Host Hotels raises annual FFO forecast on luxury hotel strength

Host Hotels & Resorts

05/11/2025 22:40

Nov 5 (Reuters) - Real estate investment trust Host Hotels & Resorts HST.O raised full-year forecast for adjusted funds from operations on Wednesday, helped by strong bookings for luxury hotels.

Shares of the company were up 2.4% in extended trading.

Host Hotels' portfolio of luxury and upscale properties continued to benefit from resilient demand, supported by higher-income travelers who remain largely insulated from broader economic uncertainty.

In contrast, budget and mid-scale hotels experienced a slowdown in occupancy and room revenue across the U.S.

Host Hotels CEO James Risoleo said the company has entered into a new agreement with Marriott to "complete transformational renovations at four properties" in its portfolio.

It expects annual adjusted FFO, a key performance metric for REITs, at $2.03 per share, while the midpoint of its prior range was $2.

The REIT posted an adjusted FFO of 35 cents per share for the third quarter, compared with analysts' average estimate of 33 cents per share, according to data compiled by LSEG.

Total revenue for the three months ended September 30 was $1.33 billion, compared with the estimate of $1.31 billion.

 (Reporting by Aishwarya Jain and Anshuman Tripathy in Bengaluru; Editing by Shilpi Majumdar)

 ((Aishwarya.Jain@thomsonreuters.com;))