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Item 7. Management’s Discussion and Analysis

2025-02-26 compared with 2024-02-28 · 243 added, 216 removed, 779 unchanged (37% of the section changed)

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NAREIT adopted EBITDA for real estate (“EBITDA re” ) in order to promote an industry-wide measure of REIT operating performance.

We also adjust EBITDA re for property insurance gains, certain acquisition costs, litigation gains or losses outside the ordinary course of business and severance costs outside the ordinary course of business (“Adjusted EBITDA re ”).

We also adjust EBITDA re for property insurance gains and property damage losses, certain acquisition costs, litigation gains or losses outside the ordinary course of business and severance costs outside the ordinary course of business (“Adjusted EBITDA re ”).

Summary of 2024 Operating Results

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See "Comparable Hotel RevPAR Overview" for results of the portfolio based on our ownership period, without these adjustments.

Total revenues increased $404 million, or 8.2%, compared to 2022, due to increased demand at our convention and downtown properties, partially offset by some moderation at our resort properties.

Comparable hotel RevPAR increased 8.1%, compared to 2022, due to a 4.1 percentage point increase in occupancy and a 1.8% increase in average room rate.

Comparable hotel Total RevPAR increased 8.3% for the year as the increase in rooms revenues was supplemented with growth in both food and beverage revenues and other revenues (see “Statement of Operations Results and Trends”).

The improvement during 2023 was buoyed by first quarter 2023 results, as the Omicron variant of COVID-19 significantly impaired travel during January and the first part of February in 2022.

In addition, the recovery at our city-center properties throughout the year allowed for significant improvements in several markets, such as New York, Washington, D.C.

However, growth was muted during the year due to negative impacts from the August wildfires in Maui, moderating rates at resorts in comparison to 2022, as well as elevated levels of international outbound travel throughout the year while international inbound travel recovered at a slower pace.

None of our hotels in Maui sustained physical damage from the August wildfires, and our hotels were still able to fill rooms with emergency response teams and displaced residents;

however, we estimate that the wildfires negatively impacted our comparable hotel RevPAR and Total RevPAR by approximately 50 basis points and 70 basis points, respectively, for the full year.

Comparable hotel Total RevPAR growth was led by our Boston, Washington, D.C., New York, and Houston markets with growth of 42.5%, 21.5%, 19.2%, and 19.2%, respectively, compared to 2022, through a combination of rate and occupancy growth, driven by strong group.

Our hotels in Northern Virginia, Seattle, and San Francisco/San Jose also outperformed our portfolio with comparable hotel Total RevPAR increases of 18.4%, 15.9%, and 15.4%, respectively.

These strong performances were offset by comparable hotel Total RevPAR declines at our Austin and Miami markets of 4.0% and 1.8%, respectively.

The declines in Austin were driven primarily by decreases in rates due to weaker transient demand, while Miami was impacted by the ongoing renovation at the 1 Hotel South Beach.

Comparable hotel Total RevPAR at our Maui/Oahu market decreased 5.1% due to the impacts from the Maui wildfires in August.

Total revenues increased $373 million, or 7.0%, compared to 2023, benefiting from the 2024 acquisitions of the 1 Hotel Nashville and Embassy Suites by Hilton Nashville Downtown, 1 Hotel Central Park and The Ritz-Carlton O'ahu, Turtle Bay and also the results of The Ritz-Carlton, Naples, which was closed in the first half of 2023 as a result of Hurricane Ian.

However, this was partially offset by the closure of The Don CeSar for the fourth quarter of 2024 following the impacts of Hurricanes Helene and Milton.

In addition, continued growth in group business, building on its recovery in 2023, drove improvements in food and beverage revenues.

Comparable hotel RevPAR increased 0.9%, compared to 2023, due to an increase in average room rates, as occupancy remained flat, reflecting continued strong group demand, tempered by continued imbalance in outbound travel from the U.S.

compared to international inbound travel and the slow recovery in Maui following the August 2023 wildfires.

In 2024, performance at our Maui hotels impacted comparable hotel RevPAR by approximately 160 basis points for the full year.

Comparable hotel Total RevPAR increased 2.1% for the year due primarily to improvements in food and beverage revenues driven by the strength in group business, as well as strong spa and other ancillary revenues.

The growth was led by our Denver, Nashville and Northern Virginia markets with increases of 13.2%, 12.9% and 10.3%, respectively, compared to 2023, through a combination of rate and occupancy growth, driven by strong group demand.

Our hotels in Jacksonville and New Orleans also outperformed our portfolio with comparable hotel Total RevPAR increases of 7.2% and 7.1%, respectively.

These strong performances were offset by comparable hotel Total RevPAR declines at our Atlanta and San Francisco/San Jose markets of 9.4% and 5.3%, respectively.

The declines were driven primarily by a decrease in business travel and short-term transient demand, with Atlanta also affected by disruption from renovations.

In addition, comparable hotel Total RevPAR at our Maui market declined by 11.0% due to the continuing impacts of the August 2023 Maui wildfires (see “Statement of Operations Results and Trends”).

Operating Profit

As expected, margins during the year faced downward pressure in comparison to 2022 following the ramp up in operations that year as our managers returned to stable staffing levels at our properties, while occupancy remained 8 percentage points below 2019 levels.

