HOST HOTELS & RESORTS L.P.

Previous wording

Total revenues increased $51 million, or 3.2%, as compared to the first quarter of 2025, primarily due to improvements in room revenues driven by strong leisure transient demand, coupled with increased out-of-room spend driving food and beverage and other revenues. In addition, $26 million of revenues were recognized during the first quarter of 2026 from the sale of four condominium units in the development adjacent to the Four Seasons Resort Orlando at Walt Disney World® Resort. Results for the first quarter of 2026 also benefitted from a full quarter of operations following the reopening of The Don CeSar in March 2025. These increases were partially offset by the 2025 and 2026 dispositions of The Westin Cincinnati, Washington Marriott at Metro Center, St. Regis Houston, and the Four Seasons Resort Orlando at Walt Disney World® Resort and the Four Seasons Resort and Residences Jackson Hole. Comparable hotel RevPAR increased 4.4% for the quarter, primarily due to an increase in average room rates of 3.9%, and a slight increase in occupancy compared to the first quarter of 2025, reflecting strength in both transient and group business.

Current wording

Total revenues increased $54 million, or 3.4%, and $105 million, or 3.3%, for the second quarter and year-to-date 2026, respectively, as compared to 2025. In the quarter, growth in revenues reflects a comparable hotel RevPAR increase of 7.0%, primarily due to an increase in room rates and a slight increase in occupancy, reflecting strong transient leisure business, particularly at resorts and in connection with the FIFA World Cup matches, and robust group business. Comparable hotel Total RevPAR increased 5.9% for the second quarter compared to 2025, reflecting the increase in rooms revenue and growth in food and beverage spend. However, the improvements in hotel operations were offset by the reduction of $95 million in revenues in the second quarter due to the 2025 and 2026 dispositions of The Westin Cincinnati, Washington Marriott at Metro Center, St. Regis Houston, the Four Seasons Resort Orlando at Walt Disney World® Resort, the Four Seasons Resort and Residences Jackson Hole, and the Sheraton Parsippany Hotel. In addition, $53 million of revenues were recognized during the second quarter from the sale of seven villas in the development adjacent to the Four Seasons Resort Orlando at Walt Disney World® Resort. Year-to-date, comparable hotel RevPAR and comparable hotel Total RevPAR increased 5.7% and 5.3%, respectively, and total revenues also benefitted from a full period of operations following the reopening of The Don CeSar in March 2025.

Previous wording

During the first quarter of 2026, strong leisure transient demand led to year-over-year comparable hotel RevPAR growth of 4.4%. Results reflect an increase in transient revenue driven by higher average rates and solid group demand. Expectations for the remainder of the year reflect a continuation of this trend in a stable operating environment, with leisure transient strength bolstered by special events, including the FIFA World Cup games, and modest improvements to short-term group booking trends. However, ongoing global conflict has introduced additional uncertainty around the macroeconomic backdrop and international travel.

Current wording

During the first half of 2026, strong leisure transient business, particularly at our resorts, and solid group demand contributed to year-over-year comparable hotel RevPAR growth of 5.7%. Results reflect transient revenue growth driven by higher average rates, which was bolstered by special events, including the FIFA World Cup games hosted in ten markets where our hotels are located. Expectations for the remainder of the year reflect continued strong expectations for leisure demand and modest improvements to short-term booking trends.

Previous wording

From a macroeconomic perspective, economic conditions during the first quarter of 2026 remained generally supportive of economic growth. High-end consumers, which represent the majority of the customers at our hotels, continue to benefit from rising stock and asset markets as well as increasing disposable incomes, which has allowed our properties to drive revenue growth. Looking ahead, the divided nature of the economic trends is expected to persist, with discretionary spending and travel demand continuing to be concentrated among higher-income households. At the same time, the conflict in the Middle East, coupled with elevated policy uncertainty domestically and the potential for higher-for-longer interest rates present downside risks to growth. The increased uncertainty during the first quarter of 2026 has led to a decline in the full year GDP growth forecasts, with real GDP now projected to grow by approximately 2.2%. However, business investment remains notably healthy at approximately 3.7%, according to the April 2026 Blue Chip Economic Indicators.

Current wording

From a macroeconomic perspective, economic conditions during the first half of 2026 remained generally supportive of economic growth. Higher-income consumers, who represent the majority of the customers at our hotels, continue to benefit from healthy household balance sheets, higher asset values and increasing incomes, which we believe should continue to support travel demand at our properties. Looking ahead, the divergence in consumer spending trends is expected to persist, with discretionary spending and travel demand remaining concentrated among higher-income households. According to the July 2026 Blue Chip Economic Indicators survey, real GDP is projected to grow by approximately 2.1% in 2026, with growth increasingly led by business investment, while consumer spending is expected to moderate. In addition, ongoing conflict in the Middle East may contribute to higher energy prices, renewed inflationary pressures and increased geopolitical uncertainty. These factors, together with trade policy developments and broader economic uncertainty, continue to present downside risks to economic growth and travel demand.

