Host Hotels & Resorts Financial Model
Real Estate Company Financials Example (Free Excel Download)
Host Hotels & Resorts (HST) is the largest lodging real estate investment trust (REIT) in the world, owning a portfolio of luxury and upper-upscale hotels.
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About this model
This model projects the financial performance, dividend coverage, and Net Asset Value (NAV) of Host Hotels & Resorts to determine whether an equity analyst should recommend buying the stock based on its Adjusted Funds From Operations (AFFO) yield and implied real estate valuation.
- Host Hotels & Resorts (HST) is the largest lodging real estate investment trust (REIT) in the world, owning a portfolio of luxury and upper-upscale hotels. The company owns the physical real estate while partnering with premium brands (Marriott, Ritz-Carlton, Hyatt, Hilton) to manage the properties.
- Business segments: Room Revenues (~60-65%), Food & Beverage Revenues (~25-30%), and Other Revenues (~5-10%).
- Key geographies: Primarily the United States (71 properties) with a heavy presence in the Sunbelt and top 25 markets, plus 5 international properties, totalling approximately 41,700 rooms.
- Business model type: Asset-heavy lodging REIT. The company generates returns through property ownership, extensive capital recycling (buying/selling hotels), and ROI-driven renovations.
- Competitive position: S&P 500 constituent and the largest lodging REIT by market capitalisation, benefiting from immense scale and an investment-grade balance sheet.
- Recent major events: In early 2026, HST sold two Four Seasons properties (Orlando and Jackson Hole) for $1.1 billion. The company also completed a major Marriott Transformational Capital Program and recovered from the 2023/2024 Maui wildfire disruptions.
The downloadable Host Hotels & Resorts financial model includes SEC-sourced historical financials, forecast assumptions, core operating schedules, and valuation outputs in an Excel workbook built for review and scenario analysis.
A turnkey financial model
Live formulas, no hardcoded values
Outputs are driven by live formulas, so the workbook updates from its assumptions instead of relying on hardcoded results.
All assumptions in one tab
Inputs are clearly marked in the Assumptions tab and separated from calculations, making it clear what to change and what to leave intact.
Statements always balancing
For integrated-statement models, the balance sheet, cash flow, and supporting schedules tie through properly.
Distinct schedules for clarity
Debt, working capital, taxes, and cash flow can get messy quickly. We group calculations in clear schedules, not across disconnected tabs.
No hidden macros or external links
There are no unexplained external workbook links or macros to undermine auditability or portability.
Changes flow through the model
Update a key driver and see the impact carry through the forecast, financing, and return outputs. We never use hardcoded numbers in formulas.
Historicals & AssumptionsHost Hotels & Resorts financial modelCompany, Historicals & Assumptions used
Source: SEC EDGAR · values in USD
| Line item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Revenue | $2.89B | $4.91B | $5.31B | $5.68B | $6.11B |
| Corporate and other expenses | $99.0M | $107.0M | $132.0M | $123.0M | $124.0M |
| Operating income | -$250.0M | $775.0M | $827.0M | $875.0M | $855.0M |
| Net income | -$11.0M | $633.0M | $740.0M | $697.0M | $765.0M |
Forecast assumptions
Defaults used in the downloadable model. Forecast horizon: FY2026–FY2030.
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How to build a detailed financial model for Host Hotels & Resorts
A complete walkthrough of every driver, margin, working-capital input, and capital-allocation assumption used in the downloadable model.
Revenue Deep Dive
Room Revenues
- Segment name: Room revenues
- Revenue driver formula: Total Available Room Nights x Occupancy % x Average Daily Rate (ADR)
- Historical growth rate: 3.8% Comparable RevPAR growth in 2025.
- Key growth levers and headwinds: Driven by transient leisure demand, corporate group bookings, and room rate pricing power. Headwinds include macroeconomic softening and extreme weather events (e.g., Maui wildfires).
- Pricing dynamics: Spot pricing that changes daily based on algorithmic revenue management systems run by the hotel operators.
- Revenue recognition notes: Recognised daily as rooms are occupied.
- Seasonality: Q1 and Q4 are typically stronger for corporate and group business, while Q1/Q2 are peak for Sunbelt and leisure resort properties.
