Q3 2025 Host Hotels & Resorts Inc Earnings Call

November 6, 2025

Jaime Marcus: International information on our website at hosthotels.com. 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.

information on our website at Host, hotels.com

with me on today's call our gym rosolio,

President and chief executive officer and sarov. Gosh, Executive Vice President and Chief Financial Officer.

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

James Risoleo: Thank you, Jamie, 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 EBITDAre 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 EBITDAre 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 at Metro Center, which was sold in the third quarter, and the St.

Jim Risoleo: Thank you, Jamie, 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 EBITDAre 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 EBITDAre 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 at Metro Center, which was sold in the third quarter, and the St.

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

We continue to have reformed 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 ibida re of 319 million, a decrease of 3.3% over last year and adjusted ffo per share of 35 cents which is down 2.8% compared to the third quarter of 2024.

Year to date compared to 2024 adjusted ibida 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 sir and the Don CeSar.

James Risoleo: Regis Houston, which was held for sale as of Q3 and is expected to be sold in Q4. Comparable Hotel Total RevPAR improved by 80 basis points compared to Q3 2024, and Comparable Hotel RevPAR 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, RevPAR growth in Q3 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.

Regis Houston, which was held for sale as of Q3 and is expected to be sold in Q4. Comparable Hotel Total RevPAR improved by 80 basis points compared to Q3 2024, and Comparable Hotel RevPAR 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, RevPAR growth in Q3 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.

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

Comparable Hotel, total red. Par improved by 80 basis points. Compared to the third quarter of 2024 in comparable Hotel revpar. Improved by 20 basis points due to better than expected short-term, transient, demand, pickup, and higher rates across our portfolio.

Comparable Hotel IBA margin for the quarter declined by 50 basis points year-over-year to 23.9% driven by expense increases and 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.

James Risoleo: We saw particularly strong performance in Maui, San Francisco, New York, and Miami. Digging into Maui, the leisure transient demand recovery continued. Maui's 20% RevPAR growth and 19% RevPAR 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 Q3, 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.

We saw particularly strong performance in Maui, San Francisco, New York, and Miami. Digging into Maui, the leisure transient demand recovery continued. Maui's 20% RevPAR growth and 19% RevPAR 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 Q3, 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.

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.

Digging into Molly, the Leisure, transient demand, recovery continued, Maui's 20%, repar growth, and 19% trip Park growth were driven by a substantial increase in occupancy and strong out of room spending on FNB 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 Transit.

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.

James Risoleo: Ancillary spending by guests remained strong, as evidenced by our 80 basis points total RevPAR growth in Q3. 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 Q3, 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 remained strong, as evidenced by our 80 basis points total RevPAR growth in Q3. 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 Q3, 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, remain strong as evidenced by our 80 basis, point total, repar growth in the third quarter.

FNB 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 Gulf and Spa.

Turning to the Don CeSar.

We completed the Final Phase of reconstruction. In the third quarter, reopening 2 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.

Bookings, which allowed us to raise our full year? Ebita expectations for the resort to 6 million from 3 million.

James Risoleo: We collected $5 million of business interruption proceeds for Hurricanes Helene and Milton in Q3, which we discussed on our Q2 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 at 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.

We collected $5 million of business interruption proceeds for Hurricanes Helene and Milton in Q3, which we discussed on our Q2 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 at 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.

We collected 5 million of business, Interruption proceeds for Hurricane, Haines, 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 precedes, 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 12.7 times trailing 12-month ibida.

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 Q3, 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, and subsequent to quarter end, we substantially completed the Hyatt Regency Austin. 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.

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 Q3, 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, and subsequent to quarter end, we substantially completed the Hyatt Regency Austin. 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.

As part of the transaction, we provided 114 million of seller financing at a 6 and a half percent interest rate in order to facilitate a 1031 exchange for the buyer in a timely manner.

Since 2018, we have disposed of approximately $5.2 billion of hotels at a blended 17.1 times EBITDA multiple, including an estimated $4 billion in capital expenditures, which compares favorably to our $4.9 billion of acquisitions. Over the same period, we achieved a blended multiple of 13.

18.6 times even a multiple.

Turning to portfolio, reinvestment.

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

Renovations, at the Hyatt Regency Capitol Hill are complete in subsequent to quarter end. We substantially completed the higher Regency Austin.

James Risoleo: 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. 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.

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. 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.

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.

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 4 properties in our portfolio.

The properties include the Ritz Carlton. Marina Del Rey the Ritz Carlton Naples Resort at tiberon the Westin Carolyn and the New Orleans Marriott which is already underway.

We believe these reinvestments will position the hotels to outperform competitors and 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.

James Risoleo: 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. Similar to the first Marriott Transformational Capital Program, we are targeting average RevPAR 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 Villa Suites, both of which are expected to complete in Q4 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 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. Similar to the first Marriott Transformational Capital Program, we are targeting average RevPAR 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 Villa Suites, both of which are expected to complete in Q4 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.

Which is expected to be between 300 and 350 million over the next 4 years.

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

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, Marquee and made additional progress on the condo development. At the 4 Seasons Resort Orlando at Walt Disney World Resort.

James Risoleo: We now have deposits and purchase agreements for 23 of the 40 units, including 8 of the 9 villas. 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.

We now have deposits and purchase agreements for 23 of the 40 units, including 8 of the 9 villas. 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.

Construction on the mid-rise condominium building at the 4 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.

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

Which includes Beach between 75 million and 800 million for property damage reconstruction. The majority of which we expect to be covered by insurance.

Investment for redevelopment repositioning and Roi projects.

we expect to benefit from approximately 24 million of operating profit, guarantees related to the higher transformational Capital program in 2025,

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

James Risoleo: 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. Looking back at prior transformational renovations and adjusting for the sale of Washington Marriott at 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 RevPAR 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.

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. Looking back at prior transformational renovations and adjusting for the sale of Washington Marriott at 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 RevPAR 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.

We also expect to receive 2 million dollars 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 4 Seasons Resort Orlando at Walt Disney World Resort in 2025.

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 Tailwind for our portfolio.

Of the 20s that have stabilized post renovation operations. Today, 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.

James Risoleo: 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 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 RevPAR and Total RevPAR guidance estimates to approximately 3% and 3.4%, respectively. We are also increasing our Adjusted EBITDAre 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.

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 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 RevPAR and Total RevPAR guidance estimates to approximately 3% and 3.4%, respectively. We are also increasing our Adjusted EBITDAre 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.

in August, we released our 2025 corporate responsibility report, which details our CR program, our key impact initiatives in 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 CR report can be found on the corporate responsibility section of our website at Host. Hotels.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 here today and improved expectations for the fourth quarter. We are increasing our comparable hotel, repar and total rep. Par guidance estimates to approximately 3%, and 3.4% respectively.