Previous wording

Hotel supply growth expectations remain below the historical average, although we expect to see above-average growth in a few markets where our hotels are located. Supply chain challenges, which may be exacerbated by current tariffs and trade policies, have resulted in new development project delays across the U.S. We anticipate that the construction pipeline will remain modest until macroeconomic uncertainty moderates and interest rates decline further.

Current wording

Hotel supply growth expectations remain below the historical average, although we continue to expect above-average growth in a limited number of markets where our hotels are located. We expect the lodging supply pipeline will remain relatively constrained until macroeconomic uncertainty moderates and the cost of financing and construction eases.

Previous wording

Based on the trends noted, we expect comparable hotel RevPAR growth for the full year 2026 will be between 3.0% and 4.5%. We expect year-over-year margin comparisons to moderate as the year progresses, primarily driven by lower rate growth expectations in the second half of the year.

Current wording

Based on the trends noted, we expect comparable hotel RevPAR growth for the full year 2026 will be between 4.75% and 5.25%. We expect year-over-year margin comparisons to moderate as the year progresses, primarily driven by lower room rate growth expectations in the second half of the year.

Previous wording

As discussed above, the current outlook for the lodging industry remains uncertain, reflecting varying analyst assumptions surrounding the impact of trade policy, elevated inflation and interest rates, concerns regarding U.S. economic growth, the current travel imbalance due to the decrease in inbound travel to the United States and ongoing geopolitical conflicts. Therefore, there can be no assurances as to lodging demand performance for any number of reasons, including, but not limited to, deteriorating macroeconomic conditions.

Current wording

As discussed above, the current outlook for the lodging industry remains uncertain due to the potential impacts of macroeconomic conditions and geopolitical conflicts. Therefore, there can be no assurances as to lodging demand performance for any number of reasons, including, but not limited to, deteriorating macroeconomic conditions or other factors that may adversely impact travel demand.

Previous wording

Capital Projects. Through the first quarter of 2026, we spent approximately $51 million on return on investment ("ROI") capital projects, including the transformation programs discussed below, and $71 million on renewal and replacement projects. We previously completed our restoration efforts at The Don CeSar following Hurricanes Helene and Milton, and as of March 31, 2026, we have received total insurance proceeds of $81 million related to our claims, of which $31 million has been recognized as business interruption proceeds, including $7 million in the first quarter of 2026.

Current wording

Capital Projects. Year-to-date through the second quarter of 2026, we spent approximately $103 million on return on investment ("ROI") capital projects, including the transformation programs discussed below, and $140 million on renewal and replacement projects. We previously completed our restoration efforts at The Don CeSar following Hurricanes Helene and Milton, and as of June 30, 2026, we have received total insurance proceeds of $82 million related to our claims, of which $31 million has been recognized as business interruption proceeds.

Previous wording

In collaboration with Hyatt, we initiated a transformational capital program in 2023 on six properties in our portfolio. These investments are intended to position the targeted hotels to compete better in their respective markets while seeking to enhance long-term performance. We expect to invest approximately $125 million to $200 million per year on this program through 2027, for a total investment of approximately $550 million to $600 million. Hyatt has agreed to provide additional priority returns on the agreed upon investments and operating profit guarantees totaling $40 million to offset expected business disruptions. Approximately 83% of the total estimated costs of the program have been spent as of March 31, 2026. During the first quarter of 2026, we completed the transformational renovation at the Hyatt Regency Reston.

Current wording

In collaboration with Hyatt, we initiated a transformational capital program in 2023 on six properties in our portfolio. These investments are intended to position the targeted hotels to compete better in their respective markets while seeking to enhance long-term performance. We expect to invest approximately $125 million to $200 million per year on this program through 2027, for a total investment of approximately $550 million to $600 million. Hyatt has agreed to provide additional priority returns on the agreed upon investments and operating profit guarantees totaling $40 million to offset expected business disruptions. Approximately 88% of the total estimated costs of the program have been spent as of June 30, 2026. During the second quarter of 2026, we completed the transformational renovation at the Grand Hyatt Washington.

Previous wording

For full year 2026, we expect total capital expenditures of $545 million to $655 million, consisting of ROI projects of approximately $250 million to $300 million and renewal and replacement expenditures of $275 million to $325 million. The full year ROI project spend includes approximately $175 million to $210 million for the Marriott and Hyatt transformational capital programs discussed above. Additionally, we have added estimated spend of $20 million to $30 million for restoration work at our Hawaii properties following the Kona Low rainstorm in March. Remediation efforts are substantially complete, and the hotels remained operational with isolated instances of water damage. We are still evaluating the complete property and business interruption impacts of the storm, but currently estimate the total property costs to be approximately $25 million to $35 million, which includes remediation costs of up to $5 million. We expect our insurance coverage to substantially cover the property damage in excess of our insurance deductible.

