.

Which we have done consistently since.

Okay.

We exited COVID-19 AR and AR.

Yes.

James Risoleo: I just wanted to get a little more insight into the group booking pace for next year. When you mentioned it's up 5% for 2026, and that's room nights and rate, and I think forward banquet revenues, just wondering if you could give us a little color on the nights increase versus rate increase, just since, you know, it feels like overall group, not just for Host, but across the industry. Just wondering if we're, you know, seeing real room night demand recovery there or if it's still sort of mostly rate-driven, which has kind of been the case this year. Thanks. Hey, Robin. As of where we stand right now, it is more room night-driven. It's effectively almost all room night-driven. Rate is a very slight improvement year over year. I'm talking about the pace, so the 5% that Jim referred to.

Our next question will come from the line of Robin Farley with UBS. Please go ahead.

Be thoughtful about our dispositions.

Dispositions are in this environment I think you know if we if we saw a path forward to.

Great. Thanks.

Just wanted to get a little more.

Insight into the group booking pace for next year and when you mentioned its up 5% for 2026.

Really doing.

And accretive acquisition.

Room nights and rate.

Of course, we would consider it but.

I think for banquet revenues, just wondering if you could give us a little color on the nights increase versus rate increase just since.

But we evaluate everything that's out there in the marketplace.

And we're just not seeing anything that.

It feels like.

That will underwrite at this point in time.

Overall group.

Great very helpful. Thank you.

Yes.

Elizabeth.

But across the industry just wondering if you.

Our next question will come from the line of Smedes Rose with Citi. Please go ahead.

<unk> seen real room night demand coming there or if it's still sort of mostly rate driven which has kind of been the case this year. Thanks.

Hi, Thank you.

I was just hoping maybe you could talk a little bit maybe more sourav about kind of any updated thoughts you have on kind of wages and benefits increase.

Hey, Robyn so as of where we stand right now it is more room night driven.

Effectively almost all room night, driven our rate is a very slight improvement year over year.

Increases in 2026.

New York are there any.

James Risoleo: We had effectively the same amount of group room nights, you know, on the books. It's slightly above relative to last year in terms of percentage of what we are expecting for next year. We would expect the group room nights to be more just given the current pacing. Right now, as we stand on the 5%, just over 3% is group room nights. Okay. Great. Super helpful. Thanks. Maybe just as a quick follow-up, I know you talked about your priorities and seeing your own multiple be so low. When you do think about potential.

Major markets, where labor contracts are coming due or have to be renegotiated.

And I'm talking about the pace, so the 5% that Jim referred to.

We have effectively the same amount.

Yeah. So for 2025, we are still expecting wage rate growth, which would be had messaged earlier on the year at about 6% just given that a lot of the contracts for a front end loaded our expectation is that for next year at the wage rate growth is going.

To be lower how much lower I said little known yet we're still as I said going through budgets will have a better indication and we will provide that information on our next call next year.

Okay great.

Perhaps some things and maybe just as a quick follow up I know you talked about.

James Risoleo: Asset acquisitions that Host or, you know, kind of what could interest you, is there anything, can you characterize if you feel like there's a market or a type of, you know, just anything that you feel like would enhance your portfolio just to give us a sense of where your interest might lie? Thanks. I would tell you, Robin, that asset acquisitions today are a very low priority for us. You know, it just, we don't think today in this environment, with what we're seeing in the marketplace, that we can generate the types of returns through acquisitions that we can generate through other capital allocation decisions. You know, that includes continuing to invest in our assets, continuing to pay a sustainable dividend to our shareholder, which we have done consistently since we exited COVID. You know, we'll be thoughtful about dispositions in this environment, I think.

Your priorities and senior on multiple diesel now.

In terms of contracts that are coming up New York is really the only ones that are coming up for for next year mid next year.

When you do you think about potential.

The acquisitions that.

Kind of what could interest you is there anything can you characterize if you feel like there is a market or a typo just anything that you feel like you would any.

Do you see we are not party to those negotiations with the Union. It is.

Our operators.

Negotiated with the Union and we will see where that ends up it's too early to say at this point in time.

Enhance your portfolio just to give us a sense of where your interests might lie.

Great. Thank you. Thank you.

[laughter].

Our next question comes from the line of Duane <unk> with Evercore ISI. Please go ahead.

I would tell you robin that our asset acquisitions today are very low priority for us.

You know it just started we don't think today.

Hey, thanks.