We are also increasing our adjusted IBA re guidance to 1,730 million representing a 25 million or 1 and a half percent Improvement.

James Risoleo: 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. Wrapping up our Q3 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.

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. Wrapping up our Q3 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.

Saab 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 Eva Expectations by 110 million.

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 8 years,

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

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

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.

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.

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

With that, I will now turn the call over to sarra.

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.

Starting with total revenue Trends, comparable Hotel, total rep. Pug growth continued to outpace rough. POG 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.

James Risoleo: 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 Aviv at the 1 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. 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 Q3, as golf and spa revenues continued to grow.

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 Aviv at the 1 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. 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 Q3, as golf and spa revenues continued to grow.

Innovated View at the New York Marriott, Marquee, and Aviv at the 1 South Beach.

Overall, outfit 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 to a group room night.

Additional headwinds to growth included, a tough comparison from a 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.

James Risoleo: 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. 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 Oceanfront Resort, the 1 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.

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. 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 Oceanfront Resort, the 1 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.

Other Revenue grew 7% in the third quarter as Golf and Spa revenues continue to grow. In fact, Spa Revenue was up double digits. Driven by strength across the portfolio and continued Tailwind from recent Spar Renovations at our Western Carolyn and Ritz Carlton and media Islands 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.

During the third quarter. Our Resort saw 3% transient rate, growth year-over-year alongside 10% transient room night, growth driven by Maui the recently repositioned Singer Island. Resort the 1 Hotel, South Beach, and both of our 4 Seasons resorts.

Excluding Maui transient Revenue at our Resorts was up 8% indicating broad-based strength in luxury Visa Travel.

James Risoleo: 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. Business transient revenue was down 2% to Q3 2024, as a decline in government room nights outpaced government and special corporate rate increases. For context, government room nights were down 20% in Q3, which is in line with decreases we saw in Q2. 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.

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. Business transient revenue was down 2% to Q3 2024, as a decline in government room nights outpaced government and special corporate rate increases. For context, government room nights were down 20% in Q3, which is in line with decreases we saw in Q2. 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.

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, training and revenue pays 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.

Business Transit Revenue was down 2% to the third quarter of 2024 as a decline in government room, 9 outpatient, 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.

James Risoleo: 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. 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.

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. 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.

Turning to group as expected Revenue was down approximately 5% year-over-year driven by planned. Renovations 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 groups 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.

For full year 2025, we have 4 million definite group room lights 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 bankruptcy at our resorts.

James Risoleo: 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 Q3 2024, driven primarily by elevated rate growth. We continue to expect negative year-over-year margin comparisons for Q4, again primarily driven by elevated wages and benefits growth. 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. We now expect comparable hotel RevPAR growth of approximately 3% and comparable hotel total RevPAR growth of 3.4% compared to 2024.

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 Q3 2024, driven primarily by elevated rate growth. We continue to expect negative year-over-year margin comparisons for Q4, again primarily driven by elevated wages and benefits growth. 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. We now expect comparable hotel RevPAR growth of approximately 3% and comparable hotel total RevPAR growth of 3.4% compared to 2024.

Looking ahead, our 2026 total group Revenue pace is approximately 5% ahead of the same time last year driven by rate room nights and Banker contribution. In fact 2026 Citywide group room night Pace. In key markets, including New Orleans, Washington DC, and San Francisco is up meaningfully compared to the same time last year.

shifting gears to margins comparable Hotel, Evita margin of 23.9% was 50 basis points below the third quarter of 2024 driven primarily by elevated weight rate growth

Growth.

24 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.

James Risoleo: We expect low single-digit RevPAR growth in the fourth quarter and improvement over our prior guidance, partially driven by strong estimated RevPAR 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. Our guidance also takes into account the limited impact we saw from the government shutdown in October, primarily in Washington, DC, and San Diego. If the government shutdown continues through the end of the year, full-year RevPAR growth could be negatively impacted. We expect a comparable hotel EBITDA margin of approximately 28.8%, a 20 basis points improvement over our prior guidance midpoint, which is 50 basis points below 2024. Our 2025 full-year Adjusted EBITDAre guidance is $1,730 million.

We expect low single-digit RevPAR growth in the fourth quarter and improvement over our prior guidance, partially driven by strong estimated RevPAR 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. Our guidance also takes into account the limited impact we saw from the government shutdown in October, primarily in Washington, DC, and San Diego. If the government shutdown continues through the end of the year, full-year RevPAR growth could be negatively impacted. We expect a comparable hotel EBITDA margin of approximately 28.8%, a 20 basis points improvement over our prior guidance midpoint, which is 50 basis points below 2024. Our 2025 full-year Adjusted EBITDAre guidance is $1,730 million.

we now expect comparable Hotel, rough Park roads of approximately 3% and comparable Hotel, total Repro growth of 3.4% compared to 2024

We expect those single digit Refugee growth in the fourth quarter and improvement over our prior guidance partially driven by strong estimated rough for growth of 5 and a half percent 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.

Our guidance also takes into account. The Limited impact we saw from the government shutdown in October primarily in Washington, DC, and San Diego.

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

Fully a rough could be negatively impacted.

we expect a comparable Hotel ibida margin of approximately 28.8%, a 20 basis, point improvement over our prior guidance midpoint, which is 50 basis points below 2024

James Risoleo: 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 2025 full-year Adjusted EBITDAre 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.

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 2025 full-year Adjusted EBITDAre 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.

Our 2025 full year, adjusted ibida. Ari guidance is 1,730 million.

This represents a 25 million or 1 and a half percent 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 Helen and Milton in 2025.

Our 2025 full year adjusted ibida. Re guidance also includes 16 million dollars of estimated ibida from the 4 Seasons condo development, which we expect to recognize concurrent with condo sales closings in the fourth quarter.

The expected 2025 ibida contribution from the condo development has declined by 5 million. As 8 of the 23, contracts signed thus far have been for the Villas which are expected to close in 2026.

James Risoleo: Lastly, our Adjusted EBITDAre 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. 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 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 FF&E reserves and $1.5 billion available under the revolver portion of the credit facility. Our quarter-end leverage ratio was 2.8x, and since our last call, Moody's upgraded the company's issuer rating from BAA3 to BAA2 with a stable outlook.