Current wording

For full year 2026, we expect total capital expenditures of $550 million to $630 million, consisting of ROI projects of approximately $250 million to $285 million, including approximately $175 million to $200 million for the Marriott and Hyatt transformational capital programs discussed above, and renewal and replacement expenditures of $275 million to $315 million. Additionally, we expect estimated spend of $25 million to $30 million for restoration work at our Hawaii properties following the Kona Low rainstorm in March. Remediation efforts are substantially complete, and the hotels remained operational with isolated instances of water damage. We are still evaluating the complete property and business interruption impacts of the storm, but currently estimate the total property costs to be approximately $27 million to $32 million, which includes remediation costs of approximately $2 million. We expect our insurance coverage to substantially cover the property damage in excess of our insurance deductible.

Previous wording

Construction continued in the first quarter on the development of 40 condominiums on a five-acre development parcel to be Four Seasons-branded and managed residences at the Four Seasons Resort Orlando at Walt Disney World® Resort. Construction of the mid-rise building was completed in 2025, and the villas are expected to be completed by June of 2026. During the first quarter of 2026, we spent $8 million in development costs for this project and expect full year 2026 development costs for this project to be approximately $15 million. We recognized $26 million of revenues from the sale of four condominium units during the first quarter of 2026.

Current wording

During the second quarter, we completed construction of 40 condominiums on a five-acre development parcel to be Four Seasons-branded and managed residences at the Four Seasons Resort Orlando at Walt Disney World® Resort. Year-to-date in 2026, we spent $16 million in development costs for this project, completing the villas and final stages of the project. We recognized $53 million of revenues from the sale of seven villas during the second quarter of 2026.

Previous wording

Total revenues for the first quarter increased 3.2% compared to the first quarter of 2025, primarily due to an increase in room rates driven by strong leisure transient demand and continued strength in out-of-room spend driving food and beverage and other revenues, as well as the reopening of The Don CeSar in March 2025. Total revenues also benefited from $26 million of condominium sales recognized in the first quarter of 2026 from the sale of four condominium units in the development adjacent to the Four Seasons Resort Orlando at Walt Disney World® Resort. These increases more than offset the reduction in revenues due to our 2025 and first quarter 2026 dispositions.

Current wording

Total revenues for the second quarter and year-to-date increased 3.4% and 3.3%, respectively, compared to 2025, as improvements in hotel operations were partially offset by the reduction of revenues due to the 2025 and 2026 dispositions. For the remaining portfolio, revenue growth was driven primarily by higher room rates, driven by strong transient leisure demand, particularly at resorts and in connection with FIFA World Cup matches, robust group business, and continued strength in out-of-room spend. Revenues also benefited from $53 million and $79 million of condominium sales recognized in the second quarter and year-to-date 2026, respectively, from the sale of condominium units in the development adjacent to the Four Seasons Resort Orlando at Walt Disney World® Resort. Year-to-date results also benefitted from a full first quarter of results at The Don CeSar, which re-opened in March 2025.

Previous wording

Rooms. Total rooms revenues increased $5 million, or 0.5%, for the first quarter compared to 2025, reflecting an increase at our comparable hotels and contribution from the reopening of The Don CeSar in March 2025, partially offset by a reduction in rooms revenues due to our 2025 and first quarter 2026 dispositions. Rooms revenues at our comparable hotels increased $39 million, or 4.5%, for the quarter primarily due to an increase in average room rate of 3.9% driven by leisure transient demand, particularly at our resorts, and an increase in group business, benefitting from event-related demand.

Current wording

Rooms. Total rooms revenues increased $5 million, or 0.5%, and $10 million, or 0.5%, for the second quarter and year-to-date, respectively, compared to 2025, reflecting an increase at our comparable hotels, partially offset by a reduction in rooms revenues due to our 2025 and 2026 dispositions. Rooms revenues at our comparable hotels increased $62 million, or 7.1%, and $101 million, or 5.8%, for the second quarter and year-to-date, respectively, primarily due to an increase in average room rates of 5.8% and 4.9%, respectively, driven by leisure transient demand, particularly at our resorts, and an increase in group business, benefiting from strong event-related demand and completed renovations at our properties.

Previous wording

Food and beverage. Total food and beverage ("F&B") revenues increased $14 million, or 2.8%, for the first quarter compared to 2025, reflecting an increase in F&B revenues at our comparable hotels and contribution from the reopening of the Don CeSar, partially offset by a reduction in F&B revenues due to our 2025 and first quarter 2026 dispositions. F&B revenues at our comparable hotels increased $23 million, or 4.9%, which was driven by growth in outlet revenues from completion of ROI projects at several restaurant locations and growth in banquet and audio-visual revenues from strong group contribution.