This feels like the first clean fall in a while on the Gulf coast without any major storms.

In this environment with what we're seeing in the marketplace that are.

That we can generate the types of returns.

Understand there are several puts and takes with operational impacts versus B I.

Through acquisitions that we can generate through other capital allocation decisions. So.

Can you maybe frame the tailwind to growth potential in 2026 from.

That includes continuing to invest in our assets continuing to pay a sustainable dividend to our shareholder.

From no storms on the golf course Gulf Coast. Thank you.

Well Duane.

No we have I think a 24 days left.

Which we have done consistently since.

We exited COVID-19 AR and.

So at the end of the official end of the Hurricane season, So, let's keep our fingers crossed that that.

James Risoleo: You know, if we saw a path forward to, you know, really doing an accretive acquisition, of course, we would consider it. You know, we evaluate everything that's out there in the marketplace, and we're just not seeing anything that we're on the right at this point in time. Great. Very helpful. Thank you. Our next question will come from the line of Smedes Rose with Citi. Please go ahead. Hi. Thank you. I was just hoping maybe you could talk a little bit, maybe more, Sourav, about kind of any updated thoughts you have on kind of wages and benefits increases in 2026. Besides New York, are there any major markets where labor contracts are coming due or have to be renegotiated? Yeah. For 2025, we are still expecting wage rate growth, which would be a message earlier on the year, at about 6%.

And.

We will be thoughtful about dispositions.

Dispositions in this environment I think if we if we saw a path forward to.

You know when we.

Talk in February that this.

This will hold true to form and we won't see anything happen on the Gulf Coast.

This year.

Really doing.

<unk>.

And accretive acquisition.

The tailwind for us will be a really you know the dawn sees our is is performing extremely well.

Of course, we would consider it.

But we evaluate everything that's out there in the marketplace.

And we're just not seeing anything that.

Our expectations are we raised our.

That will underwrite at this point in time.

Okay very helpful. Thank you.

Our assumption for performance this year from $3 million in Q2, two $6 million this year and.

Our next question will come from the line of Smedes Rose with Citi. Please go ahead.

Hi, Thank you.

We're excited with how the dawn is set up for 2026.

I was just hoping maybe you could talk a little bit maybe more so rob about kind of any updated thoughts you have on kind of wages and benefits increase.

You know the the rich Naples continues to.

Increases in 2026.

To really performed quite well in a lot of you have seen that property a lot of you seen tiburon, as well, which we're going to be under which.

New York are there any.

Major markets, where.

Labor contracts are coming due or have to be renegotiated.

Whichever one is gonna be undergoing a completely transformational renovation so.

Yeah. So for 2025, we are still expecting wage rate growth, which would be had messaged earlier on the year at about 6%.

James Risoleo: Just given that a lot of the contracts were front-end loaded, our expectation is that for next year, the wage rate growth is going to be lower. How much lower, I don't know yet. We're still, as I said, going through budgets. We'll have a better indication, and we'll provide that information on our next call next year. In terms of contracts that are coming up, New York is really the only one that is coming up for next year, mid-next year. Obviously, we are not party to those negotiations with the union. It is our operators that negotiate with the union, and we will see where that ends up. It's too early to say at this point in time. Great. Thank you. Our next question comes from the line of Duane Pfennigwerth with Evercore ISI. Please go ahead. Hey, thanks. This feels like the first.

And we will we'll receive the operating profit guarantees for the anticipated disruption, but that will likely have an impact.

Just given that a lot of the contracts for a front end loaded our expectation is that for next year at the wage rate growth is going to be lower how much lower I said little known yet we're still as I said going through budgets will have a better indication and we will provide that information on our next call next year.

On on Revpar for the Gulf Coast, but it's fully anticipated is fully baked in.

And I think that the you know.

The Gulf Coast.

The Gulf Coast of Florida, generally when storms come it affects everything in Florida. So.

No. We're excited with how the one hotel South Beach is performing with how the risk Carlton Amelia Island is performing.

Sure.

In terms of contracts that are coming up on New York is really the only ones that are coming up for next year mid next year.

Singer.

The singer resort is is still ramping after a complete repositioning there as well.

Obviously, we are not party to those negotiations with the Union. It is.

Our operators.

Negotiated with the Union and we will see where that ends up it's too early to say at this point in time.

And this is all being driven by the.

The type of customer that is continuing to prioritize.

Great. Thank you.

Experiences premium experiences because these properties are all really high.

Our next question comes from the line of Duane <unk> with Evercore ISI. Please go ahead.