In addition, we faced increased insurance and utility expenses, higher wages and a decline in attrition and cancelation revenues compared to 2022.

These downward pressures on margins were partially offset by margin improvements achieved through the implementation of portfolio-wide cost reductions with our hotel managers over the past several years.

As a result, operating profit margins (calculated based on GAAP operating profit as a percentage of GAAP revenues) decreased 20 basis points to 15.6% in 2023, compared to 15.8% in 2022.

Operating profit margins under GAAP are also significantly affected by several items, including acquisitions, dispositions, depreciation expense and corporate expenses, and in 2023 also benefited from business interruption gains of $83 million.

comparable hotel EBITDA margins, which exclude these items and benefited from only $8 million of business interruption gains, declined 170 basis points to 30.1% for the year, down from 31.8% in 2022 due to the trends discussed above.

As expected, we faced higher wages and inflationary pressures compared to 2023.

This, coupled with Maui performance, led to an operating profit margin (calculated based on GAAP operating profit as a percentage of GAAP revenues) decline of 20 basis points to 15.4% in 2024, compared to 15.6% in 2023, despite an increase in net gains on insurance settlements.

Operating profit margins under GAAP are also significantly affected by several items, including acquisitions, dispositions, depreciation expense and corporate expenses.

Our comparable hotel EBITDA margins, which exclude these items, declined 60 basis points to 29.2% for the year, down from 29.8% in 2023 due to the trends discussed above.

Net Income, Adjusted EBITDA re and Adjusted FFO per Diluted Share

Net income for Host Inc.

was $752 million, an increase of $109 million, or 17.0%, from the prior year.

The improvement was primarily due to improving operations at our hotels and an increase in gain on asset sales and gain on insurance settlements.

These results led to an 18.2% increase in diluted earnings per common share for Host Inc.

Adjusted EBITDA re, which excludes gain on sale of assets, among other items, increased 8.7% to $1,629 million.

Adjusted FFO per diluted share increased 7.3% to $1.92 in 2023, as the increase in Adjusted EBITDA re was partially offset by an increase in interest expense (excluding debt extinguishment costs) and income taxes which are included in Adjusted FFO per diluted share but not Adjusted EBITDA re .

was $707 million, a decrease of $45 million, or 6.0%, from the prior year, reflecting the decrease in gains on asset sales of $71 million and an increase in interest expense of $24 million, partially offset by an increase in net gains on insurance settlements of $24 million.

These results led to a 4.8% decrease in diluted earnings per common share for Host Inc.

Adjusted EBITDA re, which excludes gain on sale of assets and interest expense, among other items, increased 1.7% to $1,656 million as a result of operations from our acquisitions and the resumption of

operations at The Ritz-Carlton, Naples, which was closed during the first half of 2023, despite a $43 million decrease in business interruption gains.

Adjusted FFO per diluted share increased 2.6% to $1.97 in 2024, reflecting the increase in Adjusted EBITDA re as well as the impact of share repurchases in 2024 and 2023.

The trends and transactions described above for Host Inc.

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statements of operations relates to the treatment of income attributable to the unaffiliated limited partners of Host L.P.

We continued to see positive momentum in the lodging industry throughout 2023, as the U.S.

economy remained resilient despite the sharp increase in interest rates.

As the year progressed, inflation moderated even as unemployment remained at very low levels and consumer spending remained strong.

lodging demand typically follows the growth of the U.S economy and is correlated to changes in gross domestic product (GDP).

Moving into 2024, these results have led to increased optimism that inflation can be contained without leading to a recession.

However, many risks to economic growth remain, including the continued effects of tight monetary policy and the Federal Reserve's decisions around interest rates, geopolitical instability throughout the globe, volatile oil prices and the uncertainty surrounding the U.S.

presidential election.

As a result, while the overall expectation of a recession has moderated, a slowdown in economic growth is anticipated.

Blue Chip Economic Indicators consensus currently estimates an increase in real U.S.

GDP of 2.1% for 2024, reflecting a deceleration from 2023 growth of 2.5%.

Business investment growth is also anticipated to slow over the coming quarters, averaging 2.1% for 2024, down from 4.4% in 2023.

Overall, hotel supply growth is anticipated to remain below the long-term historical average in 2024, although we expect to see above-average growth in a few markets where our hotels are located, such as New York and Austin.

Throughout 2024, group business at our properties continued to improve and group revenue on the books remains strong for 2025.

Average rates remained elevated at our resorts compared to pre-pandemic levels, although they have moderated from post-pandemic highs.

However, further growth has been hampered by the slow recovery from the wildfires in Maui, one of our largest markets by revenues, and the slower post-pandemic recovery of the San Francisco market.

These trends are expected to continue into 2025.

On the macroeconomic front, the U.S.

economy remained resilient during 2024 with real U.S.

GDP growth of 2.8%, as unemployment remained at low levels and business investment grew at a robust 3.7%.

lodging demand is correlated to changes in gross domestic product (GDP) and business investment, although the recovery of the industry post-pandemic has lagged that of the economy.

Inflation moderated substantially during the year but remains a concern for 2025, with fewer rate cuts expected in the coming year.

