Cuộc họp công bố kết quả kinh doanh quý 3/2026 của HST: Tăng trưởng RevPAR thúc đẩy nâng định hướng

Những điểm nhấn chính

• EBITDAre điều chỉnh quý 3 tăng 8,8% so với cùng kỳ năm trước lên 347 triệu USD, trong khi FFO điều chỉnh trên mỗi cổ phiếu tăng 11,4% lên 0,39 USD.
• RevPAR của các khách sạn tương đương tăng 8,8% và tổng RevPAR tăng 7,3%. Biên EBITDA của các khách sạn tương đương mở rộng 90 điểm cơ bản lên 25,2%.
• Doanh thu khách lẻ tăng khoảng 12%, nhờ sự hỗ trợ của cả giá phòng và tỷ lệ lấp đầy. Doanh thu khách công vụ lẻ tăng 9%, với số đêm phòng tăng 5%.
• Ban lãnh đạo đã nâng dự báo tăng trưởng RevPAR của các khách sạn tương đương cả năm 2026 lên khoảng 6,75% và nâng dự báo EBITDAre điều chỉnh lên 1,865 tỷ USD.
• HST đã mua lại 1 Hotel Brooklyn Bridge với giá 202 triệu USD và Renaissance Plano với giá khoảng 172 triệu USD. Tổng giá mua này tương đương với hệ số EBITDA ước tính năm 2026 kết hợp là 10,7 lần.
• Ban lãnh đạo dẫn ra tốc độ tăng tổng doanh thu khách đoàn đạt 6% cho năm 2027, sự phục hồi của du lịch công vụ, các thương vụ mua lại gần đây và các bất động sản vừa cải tạo là những động lực hỗ trợ tiềm năng, dù chưa đưa ra dự báo cho năm 2027.

Dữ liệu tài chính cốt lõi

Kết quả kinh doanh và vận hành

Tăng trưởng doanh thu diễn ra trên diện rộng, với 23 trong số 24 thị trường nội địa của HST ghi nhận mức tăng RevPAR khách sạn tương đương. Nhu cầu khách lẻ đóng góp hơn 80% mức tăng doanh thu phòng trong quý, dẫn đầu là Maui, Washington, D.C., San Francisco và New York.

Số đêm phòng của khách công vụ lẻ tăng 5%, bao gồm mức tăng khoảng 2,5% trong tháng 7, 8,5% trong tháng 8 và 4% trong tháng 9. Ban lãnh đạo cho biết San Francisco và Washington, D.C. đóng góp hơn 40% mức tăng trưởng theo quý của phân khúc này, nhờ nhu cầu từ các ngành công nghệ, dịch vụ tài chính, tư vấn và các hoạt động liên quan đến chính phủ.

Doanh thu phòng khách đoàn tăng 5%, được thúc đẩy nhờ giá phòng, mức tăng nhẹ về số đêm phòng và các lượt đặt phòng ngắn hạn của doanh nghiệp. HST đã có 4 triệu đêm phòng khách đoàn chắc chắn được đặt cho năm 2026. Tốc độ tăng tổng doanh thu khách đoàn cả năm tăng 6%, trong đó quý 4 đạt tốc độ cao hơn gần 10%.

RevPAR tại Maui tăng gần 14% và tổng RevPAR tăng 12% bất chấp ảnh hưởng tiêu cực của thời tiết. Ban lãnh đạo hiện kỳ vọng danh mục đầu tư tại Maui sẽ tạo ra khoảng 122 triệu USD EBITDA trong năm 2026, cao hơn 2 triệu USD so với dự báo trước đó.

Chi tiêu cho các dịch vụ bổ trợ tiếp tục duy trì tích cực. Doanh thu thực phẩm và đồ uống tăng 6%, bao gồm mức tăng 8% từ doanh thu tiệc và dịch vụ ăn uống sự kiện. Doanh thu từ sân golf tăng 4%, và doanh thu dịch vụ spa tăng 2%.

Các sự kiện World Cup đóng góp ước tính 100 điểm cơ bản vào mức tăng trưởng RevPAR quý 3. Ban lãnh đạo ước tính mức đóng góp gộp cho cả năm 2026 là 70 điểm cơ bản, tương đương khoảng 50 điểm cơ bản trên cơ sở ròng.

HST đã hoàn tất hai thương vụ mua lại trong quý 4. Khách sạn 1 Hotel Brooklyn Bridge quy mô 195 phòng được mua với giá 202 triệu USD bằng tiền mặt, với hệ số EBITDA ước tính năm 2026 là 10,2 lần và tỷ lệ vốn hóa khoảng 8,2%. Khách sạn Renaissance Plano quy mô 308 phòng được mua lại với giá khoảng 172 triệu USD, với hệ số EBITDA ước tính là 11,2 lần và tỷ lệ vốn hóa khoảng 7,9%.

Các bất động sản này dự kiến sẽ đóng góp 6 triệu USD EBITDA trong giai đoạn thuộc quyền sở hữu của HST vào năm 2026. So với thu nhập lãi mà số tiền mặt đầu tư lẽ ra đã tạo ra, ban lãnh đạo kỳ vọng mức EBITDAre điều chỉnh gia tăng sẽ đạt khoảng 4 triệu USD.

Dự báo của ban lãnh đạo

HST đã nâng ước tính tăng trưởng RevPAR khách sạn tương đương cả năm 2026 lên khoảng 6,75% và ước tính tăng trưởng tổng RevPAR lên khoảng 6%. Ban lãnh đạo cho biết hai phần ba mức tăng này đến từ kết quả vượt kỳ vọng trong quý 3 và phần còn lại nhờ triển vọng quý 4 được cải thiện.

Công ty hiện kỳ vọng EBITDAre điều chỉnh đạt 1,865 tỷ USD, tăng 35 triệu USD so với mức trung vị của dự báo trước đó. Biên EBITDA khách sạn tương đương cả năm dự kiến đạt khoảng 30%, cao hơn 80 điểm cơ bản so với năm 2025.