James Risoleo: Clean fall in a while on the Gulf Coast without any major storms. Understand there are several puts and takes with operational impacts versus BI. Can you maybe frame the tailwinds to growth potential in 2026 from no storms on the Gulf Coast? Thank you. Well, Dwayne, you know, we have, I think, 24 days left till the official end of the hurricane season. Let's keep our fingers crossed that, you know, when we talk in February, this will hold true to form and we won't see anything happen on the Gulf Coast this year. The tailwinds for us will be really, you know, the Don CeSar is performing extremely well. It's beating our expectations. We raised our assumption for performance this year from $3 million in Q2 to $6 million this year.

High end assets and.

So.

Hey, thanks.

Let's get through November and we'll see how the assets perform.

This feels like the first clean fall in a while on the Gulf coast without any major storms.

Into 2026, we did talk a bit about vessels being up and a lot of those assets are.

Understand there are several puts and takes with operational impacts versus B I.

But can you maybe frame the tailwind to growth potential in 2026.

Our part of passive I think was at 9% Oh for this year festive paces up 9%, which is very positive so.

From no storms on the Gulf course Gulf Coast. Thank you.

Well Duane.

Again, I think that this helps us.

No we have I think a 24 days left.

Set up the company very well into 2026.

Till the end of the official end of the hurricane season, So, let's keep our fingers crossed that.

Thank you.

I'll just add there right. When you think about all of the benefit we'll see from http. Next year.

That when we.

Talk in February that this.

We will still obviously be under renovation at the Grand Hyatt Manchester, but every other ACC project effectively be done we should see a lift from that as Jim mentioned earlier, a Super Bowl in San Francisco, We should see a lift from that we have 10 cities, where we are.

This will hold true to form and we won't see anything happen on the Gulf Coast.

This year.

The tailwind for us will be really the dawn CS are.

Is is performing extremely well.

World Cup is gonna be play depending on what team is playing with cities and we should see lift from that so we feel really good about our setup for for next year to be able to drive.

It's beating our expectations are we raised our.

Our assumption for performance this year from $3 million in Q2, two $6 million this year and we.

Incremental top line, so not just organic in the markets, but all of the capital investments that we have made in those specific markets.

James Risoleo: We're excited with how the Don is set up for 2026. You know, the Ritz-Carlton Naples continues to really perform quite well, and a lot of you have seen that property. A lot of you have seen Tiburón as well, which is going to be undergoing a completely transformational renovation. You know, that'll, and we will receive the operating profit guarantees for the anticipated disruption, but that will likely have an impact on REPAR for the Gulf Coast, but it's fully anticipated and it's fully baked in. I think that, you know, the Gulf Coast of Florida generally, you know, when storms come, it affects everything in Florida. You know, we're excited with how the One Hotel South Beach is performing, with how the Ritz-Carlton Amelia Island is performing. The Singer Resort is.

We're excited with how the dawn is set up for 2026.

Our final question will come from the line of Jay Cohen rack with Cantor Fitzgerald. Please go ahead.

The the rich Naples continues to.

Alright, thank you.

Just circling back to the <unk>.

To really performed quite well in a lot of you have seen that property a lot of you seen tiburon as well.

<unk> guidance ranges by $25 million was that more of a portfolio wide story or starting to key markets to call out like Maui and then with the strong October up five 5% on Revpar.

Which we're going to be under with Subaru and it's going to be undergoing a completely transformational renovation. So.

November December shaping up if you can give any commentary on that.

That will.

We will we'll receive the operating profit guarantees for the anticipated disruption, but that will likely have an impact.

Sure thing.

I'll provide.

Okay.

On on Revpar for the Gulf Coast, but it's fully anticipated is fully baked in.

Provided the bridge on the guidance. So it's just clear in terms of under.

$17 five to how we got to the 17th 30.

I think that the.

The Gulf Coast.

When you take the $17 five you're going to add $26 million in terms of just comparable operations lift.

The Gulf Coast of Florida, generally when storms come it affects everything in Florida. So.

And that's $21 million in Q3 and $5 million in Q4 is really across the portfolio. Our guide for Maui has not changed for the full year, that's primarily because even though we have outperformed on the top line for Maui given that it's a we have added a ton of room nights, there have been incremental variable costs.

We are excited with how the one hotel South Beach is performing with how the risk Carlton Amelia Island is performing.