Current wording

Food and beverage. Total food and beverage ("F&B") revenues increased $6 million, or 1.3%, and $20 million, or 2.0%, for the second quarter and year-to-date, respectively, compared to 2025, reflecting an increase in F&B revenues at our comparable hotels, partially offset by a reduction in F&B revenues due to our 2025 and 2026 dispositions. F&B revenues at our comparable hotels increased $26 million, or 5.8%, and $49 million, or 5.3%, for the second quarter and year-to-date, respectively, driven by growth in banquet and audio-visual revenues from strong group contribution.

Previous wording

Other revenues. Total other revenues increased $6 million, or 3.9%, for the first quarter compared to 2025, reflecting an increase at our comparable hotels and incremental revenues following the reopening of The Don CeSar, partially offset by the reduction in other revenues due to our 2025 and first quarter 2026 dispositions. Other revenues at our comparable hotels increased $8 million, or 5.7%, primarily due to an increase in golf, spa and other ancillary revenues.

Current wording

Other revenues. Total other revenues decreased $10 million, or 6.3%, and $4 million, or 1.3%, for the quarter and year-to-date, respectively, compared to 2025, reflecting the reduction in other revenues due to our 2025 and 2026 dispositions. Other revenues at our comparable hotels remained relatively flat for the quarter, as increases in spa, golf and other ancillary revenues offset a decrease in attrition and cancellation fees from the prior year's elevated level of fees. Year-to-date at our comparable hotels, other revenues increased $7 million, or 2.4%, primarily due to an increase in spa, golf and other ancillary revenues.

Previous wording

Condominium sales. We recognized $26 million of revenues in the first quarter of 2026 from the sale of four condominium units in the development adjacent to the Four Seasons Resort Orlando at Walt Disney World® Resort.

Current wording

Condominium sales. We recognized $53 million and $79 million of revenues in the second quarter and year-to-date 2026, respectively, from the sale of four condominium units in the first quarter and seven villas in the second quarter at the development adjacent to the Four Seasons Resort Orlando at Walt Disney World® Resort.

Previous wording

Our operating costs and expenses, which consist of both fixed and variable components, are affected by several factors. Rooms expenses are affected mainly by occupancy, which drives costs related to items such as housekeeping, reservation systems, room supplies, laundry services and front desk costs. Food and beverage expenses correlate closely with food and beverage revenues and are affected by occupancy and the mix of business between banquet, audio-visual and outlet sales. However, the most significant expense for the rooms, food and beverage, and other departmental and support expenses is wages and employee benefits, which comprise approximately 58% of these expenses. For the first quarter of 2026, these expenses generally increased approximately 4.5% across our portfolio compared to 2025, primarily due to an overall increase in general wage rates and benefits. Wage and benefit rate inflation is expected to be approximately 5% in 2026.

Current wording

Our operating costs and expenses, which consist of both fixed and variable components, are affected by several factors. Rooms expenses are affected mainly by occupancy, which drives costs related to items such as housekeeping, reservation systems, room supplies, laundry services and front desk costs. Food and beverage expenses correlate closely with food and beverage revenues and are affected by occupancy and the mix of business between banquet, audio-visual and outlet sales. However, the most significant expense for the rooms, food and beverage, and other departmental and support expenses is wages and employee benefits, which comprise approximately 58% of these expenses. For the quarter and year-to-date of 2026, these expenses generally increased approximately 5.5% and 5.0%, respectively, across our portfolio compared to 2025, primarily due to an overall increase in general wage rates and benefits. Wage and benefit rate inflation is expected to be approximately 5% in 2026.

Previous wording

Rooms. Rooms expenses decreased $1 million, or 0.4%, for the quarter, reflecting a reduction in rooms expense resulting from our 2025 and first quarter 2026 dispositions, partially offset by an increase at our comparable hotels. Our comparable hotels rooms expenses increased $6 million, or 2.9%, for the quarter driven by an overall increase in wage rates.

Current wording

Rooms. Rooms expenses decreased $2 million, or 0.9%, and $3 million, or 0.7%, for the quarter and year-to-date, respectively, reflecting a reduction in rooms expense resulting from our 2025 and 2026 dispositions, partially offset by an increase at our comparable hotels. Our comparable hotels rooms expenses increased $10 million, or 4.6%, and $16 million, or 3.7%, for the quarter and year-to-date, respectively, driven by an overall increase in wage rates.

Previous wording

Food and beverage. F&B expenses increased $4 million, or 1.2%, for the quarter, reflecting an increase in F&B expenses for our comparable hotels of $11 million, or 3.7%, and incremental expenses following the reopening of The Don CeSar in March 2025, partially offset by a reduction in F&B expenses due to our 2025 and first quarter 2026 dispositions. Expenses at our comparable hotels increased, reflecting increased F&B revenues, though overall, F&B costs as a percentage of revenues declined approximately 1% year over year as a result of productivity improvements.