Đối với quý 4, ban lãnh đạo dự báo tăng trưởng RevPAR đạt mức một chữ số cao và biên lợi nhuận mở rộng so với cùng kỳ năm trước. Tăng trưởng RevPAR tháng 10 ước đạt 6,5%. Triển vọng này dựa trên giả định môi trường vận hành ổn định, giá phòng khách du lịch nghỉ dưỡng tiếp tục duy trì ở mức cao, tiến độ đặt phòng khách đoàn thuận lợi và nhu cầu khách công vụ lẻ đang được cải thiện.

HST tiếp tục dự báo mức lương, vốn chiếm khoảng 50% chi phí vận hành khách sạn tương đương, sẽ tăng khoảng 5% trong năm 2026. Dự báo chi phí vốn vẫn duy trì ở mức khoảng 550 triệu USD đến 600 triệu USD, bao gồm 255 triệu USD đến 280 triệu USD cho các dự án tái phát triển, tái định vị và tạo lợi tức đầu tư.

Ban lãnh đạo chưa đưa ra dự báo cho năm 2027. Họ đã xác định tốc độ tăng tổng doanh thu khách đoàn đạt 6%, lợi nhuận gia tăng từ các thương vụ mua lại, đà phục hồi tiếp diễn tại Maui và San Francisco, các tài sản cải tạo đi vào hoạt động trở lại, mức tăng chi phí lao động hạ nhiệt và chi phí bảo hiểm tài sản giảm là những động lực hỗ trợ tiềm năng.

Rủi ro và các yếu tố cần theo dõi

• Các hiện tượng thời tiết tại Hawaii dự kiến sẽ làm giảm khoảng 10 triệu USD EBITDA cả năm, trong đó 7 triệu USD thuộc về Maui. Chúng cũng được dự báo sẽ làm giảm 40 điểm cơ bản mức tăng trưởng RevPAR khách sạn tương đương cả năm.
• HST dự kiến chi phí tái thiết các thiệt hại tài sản liên quan đến cơn bão Kona low trong năm 2026 sẽ vào khoảng 10 triệu USD đến 15 triệu USD, cùng thêm 10 triệu USD chi phí phục hồi trong năm 2027. Bảo hiểm dự kiến sẽ chi trả phần lớn các khoản tổn thất vượt mức khấu trừ.
• Tăng trưởng RevPAR của mảng khu nghỉ dưỡng đã chịu tác động tiêu cực khoảng 600 điểm cơ bản do hoạt động cải tạo trong quý 3.
• Các khoản tiền bồi thường gián đoạn kinh doanh liên quan đến cơn bão tại Hawaii và cháy rừng ở California vẫn chưa chắc chắn cả về thời điểm lẫn số tiền nhận được.
• Mức so sánh cho năm 2027 sẽ chịu ảnh hưởng do không còn lợi ích từ World Cup 2026, điều mà ban lãnh đạo ước tính tương đương 15 triệu USD đến 17 triệu USD EBITDA. Ban lãnh đạo cho biết xu hướng đặt phòng của khách đoàn và khách lẻ hiện tại mang lại sự tự tin trong việc bù đắp khoảng cách đó.
• Lạm phát tiền lương vẫn là một áp lực chi phí, dù mức tăng giá phòng và việc cải thiện năng suất đã bù đắp được phần nào trong quý 3.

Những điểm nổi bật trong phiên hỏi đáp với chuyên gia phân tích

Biên lợi nhuận và tỷ lệ chuyển hóa lợi nhuận: Ban lãnh đạo nhận định quý 3 là quý yếu nhất theo mùa của HST do giá phòng danh nghĩa và mức đóng góp từ dịch vụ tiệc thấp hơn. Mặc dù tỷ lệ lấp đầy tăng 210 điểm cơ bản làm phát sinh thêm chi phí biến đổi, tổng chi phí trên mỗi phòng có khách chỉ tăng 3%. Tỷ lệ chuyển hóa lợi nhuận quý 3 đạt khoảng 38%, trong khi dự báo ngụ ý cho quý 4 chỉ ra tỷ lệ chuyển hóa lợi nhuận đạt gần 50% và biên lợi nhuận xấp xỉ 30%.

Động lực thúc đẩy nhu cầu năm 2027: Ban lãnh đạo kỳ vọng đà phục hồi của phân khúc khách công vụ lẻ sẽ tiếp diễn, đồng thời lưu ý rằng số đêm phòng của phân khúc này vẫn thấp hơn khoảng 24% so với mức năm 2019. HST cũng kỳ vọng hưởng lợi từ việc hoàn thành chương trình đầu tư vốn chuyển đổi của Hyatt, đóng góp cả năm từ các biệt thự Phoenician và việc các dự án cải tạo bổ sung của Marriott đi vào hoạt động trở lại.

Maui và San Francisco: Ban lãnh đạo dự báo tăng trưởng RevPAR tại Maui trong quý 4 đạt 15%. Tốc độ tăng trưởng khách đoàn quý 4 của San Francisco đạt 14%, tiếp nối mức tăng trưởng RevPAR 9% trong quý 3. Cả hai thị trường đều được xác định là những động lực hỗ trợ tiềm năng đầy ý nghĩa cho năm 2027.

Kế hoạch giao dịch: Ban lãnh đạo cho biết đang đánh giá các cơ hội giao dịch công khai và kín, đồng thời lạc quan rằng có thể thảo luận về ít nhất một giao dịch bổ sung trong vòng 60 đến 90 ngày tới. HST cũng đang thăm dò thị trường về khả năng bán tài sản tiềm năng, dù chưa có thương vụ thoái vốn cụ thể nào được công bố.