In addition, the new administration has brought heightened uncertainty due to anticipated changes to trade policy, tax policy and government spending.

Other risks to economic growth remain, including geopolitical instability throughout the globe, high interest rates and volatile oil prices.

As a result, leading indicators point toward slower economic growth in 2025.

As of February 2025, Blue Chip Economic Indicators consensus projects real U.S.

GDP growth of 2.2%, reflecting a deceleration from 2024.

Business investment growth is also anticipated to slow over the coming year, averaging 2.3%, down from 3.7% in 2024.

Hotel supply growth is anticipated to remain below the historical average, although we expect to see above-average growth in a few markets where our hotels are located, such as Nashville and Austin.

Supply chain challenges have resulted in project delays across the U.S., and a tight lending environment has created construction financing challenges for future projects.

We anticipate that the new project pipeline will remain suppressed until macroeconomic concerns abate, and interest rates decline.

At the same time, demand patterns have normalized from the outsized impact of the pandemic on our industry, particularly in luxury and upper upscale hotels in top U.S.

markets where our hotels are located.

The majority of our urban markets steadily improved in 2023, reflecting increases in group business and a gradual recovery in business transient and international demand.

However, transient demand has recovered more slowly in certain markets, specifically San Francisco and Seattle.

In addition, the impact from the wildfires on the Maui market, one of our largest markets by revenues, has created challenges for anticipating performance levels in the coming months as the community rebuilds.

We anticipate that the construction pipeline will remain modest until macroeconomic uncertainty moderates and interest rates decline further.

Based on the trends noted, we expect comparable hotel RevPAR growth for the full year 2025 will be between 0.5% and 2.5%.

In addition, we expect margins to decline in comparison to 2023, driven by higher wages and growth in insurance and real estate taxes.

As unemployment remains historically low and the labor market is tight at the lower end of the wage scale, we anticipate another year of wage growth in the 4% to 5% range.

However, the range of potential outcomes on the economy and the lodging industry specifically remains exceptionally wide, reflecting varying analyst assumptions surrounding the impact of higher interest rates, inflation, ongoing labor shortages in key industries, and escalating geopolitical conflicts.

As noted above, the current outlook for the lodging industry remains highly uncertain;

therefore, there can be no assurances as to the continued recovery in lodging demand for any number of reasons, including, but not limited to, slower than anticipated return of group and business travel or deteriorating macroeconomic conditions.

For more information on the risks that can affect our future results, see Part 1 Item 1A.

In addition, we expect margins to decline in comparison to 2024, driven by higher wages and benefits, including increases driven by new union contracts in certain cities, as well as growth in insurance and real estate taxes.

As discussed above, the current outlook for the lodging industry remains uncertain, reflecting varying analyst assumptions surrounding the impact of higher interest rates, inflation, the recovery in Maui and escalating geopolitical conflicts.

Therefore, there can be no assurances as to lodging demand performance for any number of reasons, including, but not limited to, the slow recovery in Maui or deteriorating macroeconomic conditions.

For more information on the risks that can affect our future results, see Part I, Item 1A.

“Risk Factors.”

Strategic Initiatives

In 2023, we completed significant multi-year initiatives driven by our three strategic objectives, as follows, and believe we will continue to realize the benefits from our ongoing efforts:

(i) redefining the hotel operating model with our managers through the implementation of portfolio-wide cost reductions, (ii) gaining market share through comprehensive renovations, including the Marriott and other transformational projects, discussed below, (iii) and strategically allocating capital to development ROI projects, including the new tower at The Ritz-Carlton, Naples completed in 2023.

For 2025, we intend to continue our disciplined approach to capital allocation to strengthen our portfolio and to deliver stockholder value through multiple levers, which may include, over time, acquiring hotels or investing in our portfolio.

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We also continue to critically analyze our portfolio to seek to take advantage of the inherent value of our real estate for its highest and best use.

Acquisitions .

During 2024, we completed the following acquisitions:

• the 215-room 1 Hotel Nashville and 506-room Embassy Suites by Hilton Nashville Downtown for $530 million;

• the 234-room 1 Hotel Central Park for $265 million;

• the 450-room Turtle Bay Resort, including a 49-acre land parcel entitled for development, for a total purchase price of $680 million, which is net of $45 million in key money received from Marriott International as part of an agreement to transition management to Marriott and convert the property to The Ritz-Carlton brand.

The property has been renamed The Ritz-Carlton O'ahu, Turtle Bay.

Capital Projects.

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During 2024, we spent approximately $548 million on capital expenditures, of which $260 million represented return on investment (“ROI”) capital expenditures, $252 million represented renewal and replacement projects and $36 million was for hurricane restoration work.

Major capital projects completed during the year include transformational renovations at Fairmont Kea Lani, Maui, with upgrades to all guestrooms and the addition of a new arrival experience and lobby bar, and The Westin Georgetown, Washington D.C., with guestroom, public space and meeting space renovations.

In July 2023, The Ritz-Carlton, Naples reopened, including the guestrooms, suites and amenities, and the new tower expansion.

The final phase of reconstruction at Hyatt Regency Coconut Point Resort and Spa, the resort's waterpark, was completed in June 2023.

This included completing the final steps of our restoration efforts following Hurricane Ian of bringing the permanent central energy plant online at The Ritz-Carlton, Naples.