Food & Beverage (F&B) Revenues
- Segment name: Food and beverage revenues
- Revenue driver formula: Occupied Room Nights x F&B Spend per Occupied Room (heavily influenced by Group mix)
- Historical growth rate: 5-7% CAGR, outpacing room revenue recently due to strong banquet and catering demand.
- Key growth levers and headwinds: Group business volume is the primary driver. Inflation in menu pricing boosts top-line but pressures margins.
- Pricing dynamics: Contractual for large group banquets (booked months in advance); spot pricing for transient restaurant/bar spend.
- Revenue recognition notes: Recognised at the point of sale or when the banquet event occurs.
- Seasonality: Mirrors room occupancy, with spikes during heavy conference seasons (Spring/Autumn).
Other Revenues
- Segment name: Other revenues
- Revenue driver formula: Occupied Room Nights x Ancillary Spend per Room
- Historical growth rate: 2-4% CAGR.
- Key growth levers and headwinds: Resort fees, parking, spa, and golf utilisation.
- Pricing dynamics: Largely fixed ancillary fees (e.g., daily resort fees) and spot pricing for services.
- Revenue recognition notes: Recognised as services are rendered.
- Seasonality: Highly correlated with leisure occupancy peaks.
Cost Structure
Variable Costs / COGS (Hotel Operating Expenses)
- Line-by-line breakdown: Rooms departmental expenses, F&B departmental expenses, Other departmental expenses.
- Gross margin range: Not reported as "gross margin". Instead, departmental margins are tracked. Rooms margin is typically 70-75%; F&B margin is much lower at 25-30%.
- Key input costs and commodity exposures: Hourly labour (housekeeping, banquet staff), food and beverage wholesale costs, linen and supplies.
- How COGS scales with revenue: Step-function. Minimum staffing is required regardless of occupancy, but variable labour and food costs scale directly with occupied rooms and F&B volume.
Operating Expenses
- Undistributed Hotel Expenses: Includes Hotel administrative and general, Sales and marketing, Property operations and maintenance, and Utilities.
- Corporate SG&A: Corporate overhead, executive compensation, and legal fees. Typically 1.5-2.0% of total revenues.
- Depreciation & Amortisation: Massive expense for an asset-heavy REIT, typically running at 12-15% of total revenues.
- Stock-Based Compensation: Minimal relative to tech, usually embedded in Corporate SG&A.
- Restructuring / one-time charges: Frequent gains/losses on asset sales and occasional impairment charges on underperforming properties.
Margin Profile
- Comparable Hotel EBITDA Margin: 28.0% - 29.5% (28.9% in 2025).
- Operating Profit Margin: 13.5% - 14.5% (heavily burdened by D&A).
- Margin trend: Slightly compressing (down 40 bps in 2025) due to wage inflation, rising property insurance, and real estate tax increases offsetting RevPAR gains.
Balance Sheet Structure
- Total assets: Approximately $11.5 - $12.5 billion.
- Key asset categories: Investment in hotel properties (Land, Buildings, Furniture, Fixtures & Equipment) makes up >85% of total assets. Cash and cash equivalents ($768 million at year-end 2025).
- Goodwill & intangibles: Minimal; real estate is held at depreciated cost.
- Working capital profile:
- Days Sales Outstanding (DSO): Very low (10-15 days) as most guests pay via credit card at checkout; group business pays deposits upfront.
- Days Inventory Outstanding (DIO): Negligible (only F&B inventory).
- Days Payable Outstanding (DPO): 30-45 days.
- Net working capital as % of revenue: Structurally negative, providing a slight source of cash as the business grows.
- PP&E: Depreciated over 15-40 years for buildings and improvements, and 3-10 years for FF&E.
- Right-of-use assets / operating leases: Ground leases exist for certain properties but are a small fraction of the overall owned real estate base.
Capital Expenditure & Investment
- Capex as % of revenue: 10-12% ($644 million in 2025 on $6.1 billion revenue).
- Maintenance capex vs. growth capex: Split into Renewal and Replacement ($287M in 2025) and ROI/Repositioning ($282M in 2025).
- Major capex programmes underway: Marriott Transformational Capital Program and ongoing comprehensive renovations.
- Capitalised software: Immaterial.
- M&A pattern: Active portfolio recycler. Sells mature or lower-tier assets (e.g., $1.1B Four Seasons sales in 2026) to fund acquisitions of higher-yield luxury resorts or share buybacks.
