HOST HOTELS & RESORTS, INC. (HST)

Host Hotels & Resorts (Host Inc.) is the largest publicly traded lodging REIT. It owns luxury and upper-upscale hotels and operates as a self-managed, self-administered REIT incorporated in Maryland in 1998. Host Inc. owns its hotels and conducts operations through Host L.P., where it is the sole general partner and held about 99% of the OP units as of December 31, 2025. Its stated goal is to be the preeminent owner of high-quality lodging real estate in growing U.S. markets and to deliver long-term risk-adjusted returns through asset appreciation, earnings growth and dividends.

As of February 20, 2026, the consolidated portfolio comprised 76 primarily luxury and upper-upscale hotels with approximately 41,700 rooms. Substantially all are in the United States, with five in Brazil and Canada. The company also holds non-controlling interests in seven domestic joint ventures focused on the lodging industry. Its hotels are mainly destination resorts, group-oriented convention hotels and high-end urban hotels, largely operated under Marriott and Hyatt brands, as well as a few unbranded or soft-branded properties. It is one of the largest owners of Marriott and Hyatt hotels. The company pursues acquisitions, capital recycling through dispositions, value enhancement and return-on-investment renovation projects, and returns capital through dividends or share repurchases. It aims to keep an investment grade balance sheet funded mainly through senior notes, exchangeable debentures and mortgage debt.

Hotel customers fall into three groups: transient business (individual business and leisure travelers, booked via retail, discount, corporate and other rates), group business (association, corporate and social, military, education, religious and similar groups, booked in blocks of at least 10 rooms), and contract business (room blocks sold to companies such as airline crews at discounted rates). The company's performance depends on the cyclical supply of and demand for hotel rooms, which is tied to economic conditions and local travel drivers. It compares itself mainly with the U.S. luxury and upper-upscale segments, and online short-term rentals are a source of non-traditional supply.

REIT rules prohibit Host from operating hotels, so all of its hotels are run by third parties under management or operating agreements, some with separate franchise or license agreements. Brand-owner managers include Marriott, Hyatt, Hilton, 1 Hotels and AccorHotels, and some hotels use independent operators. Managers control day-to-day operations, employ hotel staff and provide centralized system services, while Host retains approval rights over budgets and capital expenditures. Initial terms run 10 to 50 years. Base fees are generally 2-3% of gross revenues and incentive fees 10-20% of operating profit after an owner priority return. Host funds working capital and furniture, fixtures and equipment, typically with 4-5% of hotel revenues deposited into reserve accounts. Renovation cycles typically run seven to ten years. The company also runs a corporate responsibility program covering environmental, social and governance topics.