Nguồn cung khách sạn: Ban lãnh đạo cho biết chi phí xây dựng neo cao, điều kiện tài trợ vốn, tình trạng khan hiếm lao động và thời gian phát triển kéo dài sẽ giữ cho nguồn cung cạnh tranh ở mức hạn chế. Nguồn cung khách sạn đang trong kế hoạch xây dựng được mô tả là thấp hơn 31% so với mức trước đại dịch.

Toàn văn cuộc gọi công bố kết quả kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

Jaime Marcus

Thank you, and good morning, everyone. Before we begin, please note that many of the comments made today are considered to be forward-looking statements under federal securities laws. As described in our filings with the SEC, these statements are subject to numerous risks and uncertainties that could cause future results to differ from those expressed, and we are not obligated to publicly update or revise these forward-looking statements.

In addition, on today's call, we will discuss certain non-GAAP financial information, such as FFO, adjusted EBITDAre and comparable hotel-level results. You can find this information, together with reconciliations to the most directly comparable GAAP information in yesterday's earnings press release, in our 8-K filed with the SEC and in the supplemental financial information on our website at hosthotels.com. The operational results discussed today refer to our 73 hotel comparable hotel portfolio in 2026.

The comparable hotel portfolio excludes the Don CeSar and Alila Ventana Big Sur, which was closed for over 30 days due to a wildfire evacuation mandate. The comparable hotel portfolio also excludes the 1 Hotel Brooklyn Bridge and Renaissance Dallas at Plano Legacy West Hotel, which were acquired in the fourth quarter.

With me on today's call are Jim Risoleo, President and Chief Executive Officer; and Sourav Ghosh, Executive Vice President and Chief Financial Officer.

With that, I would like to turn the call over to Jim.

James Risoleo

Thank you, Jamie, and thanks to everyone for joining us this morning. We continue to outperform our expectations in the third quarter building on strong operating and financial results in the first half of 2026. In the third quarter, we delivered adjusted EBITDAre of $347 million, an increase of 8.8% over last year, and adjusted FFO per share of $0.39, which was up 11.4% compared to the third quarter of 2025. Year-to-date compared to 2025, adjusted EBITDAre and adjusted FFO per share were up 6.5% and 8.3%, respectively. Comparable hotel RevPAR improved 8.8% compared to the third quarter of 2025, and comparable hotel total RevPAR improved 7.3%, driven by rate growth, strong leisure group and business transient demand and higher food and beverage revenues. Comparable hotel EBITDA margin increased 90 basis points year-over-year to 25.2% as rate growth more than offset higher wage expense. RevPAR growth in the third quarter meaningfully exceeded our expectations with broad-based strength across markets and business mix. In fact, 23 of our 24 domestic markets delivered increases in comparable hotel RevPAR in the quarter. Growth was driven by leisure transient, bolstered by special events, group demand pickup and improving business transient demand.

Looking at World Cup performance, we estimate that the events contributed approximately 100 basis points of RevPAR growth in the third quarter. For the full year, the World Cup contributed approximately 70 basis points of gross RevPAR growth, which is consistent with our prior expectations.

Turning to business mix. Transient revenue grew by approximately 12%, the strongest growth since early 2023, accounting for more than 80% of the room revenue increase in the third quarter. Growth was driven by both rate and occupancy unlike the first half of the year, which was primarily rate driven. We saw particularly strong transient performance in Maui, Washington, D.C., San Francisco and New York.

Turning to Maui. Strong demand drove RevPAR growth of nearly 14% and total RevPAR growth of 12% despite weather-related disruptions. In fact, Maui accounted for more than 2/3 of our resort RevPAR growth in the quarter. We now expect our Maui properties to generate approximately $122 million of the EBITDA in 2026, a $2 million increase over our prior guidance. While Maui outperformed our expectations, storms in Hawaii impacted third quarter comparable hotel RevPAR growth by 25 basis points and full year comparable hotel RevPAR growth by 40 basis points. Including the Kona lows storm earlier this year, we estimate Hawaii weather events will impact full year EBITDA by approximately $10 million, of which $7 million is attributable to Maui.

Turning to business transient. Revenue was up 9% in the third quarter, led by both room night and rate growth. Importantly, business transient room night growth was up in the mid-single digits, an encouraging sign of building momentum for the segment going forward. Group room revenue for the quarter was up 5% year-over-year, driven by short-term bookings and corporate groups. Our definite room nights on the books increased to $4 million for 2026. In full year 2026 total group revenue pace is up 6% to the same time last year with the fourth quarter pacing up nearly 10%.

Turning to ancillary spending. Food and beverage revenue grew 6%. Spa revenue grew 2%, and golf revenue grew 4%. Continued growth in ancillary spending underscores the strength of the affluent consumer and the benefits of our strategic portfolio investments in recent years.

On the capital allocation front, yesterday, we announced the acquisition of the leasehold interest in the 195-room 1 Hotel Brooklyn Bridge for $202 million in cash. The property has 82 years remaining on the ground lease with a government non-profit lessor. The purchase price represents a 10.2x EBITDA multiple and an approximately 8.2% cap rate based on estimated 2026 results. The property is expected to rank among our top 10 assets with estimated total RevPAR of $1,130, RevPAR of $615 and EBITDA per key of approximately $100,000, further enhancing the quality of our portfolio.

The 1 Hotel Brooklyn Bridge was the first new build for 1 hotels, and it sits on an irreplaceable piece of property on the East River along the Riverfront Park and adjacent to the Brooklyn Bridge. Opened in 2017, the hotel is a lead gold-certified luxury property with Manhattan skyline views, and 195 oversized rooms, including 29 suites. The hotel has 12,000 square feet of meeting space, multiple food and beverage outlets, 10 treatment rooms, Bamford Wellness Spa, a fitness center, underground parking and a rooftop pool. The property also features Barbuto Brooklyn, the restaurant concept from James Beard Award-winning chef, Jonathan Waxman. The hotel benefits from convenient Manhattan access, strong Brooklyn demand drivers and significant barriers to new supply.