For all properties impacted by Hurricane Ian, we estimate the total property reconstruction and remediation costs, including significant enhancements, was approximately $315 million, of which approximately 30% related to remediation costs.

In 2024, we reached a final settlement with our insurance providers on covered costs related to damage and disruption caused by Hurricane Ian, which totaled $308 million.

In total, $99 million of the insurance receipts were recognized as a gain on business interruption.

Another major capital project completed during the year was the repositioning renovations at The Singer Oceanfront Resort, Curio Collection by Hilton, including rooms, public space, and food and beverage outlets.

In addition, hotels within certain regions are subject to environmental and weather-related events, including hurricanes, wildfires, floods, rising sea levels, mudslides, earthquakes, and other natural perils.

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While the number of projects and overall cost varies from year to year, on average approximately 6% our capital expenditures have related to these types of projects over the past six years.

In 2023, we completed the Marriott transformational capital program, which began in 2018.

We believe this program will position these hotels to be more competitive in their respective markets and will enhance long-term performance through increases in RevPAR and market yield index.

We agreed to invest amounts in excess of the FF&E reserves required under our management agreements and, in exchange, Marriott has provided additional priority returns on the agreed upon investments and $83 million in operating profit guarantees, before reductions for incentive management fees, to offset expected business disruption.

The Marriott transformational capital program included 16 hotels, which were completed as follows:

projects at the Coronado Island Marriott Resort & Spa, New York Marriott Downtown, San Francisco Marriott Marquis, and Santa Clara Marriott in 2019;

projects at the Minneapolis Marriott City Center, San Antonio Marriott Rivercenter and JW Marriott Atlanta Buckhead in 2020;

projects at The Ritz-Carlton Amelia Island, New York Marriott Marquis and Orlando World Center Marriott in 2021;

projects at Boston Marriott Copley Place, Houston Marriott Medical Center, JW Marriott Houston by the Galleria, and Marina del Rey Marriott in 2022;

and projects at the Marriott Marquis San Diego Marina and Washington Marriott at Metro Center in 2023.

Similar to the Marriott transformational capital program, we reached an agreement with Hyatt in 2023 to complete transformational reinvestment capital projects at six properties in our portfolio, the Grand Hyatt Atlanta in Buckhead, Grand Hyatt Washington, Manchester Grand Hyatt San Diego, Hyatt Regency Austin, Hyatt Regency Washington on Capitol Hill, and Hyatt Regency Reston.

The enhanced resilience projects implemented during the reconstruction of The Ritz-Carlton, Naples were successful in minimizing damage to the resort during the two hurricanes that made landfall in 2024;

however, no assurances can be made as to whether these enhanced resiliency projects will be successful in mitigating the damage from future environmental and weather-related events, especially as the frequency and severity of these events are expected to increase over time.

In collaboration with Hyatt, we initiated a transformational capital program in 2023 at six properties in our portfolio, the Grand Hyatt Atlanta in Buckhead, Grand Hyatt Washington, Manchester Grand Hyatt San Diego, Hyatt Regency Austin, Hyatt Regency Washington on Capitol Hill, and Hyatt Regency Reston.

These investments are intended to position the targeted hotels to compete better in their respective markets while seeking to enhance long-term performance.

During 2024, we spent approximately $155 million on this program, which is included in ROI capital projects.

The total investment is expected to be approximately $550 million to $600 million, two-thirds of which we were planning to invest as part of our capital plan over the next few years.

We expect to invest between $125 million and $200 million per year over the next three to four years

on this program.

We expect to invest between $125 million and $200 million per year on this program.

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.

For 2024, we expect total capital expenditures of $500 million to $605 million, consisting of ROI projects of approximately $225 million to $280 million, renewal and replacement expenditures of $250 million to $300 million, and $25 million for the final restoration work from the damage caused by Hurricane Ian.

The ROI projects include approximately $125 million to $150 million for the new Hyatt transformational capital program discussed above.

Also in 2023, we announced and broke ground on a project to develop and sell 40 fee-simple condominiums on a five-acre development parcel at Golden Oak in Orlando, adjacent to Four Seasons Resort Orlando at Walt Disney World® Resort.

Construction is expected to be completed in the fourth quarter of 2025.

In 2023, we spent $15 million in development costs for this project.

We received approximately $9 million of the operating profit guarantees in 2024 from Hyatt and expect to receive approximately $27 million in 2025.

For 2025, we expect total capital expenditures of $580 million to $670 million, consisting of ROI projects of approximately $270 million to $315 million, renewal and replacement expenditures of $240 million to $275 million, and $70 million to $80 million for the restoration work from the damage caused by Hurricanes Helene and Milton.

The ROI projects include approximately $170 million to $180 million for the Hyatt transformational capital program.

Also in 2023, we announced and broke ground on a project to develop and sell 40 fee-simple 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 is expected to be completed in the fourth quarter of 2025 and the villas are expected to complete in the first half of 2026.

In 2024, we spent $64 million in development costs for this project and began marketing the units, resulting in buyer commitments for nearly one-third of the units.

For 2025, the development costs for this project are expected to be $75 million to $85 million.

Dispositions .

