Host Hotels (HST) Just Raised Its Outlook. Can Luxury Travel Keep Delivering?

Host Hotels & Resorts (HST) boosted its 2026 outlook after reporting a 7% rise in comparable hotel RevPAR to $251.53 in the second quarter. CEO James Risoleo credited luxury resort demand and high-profile events for the growth, which led to a 125 basis point increase in the company's expected RevPAR growth range to 4.75% to 5.25%.

Both transient revenue (+6.9%) and group room revenue (+7.4%) demonstrated double-digit gains, with World Cup host markets driving a 15% jump in RevPAR during June. Maui's recovery showed a 14% rise in RevPAR and an 8% increase in occupancy. Host Hotels poured $2.1 billion into 34 renovated properties, expecting 60% of hotel EBITDA to come from this program by 2026.

Despite a $500 million gain from selling Four Seasons resorts, leverage remains at 2.2 times. CFO Sourav Ghosh warned that margin comparisons may moderate in the second half due to slower rate growth. Costs on the horizon include a potential $27 million to $32 million in damage from a Kona storm in Hawaii, as well as labor wage rate increases.

Hedge fund ownership grew from 38 to 41 funds in the latest quarter, while short interest sits at 8.91% of the float. With real momentum and a strong balance sheet, Host Hotels enters the second half of 2026 with potential for continued demand, but management acknowledges some tailwinds are fading.