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Host Hotels & Resorts, Inc. HST is scheduled to release first-quarter 2025 earnings results on April 30, after market close. While the company’s quarterly results are likely to display a year-over-year rise in revenues, adjusted funds from operations (AFFO) per share might display a decline.
In the previous quarter, this Bethesda, MD-based lodging real estate investment trust (REIT) reported an AFFO per share of 44 cents, which surpassed the Zacks Consensus Estimate of 40 cents. Results reflected a year-over-year rise in revenues.
Over the trailing four quarters, Host Hotels’ AFFO per share surpassed estimates on three occasions and met in the remaining period, the average surprise being 5.73%. The graph below depicts this surprise history:
Host Hotels & Resorts, Inc. Price and EPS Surprise
Host Hotels & Resorts, Inc. price-eps-surprise | Host Hotels & Resorts, Inc. Quote
Factors to Consider Ahead of HST’s Upcoming Results
Host Hotels enjoys a portfolio of luxury and upper-scale hotels across the top U.S. Markets and the Sunbelt region. These properties are strategically located in central business districts of major cities near airports and resort/conference destinations, which drives demand.
The continuous improvement in group business has aided hotel revenue per available room (RevPAR) growth over the past few quarters. This trend is likely to have continued in the first quarter. The company expects RevPAR to grow in mid-single digits in the first quarter of 2025.
Host Hotels’ strategic capital allocations are likely to have improved portfolio quality and strengthened its position in the United States, where it has a greater scale and competitive advantage. This is likely to have given it an edge and drive margin expansion.
However, high interest expenses are likely to have been a spoilsport for HST during the to-be-reported quarter.
HST’s Q1 Estimations
The Zacks Consensus Estimate for HST’s quarterly revenues is presently pegged at $1.54 billion, implying growth of 4.7% from the prior-year period’s reported figure.
The Zacks Consensus Estimate for quarterly RevPAR is pinned at $219.2, indicating an increase from $215.4 reported in the year-ago quarter.
The consensus mark for the average occupancy rate in the first quarter is pegged at 69.1%, implying an increase from the prior-year quarter’s reported figure of 68.4%.
However, we expect first-quarter 2025 interest expenses to have risen 20.1% year over year.
The company’s activities during the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for AFFO per share has revised a cent downward to 55 cents in the past month. The figure implies an 8.3% fall from the year-ago reported number.