During 2023, we sold The Camby, Autograph Collection for $110 million, including a $72

million loan we provided to the buyer.

Up to an additional $12 million in funding is also available to the buyer under the loan for property improvement plan financing.

Financing transactions .

On April 1, 2024, we repaid $400 million of 3⅞% Series G senior notes at maturity.

On May 10, 2024, we issued $600 million of 5.700% Series K senior notes for proceeds of $584 million, net of original issue discount, underwriting fees and expenses.

The net proceeds from this issuance were used to repay all

outstanding amounts then outstanding under the revolver portion of our credit facility.

The Series K senior notes have been designated as green bonds, and an amount equal to the net proceeds was allocated to finance and/or refinance one or more eligible green projects.

On August 12, 2024, we issued $700 million of 5.500% Series L senior notes for proceeds of $683 million, net of

original issue discount, underwriting fees and expenses.

The net proceeds from this issuance were used in part to repay all $525 million of borrowings then outstanding under the revolver portion of our credit facility, including amounts borrowed in connection with the acquisitions of The Ritz-Carlton O'ahu, Turtle Bay and 1 Hotel Central Park.

We believe that our ability to maintain an investment grade balance sheet and well-laddered maturity schedule is an important factor in our investment strategy.

In January 2023, we amended our credit facility, extending the maturity date and adding a sustainability pricing adjustment that can adjust the applicable interest rate.

As of December 31, 2024, we have a debt balance of $5.1 billion, our weighted average interest rate is 4.7%, and our weighted average debt maturity is 5.2 years.

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Corporate and other expenses 123 132 (6.8)

Gain on insurance settlements 86 17 405.9

Net gain on insurance settlements 110 86 27.9

Operating profit 875 827 5.8

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Net income attributable to Host Inc.

697 740 (5.8)

Net income attributable to non-controlling interests 1 1 —

Net income attributable to Host L.P.

(1) Amounts represent total operating costs and expenses from our audited consolidated statements of operations, less corporate and other expenses and gain on insurance settlements.

706 751 (6.0)

(1) Amounts represent total operating costs and expenses from our audited consolidated statements of operations, less corporate and other expenses and net gain on insurance settlements.

Statement of Operations Results and Trends

Operations improved in 2023 compared to 2022, reflecting (i) an increase in occupancy, particularly at our convention and downtown properties, (ii) easier comparisons to 2022, as the Omicron variant of COVID-19 significantly impaired travel during January and the first part of February in 2022 as noted previously, and (iii) the net impact of our recent acquisition and dispositions.

The Four Seasons Resort and Residences Jackson Hole, which we acquired in November 2022, contributed $70 million to growth in revenues in 2023, compared to the negative impact on revenues resulting from the disposition of a total of five properties in 2022 and 2023.

The growth in 2023 was also impacted by lost revenues due to the closure of The Ritz-Carlton, Naples, which is included in non-comparable hotels as a result of Hurricane Ian, and due to the August wildfires in Maui.

The following table presents revenues in accordance with GAAP for the two years ended December 31, 2023 (in millions, except percentages):

Operations improved in 2024 compared to 2023, reflecting (i) the operations of our recent acquisitions, including 1 Hotel Nashville and Embassy Suites by Hilton Nashville Downtown acquired in April 2024, 1 Hotel Central Park acquired in July 2024, and The Ritz-Carlton O'ahu, Turtle Bay acquired in July 2024 (collectively, the "2024 Acquisitions");

(ii) strong group business which led to improvements in food and beverage revenues, and (iii) the resumption of operations at The Ritz-Carlton, Naples, which was closed during the first half of 2023 as a result of Hurricane Ian.

The improvements were partially offset by a slow recovery in Maui and the closures of Alila Ventana Big Sur, which closed at the end of March 2024 and reopened on May 22, 2024, following the collapse of a portion of Highway 1 in California, and The Don CeSar, which closed on September 25, 2024 and remains closed due to Hurricanes Helene and Milton.

The following table presents revenues in accordance with GAAP and includes all consolidated hotels for the two years ended December 31, 2024 (in millions, except percentages):

2024 2023 Change

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Total revenues $ 5,684 $ 5,311 7.0 %

Total rooms revenues increased $230 million, or 7.6%, in 2023, reflecting the acquisition of the Four Seasons Resort and Residences Jackson Hole and the increase at our comparable hotels of $237 million, or 8.1%, due to increases in both average room rates and occupancy compared to 2022.

Total rooms revenues were negatively affected by dispositions and the closure of The Ritz-Carlton, Naples from September 2022 to July 2023.

Total rooms revenues increased $182 million, or 5.6%, in 2024, reflecting the operations of the 2024 Acquisitions and the reopening of The Ritz-Carlton, Naples.

Rooms revenues at our comparable hotels increased $40 million, or 1.2%, driven by an increase in average room rates compared to 2023.

Food and beverage .

Total food and beverage ("F&B") revenues increased $164 million, or 11.6%, in 2023.

The improvement reflects the increase at our comparable hotels of $155 million, or 11.3%, primarily driven by improvements in banquet and audio-visual revenues at convention hotels as group demand continued to recover, partially offset by lost business as a result of the Maui wildfires, which had a larger impact on ancillary spend as compared to room revenues.