The acquisition expands our luxury presence in New York into a new submarket and further strengthens our relationship with the 1 Hotel brand. Brooklyn has emerged as an extension in Manhattan with high-end dining and retail, a growing technology hub and a significant concentration of fashion and entertainment companies. We also announced the acquisition of the fee-simple interest in the 308-room Renaissance Stylus at Plano Legacy West Hotel for approximately $172 million in cash. The purchase price represents an 11.2x EBITDA multiple and an approximately 7.9% cap rate based on estimated 2026 results. The property is expected to rank among our top 25 assets on a total RevPAR and EBITDA per key basis based on estimated full year 2026 results with expected total RevPAR of $380, RevPAR of $200 and EBITDA per key of approximately $50,000, further enhancing the geographic diversification of our portfolio.

The acquisition establishes host presence in the high-growth Dallas/Fort Worth market through a uniquely positioned asset in the Plano Frisco submarket. The Renaissance Plano features 16 suites, 35,000 square feet of meeting space, multiple food and beverage outlets, an outdoor pool, a fitness center and an attached parking garage. As the only hotel within Legacy West, a premier 240-acre mixed-use development anchored by major corporations, Class A offices, luxury residences and high-end retail, the hotel benefits from strong business transient, corporate group and social demand.

With more than 75 Forbes Global 2,000 companies in the area, the submarket is well positioned to benefit from continued corporate relocations and planned entertainment district development. Together, these acquisitions add two high-quality assets at attractive pricing, expand our presence in key growth markets and enhance the quality, performance and geographic diversification of our portfolio. They reflect our disciplined approach to capital allocation and our commitment to generating long-term shareholder value. Taken together, the blended 10.7x EBITDA multiple for these two acquisitions is more than one turn below the recent trading multiple of our shares and substantially completes the reallocation of proceeds from the Four Seasons sales earlier this year.

Additionally, the acquisitions are immediately accretive to earnings and are expected to generate $6 million of EBITDA during our 2026 ownership period, which is included in our adjusted EBITDAre and FFO guidance. Compared with the interest income, we would have earned on the cash invested. The combined acquisitions are expected to contribute approximately $4 million of incremental adjusted EBITDAre.

Turning to portfolio reinvestment. As of the third quarter, the Hyatt transformational capital program is approximately 90% complete and on track for completion by the end of this year. The final asset in the program, the Manchester Grand Hyatt San Diego is expected to be substantially completed by year-end. We also made additional progress on the second Marriott transformational capital program which is approximately 50% complete and is tracking on time and under budget. Renovations at the Ritz-Carlton Naples Tiburon and the guestroom renovation phase at the New Orleans Marriott are complete. The Westin Kierland and the Ritz-Carlton Marina del Rey are currently under renovation.

In the third quarter, we received $7 million of operating guarantees related to our transformational capital programs. We expect approximately $19 million in operating profit guarantees from our two transformational capital programs in 2026, which is expected to offset most of the EBITDA disruption at those properties.

Looking at other ROI projects. We completed the final phase of the Four Seasons branded condo development at the Walt Disney World Resort during the second quarter on time and within budget. To date, we have closed on 29 of the 40 units including 21 of 31 mid-rise units and 8 of 9 villas. We expect approximately $18 million of EBITDA in 2026 with $5 million expected to be recognized in 2027. For 2026, our capital expenditure guidance range is approximately $550 million to $600 million. This includes approximately $255 million to $280 million of investment focused on redevelopment, repositioning and ROI projects as well as $10 million to $15 million of property damage reconstruction associated with the Kona low rainstorm in Hawaii. We expect $2 million of remediation costs associated with the Hawaii storms this year and an additional $10 million of restoration spending in 2027, with insurance substantially covering losses above our deductible.

In addition to our capital expenditure investments this year, we spent approximately $17 million to close out the condo development at the Four Seasons Orlando. Our continued portfolio reinvestment remains a key differentiator, and we believe it is a driver of host outperformance. Once the second Marriott transformational capital program is completed in 2029, we expect to have invested approximately $2 billion in comprehensive renovations across 34 hotels that are projected to generate more than 60% of our 2026 hotel EBITDA. As the 21 properties where post-renovation performance has stabilized, RevPAR index share has increased by nearly 9 points on average, demonstrating the meaningful value created by our disciplined capital allocation strategy.

Turning to our outlook for the full year. We once again outperformed our expectations in the third quarter. As a result of our strong performance year-to-date, and improved expectations for the fourth quarter, we are increasing our comparable hotel RevPAR and total RevPAR guidance estimates to approximately 6.75% and 6%, respectively. We are also increasing our adjusted EBITDAre guidance to $1.865 billion, representing a $35 million or 2% improvement. Sourav will discuss the assumptions behind these updated estimates in more detail.

Building on our outperformance in 2025, we have continued to exceed expectations throughout 2026. Since issuing our initial full year guidance in February, we have increased our RevPAR expectations by 400 basis points our adjusted EBITDAre expectations by $95 million.

Looking ahead to 2027, we remain optimistic about the travel outlook, supported by a favorable demand environment, the strength of the high-end consumer, continued growth in business travel and historically low supply growth across our markets and chain scales. We also expect to benefit from several host-specific tailwinds, including incremental EBITDA from our recent acquisitions, a healthy 2027 total group revenue pace of 6% compared to the same time last year, continued recoveries in Maui and San Francisco the ramp-up of our transformational capital projects in the Venetian villas, moderating labor cost growth and lower property insurance expense. With a high-quality portfolio and investment-grade balance sheet and a proven track record of execution, Host is well positioned to build on our outperformance and deliver compelling long-term value for our shareholders.

With that, I will now turn the call over to Sourav.

