Summary by Moomoo AI
Host Hotels & Resorts reported Q2 2024 total revenues increased 5.2% to $1.47 billion, while net income rose 13.1% to $242 million. The growth was driven by the reopening of The Ritz-Carlton Naples and the April acquisition of two Nashville properties. Operating profit margin improved 200 basis points to 19.9%, benefiting from insurance gains.Group revenue grew 7.7% on a 2.8% increase in room nights and 4.8% higher average rates, as convention and downtown properties showed continued improvement. However, this was partially offset by a 5.0% decline in transient revenue due to impacts from the Maui wildfires and moderating leisure demand. Comparable hotel RevPAR increased marginally by 0.1% while Total RevPAR rose 0.5%.During the quarter, the company issued $600 million in senior notes and completed strategic acquisitions totaling $530 million. The outlook remains cautious with minimal year-over-year RevPAR growth expected in H2 2024 due to slower recovery in Maui and moderating domestic leisure demand. Management projects full-year 2024 comparable hotel RevPAR change between -1.0% and +1.0%.
