- Host Hotels & Resorts revised its 2025 revenue per available room (RevPAR) growth forecast to between 0.7% and 2.7%, down from its earlier estimate of 1%-3%, citing softer group booking activity.
- Despite the lowered guidance, Host surpassed Wall Street’s expectations for first-quarter earnings and revenue, buoyed by strong performances in key markets like Washington, DC, New York, and Maui.
- Host remains cautious due to heightened macroeconomic uncertainty, international travel declines, and the potential for economic shifts under current US policies.
Host Hotels & Resorts, the country’s largest hotel-focused REIT, is preparing for a slower-than-anticipated summer season, as reported by Bisnow.
In its first-quarter earnings call Thursday, the company revealed a downward adjustment to its 2025 RevPAR growth guidance, now forecasting an increase of 0.7% to 2.7%.
Preparing For A Softer Summer
Host’s updated guidance comes just three months after initially projecting a 1%-3% RevPAR growth for the year. CEO James Risoleo attributed the adjustment to moderating group booking volumes and a broader atmosphere of economic uncertainty. While Host outperformed expectations for the first quarter, Risoleo emphasized caution, noting that the “low end” of guidance assumes a mild economic slowdown.
Strong First-Quarter Results
In the first quarter, Host’s revenues climbed 8.4% year-over-year to $1.6B. Room revenues surged nearly 10% to $938M, while food and beverage revenues rose 6.3% to $503M, partly driven by the reopening of The View, a rotating restaurant at Manhattan’s Marriott Marquis. Spa revenues also grew, reflecting continued demand from affluent travelers for premium experiences.
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Recovery Efforts And Resilience
Host reported progress in restoring operations at The Don CeSar hotel in Florida after 2024 hurricane damage, receiving $20M in insurance proceeds. Additionally, the company noted recovery momentum in its Maui properties, still rebounding from 2023’s devastating wildfires.
Cautious Optimism Amid Uncertainty
Risoleo voiced concerns over “policy-driven” economic instability impacting acquisition and sale opportunities across the hospitality sector. He and other Host executives underlined that, while no current slowdown is evident, contingency plans are ready should the environment deteriorate.
International tourism trends could further weigh on US hospitality. In March, inbound international travel to the US dropped 14% year-over-year, a trend linked partly to shifting policies under President Trump’s administration.
Why It Matters
Host’s caution highlights the fragile balance the hospitality industry faces in 2025. Economic and policy uncertainty, coupled with declines in international travel, could dampen the post-pandemic recovery that had fueled robust growth in previous years.
What’s Next
Host Hotels says it remains well-positioned to navigate potential downturns and would move swiftly to control expenses if needed. The REIT’s ability to adapt quickly will be critical as macroeconomic forces continue to evolve through the remainder of 2025.