Total F&B revenues for 2023 benefited from improved operations following the reopening of our non-comparable hotels after Hurricane Ian, and, similar to the changes in rooms revenues, the acquisition of the Four Seasons Resort and Residences Jackson Hole.

Total food and beverage ("F&B") revenues increased $134 million, or 8.5%, in 2024, due to the 2024 Acquisitions and the reopening of The Ritz-Carlton, Naples.

Comparable F&B revenues increased $57 million, or 3.6%, driven by improvements in banquet and audio-visual revenues at resort and convention hotels as group demand remained strong throughout the year.

Other revenues .

Total other revenues increased $10 million, or 2.1%, in 2023.

The increase reflects the increase at our comparable hotels of $4 million, or 0.9%, primarily due to an increase in ancillary revenues from improved occupancy levels and continued strong golf and spa revenues, which remain significantly ahead of pre-pandemic levels, and the acquisition of the Four Seasons Resort and Residences Jackson Hole.

The increase was partially offset by normalizing, but still elevated, attrition and cancelation fees, the effects of the wildfires in Maui and the closure of The Ritz-Carlton, Naples.

Total other revenues increased $57 million, or 11.8%, in 2024, driven by results from the 2024 Acquisitions and the reopening of The Ritz-Carlton, Naples.

Other revenues at our comparable hotels increased $31 million, or 6.2%, primarily due to strong spa and other ancillary revenues.

Property-level Operating Expenses

The following table presents consolidated property-level operating expenses in accordance with GAAP for the two years ended December 31, 2023 (in millions, except percentages):

The following table presents consolidated property-level operating expenses in accordance with GAAP and includes all consolidated hotels for the two years ended December 31, 2024 (in millions, except percentages):

2024 2023 Change

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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 57% of these expenses in any given year.

During 2023, these expenses increased 13% compared to 2022, reflecting an increase in hiring as operations have recovered, as well as wage and benefit inflationary pressures.

In addition, early in 2022, hiring was temporarily paused in many areas due to the Omicron variant, as well as seasonality in certain markets, followed by an acceleration in demand for which our hotel managers were unable to increase staffing commensurate with the increase in demand.

This led to a greater increase in expenses in 2023 on a year-over-year basis then would be expected due to increased demand alone.

Hiring pace has since improved, and managers at the majority of our hotels now are operating at desired staffing levels.

Wage and benefit rate inflation is expected to be approximately 4% to 5% in 2024.

Other property-level expenses consist of property taxes, which are highly dependent on local jurisdiction taxing authorities, and property and general liability insurance, and do not necessarily change based on changes in revenues at our hotels.

The increase in expenses for rooms, food and beverage, other departmental and support, and management fees was generally due to the corresponding increase in revenues from improvements in occupancy and hotel operations, and an increase in staffing, as follows:

During 2024, these expenses increased approximately 5% compared to 2023, primarily due to an overall increase in general wage rates and benefits.

Wage and benefit rate inflation is expected to be approximately 6% in 2025.

Other property-level expenses consist of property taxes, the amounts and structure of which are highly dependent on local jurisdiction taxing authorities, and property and general liability insurance, all of which do not necessarily increase or decrease based on similar changes in revenues at our hotels.

The increases in expenses for rooms, food and beverage, other departmental and support, and management fees were generally due to the corresponding increases in revenues due to the 2024 Acquisitions, the reopening of The Ritz-Carlton, Naples, and also reflected increased expenses at our comparable hotels primarily due to increased wages and benefits, as follows:

Rooms expenses increased $62 million, or 7.9%, in 2024.

Our comparable hotels rooms expenses increased $67 million, or 9.5%, in 2023.

These increases reflect the increase in occupancy and staffing described above.

Total rooms expenses benefited from the net impact of our recent acquisition and dispositions.

Wages and benefits represented approximately 67% and 65% of our 2023 and 2022 rooms expenses, respectively.

Our comparable hotels rooms expenses increased $33 million, or 4.1%, in 2024, driven by an overall increase in wage rates.

Wages and benefits represented approximately 67% of our 2024 and 2023 rooms expenses.

Food and beverage.

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For our comparable hotels, F&B expenses increased $41 million, or 3.9%, in 2024.

Overall, F&B costs as a percentage of revenues increased slightly, as staffing levels normalized.

Wages and benefits represented approximately 69% and 67% of our 2023 and 2022 F&B expenses, respectively.

Overall, F&B costs as a percentage of revenues remained consistent year over year.

Wages and benefits represented approximately 69% of our 2024 and 2023 F&B expenses.

Other departmental and support expenses .

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On a comparable hotel basis, other departmental and support expenses increased $62 million, or 3.2%.

These increases were primarily due to the increase in staffing.

Total other departmental and support expenses benefited from the net impact of our recent acquisition and dispositions.

These increases were primarily due to higher wage expense.

Wages and benefits represented approximately 41% of our 2024 and 2023 other departmental and support expenses.

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At our comparable hotels, base management fees increased $6 million, or 3.8%, for 2024.

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 $22 million, due primarily to the improved operations at our properties.

At our comparable hotels, incentive management fees increased $18 million, or 21.8%, in 2023.