- Typical acquisition multiple paid: 12-15x EBITDA / 6-8% Cap Rates depending on the asset quality.
Debt & Capital Structure
- Total debt: Approximately $4.0 - $4.5 billion.
- Debt/EBITDA ratio: 2.0x - 2.5x (very conservative for a REIT).
- Credit rating: Investment Grade (S&P: BBB-, Moody's: Baa2, Fitch: BBB).
- Key debt instruments: Unsecured senior notes (e.g., $1.3B issued in 2024) and a $1.5 billion revolving credit facility.
- Maturity profile: Well-laddered with recent refinancing pushing major maturities past 2028.
- Interest rate profile: Predominantly fixed-rate senior notes.
- Covenants: Standard REIT covenants (Total Debt to Total Assets < 65%, Secured Debt < 40%, Fixed Charge Coverage > 1.5x).
- Share repurchase programme: Active; repurchased $107 million in 2024, with $685 million remaining capacity.
- Dividend policy: Regular quarterly dividend ($0.20/share) plus special dividends (total $0.95/share declared in 2025). Payout ratio is typically 45-50% of AFFO.
Cash Flow Characteristics
- Operating cash flow conversion: High; OCF is typically >1.0x Net Income due to massive non-cash depreciation add-backs.
- Free cash flow margin: 10-15% (OCF minus heavy FF&E capex).
- Major non-cash items: Real estate depreciation, stock-based compensation, and gains/losses on property sales.
- Working capital cash flow impact: Minimal year-over-year impact.
- Capex intensity: High. Hotels require constant FF&E refreshes (typically 4-5% of revenues reserved annually) to maintain brand standards.
- Cash tax rate vs. GAAP effective tax rate: Near 0% for the REIT entity. Small tax provisions exist for Taxable REIT Subsidiaries (TRS) which operate the F&B/ancillary businesses.
Sheet Structure
- Assumptions: Hardcoded drivers for macroeconomic inputs, RevPAR growth, margins, capex % of revenue, and capital return policies.
- Portfolio & Operating Stats: Tracks Total Available Rooms, Occupancy %, ADR, RevPAR, and Total RevPAR. Includes adjustments for asset sales (e.g., removing the 569 rooms from the Q1 2026 Four Seasons sales).
- Income Statement: Projects Room Revenues, F&B Revenues, Other Revenues. Deducts departmental expenses to reach Hotel EBITDA, then deducts corporate SG&A, interest, and D&A to reach Net Income.
- FFO & AFFO Reconciliation: Bridges Net Income to NAREIT FFO (adding back real estate D&A, subtracting gains on sale) and then to Adjusted FFO (subtracting FF&E reserves, adding back non-cash items).
- Balance Sheet: Projects Investment in Hotel Properties, Cash, Debt, and Equity.
- Cash Flow Statement: Standard 3-statement build (OCF, CFI, CFF) linking Net Income to changes in Cash.
- Debt Schedule: Tracks senior notes, revolver drawdowns, interest expense, and debt maturities.
- Capex & Real Estate Roll-forward: Calculates maintenance capex (FF&E reserves), ROI capex, acquisitions, dispositions, and depreciation to roll forward the net PP&E balance.
- NAV Valuation: Applies a blended capitalization rate to forward 12-month Hotel Net Operating Income (NOI), adds cash, and subtracts debt to calculate Net Asset Value per share.
- DCF Valuation: Unlevered free cash flow build and WACC-based valuation for a secondary valuation perspective.
Key Financial Relationships
- `Available Room Nights = Total Rooms x Days in Period`
- `Occupied Room Nights = Available Room Nights x Occupancy %`
- `Room Revenue = Occupied Room Nights x Average Daily Rate (ADR)`
- `RevPAR = Room Revenue / Available Room Nights`
- `F&B Revenue = Occupied Room Nights x F&B Spend per Occupied Room`
- `Total Revenues = Room Revenue + F&B Revenue + Other Revenue`
- `Total RevPAR = Total Revenues / Available Room Nights`
- `Rooms Departmental Profit = Room Revenue x (1 - Rooms Expense Margin)`
- `Hotel EBITDA = Total Revenues - Rooms Expense - F&B Expense - Other Dept Expense - Undistributed Hotel Expenses`
- `EBITDAre = Net Income + Interest Expense + Income Taxes + D&A + Impairments - Gains on Disposition of Real Estate`
- `NAREIT FFO = Net Income + Real Estate D&A - Gains on Disposition of Real Estate`
- `Adjusted FFO (AFFO) = NAREIT FFO - FF&E Replacement Reserves + Non-Cash Stock Comp`
- `Net Asset Value (NAV) = (Forward 12M Hotel NOI / Cap Rate) + Cash & Equivalents - Total Debt`
Cross-Sheet Dependencies
- Portfolio & Operating Stats is the foundational sheet. It feeds room counts and RevPAR into the Income Statement to generate revenues.