Sourav Ghosh

Thank you, Jim, and good morning, everyone. Building on Jim's comments, I will go into detail on our third quarter operations, our financial results, our updated 2026 guidance and our balance sheet. Starting with total revenue trends RevPAR growth outpaced total RevPAR as outsized rates, coupled with more than 2 points of occupancy growth, boosted room revenue growth beyond ancillary revenue growth. Comparable hotel food and beverage revenue for the quarter grew 6% with the banquet and catering revenue growth. Banquet and catering revenue increased 8%, driven by 6% growth in banquet and catering contribution for group room night and increases in group room night volume. Banquet growth was broad-based across both hotel types and markets. Restaurant and Bar revenue grew 5% in the quarter, driven by our resorts in Maui and Oahu despite impacts from weather. In addition, we had a particularly strong quarter at the Orlando World Center Marriott. Golf revenue grew 4% and spa revenue grew 2%, driven by our resorts in Naples and Maui, despite impacts from an unusually hot summer in Phoenix and renovations at the Hyatt Regency Coconut Point.

Shifting to business mix. Transient revenue grew approximately 12% compared to the third quarter of 2025, reflecting broad-based strength in both rates and room nights. Momentum remains strong throughout the quarter, supported by event-driven compression, pricing strength, business transient growth and holiday outperformance. Maui, Washington, D.C., San Francisco and New York generated more than half of the transient room revenue increase. Resort RevPAR grew 6% in the quarter, driven by rate growth despite approximately 600 basis points of renovation impacts. Hawaii led resort performance with double-digit transient RevPAR growth at all 4 of our resorts in Maui and Oahu. These results continue to underscore the strength of high-end demand. Looking at recent holidays, revenue for the fourth of July and Labor Day weekend grew 27% and 10%, respectively. Looking forward, transient revenue pace for the total portfolio is up 24% for Thanksgiving week compared to the same time last year, and the festive period is up 14%. In all cases, recent holiday results and upcoming holiday transient pace are driven by broad-based strength across the portfolio.

Business transient revenue was up 9% in the third quarter of 2025, driven by a 5% increase in room nights. San Francisco and Washington, D.C. generated over 40% of the growth during the quarter. San Francisco's growth was led by technology demand, while D.C. benefited from both corporate and federal government travel. The growth in business transient room nights this quarter highlights the continued recovery in demand with additional upside as volume builds towards 2019 levels.

Turning to group revenue was up 5% year-over-year. Growth was driven by rate alongside modest room night growth. Corporate groups accounted for nearly 90% of the group revenue increase within the quarter for the quarter group room nights up 26%. Short-term bookings range from technology companies in San Francisco to consulting firms in Washington, D.C. For full year 2026, we have 4 million definite group room nights on the books, representing a nearly 6% increase since the second quarter. As Jim mentioned, total group revenue pace is up 6% year-over-year, with particularly strong fourth quarter pace in San Diego, San Francisco, Maui, Miami, New Orleans and Oahu. Looking ahead, our 2027 total group revenue pace is also 6% ahead of the same time last year, driven by rate, room nights and strong banquet contribution. 2027, group revenue pace is led by our properties in Phoenix, Washington, D.C., New York and Orlando.

Turning to margins. accountable hotel EBITDA margin expanded by 90 basis points year-over-year to 25.2% as rate growth more than offset higher wage expense. Substantially lower food costs and improved food and beverage productivity also helped offset these cost pressures. As we would expect with higher occupancy, total expenses grew approximately 6% in the third quarter. However, total expenses per occupied room were only up 3%, reflecting our continued work with operators to control costs at the property level.

Turning to our outlook for 2026. As Jim mentioned, we are increasing our comparable hotel RevPAR and total RevPAR guidance estimates as a result of our outperformance year-to-date and improved expectations for the fourth quarter. 2/3 of the increase in our guidance reflects our strong third quarter results, while the remaining core reflects improved expectations for the fourth quarter. We now expect comparable hotel RevPAR and total RevPAR to grow approximately 6.75% and 6%, respectively, compared to 2025. For the fourth quarter, we expect high single-digit RevPAR growth an improvement from our prior guidance, supported in part by estimated RevPAR growth of 6.5% in October. Our guidance assumes a stable operating environment with the continuation of the trends we saw through the first 3 quarters of the year, including rate-driven leisure plain strength, favorable group booking pace and improving business plans and demand. We expect a comparable hotel EBITDA margin of approximately 30%, up 30 basis points from the midpoint of our prior guidance and 80 basis points above 2025. This performance reflects continued productivity gains achieved with our operators and the benefits of our capital allocation decisions over the past several years. For the fourth quarter, we expect comparable hotel EBITDA margin expansion year-over-year as rate growth more than offset higher wage expense. For the full year, we continue to expect wage rates to increase approximately 5%, which comprises approximately 50% of our total comparable hotel operating expenses. Our 2026 full year adjusted EBITDAre guidance is $1.865 billion. This represents a $35 million or 2% improvement over our prior guidance midpoint driven by outperformance in the third quarter and improved expectations for the fourth quarter.

Our adjusted EBITDAre guidance midpoint includes estimated EBITDA of $31 million from operations of the Don CeSar, $11 million from Alila Ventana Big Sur and $6 million from the 1 Hotel Brooklyn Bridge and Renaissance Plano, which were acquired in the fourth quarter. All four properties are excluded from our 2026 comparable hotel portfolio in the third quarter. Guidance also includes approximately $7 million of business interruption proceeds related to Hurricanes Helene and Milton, which we received in the first quarter. We also expect to receive business interruption proceeds related to the recent Kona low rainstorm in Hawaii and the wildfire in California for the timing and amount remain uncertain.