Lastly, our Adjusted EBITDAre 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. 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 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 FF&E reserves and $1.5 billion available under the revolver portion of the credit facility. Our quarter-end leverage ratio was 2.8x, and since our last call, Moody's upgraded the company's issuer rating from BAA3 to BAA2 with a stable outlook.

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

Lastly, our adjusted IBA Ari guidance. Includes an estimated $6 million contribution from the Don CeSar and Improvement of $3 million. Since last quarter,

And an estimated 14 million dollar contribution from Leila Ventana, big Sue and Improvement of 1 million. Since last quarter.

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

Turning to a strong balance sheet and liquidity positions are weighted. Average maturity is 5.2 years at a weighted average interest rate of 4.9%

We currently have 2.2 billion dollars in total available liquidity, which includes 205 million of effort in E reserves and 1.5 billion dollars 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.

James Risoleo: 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. 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 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.

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. 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 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.

A 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 20 cents per share.

As always future Dividends are subject to approval. By the company's board of directors. 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 positioned host to outperform in the current environment, while capitalizing on opportunities, for growth in the future,

Operator: We will now begin the question-and-answer session. If you'd like to ask a question, simply press star then the number 1 on your telephone keypad. To withdraw your question, press star 1 again. Our first question comes from the line of David Katz with Jefferies. Please go ahead.

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 1 question.

James Risoleo: If you'd like to ask a question, simply press star then the number 1 on your telephone keypad. To withdraw your question, press star 1 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. 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. But, you know, the asset sale during the quarter, you know, 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.

David Katz: Hi, good morning, everybody. Thanks for taking my question. 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. But, you know, the asset sale during the quarter, you know, 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.

First question comes from the line of David Katz, with Jeffrey's please go ahead.

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

James Risoleo: You know, 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? And, 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. 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. So, 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.

You know, 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? And, 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.

Look, you know, a couple things and and this is, you know, I hope the broad question, you know, Jim and team that that, you know, you like to answer but you know the the asset sale during the quarter the, you know, investments in what you've done and and sort of the outperformance that that we're seeing in the portfolio. You know. It it does suggest that you know some differentiation of yourselves versus the group. Overall you know part 1 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 and you know second how are you thinking broadly about

Jim 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. So, 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.

You know, valuation. And you know, other ways that you can capture a little differentiated value for hosts in the public market. I know there's a lot in there, but I'll take what you got. Thank you.

I'll start, uh, David. And then, uh, sir, I'll feel free to jump in along the way. Uh, I'll answer your your first question regarding, um,

As the asset sales, uh, that we have, uh, completed year to date and the setup in the market generally for uh, transactions. So, uh

James Risoleo: 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 at Metro Center at 12.7x trailing 12 months yield, a 6.5 cap rate urban hotel, you know, is a, 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. You know, we're trading at 9.4x EBITDA ±, and we're able to execute on that deal at 12.7x. Come on, guys, you know, 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.

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 at Metro Center at 12.7x trailing 12 months yield, a 6.5 cap rate urban hotel, you know, is a, 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. You know, we're trading at 9.4x EBITDA ±, and we're able to execute on that deal at 12.7x. Come on, guys, you know, 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.

On many occasions, uh, both, uh, in in meetings and on earnings calls. I've said that we will be opportunistic, uh, with our Capital allocation, when it comes to dispositions, uh, and Acquisitions. And the, uh, the 2 deals that we've already announced and provided metrics on this year. I think are really strong indications of our ability to execute, uh, to sell, uh, the Washington mayor of Metro Center, uh, a 12.7 times trailing 12-month View at a, a 6 and a half cap rate, uh, Urban Hotel. Um, you know, is a, um, I think a, a solid read through and many ways with respect to

James Risoleo: St. Regis Houston as well. We're not in a position to talk about that today. So 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 2.8 times. 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. And, 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 RevPAR and EBITDA, every quarter this year.

St. Regis Houston as well. We're not in a position to talk about that today. So 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 2.8 times. 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. And, 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 RevPAR and EBITDA, every quarter this year.

what sort of value is locked in this company. I mean, that's not 1 of our best assets and, you know, we're trading is 9.4 times, plus IBA, plus or minus, and we're able to execute on that deal with 12.7 times. Come on, guys. You know, where's the multiple? Let's go. Um, and, uh, you know, uh, the same with the disposition of the western Cincinnati, um, as well as, uh, you know, when we're in a position to talk about it, I think you'll be pleased with the metrics on the the same regions in Houston as well. We, we're not in a position to talk about that today. So we continue

To, um, to test the market. Uh, we don't have to sell anything. I'll make that perfectly. Clear, if you know, we're sitting here with over 2 billion dollars of liquidity today, and a leverage ratio of 2.8 times a true differentiator, uh, not only among lodging rates. The only investment grade balance sheet, but amount of grease in general. Uh, it, it is truly a fortress balance sheet and you know, that leads to uh, what we've been able to accomplish with the portfolio. Uh, you know,

James Risoleo: We went from 1.5% RevPAR guide in the February call and $1.62 billion of EBITDA guide to the bottom line. Today, we raised that to 3% RevPAR guide, top line. We raised our EBITDA guide by $110 million. So, 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. You know, as Sourav mentioned, and we both mentioned in our comments, we anticipated three to five points in RevPAR Index gains. Well, for the 23 properties that are left, I mean, Metro Center was one of them, we've achieved 8.5 points in RevPAR Index gains. That is meaningfully above mid-teens cash-on-cash returns.

We went from 1.5% RevPAR guide in the February call and $1.62 billion of EBITDA guide to the bottom line. Today, we raised that to 3% RevPAR guide, top line. We raised our EBITDA guide by $110 million. So, 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. You know, as Sourav mentioned, and we both mentioned in our comments, we anticipated three to five points in RevPAR Index gains. Well, for the 23 properties that are left, I mean, Metro Center was one of them, we've achieved 8.5 points in RevPAR Index gains. That is meaningfully above mid-teens cash-on-cash returns.

We are we have a differentiated portfolio. I mean, the performance is, uh, is proof that the capital allocation decisions that we made since 2018 have paid off, uh, in a material way. Uh, we have raised, uh, guidance both repar and IBA every quarter. This year. Uh, we went from 1 and a half percent uh,

Rep per guide in uh the February call and a billion 600 and uh 20 million dollars of ibida, Guide to the bottom line uh today.

We raised that to 3% repari Topline and we raised our EB bit of guy by 110 million. So

You know, the the Investments we made in our uh assets uh from 2019 to 2023, we've invested over 2 billion dollars in Roi projects throughout the portfolio. Uh Marriott transformational Capital program.