James Risoleo: Still ramping after a complete repositioning there as well. You know, this is all being driven by the type of customer that is continuing to prioritize experiences, premium experiences, because these properties are all really high-end assets. Let's get through November and we'll see how the assets perform into 2026. You know, we did talk a bit about festive being up, and a lot of those assets are part of festive. I think it was at 9% for this year. Festive pace is up 9%, which is very positive. Again, you know, I think that this helps us set up the company very well into 2026. Thank you. Dwayne, I'll just add there, right? When you think about all the benefits we'll see from HTCP next year.

Singer.

The singer resort is.

<unk> is still ramping after a complete repositioning there as well.

This is all being driven by.

With that so that guide for mall, we had 110 has effectively remain the same for the balance.

The the type of customer that is continuing to prioritize.

After a year.

Experiences premium experiences because these properties are all really high.

So that's $26 million overall comparable operations lift another $3 million as Jim mentioned, we have taken a dawn says are from 3 million to $6 million, a 3 million incremental for dawn.

High end assets and.

So.

Let's get through November and we'll see how the assets perform.

Interest income of $6 million and then.

Into 2026, we did talk a bit about vessels being up and a lot of those assets.

Those are all the added the ddos.

$5 million from the dispose that's about $4 million for Metro Center and $1 million for St. Regis and then about $5 million that we talked about for the fall season as condos. So that will get you to the $17 30.

Our part of passive I think was at 9% for this year first at paces up 9%, which is very positive so.

Again, I think that this helps us.

As it relates to November and December right.

Set up the company very well into 2026.

Disappointed you provided October numbers, obviously, the implied Q4 is around one 5%. So when you look at the blended in November December effectively slightly negative now that is fully expected and I will say that in our increased guide for fourth quarter, it's not all of it.

Thank you.

James Risoleo: We will still obviously be under renovation at the Grand Hyatt Manchester, but every other HTCP project effectively will be done. We should see lift from that. As Jim mentioned earlier, Super Bowl in San Francisco, we should see a lift from that. We have 10 cities where World Cup is going to be played. Depending on what teams play in which cities, we should see lift from that. We feel really good about our setup for next year to be able to drive, you know, incremental top line. Not just organic in the markets, but all the capital investments that we have made in those specific markets. Our final question will come from the line of Jay Kornreich with Cantor Fitzgerald. Please go ahead. Hey, thank you. Just circling back to the EBITDA guidance raised by $25 million.

Glenn I would just add there right. When you think about all the benefit we'll see from http. Next year.

We will still have obviously the other renovation at the Grand Hyatt Manchester, but every other ACP project effectively be done we should see lift from that as Jim mentioned earlier Super Bowl in San Francisco, We should see a lift from that we have 10 cities, where we are.

Over two thirds of October one sort of November December as we actually took up our guidance for November and December as well. The result of slightly negative if it's two fold.

World Cup is going to be played depending on what team is playing with cities and we should see lift from that so we feel really good about our setup for for next year to be able to drive.

One is just last year, we had.

Christmas week overlap with Hanukkah, So you didn't have.

Incremental top line, so not just organic in the markets, but all of the capital investments that we have made in those specific markets.

On a separate week, which obviously.

Impacts travel this year, it's a tougher comp hanukkah does not overlap with Christmas week.

Our final question will come from the line of Jay Cohen rack with Cantor Fitzgerald. Please go ahead.

Secondly, last year right. After the elections, we had you may recall short term group pick up.

James Risoleo: You know, was that more of a portfolio-wide story or, you know, certain key markets to call out like Maui? You know, with the strong October up 5.5% on RevPAR, how is November, December shaping up? If you can give any commentary on that. Sure thing. I'll provide the—no, that's fine. Okay. Provide the bridge and the guidance so it's just clear in terms of the 1,705 to how we got to the 1,730. When you take the 1,705, you're going to add $26 million in terms of just comparable operations lift, and that's $21 million in Q3 and $5 million in Q4. It is really across the portfolio. Our guide for Maui has not changed for the full year.

Alright, thank you.

Circling back to the EBIT guidance ranges by $25 million was that more of a portfolio wide story or starting to key markets to call out like Maui and then with the strong October up five 5% on Revpar.

And we did.

Quite a bit of group business towards the end of November beginning of December So that helped 2024, so it's really tougher comps, but overall at this point in time.

Assuming government shutdown gets resolved when we don't have any issues with the <unk>.

November and December shaping up and if you can give any commentary on that.

Travel and airports.

Our well positioned to.

Sure thing.