Current wording

Food and beverage. F&B expenses decreased $2 million, or 0.6%, for the quarter and increased $2 million, or 0.3%, year-to-date, as the reduction in F&B expenses due to our 2025 and 2026 dispositions was mostly offset by an increase in F&B expenses at our comparable hotels of $16 million, or 5.5%, and $27 million, or 4.6%, respectively, and year-to-date also included incremental expenses following the reopening of The Don CeSar in March 2025. The increases at our comparable hotels reflect increased F&B revenues, though overall, F&B costs as a percentage of revenues declined slightly year-over-year as a result of productivity improvements.

Previous wording

Other departmental and support expenses. Other departmental and support expenses increased $9 million, or 2.5%, for the quarter, reflecting an increase at our comparable hotels partially offset by the reduction in expenses due to our 2025 and first quarter 2026 dispositions. The increase at our comparable hotels of $20 million, or 5.9%, was primarily due to higher wage expense.

Current wording

Other departmental and support expenses. Other departmental and support expenses decreased $4 million, or 1.1%, for the quarter and increased $5 million, or 0.7%, year-to-date, driven by a reduction in expenses due to our 2025 and 2026 dispositions, which were largely offset for the quarter and more than offset year-to-date by the growth at our comparable hotels. The increases at our comparable hotels of $21 million, or 6.1%, and $41 million, or 6.0%, for the quarter and year-to-date, respectively, were primarily due to higher wage expense.

Previous wording

Management fees. Total management fees decreased $2 million, or 2.9%, for the quarter. Base management fees, which generally are calculated as a percentage of total revenues, were flat for the quarter as a slight increase at our comparable hotels was offset by the reduction in fees due to our 2025 and first quarter 2026 dispositions. Incentive management fees, which generally are based on the amount of operating profit at each hotel after we receive a priority return on our investment, decreased $2 million, or 8.0%, for the quarter, due to the reduction in fees due to our 2025 and first quarter 2026 dispositions, while incentive management fees increased $1 million, or 3.3%, at our comparable hotels.

Current wording

Management fees. Total management fees increased $4 million, or 5.7%, and $2 million, or 1.4%, for the quarter and year-to-date, respectively. Base management fees, which generally are calculated as a percentage of total revenues, remained flat for both the quarter and year-to-date. Incentive management fees, which generally are based on the amount of operating profit at each hotel after we receive a priority return on our investment, increased $4 million, or 15.4%, and $2 million, or 3.9%, for the quarter and year-to-date, respectively. Both base and incentive management fees were affected by an increase in fees at our comparable hotels, partially offset by the reduction in fees due to our 2025 and 2026 dispositions. The growth in incentive management fees for the second quarter was heightened as certain properties reached incentive thresholds due to improved operations. We anticipate the year-over-year growth in incentive management fees will moderate for the remainder of the year.

Previous wording

Other property-level expenses. These expenses generally do not vary significantly based on occupancy and include expenses such as property taxes and insurance. Other property-level expenses decreased $8 million, or 7.2%, for the quarter, primarily due to a reduction in expenses due to our 2025 and first quarter 2026 dispositions and a $2 million decrease at our comparable hotels. Other property-level expenses were partially offset by the receipt of operating profit guarantees under the transformational capital programs in both 2026 and 2025.

Current wording

Other property-level expenses. These expenses generally do not vary significantly based on occupancy and include expenses such as property taxes and insurance. Other property-level expenses decreased $13 million, or 12.1%, and $21 million, or 9.6%, for the quarter and year-to-date, respectively, primarily due to a reduction in expenses resulting from our 2025 and 2026 dispositions and a $5 million, or 4.8%, and $7 million, or 3.6%, decrease at our comparable hotels for the quarter and year-to-date, respectively, driven by decreases in property insurance premiums. Other property-level expenses were partially offset by the receipt of operating profit guarantees under the transformational capital programs in both 2026 and 2025.

Previous wording

Cost of goods sold. Cost of goods sold totaled $21 million for the quarter ended March 31, 2026, which related to the sale of four condominium units adjacent to the Four Seasons Resort Orlando at Walt Disney® Resort. Cost of goods sold for these condominiums consists primarily of capitalized construction and development costs, which are recognized upon the sale of individual units.

Current wording

Cost of goods sold. Cost of goods sold totaled $44 million and $65 million for the quarter ended June 30, 2026 and year-to-date, respectively, which related to the sale of four condominium units in the first quarter and seven villas in the second quarter at the development adjacent to the Four Seasons Resort Orlando at Walt Disney® Resort. Cost of goods sold for these condominiums and villas consists primarily of capitalized construction and development costs, which are recognized upon the sale of individual units.