- The Income Statement calculates Net Income, which feeds the top of the Cash Flow Statement and the FFO & AFFO Reconciliation.
- The Capex & Real Estate Roll-forward uses revenue from the Income Statement to calculate the FF&E reserve (typically 4-5% of revenue), which then feeds into the Balance Sheet (PP&E), Cash Flow Statement (Investing Outflows), and FFO & AFFO Reconciliation (deduction for AFFO).
- The Debt Schedule calculates Interest Expense, which feeds back into the Income Statement. (Potential circularity here if revolver interest depends on cash flow deficits; recommend using beginning-of-period debt for interest calculations to break the circularity).
- The NAV Valuation relies on forward NOI from the Income Statement and current debt/cash balances from the Balance Sheet.
Sign Convention
- Revenues and Assets: Positive.
- Expenses and Liabilities: Positive in their respective build-up schedules, but subtracted in aggregation formulas (e.g., `Revenue - Expenses = Profit`).
- Cash Flow Statement: Inflows are positive, outflows are negative.
- Contra-accounts: Accumulated depreciation is negative on the Balance Sheet.
Things Most Likely to Go Wrong
- Failing to adjust room counts for asset sales: The model must reduce the total room count by ~569 rooms in Q1 2026 to account for the $1.1B Four Seasons dispositions, otherwise revenues will be overstated.
- Confusing RevPAR with Total RevPAR: RevPAR only covers room revenue. Total RevPAR includes F&B and ancillary spend. The model must explicitly separate these drivers.
- Forgetting the FF&E Reserve in AFFO: Unlike standard corporate free cash flow, REIT AFFO strictly requires the deduction of a maintenance capital expenditure reserve (usually 4-5% of total revenues). Omitting this artificially inflates AFFO.
- Miscalculating EBITDAre: The NAREIT definition of EBITDAre requires specific adjustments for real estate gains/losses. Using a standard corporate EBITDA formula will yield incorrect valuation multiples.
- Ignoring TRS Tax Leakage: While the REIT pays no corporate tax, the Taxable REIT Subsidiary (which runs the restaurants and bars) does. A small tax provision must be maintained.
- Misaligning Occupancy and F&B Spend: F&B revenue is driven by *occupied* rooms, not *available* rooms. Applying F&B growth to available rooms will break the unit economics.
- Overestimating Margin Expansion: Hotel operating costs (labour, insurance) are highly inflationary. Assuming margins expand linearly with RevPAR ignores the reality of wage pressures; margins should be modelled flat to slightly compressing.
Validation Checks
- "Comparable Hotel EBITDA Margin should remain between 27.5% and 29.5%; flag if outside this band."
- "AFFO per share should be in the $2.00 - $2.15 range for 2026 based on management guidance."
- "Total RevPAR growth should align with management's 2.5% to 4.0% guidance for 2026."
- "FF&E Reserve must equal exactly 4.0% to 5.0% of Total Revenues."
- "Debt/EBITDA must remain below 3.0x to maintain investment-grade rating profile."
- "Balance sheet must balance: Total Assets = Total Liabilities + Equity in every period."
- "Dividend payout ratio should not exceed 100% of AFFO (target 45-60%)."
- "Implied Cap Rate from DCF should reconcile closely to the 7.5%-8.5% NAV Cap Rate assumption."