To be able to achieve our forecast.

I will provide.

Yeah.

Okay.

Very helpful.

Provided the bridge on the guidance. So it's just clear in terms of under.

And that will conclude our question and answer session I'll turn the call back over to Jim for any closing comments.

$17 five to how we got to the <unk> 30.

When you take the 17, five you're going to add $26 million in terms of just comparable operations lift.

Well everyone. Thank you again for joining US today, we really appreciate the time that you spend with us and we appreciated the opportunity to discuss our quarterly results with you and look forward to seeing many of you at upcoming conferences I want to wish everyone, a very wonderful Thanksgiving with your family and friends.

And that's $21 million in Q3, and 5 million in Q4. It is really across the portfolio. Our guide for Maui has not changed for the full year, that's primarily because even though we have outperformed in the topline for Maui given that it's a we have added a ton of room nights, there have been incremental variable cost associated.

James Risoleo: That's primarily because even though we have outperformed in the top line for Maui, given that we have added a ton of room nights, there have been incremental variable costs associated with that. That guide for Maui at $110 has effectively remained the same for the balance of the year. That's $26 million overall comparable operations lift. Another $3 million, as Jim mentioned, we have taken Don CeSar from $3 million to $6 million, so $3 million incremental for Don. Interest income of $6 million. Those are all the adds. The deducts are $5 million from the dispos. That's about $4 million for Metro Center and $1 million for St. Regis. Then about $5 million that we talked about for the Four Seasons condos. That will get you to the $1,730.

Sure.

This concludes our call today. Thank you for joining you may now disconnect.

With that so that guide from Al. We had 110 has effectively remain the same for the balance.

After a year.

So that's $26 million overall comparable operations lift another $3 million as Jim mentioned, we have taken a dawn says are from 3 million to $6 million or 3 million incremental for dawn.

Interest income of $6 million.

Then.

Those are all the AD the ddos.

James Risoleo: As it relates to November and December, right, at this point, we have provided October numbers. Obviously, the implied Q4 is around 1.5%. When you look at the blended November, December, it's effectively slightly negative. That is fully expected. I will say that in our increased guide for fourth quarter, it's not all October. Two-thirds of October, 1/3 is November, December. We actually took up our guide for November, December as well. The reason it's slightly negative, it's twofold. One is just last year we had Christmas week overlap with Hanukkah. You didn't have Hanukkah in a separate week, which obviously impacts travel. This year, it's a tougher comp. Hanukkah does not overlap with Christmas week. Secondly, last year, right after elections, we had, you may recall, short-term group pickup. We did.

As it relates to November and December right.

At this point you provided October numbers, obviously, the implied Q4 is around one 5%. So when you look at the blended in November December it's effectively slightly negative now that is fully expected and I will say that in our increased guide for fourth quarter.

All October to October one sort of November December as we actually took up our guidance for November and December as well. The result of slightly negative if it's two fold.

One is.

Last year, we had.

Christmas week overlap with Hanukkah. So you didn't have a lot of on a separate week, which obviously.

Impacts travel this year, it's a tougher comp hanukkah does not overlap with Christmas week.

James Risoleo: Quite a bit of group business towards the end of November, beginning of December. That helped 2024. It's really tougher comps. Overall, at this point in time, assuming government shutdown gets resolved and we don't have any issues with travel and airports, we are well positioned, you know, to be able to achieve our forecast. Very helpful. That will conclude our question and answer session. I'll turn the call back over to Jim for any closing comments. Well, everyone, thank you again for joining us today. We really appreciate the time that you spend with us, and we appreciated the opportunity to discuss our quarterly results with you and look forward to seeing many of you at upcoming conferences. I want to wish everyone a very wonderful Thanksgiving with your family and friends. Take care. This concludes our call today. Thank you for joining.

Secondly, last year right. After the elections, we had you may recall short term group pickup.

And we did.

Quite a bit of group business towards the end of November beginning of December So that helped 2024, so it's really tougher comps, but overall at this point in time.

Assuming government shutdown gets resolved when we don't have any issues with the.

Travel and airports.

Our well positioned to.

To be able to achieve our forecast.

Alright.

And that will conclude our question and answer session I'll turn the call back over to Jim for any closing comments.

James Risoleo: You may now disconnect.

Sure.

This concludes our call today. Thank you for joining you may now disconnect.

Yeah.

Okay.

[noise].

Yeah.

Q3 2025 Host Hotels & Resorts Inc Earnings Call

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