Previous wording

Corporate and other expenses. The following table details our corporate and other expenses for the quarters (in millions):

Current wording

Corporate and other expenses. The following table details our corporate and other expenses for the quarter and year-to-date (in millions):

Previous wording

Interest expense. The following table details our interest expense for the quarters (in millions):

Current wording

Interest expense. The following table details our interest expense for the quarter and year-to-date (in millions):

Previous wording

(1)Including the change in accrued interest, total cash interest paid was $41 million and $56 million for the quarters ended March 31, 2026 and 2025, respectively.

Current wording

(1)Including the change in accrued interest, total cash interest paid was $71 million and $63 million for the quarters ended June 30, 2026 and 2025, respectively, and $112 million and $119 million year-to-date 2026 and 2025, respectively.

Previous wording

Other gains. Other gains totaled $242 million for first quarter of 2026, reflecting the sales of The St. Regis Houston, the Four Seasons Resort Orlando at Walt Disney World® Resort and the Four Seasons Resort and Residences Jackson Hole.

Current wording

Other gains (losses). Other gains totaled $241 million year-to-date in 2026, reflecting the sales of The St. Regis Houston, the Four Seasons Resort Orlando at Walt Disney World® Resort and the Four Seasons Resort and Residences Jackson Hole and the Sheraton Parsippany Hotel during the first half of 2026.

Previous wording

Benefit (provision) for income taxes. We lease substantially all our properties to consolidated subsidiaries designated as taxable REIT subsidiaries (“TRS”) for U.S. federal income tax purposes. Taxable income or loss generated/incurred by the TRS primarily represents hotel-level operations, net of the aggregate rent paid to Host L.P. by the TRS, on which we record an income tax provision or benefit. For the first quarter of 2026, we recorded a net income tax provision of $17 million, primarily due to the profitability of hotel operations retained by the TRS.

Current wording

Provision for income taxes. We lease substantially all our properties to consolidated subsidiaries designated as taxable REIT subsidiaries (“TRS”) for U.S. federal income tax purposes. Taxable income or loss generated/incurred by the TRS primarily represents hotel-level operations, net of the aggregate rent paid to Host L.P. by the TRS, on which we record an income tax provision or benefit. For the second quarter and year-to-date of 2026, we recorded a net income tax provision of $18 million and $35 million, respectively, primarily due to the profitability of hotel operations retained by the TRS.

Previous wording

The following tables set forth performance information for our hotels by geographic location for the quarter ended March 31, 2026 and 2025 on a comparable hotel and actual basis:

Current wording

The following tables set forth performance information for our hotels by geographic location for the quarter and year-to-date ended June 30, 2026 and 2025 on a comparable hotel and actual basis:

Previous wording

As a REIT, Host Inc. is required to pay dividends to its stockholders in an amount equal to at least 90% of its taxable income, excluding net capital gain, on an annual basis. Host Inc.’s policy on common dividends generally is to distribute, over time, at least 100% of its taxable income, including capital gains. Following the February 2026 sale of the Four Seasons Resort Orlando at Walt Disney World® Resort and the Four Seasons Resort and Residences Jackson Hole for a sale price of $1.1 billion, Host Inc.'s Board of Directors approved a $0.72 special dividend in the second quarter, to be paid on July 15, 2026, representing the distribution of the approximately $500 million taxable gain resulting from the sale. With a portion of the remaining proceeds, we repurchased $75 million of Host Inc. common stock through the first quarter of 2026. We will continue to weigh potential cash uses for the remaining proceeds, which may include, subject to market conditions, acquisitions, other investments in our portfolio, additional common stock repurchases or increased dividends, which dividends could be in excess of taxable income. Any additional special dividend will be subject to approval by Host Inc.’s Board of Directors.

Current wording

As a REIT, Host Inc. is required to pay dividends to its stockholders in an amount equal to at least 90% of its taxable income, excluding net capital gain, on an annual basis. Host Inc.’s policy on common dividends generally is to distribute, over time, at least 100% of its taxable income, including capital gains. Following the February 2026 sale of the Four Seasons Resort Orlando at Walt Disney World® Resort and the Four Seasons Resort and Residences Jackson Hole for a sale price of $1.1 billion, Host Inc.'s Board of Directors approved a $0.72 special dividend in the second quarter that was paid on July 15, 2026, representing the distribution of the approximately $500 million taxable gain resulting from the sale. With a portion of the remaining proceeds, we repurchased $75 million of Host Inc. common stock through the second quarter of 2026. We will continue to weigh potential cash uses for the remaining proceeds, which may include, subject to market conditions, acquisitions, other investments in our portfolio, additional common stock repurchases or increased dividends. Any additional special dividend will be subject to approval by Host Inc.’s Board of Directors.

