Wed, Feb 26, 4:15 PM (60 days ago)
Host Hotels & Resorts, Inc. (HST) reported a strong financial performance for the fiscal year ended December 31, 2024, with total revenues of $5,684 million, a 7.0% increase from 2023. Net income decreased by 6.0% to $707 million, primarily due to lower gains from asset sales and increased interest expenses. The company maintained an operating profit of $875 million, with an operating margin of 15.4%. Earnings per share fell to $0.99 from $1.04. The firm’s strategy focuses on a geographically diverse portfolio of 81 luxury and upper-upscale hotels, with 76 located in the U.S. Future outlook remains cautious due to economic uncertainties, particularly in recovery markets like Maui, impacted by wildfires. The company expects comparable hotel RevPAR growth of 0.5% to 2.5% in 2025, alongside margin declines due to rising labor costs. Risk factors include economic fluctuations, interest rate volatility, and competitive pressures from the lodging sector. As of December 31, 2024, total debt stood at approximately $5.1 billion, with a weighted average interest rate of 4.7%. The company is committed to maintaining an investment-grade balance sheet while pursuing strategic acquisitions and capital projects.