HST · 10-Q · 2026Q2 · Full report

Operating Margin Drivers

HOST HOTELS & RESORTS, INC. · 2026-08-07 · Importance 37 · Surprise 32

GAAP operating profit margin increased 40 basis points to 17.9% in the second quarter and 90 basis points to 18.6% year-to-date in 2026. Comparable hotel EBITDA margin increased 60 basis points to 31.9% in the quarter and 32.3% year-to-date. Higher average room rates and improved hotel operations offset wage inflation, higher incentive management fees, lower operating profit guarantee payments and reduced attrition and cancellation fees. Net gains on insurance settlements declined by $9 million in the quarter and $12 million year-to-date, limiting operating profit growth.

Key facts

• Comparable hotel EBITDA margin for the quarter ended June 30, 2026 was 31.9% (31.3% prior period) and year-to-date ended June 30, 2026 was 32.3% (31.7% prior period). source
• Operating profit margin for the quarter ended June 30, 2026 was 17.9% (17.5% prior period) and year-to-date ended June 30, 2026 was 18.6% (17.7% prior period). source
• Food and beverage profit margin for the quarter ended June 30, 2026 was 35.7% (34.5% prior period) and year-to-date ended June 30, 2026 was 36.3% (35.2% prior period). source
• Comparable hotel food and beverage profit margin for the quarter ended June 30, 2026 was 35.5% (35.2% prior period) and year-to-date ended June 30, 2026 was 36.4% (35.8% prior period). source
• Operating profit margin under GAAP for the quarter ended June 30, 2026: 17.9%, an improvement of 40 basis points vs prior year. source
• Operating profit margin under GAAP year-to-date June 30, 2026: 18.6%, an improvement of 90 basis points vs prior year. source
• Comparable hotel EBITDA margin for the quarter ended June 30, 2026: 31.9%, an improvement of 60 basis points versus 2025. source
• Comparable hotel EBITDA margin year-to-date June 30, 2026: 32.3%, an improvement of 60 basis points versus 2025. source