Previous wording

Capital Resources. As of March 31, 2026, we had $1,703 million of cash and cash equivalents, $151 million in our FF&E escrow reserves and $1.5 billion available under the revolver portion of our credit facility. The payment of the first and second quarter regular dividend and the special dividend discussed above will reduce the cash balance by approximately $767 million. We depend primarily on external sources of capital to finance future growth, including acquisitions. As a result, the liquidity and debt capacity provided by our credit facility and the ability to issue senior unsecured debt are key components of our capital structure. Our financial flexibility, including our ability to incur debt, pay dividends, make distributions and make investments, is contingent on our ability to maintain compliance with the financial covenants of our credit facility and senior notes indentures, which include, among other things, the allowable amounts of leverage, interest coverage and fixed charges.

Current wording

Capital Resources. As of June 30, 2026, we had $1,953 million of cash and cash equivalents, $156 million in our FF&E escrow reserves and $1.5 billion available under the revolver portion of our credit facility. The payment of the second quarter regular and special dividend on July 15 reduced the cash balance by $630 million. We depend primarily on external sources of capital to finance future growth, including acquisitions. As a result, the liquidity and debt capacity provided by our credit facility and the ability to issue senior unsecured debt are key components of our capital structure. Our financial flexibility, including our ability to incur debt, pay dividends, make distributions and make investments, is contingent on our ability to maintain compliance with the financial covenants of our credit facility and senior notes indentures, which include, among other things, the allowable amounts of leverage, interest coverage and fixed charges.

Previous wording

Two programs are currently in place relating to potential purchases or sales of our common stock. Under our common stock repurchase program, common stock may be purchased from time to time depending upon market conditions and may be purchased in the open market or through private transactions or by other means, including principal transactions with various financial institutions, like accelerated share repurchases, forwards, options, and similar transactions and through one or more trading plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The plan does not obligate us to repurchase any specific number or any specific dollar amount of shares and may be suspended at any time at our discretion. During the first quarter of 2026, we repurchased 4.0 million shares of Host Inc. common stock at an average price of $18.97 per share, exclusive of commissions, through our common share repurchase program for a total of $75 million. At March 31, 2026, we had $405 million available for repurchases under our program.

Current wording

Two programs are currently in place relating to potential purchases or sales of our common stock. Under our common stock repurchase program, common stock may be purchased from time to time depending upon market conditions and may be purchased in the open market or through private transactions or by other means, including principal transactions with various financial institutions, like accelerated share repurchases, forwards, options, and similar transactions and through one or more trading plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The plan does not obligate us to repurchase any specific number or any specific dollar amount of shares and may be suspended at any time at our discretion. No shares were repurchased during the second quarter of 2026. At June 30, 2026, we had $405 million available for repurchases under our program.

Previous wording

In addition, on May 31, 2023, we entered into a distribution agreement with J.P. Morgan Securities LLC, BofA Securities, Inc., Goldman Sachs & Co. LLC, Jefferies LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC, as sales agents pursuant to which Host Inc. may offer and sell, from time to time, shares of Host Inc. common stock having an aggregate offering price of up to $600 million. The sales will be made in transactions that are deemed to be “at the market” offerings under the SEC rules. We may sell shares of Host Inc. common stock under this program from time to time based on market conditions, although we are not under an obligation to sell any shares. We may sell shares when we believe conditions are advantageous and there is a compelling use of proceeds, including to fund future potential acquisitions or other investment opportunities. The agreement also contemplates that, in addition to the offering and sale of shares to or through the sales agents, we may enter into separate forward sale agreements with each of the forward purchasers named in the agreement. No shares were issued during the first quarter of 2026. As of March 31, 2026, there was $600 million of remaining capacity under the agreement and the agreement expires pursuant to its terms on May 31, 2026.

Current wording

In addition, in May 2026, we amended and extended the existing distribution agreement with J.P. Morgan Securities LLC, BofA Securities, Inc., Goldman Sachs & Co. LLC, Jefferies LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC, as sales agents, pursuant to which Host Inc. may offer and sell, from time to time, shares of Host Inc. common stock having an aggregate offering price of up to $600 million. The agreement will expire when the sale of shares reaches the aggregate offering price or earlier upon termination by the parties giving notice. The sales will be made in transactions that are deemed to be “at the market” offerings under the SEC rules. We may sell shares of Host Inc. common stock under this program from time to time based on market conditions, although we are not under an obligation to sell any shares. We may sell shares when we believe conditions are advantageous and there is a compelling use of proceeds, including to fund future potential acquisitions or other investment opportunities. The agreement also contemplates that, in addition to the offering and sale of shares to or through the sales agents, we may enter into separate forward sale agreements with each of the forward purchasers named in the agreement. No shares were issued during the second quarter of 2026. As of June 30, 2026, there was $600 million of remaining capacity under the agreement.