16 hotels. Uh, we completed another 8 uh,

James Risoleo: So 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. And that coupled with, you know, 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 evolving here and what we're seeing in 2026, the setup going forward. So, you know, the transaction market itself is, I would say, still tepid. There is not a lot of flow.

So 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. And that coupled with, you know, 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 evolving here and what we're seeing in 2026, the setup going forward. So, you know, the transaction market itself is, I would say, still tepid. There is not a lot of flow.

James Risoleo: 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 Bellisaria with Baird. Please go ahead. Thanks. Good morning, everyone. Jim. My question's on CapEx. It 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?

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%.

Our top 40 assets, uh, contribute, 80% of our ibida and you can do the math. I mean, we did 24 assets already transformational, we doing 6 with Hyatt. We're doing another 4 with Marriott, we're all on the way and we will continue to deploy Capital uh, in our assets because it's our clearest line of sight to see improvements in bottom line performance. And that coupled with, you know, I would say what we acquired. But as importantly, what we sold is really leading to the outperformance today. And, and we're, we're just really excited with how things are, uh, evolving here. And what we're seeing in, uh, 2026, uh, the setup, uh, going forward. So, um, you know, the, the, the transaction Market itself, uh, is, uh, I would say still tepid. There is not a lot of flow, uh, you know, going back to Metro Center. I'll end, uh, uh, I'll end with how I

I began. I mean, the fact that we have relationships and that people see, uh, us when they need a, uh, 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.

David Katz: Thank you.

Differentiator 100%.

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

Thank you.

Michael Bellisario: Thanks. Good morning, everyone. Jim. My question's on CapEx. It 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.

Our next question will come from the line of Michael Bellisario with...

Please go ahead.

Thanks. Good morning, everyone.

James Risoleo: 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. 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. So, 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 lift we believe that we could get through transformational renovations. And 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.

Jim Risoleo: 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. So, 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 lift we believe that we could get through transformational renovations. And 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.

My questions on capex, it it kind of seems broadly that renovation returns have been coming down but but you've been bucking that Trend. So I guess 2 parts, I guess 1. How are you? Picking the hotels and markets to to invest in and 2? 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.

Shure mic. Um, yeah, you know we, uh, uh,

Obviously screen all of our assets, uh, to determine what assets um we should be putting capital in and the level of uh, capex. That that should be uh invested in any particular property. So, you know, as an example the the 4 new Assets in the Marriott transformational Capital program uh were decided upon after.

James Risoleo: But 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. And 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. And we work collaboratively with Marriott as well. So, you know, we're delighted that 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. And I think that's really important to stay focused on.

But 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. And 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. And we work collaboratively with Marriott as well. So, you know, we're delighted that 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. And I think that's really important to stay focused on.

We as a team, our design and construction group our asset management group, our Enterprise analytics group, um, really looked at, uh, what sort of, um, uh, lift. We believe that we could get, uh, through transformational Renovations. And I, I do want to emphasize the word transformational because, you know, it it's 1 thing to just do a rooms redo, that could be deemed to be somewhat defensive, uh, you have to do it, but if we see an opportunity to completely reposition a property, you know, including a new arrival experience, a new Lobby, uh, new FNB, uh, platform, uh, and, uh, you know, it it Kierland, uh, you know, we redid the spa, uh, and and now we're doing the rest of the hotel. Um, you know, that is how our decision is made, uh, to allocate capital and obviously, you know, we work, very collaboratively with our operators. Uh, you know, we work collaboratively with uh, with Hyatt on the 6.

Process that we selected. Uh, and the, the scope of, uh, the renovation and, uh, we work collaboratively with Marriott, uh, as well. So, you know, we're delighted that, uh, not only given our size and scale, but our relationships, uh, and our ability to perform has allowed us to, uh, again, um, distinguish ourselves through, uh, the mtcp program, htcp program and

James Risoleo: 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. So 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. And 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. But, 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. And 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, 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. So 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. And 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. But, 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. And 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.

James Risoleo: You know, 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 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. And 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. 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.

You know, 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 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. And 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.

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

For our shareholders. And, uh, we believe investing in our assets. Uh, at least at this point in time, with our stock price, not disrupted. Uh, is where we will derive the better returns, you know, we, we bought back 200 million dollars worth of stock and, 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, uh, down the road, uh, over a period of time. Well, you know, the multiple hasn't moved anything. So we're still where we were, and it's very difficult to see a clear line of sight, uh, to underwrite a, a, a, a strong irr on a stock buyback. When we have a clear line of sight to investing in our assets,

Cooper Clark: 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?

Our next question will come from the line of Cooper, Clarke with Wells. Fargo, please go ahead.

James Risoleo: 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. So 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. And last year, at the same time, we had 55,000 on the books. Compare that to back in 2019. At the same time, we had 73,000 group room nights on the books. So in other words, we're effectively 92% of the way already there relative to 2019 at a pretty attractive rate.

Jim Risoleo: Sure. So 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. And last year, at the same time, we had 55,000 on the books. Compare that to back in 2019. At the same time, we had 73,000 group room nights on the books. So in other words, we're effectively 92% of the way already there relative to 2019 at a pretty attractive rate.

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 recovery into 26? From an earnings perspective, within the context of the 110 million guide implied in 25 guests.

James Risoleo: So 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. And it's going to be, you know, right now, this is a wide range between the $110 million and the $160 million that we talked about. So hopefully, we will make 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.

So 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. And it's going to be, you know, right now, this is a wide range between the $110 million and the $160 million that we talked about. So hopefully, we will make incremental progress next year, but things are looking really, really good as it relates to group pace for 2026.

Uh, sorry, so Maui continues to recover really? Well, our total group, Revenue pays for 2026 is a positive 13% versus the same time, uh, last year just to put this in, um, to perspective in terms of group room lights, uh we already have 67,000 group room lights on the books for 2026. Um, and last year, at the same time, we had 55,000 on the books. Uh, compare that to back in 2019. At the same time we had 73,000 group room lights on the books. So in other words we're effectively 92% of the way. Already there relative to 2019 at a, um, a pretty attractive rate. So we feel pretty confident that, um, Maui is going to continue to recover in terms of exactly how much incremental I we expect. In addition to the 110 million of ibida that we are forecasting for this year, um, obviously we're still very preliminary.

Cooper Clark: Great. Thank you.

Um, reviews of the, the budgets we don't have an exact number, but we are very hopeful that it's going to be positive, um, and it's going to be a, you know, right now I'll just say it's a wide range between the 110 and the, the 160 that we talked about. So, uh, hopefully we will make, uh, incremental, progress next year, but we're things are looking really, really good. As it relates to group pace for 2026.