Turning to our balance sheet. Subsequent to quarter end, we recast our $2.5 billion credit facility, extending the revolver and term loans through 2031 and 2032. We also expanded the accordion to $1.25 billion and achieved total reductions of 12.5 basis points on revolver draws, 15 basis points on the term loans and 5 basis points on the facility fee, reflecting both a reset of the pricing grid to current market levels and the new leverage-based pricing benefit. Following the recast, our debt has a weighted average maturity of 5.2 years at a weighted average interest rate of 4.8%. Adjusted cash for recent acquisitions and the October dividend, we have $2.6 billion of available liquidity, including $157 million of FF&E reserves and $1.5 billion of revolver capacity with an adjusted leverage ratio of 2.3x. This balance sheet strength provides meaningful flexibility to pursue capital allocation opportunities and continue driving outperformance. In October, we paid a quarterly cash dividend of $0.20 per share. As always, any future dividends are subject to approval by the company's Board of Directors.

In closing, our strong year-to-date performance, recent acquisitions, continued portfolio investment and investment-grade balance sheet reinforce our ability to drive durable earnings growth. Looking ahead, the 2027 tailwinds Jim outlined, including incremental contribution from our acquisitions and capital projects, healthy group pace market recoveries business transient demand growth and moderating expense growth position Host to build on this momentum, return capital to shareholders and compound shareholder value over the long term.

With that, we are happy to take your questions. To allow time for as many participants as possible, please limit yourself to 1 question.

Operator

[Operator Instructions] Your first question comes from the line of Michael Bellisario with Baird.

Phần hỏi đáp

Michael Bellisario

A quick for -- just a question maybe for Sourav here, but you Jim can chime in too. Can you dig into and sort of remind us on margins and flow-throughs, that's where we've been getting the most questions lately. Just some of the dynamics between 3Q and 4Q in terms of seasonality, fixed versus variable expenses? And then any impact good or bad that it might have impacted flow-through for either period.

Sourav Ghosh

Sure, Mike. So let me start off by saying that we are absolutely thrilled with the 90 basis points margin expansion that we saw in the third quarter. As we said in the prepared remarks, our total expense per occupied room grew only 3%. And that's important because when you look at the third quarter, we had 210 basis points of occupancy growth. which, if you look at prior quarters, we had less than 1 point of occupancy growth. So when you have occupancy growth, obviously, you have variable expenses that come with occupancy growth. So that flows through at a lower percentage. On top of that, I'll remind everybody, as we have said all along, third quarter is always our weakest quarter. When you look at the nominal dollars, and you look at nominal ADR, it is like $40 or so lower than every other quarter. In addition to that, it is the lowest banking catering contribution dollar. So when you look at both the banker and catering perspective as well as the nominal rate, the overall margin is meaningfully lower in the third quarter, and that's the [indiscernible] piece of it, as you rightly pointed out. And that is true every single year. It is always our weakest quarter. So when you have a very low margin to get a 38% year-over-year flow-through for the third quarter is exceptional given where the growth came from. So when you move on to the fourth quarter, our margin will go up by about, call it, 5 points or so from the 25 to say is somewhere around 30 based on the implied midpoint that effectively will drive much higher flow-through and the flow-through for the fourth quarter and the implied guidance is closer to 50%. So this is just a function of what we are getting each single quarter based on seasonality on the nominal dollar piece, coupled with the fact that we had occupancy growth in the third quarter. So you have to look where the growth is coming from in each quarter and the respective flow through. Every quarter is not the same. And Q3 being our weakest quarter, the 38% year-over-year flow-through is exceptional, and so was the 90 basis points margin expansion.

Operator

Your next question comes from the line of David Katz with Jefferies.

David Katz

You've given some pretty good detail with respect to 2027. I wanted to maybe see if we couldn't go a step further. There's obviously a fair amount of tailwinds that are out there. What do we need to see, right, in order for '27 to be a year of growth? Is that going to necessarily going to require some robust RevPAR growth for the market overall? Do you think you can sort of get there with the tools and the levers that you have as we sit here today, obviously not asking for specific guidance.

James Risoleo

Yes. As you know, Dave, we'll give you guidance in February on a more specific basis. And we really like the way we are set up for 2027, starting with our group revenue pace up 6%, which we think is a good place to be as we go into the year. we are going to have -- continue to have tailwinds in San Francisco and Maui. San Francisco is definitely back, and we had a terrific quarter in San Francisco this past third quarter. Maui is forecasted to contribute $122 million of EBITDA -- full year EBITDA, notwithstanding the impacts of the Kona low rainstorm in two hurricanes that caused a significant amount of business disruption. So we feel good about how we're set up in those two markets. As Sourav mentioned, festive pace, which carries over into January, that's feeling really good as well. I think that's up about 14% year-over-year. And importantly, we will be bringing a number of our premier assets back online. ACCP, the Hyatt transformational capital program will be done. The last asset to come online is the Grand Hyatt Manchester Grand Hyatt in San Diego. It's a 1,600-room hotel. The Phoenician villas will have a full year run rate, which they haven't had before. And some of the Marriott transformational capital program assets will be coming back online as well. So when you take those specific tailwinds to host that, we feel really good about how things are set up. One of the really encouraging things that we saw have in Q3 was the growth in business transient room nights. BT room nights are still down about 24% relative to where they were in 2019, pre-pandemic. So the fact that we saw business transient revenue go up 9% with over 5% of that being driven by room nights is very encouraging. And we've looked out for the balance of this year to demand 360 and a couple of other sources for this year and what the forecasts are looking like for 2027, and it's all very positive. I mean we are anticipating a pickup -- continued pickup in business transient. So -- and lastly, the affluent consumer, I mean, we continue to see spending at our properties. The properties are renovated, and people are coming. They're spending a lot of money. And when they get there, they're spending out of room as well. Golf revenues are up, small revenues or outlet revenues are up, and we don't see that slowing down by any means. We're very optimistic with the setup we have for '27.

Operator

Your next question comes from the line of Chris Woronka with Deutsche Bank.

