HST · 8-K · 20260805PR000122

Operating Margin Drivers

HOST HOTELS & RESORTS, INC. · 2026-08-05 · Importance 42 · Surprise 14 · No source text

Second-quarter GAAP operating profit increased to $293 million from $277 million, and the GAAP operating profit margin improved 40 basis points to 17.9%. Higher room rates offset wage expense increases and a $9 million year-over-year decrease in net gains on insurance settlements. Comparable hotel EBITDA increased 7.8% to $497 million, while the comparable hotel EBITDA margin expanded 60 basis points to 31.9%. The comparable EBITDA improvement was driven primarily by higher average room rates, which offset wage expense increases, higher incentive management fees, and lower operating profit guarantee payments and attrition and cancellation fees.

Key facts

• EBITDAre for Q2 2026: $519 million, up 5.7% vs Q2 2025 source
• Adjusted EBITDAre for Q2 2026: $525 million, up 5.8% vs Q2 2025 source
• Comparable hotel EBITDA for Q2 2026: $497 million, up 7.8% vs Q2 2025 source
• Total expenses: 5,212 and adjusted total expenses: 4,115 source
• Operating Profit - Comparable hotel EBITDA: 912 and adjusted Comparable hotel EBITDA: 883 source
• Cost of goods sold: 117 source
• Net gain on insurance settlements: (7) source
• GAAP operating profit margin for Q2 2026: 17.9%, an improvement of 40 basis points vs Q2 2025 source

Impact estimates