July 30 (Reuters) - Real estate investment trust Host
Hotels & Resorts ( HST ) forecast 2025 adjusted funds from
operations (FFO) above analysts' estimates on Wednesday, buoyed
by continued strength in leisure travel and higher room rates.
The raised forecast comes despite the company's caution over
macroeconomic uncertainty in the second half of the year.
U.S. domestic travel demand weakened in April as consumers
cut back on discretionary spending amid concerns over the
economic impact of President Donald Trump's trade policy.
However, demand for luxury and upscale accommodations,
which comprise Host's entire portfolio, remained resilient,
supported by higher-income travelers who were less affected.
"Strong transient demand led to improvements in room
revenues, food & beverage revenues and ancillary spend," CEO
James Risoleo said in a statement.
The REIT reported a quarterly adjusted FFO of 58 cents per
share, compared with analysts' estimate of 52 cents per share.
It now expects full-year adjusted FFO of between $1.98 and
$2.02 per share, compared with $1.88 to $1.97 per share expected
previously.
Total revenue for the quarter ended June 30 was $1.59
billion, up 8.2% from a year earlier. Analysts, on average, were
expecting revenue of $1.51 billion, according to LSEG data.
(Reporting by Anandita Mehrotra and Aishwarya Jain in
Bengaluru; Editing by Anil D'Silva)