Chris Woronka

Jim, I guess maybe to follow up on your recent comments about the BT. Have you seen any change in booking windows or things like that on BT? It sounds like Q3 was a lot stronger than you initially thought and you kind of had July in the bank when you reported. So looking at things like September. I mean, is this more BT? Or is this more groups kind of going above the blocks on whether it's rooms or F&B. Just trying to get a sense as to kind of how the quarter evolved and also your outlook for BT and whether the windows have changed much.

James Risoleo

Yes. Sure, Chris. I mean, the booking window is still relatively short term. We saw a strong pickup in BT in the month of August. And it was led by San Francisco and Washington, D.C. And I don't think the booking patterns have really changed at all from prior.

Sourav Ghosh

And I'll add, the first time we actually saw BT room night growth. We had mentioned that it was really the month of March, it was in Q1. And then we thought that would continue that's sort of stabilized from a year-over-year risk basis. We didn't really see meaningful growth into April, May, June, but then you also had the special event impact. So at that point in time, we didn't see significant BT pickup then in July, BT room nights went up by about 2.5%. And then August went up close to 8.5% and then September, 4%. So we have seen now multiple months of BT room night growth. And as Jim mentioned, particularly for the third quarter, 40% of that growth really came from San Francisco, and D.C., but we are seeing the growth in every single market, particularly on the tech side, the financial sectors and consulting. So it is encouraging to see that and all expectations is that momentum continues into next year?

James Risoleo

One final data point on that, Chris, is if you look at some of the airline commentary, Delta in particular, on their call, they reported double-digit corporate sales growth and no cracks in the system. So I think there are some other sources out there that would validate what we're seeing.

Operator

Your next question comes from the line of Smedes Rose with Citi.

Bennett Rose

I wanted to maybe switch gears a little bit and ask you about your acquisitions that you've recently completed. Maybe you could just talk a little bit about the sourcing of each of those deals and kind of just generally your assessment of potentially other opportunities in sort of the transaction environment overall?

James Risoleo

Sure, Smedes. Well, we're really delighted to be able to complete these two acquisitions. I think that they feel out the portfolio nicely. They further enhance our geographic diversification. I'll talk about Plano first. You've heard me talk in the past about our desire to invest in the Dallas market. And this is the place that you want to invest if you're going into the Dallas market as all the businesses are moving north. They're moving to Uptown and Plano and Frisco. And this asset is an incredible piece of real estate has 35,000 square feet of meeting space. It will contribute $50,000 per key in EBITDA this year. It will be one of our top 25 assets. The asset was owned by a lender with a somewhat of a distressed deal. It was marketed by one of the brokerage firms, but we were able to really bring our resources to bear and get ahead of the process. And meet some deadlines that were put out there by the ownership group to give us an opportunity to move quickly and take the transaction down. So the complex where the property is located, it consists of a 240-acre park. And I mentioned in my prepared remarks that 75 Forbes 2,000 companies are located there as well as a lot of high-end retail F&B activities and luxury residential. So we're really excited about that. It fits into the portfolio really well. The 1 Hotel Brooklyn Bridge, that's our fourth 1 Hotel. That was a direct negotiated deal with Starwood. We are delighted to add that property to the portfolio, particularly in that location in Brooklyn. It's the first purpose-built W Hotel. It opened in 2017 as did the Renaissance. So they are both new and fresh and no near-term capital needed for either property as well. Brooklyn Bridge has multiple F&B outlets. It's got 12,000 square feet of meeting space, a Bamford Spa. Jonathan Waxman, has Barbuto on the ground level. You may recall that we have Johnson Waxman in our 1 Hotel Central Park in JAMS his concept as well, and that asset is going to contribute $100,000 per key in EBITDA. So these are two really solid acquisitions that round out the portfolio nicely. It's nice to be the owner of choice, the buyer of choice. We have the ability to get in, analyze a deal quickly, meet deadlines, move fast and the fact that we are on hotel #4 now with Starwood in the 1 Hotel brand, I think, says a lot. With respect to deploying additional capital in this year, we certainly are looking at opportunities in the marketplace. Some are marketed opportunities. And not that much, I would say, that is "purely being marketed today is exciting of interest," but we're working on some off-market opportunities as well. And I'm optimistic that we're going to be able to talk about another transit -- at least one other transaction over the next, call it, 60 to 90 days. And we are sourcing deals with the overarching goal of creating shareholder value as these two did with a combined EBITDA multiple of 10.7x and with an eye toward maintaining geographic diversification.

Operator

Your next question comes from the line of Duane Pfennigwerth with Evercore.

Unknown Analyst

This is Peter on for Duane. Just on the occupancy growth in the quarter, could you just kind of compare that between maybe Monday, Tuesday nights versus Friday, Saturday nights? And as you look forward into 4Q and into 2027 budgeting, what's kind of the opportunity set of rate versus occupancy? And what is your instinct tell you on where the industry or where your portfolio will see more growth next year?

Sourav Ghosh

Yes, sure. The occupancy growth that we saw in the third quarter was a mix of both, visa transient as well as business transient. So we did see midweek growth in in a meaningful way. And then we did see some weakened outgrowth as well, particularly at the resort properties. So this is a combination of both, but as Jim mentioned earlier, BT room nights grew over 5%. So BT definitely drove a lot of that occupancy. In terms of what we think will happen next year, as Jim mentioned earlier, we feel pretty good about business transient growth and the momentum that we have seen over the past couple of months. So when you look at right now, we have about a 7-point occupancy gap relative to pre-pandemic. So that has come down. It used to be an 8-point occupancy gap. There certainly is room to make up that occupancy next year, but we've also seen pricing power. So I think we will see a combination of both as we go into next year, but certainly expecting continued demand growth, particularly from BT. Additionally, when you -- we talked about our group pace for next year, a total group revenue pace, that is a combination of both [indiscernible]. So we will see some up possibly from group as well. So it will be a combination and hopefully more momentum as we get into next year on the business transient side.