Key Assumptions (Default Values)
| Assumption | Default Value | Unit | Rationale |
|---|---|---|---|
| Total Rooms (Start 2026) | 41,131 | Rooms | 41,700 year-end 2025 minus 569 rooms sold in Q1 2026 |
| Occupancy % | 67.0 | % | Aligns with 2025 actuals (66.9% in Q4 2025) |
| Average Daily Rate (ADR) | 345.00 | $ | Slight increase from Q4 2025 actuals ($339.44) |
| RevPAR Growth (2026) | 3.25 | % | Midpoint of 2026 guidance (2.5% - 4.0%) |
| F&B Spend per Occupied Room | 125.00 | $ | Derived from 2025 F&B revenues and occupancy |
| Rooms Expense Margin | 26.5 | % | Historical average |
| F&B Expense Margin | 72.0 | % | Historical average (F&B is lower margin than rooms) |
| Undistributed Hotel Expenses | 22.0 | % of Rev | Historical average for A&G, S&M, and utilities |
| Corporate SG&A | 1.8 | % of Rev | Based on 2025 actuals |
| FF&E Reserve Rate | 4.5 | % of Rev | Standard lodging REIT maintenance capex assumption |
| Effective Tax Rate | 1.5 | % | Minimal tax due to REIT structure (TRS taxes only) |
| Weighted Average Interest Rate | 4.5 | % | Based on recent senior notes pricing |
| Regular Dividend per Share | 0.80 | $ | $0.20 quarterly run-rate |
| Special Dividend per Share | 0.15 | $ | Estimated based on 2025 special dividend payout |
| Shares Outstanding | 687.5 | Millions | Actual diluted share count from recent filings |
| NAV Capitalisation Rate | 8.0 | % | Standard upper-upscale hotel cap rate environment |
| WACC | 9.5 | % | Reflects lodging industry cyclicality and current risk-free rates |
Data Sources & Benchmarks
- SEC EDGAR: Host Hotels & Resorts (HST) 10-K and 10-Q filings.
- Investor Relations: HST Q4 2025 Supplemental Financial Information and Earnings Presentation (hosthotels.com).
- Key Peers for Benchmarking: Park Hotels & Resorts (PK), Sunstone Hotel Investors (SHO), Pebblebrook Hotel Trust (PEB), Ryman Hospitality Properties (RHP).
- Industry Data Sources: STR (Smith Travel Research) for RevPAR and ADR benchmarking across US markets; NAREIT for lodging REIT cap rates and FFO multiples.
Sources
- Host Hotels & Resorts Investor Relations: https://www.hosthotels.com/investors
- SEC EDGAR Database: https://www.sec.gov/edgar/searchedgar/companysearch
- Q4 2025 Earnings Release and Supplemental Information (February 18, 2026)
- Zacks Equity Research: "Host Hotels' Q4 AFFO & Revenues Top Estimates" (February 19, 2026)
- Seeking Alpha: "Host Hotels & Resorts: A High-Quality Hotel REIT Still Worth Buying After Strong Results" (February 25, 2026)
Do more with the Host Hotels & Resorts model
Frequently asked
What kind of company is Host Hotels & Resorts and what does it own?+
Host Hotels & Resorts is the world's largest lodging real estate investment trust (REIT), owning a portfolio of luxury and upper-upscale hotels. The company owns the physical real estate and partners with premium brands like Marriott and Hyatt to manage its approximately 41,700 rooms.
How does Host Hotels & Resorts generate its revenue?+
Host Hotels & Resorts generates revenue primarily from Room Revenues, which account for 60-65% of its total. Food & Beverage Revenues contribute 25-30%, with Other Revenues making up the remaining 5-10%.
What is Host Hotels & Resorts' approach to capital expenditures?+
Host Hotels & Resorts is an active portfolio recycler, selling mature assets to fund acquisitions of higher-yield luxury resorts or share buybacks. The company's capital expenditures are typically 10-12% of revenue, split between renewal/replacement and ROI/repositioning projects.
What is the working capital profile of Host Hotels & Resorts?+
Host Hotels & Resorts has a structurally negative net working capital as a percentage of revenue, which provides a slight source of cash as the business grows. This is due to very low Days Sales Outstanding (10-15 days) and negligible Days Inventory Outstanding, while Days Payable Outstanding is 30-45 days.
How is the financial performance of Host Hotels & Resorts evaluated in a financial model?+
The financial model projects Host Hotels & Resorts' performance, dividend coverage, and Net Asset Value (NAV) to assess stock recommendations. This evaluation is based on its Adjusted Funds From Operations (AFFO) yield and implied real estate valuation.
Can I download a financial model for Host Hotels & Resorts, and what is its forecast horizon?+
Yes, a downloadable Excel model is available for Host Hotels & Resorts. This model provides financial projections with a forecast horizon from FY2026 through FY2030.
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