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 $5 million, primarily due to the closure of The Don CeSar, and the decrease at our comparable hotels of $3 million, or 2.8%, which was due to renovations at certain properties.

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 increased $58 million, or 17.8%, in 2023, due to increases in property insurance premiums, rent on a portion of our ground leases that are based on a percentage of sales, and property taxes.

Other property-level expenses increased $28 million, or 7.3%, in 2024, due to increases in property insurance premiums and property taxes.

Other property-level expenses at our comparable hotels increased $12 million, or 3.1%, in 2024.

Other property-level expenses were partially offset by the receipt of operating profit guarantees from Marriott under the transformational capital program in both 2023 and 2022.

Other property-level expenses were partially offset by the receipt of operating profit guarantees from Marriott and Hyatt under the transformational capital programs in both 2024 and 2023.

Other Income and Expenses

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General and administrative costs primarily consist of wages and benefits, travel, corporate insurance, legal fees, audit fees, building rent and systems costs.

Increases in 2023 primarily reflect growth in compensation and litigation accruals.

Gain on insurance settlements.

In 2023, we recorded a gain on insurance consisting of $3 million related to property insurance proceeds and $83 million for receipt of business interruption proceeds, primarily relating to Hurricane Ian.

In 2022, we recorded a gain on insurance consisting of $6 million related to property insurance proceeds and $11 million for receipt of business interruption insurance proceeds, each relating to various claims at our properties.

The overall decrease in corporate and other expenses for the year ended December 31, 2024 is primarily due to a decrease in litigation accruals, partially offset by an increase in systems costs and other administrative fees.

Net gain on insurance settlements.

The following table details our gain on insurance settlements for property damage and business interruption, net of property damage and remediation losses, related to Hurricanes Ian, Helene and Milton, the Maui wildfires and other weather events (in millions):

Year ended December 31,

Property damage

Hurricanes Helene/Milton (6) —

Hurricane Ian 72 3

Business interruption

Hurricane Ian 19 80

Maui wildfires 21 —

Net gain on insurance settlements $ 110 $ 86

Interest expense .

Interest expense increased $35 million, or 22.4%, in 2023 as compared to 2022, due to an increase in average interest rates on our floating rate debt.

Interest expense increased $24 million, or 12.6%, in 2024 as compared to 2023, primarily due to higher outstanding debt balances during 2024 as we issued additional senior notes to fund our 2024 Acquisitions.

The following table presents certain components of interest expense (in millions):

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The Camby, Autograph Collection $ — $ 69

Sheraton Boston 1 13

YVE Hotel Miami — 1

Chicago Marriott Suites Downers Grove — 4

Equity in earnings of affiliates .

Equity in earnings of affiliates increased $3 million, or 100.0%, in 2023, reflecting less unrealized losses recorded at our investment in Fifth Wall Ventures, L.P.

in 2023 compared to 2022, partially offset by losses at our Maui timeshare joint venture due to the Maui wildfires in August 2023.

Equity in earnings of affiliates increased $1 million, or 16.7%, in 2024, reflecting increased earnings from our investment in the Noble joint venture, partially offset by a $6 million loss for our share of an inventory impairment expense recorded by our Maui timeshare joint venture.

Provision for income taxes.

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by the TRS, on which we record an income tax provision or benefit.

In 2023 and 2022, we recorded an income tax provision of $36 million and $26 million, respectively, due primarily to the profitability of hotel operations retained by the TRS, including the business interruption insurance gains recorded in 2023 and 2022.

In 2024 and 2023, we recorded an income tax provision of $14 million and $36 million, respectively, due primarily to the profitability of hotel operations retained by the TRS, including $40 million and $83 million of business interruption insurance gains recorded in 2024 and 2023, respectively.

The 2024 tax provision was partially offset by the recognition of an income tax benefit due to federal income tax credits resulting from the installation of a co-generation plant at one of our properties.

As a result of legislation enacted by the CARES Act in 2020, a portion of the 2020 domestic net operating loss was carried back to 2017-2019 in order to procure a refund of U.S.

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Comparable Hotel RevPAR Overview

Effective January 1, 2023, we ceased presentation of All Owned Hotel results, and returned to a comparable hotel presentation for our hotel level results.

Comparable hotels are those properties that we consolidate as of the reporting date.

We discuss operating results for our hotels on a comparable hotel basis.

Comparable hotels are those properties that we consolidate as of the reporting periods being compared.

Comparable hotels do not include the results of hotels sold or classified as held-for-sale, hotels that have sustained substantial property damage or business interruption, or hotels that have undergone large-scale capital projects, in each case requiring closures lasting one month or longer during the reporting periods being compared.

We believe this provides investors with a better understanding of underlying growth trends for our current portfolio, without impact from properties that experienced closures.

We have removed Hyatt Regency Coconut Point Resort and Spa and The Ritz-Carlton, Naples from our comparable operations for 2023 due to closures caused by Hurricane Ian.

We have removed The Don CeSar, Alila Ventana Big Sur, and The Ritz-Carlton, Naples from our comparable operations for the year ended December 31, 2024 due to closures.

See “Comparable Hotel Operating Statistics and Results” below for more information on how we determine our comparable hotels.