Operator

Your next question comes from the line of Logan Epstein with Wolfe Research.

Logan Epstein

Just One of the drivers you talked about in '27 was the continued recovery in Maui and San Francisco. Just curious if you could expand on the potential magnitude there? And maybe talk about how current pace is trending across both markets and especially focusing on maybe how pace is trending in the first quarter given we're lapping the Super Bowl in San Francisco.

Sourav Ghosh

Yes. Place for San Francisco is in -- right now for total group revenue players is just shy of, I would say, mid-single digits, so low to mid-single digits range. Similar Maui as it stands right now. But in terms of overall potential, I mean, we obviously do not have budgets from our operators yet, and I'm not in a position to provide any specific numbers. But our expectation is that Maui and San Francisco have meaningful tailwinds for next year, particularly given the fact when you think about sort of our guide for Maui. This year, we had $122 million is what we're guiding to in terms of EBITDA for 2026, and that's despite the impact from the Kona low storms and the other stores that touch Hawaii. So overall, we saw more growth this year than even what we were expecting, and we expect that to continue into next year. And I would say the same for San Francisco, it's not only the group pace, but also the BT growth, which is going to have a meaningful impact for San Francisco in 2027.

James Risoleo

Logan, for Q4, just I can talk about Q4, we have numbers for the balance of this year. The RevPAR forecast for Maui is 15% for the fourth quarter. For San Francisco, a stat there that might be helpful for you is the quarter 4 group pace is 14%. So quarter 3 RevPAR for San Fran was 9%. So it's very healthy recovery in both markets.

Operator

Your next question comes from the line of Chris Darling with Green Street.

Chris Darling

Going back to the transaction market, it seems like the focus right now is on deploying your dry powder. But given the favorable fundamental backdrop, is there also an opportunity to accelerate sales with properties that may not be long-term holds for the portfolio?

James Risoleo

Well, Chris, as we've talked many times in the past, we are always looking at opportunities to continue to improve the overall quality of the portfolio. And we test the market from time to time. And we are testing the market as we sit here and speak today, but we have nothing to talk about right now on the disposition front. So there does seem to be some pretty good momentum out there in the transaction space right now, notwithstanding where interest rates are trending. But I think the fundamental operating backdrop, combined with really extremely low to no levels of supply makes it a good time to be a buyer and to be a seller for those assets that we don't want to own for the long term.

Operator

Your next question comes from the line of Rich Hightower with Barclays.

Richard Hightower

I was hoping you could help us understand maybe as we think about the World Cup comp in '27, what that remixing looks like from a rate, total revenue and occupancy, all the different moving pieces? Does it essentially just kind of backfill business that didn't happen in '26 and was replaced by World Cup, or is there some fundamentally better or worse on a way to think about sort of June, July next year.

Sourav Ghosh

Rich, so just to level that World Cup impact this year was 70 basis points for a gross basis and about 50 bps on a net basis. And when you think about sort of the total EBITDA impact that somewhere in the neighborhood of $15 million to $17 million of EBITDA impact. In the grand scheme of things, it's not a very big dollar amount that we need to make up. Our group pace is already pretty especially when we look at the second quarter for next year. And that obviously is because we had work up business during that time, and there wasn't incremental group that was mostly transient during the World Cup. So we feel very good with the way group pace is being set up as well as what we are seeing in terms of transient pace, as Jim mentioned earlier, into next year. So we are pretty confident in terms of being able to bridge that gap during that special event.

Operator

Your next question comes from the line of Michael Hirsch with JPMorgan.

Unknown Analyst

Regarding your comments on low supply growth, how long do you expect that supply tailwind to last? If you could also touch on the new construction environment here? And maybe could you speak to any new supply looking out to 2028 or 2029 in your key markets?

James Risoleo

Sure. I think the supply setup is as favorable to hotel owners as it's ever been. Coming out of the pandemic people who were developers were more in a position to manage through the assets that they owned. And now we have seen costs escalate -- construction costs have escalated in a meaningful way, combined with where the interest rate market is where the debt market is. It's difficult to make certainly assets that would be competitive with hotels that we own pencil. And as you look out to say, even '28, Michael, it takes a long time to build a full-service hotel, an upper upscale property, it takes years. I mean, you have to go through design -- acquire a site, go through design, go through permitting and then you're looking at probably a minimum 24-month construction period. So there's a lot of demands on the construction industry today given the build-out of data centers, it's expensive. Labor is not that easy to find. And for all those reasons, that gives us optimism that the supply picture is going to remain in check for the foreseeable future.

Sourav Ghosh

Yes. And I'll add the in construction pipeline is still 31% below pre-pandemic levels.

Operator

Your next question comes from the line of James Feldman with Wells Fargo.

Unknown Analyst

This is Connor on with Jamie. Maybe looking at 3Q performance relative to what you expected going into the quarter, which market surprised you most of the upside and downside? And anything you'd call out on underlying drivers in those markets?

Sourav Ghosh

Yes. I would say San Francisco and D.C. certainly surprised us to the upside driven by the business change in growth that we saw in those two markets. I mean we were expecting growth, certainly. But there was outsized growth. And our leisure markets, the resort markets continue to outperform. So we had expected the growth. We didn't expect as much growth, particularly in September, which we were pleasantly surprised by. I mean, we did have a group in San Francisco, I believe it was the sales force group that moved from October into September that also helped performance. So overall, I would say it really was the business transient piece and the occupancy growth that we saw in the third quarter, which we were surprised by because thus far, we haven't seen as much demand growth. It was more of -- coming from [indiscernible].

Operator

We have reached the end of the Q&A session. I will now turn the call back to Jim Risoleo for closing remarks.

James Risoleo

Thank you again for joining us. We always appreciate the opportunity to discuss our results with you, and we look forward to seeing many of you at upcoming conferences.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.