Previous wording

Cash Provided by Operating Activities. In the first quarter of 2026, net cash provided by operating activities was $342 million compared to $305 million for the first quarter of 2025. The increase was attributable to improved operating performance at our properties and sales of condominium units.

Current wording

Cash Provided by Operating Activities. Year-to-date in 2026, net cash provided by operating activities was $845 million compared to $749 million for year-to-date in 2025. The increase was attributable to improved operating performance at our properties and sales of condominium units.

Previous wording

Cash Provided by (Used in) Investing Activities. Net cash provided by investing activities was $914 million for the first quarter of 2026 compared to cash used in investing activities of $83 million for the first quarter of 2025. Cash used in investing activities in the first quarter of 2026 and 2025 included $122 million and $146 million of capital expenditures, respectively, as well as investments in our joint ventures. Cash provided by investing activities in 2026 included proceeds from the sale of three hotels.

Current wording

Cash Provided by (Used in) Investing Activities. Net cash provided by investing activities was $806 million for year-to-date in 2026 compared to cash used in investing activities of $198 million for year-to-date in 2025. Cash used in investing activities year-to-date in 2026 and 2025 included $243 million and $298 million of capital expenditures, respectively, as well as investments in our joint ventures. Cash provided by investing activities in 2026 included proceeds from the sale of four hotels.

Previous wording

(2)The net proceeds of $1,035 million related to the sale of the two Four Seasons properties is estimated, as proration amounts have not been finalized. The unaudited condensed consolidated statements of cash flows reflect $1,011 million of the estimated net proceeds received in the first quarter of 2026.

Current wording

(2)The net proceeds of $1,035 million related to the sale of the two Four Seasons properties is estimated, as proration amounts have not been finalized. The unaudited condensed consolidated statements of cash flows reflect $1,018 million of the estimated net proceeds received through the second quarter of 2026.

Previous wording

Cash Used in Financing Activities. In the first quarter of 2026, net cash used in financing activities was $337 million compared to $327 million for the first quarter of 2025. Cash used in financing activities in both 2026 and 2025 primarily related to the payment of common stock dividends and common stock repurchases.

Current wording

Cash Used in Financing Activities. Year-to-date in 2026, net cash used in financing activities was $476 million compared to $583 million for year-to-date in 2025. Cash used in financing activities in both 2026 and 2025 primarily related to the payment of common stock dividends and common stock repurchases.

Previous wording

(1)In connection with the dividend payments, Host L.P. made distributions of $383 million to its common OP unit holders.

Current wording

(1)In connection with the dividend payments, Host L.P. made distributions of $1,021 million to its common OP unit holders.

Previous wording

As of March 31, 2026, our total debt was $5.1 billion, with a weighted average interest rate of 4.8% and a weighted average maturity of 4.9 years. Additionally, 80% of our debt has a fixed rate of interest, and only one of our consolidated hotels is encumbered by mortgage debt.

Current wording

As of June 30, 2026, our total debt was $5.1 billion, with a weighted average interest rate of 4.8% and a weighted average maturity of 4.7 years. Additionally, 80% of our debt has a fixed rate of interest, and only one of our consolidated hotels is encumbered by mortgage debt.

Previous wording

Host Inc.’s policy on common dividends generally is to distribute, over time, 100% of its taxable income, which primarily is dependent on Host Inc.’s results of operations, as well as tax gains and losses on hotel sales. On February 18, 2026, Host Inc.'s Board of Directors announced a regular quarterly cash dividend of $0.20 per share on Host Inc.'s common stock. The dividend was paid on April 15, 2026 to stockholders of record on March 31, 2026. On May 6, 2026, the Board of Directors authorized a second quarter cash dividend of $0.92 per share on its common stock, consisting of a regular quarterly dividend of $0.20 per share and a special dividend of $0.72 per share. The dividend will be paid on July 15, 2026 to stockholders of record on June 30, 2026. All future dividends are subject to Board approval.

Current wording

Host Inc.’s policy on common dividends generally is to distribute, over time, 100% of its taxable income, which primarily is dependent on Host Inc.’s results of operations, as well as tax gains and losses on hotel sales. On May 6, 2026, Host Inc.'s Board of Directors announced a second quarter cash dividend of $0.92 per share on Host Inc.'s common stock, consisting of a regular quarterly dividend of $0.20 per share and a special dividend of $0.72 per share. The dividend was paid on July 15, 2026 to stockholders of record on June 30, 2026. All future dividends are subject to Board approval.

Previous wording

Of the 76 hotels that we owned as of March 31, 2026, 74 have been classified as comparable hotels. The operating results of the following properties that we owned, and that were not classified as held-for-sale, as of March 31, 2026 are excluded from comparable hotel results for these periods:

Current wording

Of the 75 hotels that we owned as of June 30, 2026, 74 have been classified as comparable hotels. The operating results of the following properties that we owned as of June 30, 2026 are excluded from comparable hotel results for these periods: