HST · 10-Q · 2026Q2 · Full report
Operating Expense Trends
HOST HOTELS & RESORTS, INC. · 2026-08-07 · Importance 49 · Surprise 32 · In source text
Total property-level operating expenses declined 1.5% to $1.274 billion in the second quarter and 0.9% to $2.558 billion year-to-date, primarily because of hotel dispositions. Comparable hotel rooms expenses increased $10 million, or 4.6%, in the quarter and $16 million, or 3.7%, year-to-date, while comparable other departmental and support expenses increased $21 million and $41 million, respectively. Wages and employee benefits represented approximately 58% of rooms, food-and-beverage and other departmental expenses, with portfolio wage and benefit costs rising approximately 5.5% in the quarter and 5.0% year-to-date. Incentive management fees increased 15.4% in the quarter and 3.9% year-to-date, while other property-level expenses decreased $13 million and $21 million, respectively, due largely to dispositions and lower insurance premiums.
Key facts
- Property-level operating expenses year-to-date June 30, 2026: $2,558 million, down 0.9% from $2,581 million in 2025. source
- Property-level operating expenses for the quarter ended June 30, 2026: $1,274 million, down 1.5% from $1,293 million in 2025. source
- For the quarter and year-to-date of 2026, rooms, F&B and other departmental wage-related expenses generally increased approximately 5.5% and 5.0%, respectively, across the portfolio compared to 2025. source
- Wages and employee benefits comprise approximately 58% of rooms, food and beverage, and other departmental and support expenses. source
- Other property-level expenses decreased $13 million, or 12.1%, for the quarter and $21 million, or 9.6%, year-to-date, primarily due to dispositions and decreased property insurance premiums. source
- Wage and benefit rate inflation is expected to be approximately 5% in 2026. source
- Quarter ended June 30, 2026 GAAP total expenses were $1,347 million and comparable hotel results totaled $1,061 million after adjustments shown in the table. source
- Cost of goods sold totaled $44 million for the quarter and $65 million year-to-date in 2026 related to condominium and villa sales. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +1.2% | Property-level operating expenses for the quarter ended June 30, 2026: $1,274 million, down 1.5% from $1,293 million in 2025. |
| operating_income | positive | realized | +0.8% | Other property-level expenses decreased $13 million, or 12.1%, for the quarter and $21 million, or 9.6%, year-to-date, primarily due to… |
| operating_income | negative | realized | — | For the quarter and year-to-date of 2026, rooms, F&B and other departmental wage-related expenses generally increased approximately 5.5%… |