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Investing.com -- Host Hotels & Resorts Inc (NASDAQ:HST) shares surged 2.9% after the nation’s largest lodging real estate investment trust reported second-quarter earnings that significantly exceeded analyst expectations, driven by strong transient demand and improved room rates.
The company reported adjusted earnings per share of $0.32 for the second quarter, beating the analyst estimate of $0.22 by $0.10. Revenue came in at $1.59 billion, surpassing the consensus estimate of $1.5 billion and representing an 8.2% increase from the same period last year. Comparable hotel RevPAR increased 3.0% to $239.64, while comparable hotel Total (EPA:TTEF) RevPAR rose 4.2% to $400.91, driven by higher room rates and strong transient leisure demand.
"We are pleased with our strong operational and financial results, as Host delivered comparable hotel Total RevPAR growth of 4.2% over the second quarter of 2024, driven by strong transient demand leading to improvements in room revenues, food & beverage revenues and ancillary spend," said James F. Risoleo, President and Chief Executive Officer.
Following the strong performance, Host Hotels raised its full-year guidance, now expecting comparable hotel RevPAR growth of 1.5% to 2.5% and comparable hotel Total RevPAR growth of 2.0% to 3.0% over 2024. The company also increased its net income forecast to $601-$631 million from the previous range of $512-$581 million.
During the quarter, the company sold The Westin Cincinnati for $60 million and repurchased 6.7 million shares of common stock for $105 million at an average price of $15.56 per share. Host Hotels maintained its quarterly dividend of $0.20 per share, paid on July 15 to stockholders of record as of June 30.
The company noted that group room nights declined 6.1% YoY in the second quarter due to planned renovation disruption from the Hyatt Transformational Capital Program and business mix shifting from group to transient in Maui. However, transient room nights increased 1.6%, with transient revenues up 6.8% compared to the same period in 2024.
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