HST · 10-Q · 2026Q3 · Full report

Operating Expense Trends

HOST HOTELS & RESORTS, INC. · 2026-11-06 · Importance 22 · Surprise 14

Property-level operating expenses declined 1.5% to $1.190 billion in the third quarter and 1.1% to $3.748 billion year-to-date, with dispositions reducing costs. At comparable hotels, wages and employee benefits—about 58% of rooms, food-and-beverage, and other departmental and support expenses—increased approximately 6.0% for the quarter and 5.5% year-to-date, primarily because of higher wage rates and benefits. Comparable other departmental and support expenses increased $21 million for the quarter and $61 million year-to-date, reflecting higher wages and utility costs in certain markets. Total management fees increased 7.7% for the quarter and 3.1% year-to-date, including higher incentive fees from improved hotel operations.

Key facts

• Host expects wage and benefit rate inflation of approximately 5% in 2026. source
• Host’s comparable hotel rooms expenses increased $14 million, or 6.7%, in the third quarter and $30 million, or 4.7%, year-to-date in 2026, driven by wage rate increases partly offset by rooms productivity improvements. source
• Host’s comparable hotel food and beverage expenses increased $12 million, or 4.7%, in the third quarter and $37 million, or 4.4%, year-to-date in 2026; food and beverage costs as a percentage of revenue declined year-over-year due to productivity improvements and a more favorable business mix. source
• Host’s incentive management fees increased $3 million, or 18.8%, in the third quarter and $5 million, or 7.5%, year-to-date in 2026. source
• Host’s rooms, food and beverage, and other departmental and support expenses generally increased approximately 6.0% in the third quarter and 5.5% year-to-date in 2026, primarily due to higher general wage rates and benefits. source
• Wages and employee benefits comprised approximately 58% of Host’s rooms, food and beverage, and other departmental and support expenses. source