Host Hotels & Resorts, Inc.

Welcome to the Host Hotels & Resorts Second Quarter 2026 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the call over to Jaime Marcus, Senior Vice President of Investor Relations.

Thank you and good morning, everyone. Before we begin, today's call will include forward-looking statements within the meaning of federal securities laws. As described in our filings with the SEC, These statements are subject to 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. On today's call, we will also discuss certain non-GAAP financial information, such as FFO, adjusted EBITDA RE, and comparable hotel-level results. For reconciliation to the most directly comparable GAAP information, please see yesterday's earnings press release are 8K files with the SEC and the supplemental financial information on our website at hosthotels.com. The operational results discussed today refer to our 74 hotel comparable hotel portfolio in 2026, which excludes the Dante Czar and Sheridan Parsifony, which we sold in June. With me on today's call are Jim Risoleo, President and Chief Executive Officer of and Sourav Ghosh, Executive Vice President and Chief Financial Officer. With that, I would like to turn the call over to Jim.

Thank you, Jamie, and thanks to everyone for joining us this morning. We delivered a strong second quarter, building on the momentum of the first quarter and, again, exceeding our expectations. We delivered adjusted EBITDA RE of $525 million An adjusted FFO per share of $0.63, an increase of 8.6% over last year. Comparable Hotel Red Par improved 7% compared to the second quarter of 2025, and Comparable Hotel Total Red Par improved 5.9%, driven by rate growth and higher food and beverage revenue. Comparable hotel EBITDA margin improved by 60 basis points year-over-year to 31.9%, driven by rate growth alongside lower fixed expenses. Repard growth in the second quarter came in significantly better than our expectations, with broad-based strength across markets and business mix. Growth was driven by sustained luxury resort demand, Elevated rates associated with the World Cup and strong group performance. Looking at World Cup performance, we estimate that the event contributed approximately 160 basis points of Repar growth in the second quarter. For June alone, Repar in our World Cup markets grew 15% compared to 12% in non-World Cup markets. For the full year, We expect the World Cup to contribute approximately 70 basis points of gross red card growth, a 10 basis point increase over our initial expectation.