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

Great. Thank you.

Chris Darling: 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 CeSar, Turtle Bay, maybe there's others that you'd call out. So any way you could speak to that and perhaps quantify to some extent as well.

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

James Risoleo: 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 CeSar, Turtle Bay, maybe there's others that you'd call out. So 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. I mean, San Francisco is recovering really well. It's recovering nicely. The 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.

Jim Risoleo: 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. I mean, San Francisco is recovering really well. It's recovering nicely. The 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.

Thanks, good morning. Uh, Jen, uh, you alluded to, you know, feeling good about host setup for 2026. I'm hoping you could elaborate, you know, 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, the dawn, um, Turtle day, maybe there's others that you'd call out. Um, so anyway, you could speak to that and perhaps quantify to some extent as well.

Sure. Uh, happy to Chris, uh, you know, we have uh,

James Risoleo: The 2026 citywide group room night pace is up 7% to last year and a following 54% increase in 2025. So, you know, San Fran 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%. So we're optimistic about San Francisco. We also have Super Bowl in San Francisco as well next year. 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 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.

The 2026 citywide group room night pace is up 7% to last year and a following 54% increase in 2025. So, you know, San Fran 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%. So we're optimistic about San Francisco. We also have Super Bowl in San Francisco as well next year. 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 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.

A, a number of our key markets. Uh, we are seeing really strong total, group, Revenue pace for 2026. So Rob touched on Maui. Uh, uh, as 1 example. Uh, San Francisco. Is another 1, I mean. San Francisco is recovering, really well, as recovering nicely, uh, the 2026 total group Revenue, pace for San Fran is up over 20%, uh, for our portfolio and group rate is pacing up, 10% group room room, nicer pacing up 3%. So we feel really good about that. And the, uh, the 26th, uh, Citywide, uh, group room night Paces, up 7%, uh, uh to, uh, um, till last year, uh, in, uh, up, uh, following

54% increase in 2025. So uh, you know, San Fran has I think turned the corner. Uh it it really has the the mayor and uh the president of the San Francisco travel are are really out there, taking the lead for positive change for the city. Uh, you know, violent crime is down 22% in the city and property. Current crime is down 25%. So, uh, we're optimistic about San Francisco and we also have, uh, Super Bowl in San Francisco, uh, as well, uh, next year, um, and the other broad, uh,

James Risoleo: 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. So 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%. So 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. 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.

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. So 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%. So 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. 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.

Portfolio. And I'll give you some uh color on a couple of other major markets, but we have uh, 10 markets where uh we're going to see benefits from the World Cup as well, uh, and uh, uh, that's going to provide a uh, a big positive for us as an example. I think, uh, in New York, um, you know, World Cup should be very positive for the market, uh, you know, the hosting a total of 8 games, uh, including the, uh, the final. Uh, so, uh, it's going to, uh, bring, uh, additional tourism to New York City, uh, as well. Uh, Washington DC is another bright star for us next year. Uh, total group. Revenue pace is up. 13%, uh,

uh, uh, so we feel good about that, uh, Nashville, uh, total group Revenue Paces, up 26%,

So there are a lot of really positive things out there, uh, uh, on the group side of the business, and we're about 36% groups. So it's meaningful to us. Uh, absolutely. Uh, our total group Revenue pays for the year at this point is up 5%, mid mid single digits. Um, you know, we'll be watching that very closely to see how it evolves.

James Risoleo: But, 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. And the quality of the assets we have and the, 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. We track our properties weekly to see what is happening with RevPAR. And, you know, we're not seeing any slowdown, Chris. I'll tell you that. We just continue to see the affluent customer spend money.

But, 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. And the quality of the assets we have and the, 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. We track our properties weekly to see what is happening with RevPAR. And, you know, we're not seeing any slowdown, Chris. I'll tell you that. We just continue to see the affluent customer spend money. So that's what gives us confidence that we're set up well for 2026.

Over the next couple of months. Uh, but, you know, with all that said, we do believe that the assets that we have.

uh, the fact that we have

James Risoleo: So 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 Klein 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 volumes more broadly from a flow booking standpoint. Thank you. Hey, Ari. There hasn't really been any sort of meaningful cancellation besides maybe a little bit what we have seen in DC tied with government business. But in general, I would say there is not a significant drop in terms of group pace by any means.

Chris Darling: Okay. Appreciate the detail. Thank you.

graphic diversification. We have no, no 1 market that delivers more than 8% of our ibida and that's been very thoughtful as we, uh, assembled this portfolio and as we run the business, uh, and uh, the quality of the assets we have. And the, um, you know, where customers are staying today and where they're spending money. Uh, the fact that the affluent customer continues, uh, to prioritize premium experiences, uh, and, and we see it not only quarter by quarter or, you know, a year over year, we see it weekly. We, we track our properties weekly to see what is happening with, uh, repar. Uh, and, uh, and, you know, we're not seeing any any slowdown Chris. I, I'll tell you that. We just continue to see, uh, the appliance customer spend money. So that's what gives us up, uh, confidence that, uh, we're set up well for 2026.

Operator: Our next question will come from the line of Ari Klein with BMO Capital Markets. Please go ahead.

Okay, appreciate the detail. Thank you.

Ari Klein: 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 volumes more broadly from a flow booking standpoint. Thank you.

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

Thank thanks, and good morning. Um, yeah, on the group side, uh, near-term group, booking sounds like they've been maybe a touch softer. Oh, you can provide a little bit more color on that and you maybe have broad-based, um, that it, that might be a

Jim Risoleo: Hey, Ari. There hasn't really been any sort of meaningful cancellation besides maybe a little bit what we have seen in DC tied with government business. But in general, I would say there is not a significant drop in terms of group pace by any means.

Pro um, business verticals and any change in cancellation or attrition or lead volumes more. Uh broadly from a 4 book standpoint. Thank you.

James Risoleo: 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. And you saw that with the outperformance of October at 5.5%. 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 government and government-adjacent businesses.

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. And you saw that with the outperformance of October at 5.5%. 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 government and government-adjacent businesses.

Hey Ari. Uh, there hasn't really been any sort of meaningful uh cancellation. Um besides maybe a little bit, what we have seen in DC uh tied with government business. But in general I would say there, there is not a significant, um, drop in terms of group Pace by any means. Uh, for Q4, we are set up really well. Our fourth quarter group pace is actually up over 7% is almost a 8%. So still have a very strong group quarter, um, the third quarter, we always knew going in that it would be a soft group quarter, uh, given the shift in Jewish holidays. Um, and you saw that's with the outperformance of October at 5 and a half percent, you kind of have to look at sort of September October together to see the Jewish holiday shift, uh, impact, but that's really what group was down in in the third quarter and some of the softness,

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, so which shows that the groups are still willing to spend when they do show up at the properties. So we don't 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.

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, so which shows that the groups are still willing to spend when they do show up at the properties. So we don't 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.

Ari Klein: Thank you.

Is really related, more to government and government adjacent businesses. Um, otherwise, uh, overall, even though group volume was down as we saw in Q3, which was expected our banker and Catering Revenue per group room night was actually up. Um, so which shows that the groups are still willing to spend when they do, show up at the properties. So we don't see any specific, uh, cracks in terms of, you know, driving group volume for as we look at our group Pace numbers, uh, into Q4, and into the future.

Thank you.

Operator: Our next question comes from the line of Chris Woronka with Deutsche Bank. Please go ahead.

Chris Woronka: 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. 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.

Our next question comes from the line of Chris w***** with Deutsche Bank, please go ahead.

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 nights. So if you're looking at next year, you know, we had almost a point of delta between RevPAR and total RevPAR for this year.

You talk a little bit about what's driving that, and what disability you have into that. And and you know, what? It's comprised of whether it's, you know, just just more, uh, higher venue prices or more.

Jim Risoleo: 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 nights. So if you're looking at next year, you know, we had almost a point of delta between RevPAR and total RevPAR for this year.

Ancillary spending on things like you know, retail spots and and just your your level of comfort that that can uh continued. Thanks

James Risoleo: That is probably going to, you know, shrink for next year just given the tougher comps. But we just, given the consumer that we are seeing, they continue to spend more. And the other thing is us also reinventing and repositioning our outlets, which has really benefited this year with The View at the New York Marriott Marquis and Aviv at the 1 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, you know, from repositioning these outlets. So 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.

That is probably going to, you know, shrink for next year just given the tougher comps. But we just, given the consumer that we are seeing, they continue to spend more. And the other thing is us also reinventing and repositioning our outlets, which has really benefited this year with The View at the New York Marriott Marquis and Aviv at the 1 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, you know, from repositioning these outlets. So 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.

Uh, there definitely is just increase, uh, spend. Um, and whether that's about whether that's golf, obviously Resort destination fee is a component of it, um, as, as well. Um, as we get into next year, you'll obviously get into tougher comps, just given how much we have moved, um, particularly on the in revenue and, um, Banking and Catering group room night. So, uh, if if you looking at next year, you know, we had almost a point of, um, Delta between refer and total rep for, for this, uh, year that is probably going to, you know, swing for next year, just giving the tougher comps. But we just given the consumer that we are, um, we are seeing they continue to to spend more and the other thing is us also Reinventing and repositioning our Outlets which has really benefited um, this year with the um, with the view at the Marriott. Marty and a Vive, the 1 South Beach.

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

Obviously, that's driven meaningful growth. So we're continuing to look at, uh, Outlet opportunities where we could, um, really Drive incremental returns and incrementally ebita, um, you know, from repositioning these Outlets. So while there are other opportunities, I think next year, certainly you will run into just tougher you over your 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.

Robin Farley: Thanks. 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, 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.

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

Sourav Ghosh: Hey, Robin. So 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. And I'm talking about the pace, so the 5% that Jim referred to.

Great thanks. Um, I just wanted to get a, a little more, um, insight into the group booking page for next year. When you mentioned, it's up 5% for 2026 and that's room nights and rate. And, and I think forward banquet revenues just wondering. If you could, give us a little color on the, the night's increase versus rate increase just since, um, you know, it it feels like oh, overall group. Um, not not just it for host but, but uh, 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 is has, kind of been the case this year. Thanks, uh, hey Robin. So as as of where we stand right now it is more room night driven. Um it it's effectively almost all room night driven. Uh rate is a very slight Improvement year-over-year. Um, and

James Risoleo: We have 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. But we would expect the group room nights to be more just given the current pacing. But right now, as we stand on the 5%, just over 3% is group room nights. Okay. Great. Super helpful. Thanks. And maybe just as a quick follow-up, I know you talked about your priorities and seeing your own multiple be so low.

We have 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. But we would expect the group room nights to be more just given the current pacing. But right now, as we stand on the 5%, just over 3% is group room nights.

Robin Farley: Okay. Great. Super helpful. Thanks. And 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 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'm talking about, uh, the pace. So the 5% that Jim referred to, um, we have 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. But we would expect that group room nights to be more, just given the current, uh, pacing. But right now, as we stand on the 5%, just over 3% is group room nights.

James Risoleo: When you do think about potential 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's just that 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. So, 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.

Jim Risoleo: I would tell you, Robin, that asset acquisitions today are a very low priority for us. You know, it's just that 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. So, 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.

Okay, great. Um, super helpful. Thanks. And maybe this is a quick follow-up. I know you talked about um, your priorities and and seeing your own multiple be so low. Um, when you do think about potential um, asset Acquisitions, that that hosts or you know kind of what could interest you is there anything? Can you characterize if 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 interests might lie. Thanks.

It's how you Robin that?

Acquisition.

Today or very low priority for us.

Uh, you know, it just uh, we we don't think today uh, in this environment with what we're seeing in the marketplace that uh that we can generate the types of returns uh through Acquisitions that we can generate through other Capital, allocation decisions. Uh so you know that

James Risoleo: You know, we'll be thoughtful about dispositions in this environment, I think. You know, if we saw a path forward to, you know, really doing an accretive acquisition, of course, we would consider it. But, you know, we evaluate everything that's out there in the marketplace, and we're just not seeing anything that we underwrite at this point in time. 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 Sourav about kind of any updated thoughts you have on kind of wages and benefits increases in 2026. And besides New York, are there any major markets where labor contracts are coming due or have to be renegotiated? Yeah.

You know, we'll be thoughtful about dispositions in this environment, I think. You know, if we saw a path forward to, you know, really doing an accretive acquisition, of course, we would consider it. But, you know, we evaluate everything that's out there in the marketplace, and we're just not seeing anything that we underwrite at this point in time.

Robin Farley: Very helpful. Thank you.

Of course we would consider it. Uh, but you know, we're we, we evaluate everything that's out there in the marketplace and we're just not seeing anything that, um, that we're under, right, uh, at this point in time.

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

Okay, very helpful. Thank you.

Smedes Rose: Hi. Thank you. I was just hoping maybe you could talk a little bit, maybe Sourav about kind of any updated thoughts you have on kind of wages and benefits increases in 2026. And besides New York, are there any major markets where labor contracts are coming due or have to be renegotiated?

Our next question will come from the line of smees rose with City. Please go ahead.

Jim Risoleo: Yeah. So for 2025, we are still expecting wage rate growth, which would be mid-single earlier in the year at about 6%. 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.

Hi. Thank you. Um, I was just hoping maybe you could talk a little bit, uh, maybe more, uh, SRA about kind of any updated, thoughts, you have on kind of wages and benefits, um, increases in 2026 and besides New York. Are there any, um, major markets where, um, labor contracts are coming due or have to be negotiated?

James Risoleo: So for 2025, we are still expecting wage rate growth, which would be mid-single earlier in the year at about 6%. 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.

Yeah, so um for 2025, we are still expecting wage rate growth, which would be a message earlier on the year at about 6%. Um, just given that a lot of the contracts were up front end loaded. Our expectation. Is that for next year it the wage rate growth is going to be lower how much lower I will 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 uh, next calls next year. Um, in terms of contracts that are coming up, uh, New York is really, the only ones that is coming up. Uh, for for next year mid next year. Um, obviously, we are not party to those negotiations, with the

Smedes Rose: Great. Thank you.

Union. It is our operators that, um, negotiate with the union, and we will, uh, see where that, uh, ends up. It’s too early to say at this point in time.

Great, thank. Thank you.

James Risoleo: Our next question comes from the line of Duane Pfennigwerth with Evercore ISI. Please go ahead. Hey, thanks. This feels like the first 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. But can you maybe frame the tailwinds to growth potential in 2026 from no storms on the Gulf Coast? Thank you. Well, Duane, you know, we have, I think, 24 days left till the end of the official end of the hurricane season. So let's keep our fingers crossed that, you know, when we talk in February that 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.

Operator: Our next question comes from the line of Duane Pfennigwerth with Evercore ISI. Please go ahead.

Our next question comes from the line of Dwayne finworth with evercore isi. Please go ahead.

Duane Pfennigwerth: Hey, thanks. This feels like the first 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. But can you maybe frame the tailwinds to growth potential in 2026 from no storms on the Gulf Coast? Thank you.

Hey, thanks. Um

This feels like the first queen fall in a while uh, on the Gulf Coast without any major storms.

Understand, there are several puts and takes with operational impacts versus bi.

Sourav Ghosh: Well, Duane, you know, we have, I think, 24 days left till the end of the official end of the hurricane season. So let's keep our fingers crossed that, you know, when we talk in February that 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.

Um, but can you maybe frame the Tailwind to growth potential in 2026, uh, from no storms on the golf course, uh, gulf coast. Thank you.

Well, Dwayne, you know, we have, I think, uh, 24 days left. Uh,

Till the end of the official end of the hurricane season. So, let's keep our fingers crossed that, uh, uh, that, uh, you know, when we, uh, talk in February that, uh, this will hold true to form and we won't see anything happen on the Gulf Coast, uh,

this year.

the um,

James Risoleo: We raised our assumption for performance this year from $3 million in Q2 to $6 million this year. We're excited with how the Don CeSar is set up for 2026. You know, the Ritz Naples continues to really perform quite well. A lot of you have seen that property. A lot of you have seen Tiburon as well, which we're going to be under, which Tiburon is going to be undergoing a completely transformational renovation. So, you know, that'll, and we will receive the operating profit guarantees for the anticipated disruption, but that will likely have an impact on RevPAR for the Gulf Coast. It's fully anticipated and it's fully baked in. I think that, you know, the Gulf Coast, the Gulf Coast of Florida generally, you know, when storms come, it affects everything in Florida.

We raised our assumption for performance this year from $3 million in Q2 to $6 million this year. We're excited with how the Don CeSar is set up for 2026. You know, the Ritz Naples continues to really perform quite well. A lot of you have seen that property. A lot of you have seen Tiburon as well, which we're going to be under, which Tiburon is going to be undergoing a completely transformational renovation. So, you know, that'll, and we will receive the operating profit guarantees for the anticipated disruption, but that will likely have an impact on RevPAR for the Gulf Coast. It's fully anticipated and it's fully baked in. I think that, you know, the Gulf Coast, the Gulf Coast of Florida generally, you know, when storms come, it affects everything in Florida.

The, the Tailwind for us will be uh, really, you know, the Dons are uh, is uh is performing extremely well. Uh, uh it's it's beating our expectations. Uh, we raised our uh,

Uh, assumption for performance this year, uh, from $3 million, uh, in Q2 to, uh, 6 million dollars this year and, uh, we're excited with how the dawn is set up for 2026. Uh, you know, the, uh, the rich Naples continues, uh, to, uh, uh, to really perform quite well. And a lot of you have seen that property. A lot of you have seen tiberon as well, uh, which we're going to be under, uh, whichever is going to be undergoing a, a completely transformational renovation. So, uh, you know, that will and we will, we'll receive the operating, uh, profit guarantees for the anticipated disruption, but that will likely have an impact, uh, on, uh, on rep park for the Gulf Coast. But it's it's fully anticipated and it's fully baked in. Uh, and I I think that, you know, the the Gulf Coast, um, the Gulf Coast of Florida, generally, uh, you know, when Storms Come it affects

James Risoleo: So, you know, we're excited with how the 1 Hotel South Beach is performing, with how the Ritz-Carlton, Amelia Island is performing. Singer, the Singer Oceanfront Resort is still ramping after a complete repositioning there as well. And, 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. And so 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. So again, you know, I think that this helps us set up the company very well into 2026. Thank you. And Duane, I'll just add there, right?

So, you know, we're excited with how the 1 Hotel South Beach is performing, with how the Ritz-Carlton, Amelia Island is performing. Singer, the Singer Oceanfront Resort is still ramping after a complete repositioning there as well. And, 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. And so 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. So again, you know, I think that this helps us set up the company very well into 2026.

Everything in Florida. So uh, you know we we excited uh with how the 1 Hotel South Beach is performing with how the uh risk Carlton Mill island is reforming uh singer. Uh, the singer Resort is, uh, uh, is still ramping after a complete repositioning, their, uh, as well. Uh, and, uh, you know this is all being driven by, uh, the the type of customer that is continuing to prioritize. Uh, experiences premium experience is because these properties are all really uh, high-end assets. And uh,

Duane Pfennigwerth: Thank you.

Jim Risoleo: And Duane, I'll just add there, right? When you think about all the benefit we'll see from HTCP next year, we will still obviously be under renovation at the Manchester Grand Hyatt, but every other HTCP project effectively will be done. We should see lift from that. As Jim mentioned earlier, Super Bowls 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. So we feel really good about our setup for next year to be able to drive, you know, incremental top line. So not just organic in the markets, but all the capital investments that we have made in those specific markets.

Event, uh, uh, for uh, uh, this year, uh, uh, festivepaces up 9%, which is very positive. So, um, again, you know, I think that this helps us, uh, uh, set up, uh, the company very well, uh, into 2026.

James Risoleo: When you think about all the benefit we'll see from HTCP next year, we will still obviously be under renovation at the Manchester Grand Hyatt, but every other HTCP project effectively will be done. We should see lift from that. As Jim mentioned earlier, Super Bowls 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. So we feel really good about our setup for next year to be able to drive, you know, incremental top line. So 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.

Operator: Our final question will come from the line of Jay Kornreich with Cantor Fitzgerald. Please go ahead.

Thank you and Gwen. I'll just add their right when you think about all the benefit. We'll see from htcp next year. Um, we will still be under renovation at the Grand hype Manchester, but every other HTTP project effectively be done. We should see lift from that, as Jim mentioned earlier, Super Bowls in San Francisco, which is to see a Lyft from that. We have 10 cities where, um, we World Cup is going to be played, depending on what teams playing with cities. We should see that from that. So we feel really good about our setup for for next year to be able to drive, um, you know, incremental Topline. So, not just organic in the markets but all the capital Investments that we have made in those specific markets.

Jay Kornreich: Hey, thank you. Just circling back to the EBITDA guidance raised by $25 million. You know, was that more of a portfolio-wide story or, you know, certain key markets to call out like Maui? And then, you know, with the strong October up 5.5% on RevPAR, how is November and December shaping up? If you can give any commentary on that.

Our final question will come from the line of J. Corn, rack with Cantor Fitzgerald. Please go ahead.

James Risoleo: Just circling back to the EBITDA guidance raised by $25 million. You know, was that more of a portfolio-wide story or, you know, certain key markets to call out like Maui? And then, you know, with the strong October up 5.5% on RevPAR, how is November and 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 1705 to how we got to the 1730. When you take the 1705, 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.

Jim Risoleo: 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 1705 to how we got to the 1730. When you take the 1705, 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.

Hey thank you. Uh just circling back to the the E. Bit of guidance raised by 23 million, you know, was that more of a portfolio wide story or you know a certain key markets to call out like Maui and then you know with the strong October up 5 and a half percent on revpar. How is November December shaping up if you can give any commentary on that?

Um, sure thing. Um,

I'll provide the, uh, okay.

James Risoleo: That's primarily because even though we have outperformed on the top line for Maui, given that we have added a ton of room nights, there have been incremental variable costs associated with that. So that guide for Maui at 110 has effectively remained the same for the balance of the year. So that's $26 million overall comparable operations lift. Another $3 million, as Jim mentioned, we have taken a Don CeSar from $3 million to $6 million. So $3 million incremental for Don CeSar. Interest income of $6 million. And then 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. And then about $5 million that we talked about for the Four Seasons condos. So that will get you to the 1730.

That's primarily because even though we have outperformed on the top line for Maui, given that we have added a ton of room nights, there have been incremental variable costs associated with that. So that guide for Maui at 110 has effectively remained the same for the balance of the year. So that's $26 million overall comparable operations lift. Another $3 million, as Jim mentioned, we have taken a Don CeSar from $3 million to $6 million. So $3 million incremental for Don CeSar. Interest income of $6 million. And then 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. And then about $5 million that we talked about for the Four Seasons condos. So that will get you to the 1730.

Um, provide the, the bridge on the guidance. So it's just clear in terms of the 1705 to how we got to the 1730. Um, when you take the 1705, you're going to add 26 million in terms of just comparable operations list, um, and that's 21 million in Q3 and 5 million in Q4. It is really a prostate portfolio. Our guide for Maui has not changed for the full year. Um, that's primarily because even though we have outperformed, in the top line for Maui, given that it's a, we have added a ton of room nights. There have been incremental variable costs associated with that, so that guide from Maui at 110, has effectively remained the same for the balance, um, of the year. Um, so that's 26 million, overall comparable, uh, operations lift. Uh, another 3 million as Jim mentioned, we have taken a Don CeSar from 3 million to 6 million. So, 3 million incremental for Dawn um, interest income of uh, $6 million and

Then.

James Risoleo: As it relates to November and December, right, at this point, we have provided October numbers. So obviously, the implied Q4 is around 1.5%. So when you look at the blended November-December, it's effectively slightly negative. Now, that is fully expected. And I will say that in our increased guide for fourth quarter, it's not all October. 2/3 is October, 1/3 is November-December. So 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. So 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. And we did quite a bit of group business towards the end of November, beginning of December.

As it relates to November and December, right, at this point, we have provided October numbers. So obviously, the implied Q4 is around 1.5%. So when you look at the blended November-December, it's effectively slightly negative. Now, that is fully expected. And I will say that in our increased guide for fourth quarter, it's not all October. 2/3 is October, 1/3 is November-December. So 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. So 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. And we did quite a bit of group business towards the end of November, beginning of December.

Those are all the ads, the deducts are 5 million from the dispose. That's about 4 million for Metro Center and 1,000 for St. Regis. And then about 5 million dollars and we talked about for the 4 Seasons Condos so that will get you to the 1730.

Um, as it relates to November and December, right? Uh, at this point we provided October numbers obviously the the implied Q4 is around 1 and a half percent. So when you look at the Blended November December, it's if effectively slightly negative. Now that is fully expected. Um, and I will say that in our increased guide for fourth quarter, uh it's not all October, 23rd is October 1, third is November December. So we actually took up our guide for the government December as well. The reason it's slightly negative, it's it's twofold. Um, 1 is just last year we had um Christmas week overlap with Hanukkah. So um, if you didn't have how to find a separate week which obviously um,

James Risoleo: So that helped 2024. So it's really tougher comps. But 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. And 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. You may now disconnect.

So that helped 2024. So it's really tougher comps. But 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.

Jay Kornreich: Very helpful.

Impacts travel this year. It's a tougher comp plan Hanukkah does not overlap with Christmas week. Um, secondly, last year right after elections. We had you may recall short-term group pickup, um, and we did a 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, um, assuming government should done gets resolved and we don't have any issues with, uh, travel and and airports. Uh, we are well, positioned, um, you know, to be able to achieve, uh, our forecast,

Very helpful.

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

Jim Risoleo: 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.

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

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

Well everyone, thank you again for joining us today, we really appreciate the 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.

Today, thank you for joining. You may now disconnect

Q3 2025 Host Hotels & Resorts Inc Earnings Call

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