Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you discuss recent demand trends in April and any market-level performance expectations, particularly regarding international travel? A: James Risoleo, CEO, noted that top markets are performing well, with strong RevPAR performance even excluding major events. International inbound travel constitutes about 8% of total room nights, with Seattle and New York City most affected. However, New York City is performing well due to renovations. Sourav Ghosh, CFO, added that April's travel data shows upper-tier performance up 2.5%, with luxury outperforming. Host's portfolio is trending better than the upper tier, driven by strong luxury resort demand.
Q: How did Maui perform in Q1, and what is the outlook for the rest of the year? A: Sourav Ghosh, CFO, explained that Maui had a strong Q1, with expectations for continued improvement throughout the year. The updated EBITDA projection for Maui is around $100 million, up from previous estimates of $80 million to $95 million, with Q1 contributing significantly to this improvement.
Q: Given the current economic uncertainty, do you see more acquisition opportunities in the near term? A: James Risoleo, CEO, stated that while uncertainty exists, Host Hotels remains opportunistic in capital deployment. The company will continue to invest in its portfolio, buy back stock, and pay dividends. The transaction market is currently in a wait-and-see mode due to macroeconomic uncertainty, but Host is well-positioned with a strong balance sheet and liquidity.
Q: Are there any plans for broader cost-cutting initiatives to manage margins for the remainder of the year? A: James Risoleo, CEO, mentioned that contingency plans are in place for each property, ready to be implemented if needed. Currently, there is no indication of needing to cut expenses as the portfolio is performing well, and the company is comfortable with its guidance for the year.
Q: How is the current economic backdrop affecting business transient RevPAR and group bookings? A: Sourav Ghosh, CFO, noted that business transient RevPAR is expected to remain flat due to macroeconomic uncertainty. Group bookings are seeing a moderation in lead volumes, particularly for government and association groups, but future years are pacing well. The company expects a moderate year-over-year rate increase for business transient.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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