We also include, following the comparable hotels results by geographic location, the same operating statistics presentation on an actual basis, which includes results for our portfolio for the time period of our ownership, including the results of non-comparable properties, dispositions through their date of disposal and acquisitions beginning as of the date of acquisition.

Beginning in third quarter of 2024, we have separated the Oahu and Maui markets.

results of non-comparable properties, dispositions through their date of disposal and acquisitions beginning as of the date of acquisition.

Lastly, we discuss our hotel results by mix of business (i.e., transient, group, or contract).

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RevPAR Percent

Maui/Oahu 4 2,006 $ 576.75 71.9 % $ 414.84 $ 612.98 $ 560.86 74.7 % $ 418.70 $ 646.24 (0.9 %) (5.1 %)

Maui 3 1,580 $ 663.09 60.1 % $ 398.83 $ 641.01 $ 707.50 67.4 % $ 476.56 $ 720.14 (16.3 %) (11.0 %)

2 876 457.70 81.2 % 371.85 576.36 442.57 76.4 % 338.25 544.70 9.9 % 5.8 %

Miami 2 1,038 526.83 70.2 % 369.84 641.42 533.31 66.9 % 356.86 624.20 3.6 % 2.8 %

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Phoenix 3 1,545 395.73 70.0 % 276.93 646.95 399.79 71.5 % 285.85 637.23 (3.1 %) 1.5 %

Florida Gulf Coast 3 941 389.43 72.3 % 281.40 593.72 394.84 73.7 % 291.11 577.93 (3.3 %) 2.7 %

Nashville 2 721 344.36 79.7 % 274.37 447.79 344.85 74.5 % 256.76 396.48 6.9 % 12.9 %

Orlando 2 2,448 383.93 65.1 % 249.76 528.04 384.63 67.9 % 261.32 521.26 (4.4 %) 1.3 %

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San Diego 3 3,294 293.18 78.9 % 231.22 433.50 282.20 78.4 % 221.29 414.34 4.5 % 4.6 %

Florida Gulf Coast 3 1,055 321.75 69.9 % 224.78 492.13 321.00 70.7 % 226.95 497.52 (1.0 %) (1.1 %)

Boston 2 1,496 280.30 78.1 % 218.97 287.46 264.18 78.2 % 206.66 275.90 6.0 % 4.2 %

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Philadelphia 2 810 237.00 80.4 % 190.56 289.97 231.94 79.7 % 184.83 288.44 3.1 % 0.5 %

Austin 2 767 269.26 65.7 % 176.88 311.25 271.65 69.5 % 188.91 324.19 (6.4 %) (4.0 %)

Northern Virginia 2 916 258.13 72.5 % 187.25 296.74 243.70 70.4 % 171.48 268.97 9.2 % 10.3 %

Chicago 3 1,562 255.54 70.4 % 180.01 249.73 243.59 68.9 % 167.80 238.73 7.3 % 4.6 %

San Francisco/San Jose 6 4,162 251.98 66.4 % 167.25 244.44 230.88 63.0 % 145.42 211.87 15.0 % 15.4 %

Seattle 2 1,315 248.84 68.3 % 169.99 230.55 239.33 66.8 % 159.81 218.64 6.4 % 5.5 %

Atlanta 2 810 190.67 74.0 % 141.12 227.52 181.81 72.2 % 131.35 205.87 7.4 % 10.5 %

Austin 2 767 256.02 66.3 % 169.83 300.41 269.26 65.7 % 176.88 311.25 (4.0 %) (3.5 %)

San Francisco/San Jose 6 4,162 241.04 65.3 % 157.34 231.55 251.98 66.4 % 167.25 244.44 (5.9 %) (5.3 %)

Houston 5 1,942 214.37 69.6 % 149.28 208.63 201.17 69.4 % 139.51 195.30 7.0 % 6.8 %

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Denver 3 1,342 199.13 66.8 % 133.12 205.67 192.48 63.3 % 121.90 181.72 9.2 % 13.2 %

Atlanta 2 810 202.78 61.8 % 125.29 206.10 190.67 74.0 % 141.12 227.52 (11.2 %) (9.4 %)

Other 9 3,007 278.09 65.4 % 181.93 283.43 278.61 63.8 % 177.72 272.86 2.4 % 3.9 %

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All Locations 78 42,508 $ 306.81 70.4 % $ 216.06 $ 355.88 $ 304.06 70.4 % $ 214.15 $ 348.70 0.9 % 2.1 %

(1) Prior to our ownership of The Ritz Carlton O'ahu, Turtle Bay, golf revenues were recorded by the property based on gross sales.

After our acquisition of the property in July 2024, the golf course operates under a lease agreement, under which we record rental income, resulting in lower total revenues when compared to the periods prior to our ownership.

Results by Location - actual, based on ownership period (1)

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RevPAR Percent

Maui/Oahu 4 4 $ 576.75 71.9 % $ 414.84 $ 612.98 $ 560.86 74.7 % $ 418.70 $ 646.24 (0.9 %) (5.1) %

Maui 3 3 $ 663.09 60.1 % $ 398.83 $ 641.01 $ 707.50 67.4 % $ 476.56 $ 720.14 (16.3 %) (11.0) %

Oahu 2 1 345.57 85.7 % 296.02 412.98 209.18 88.9 % 185.90 215.50 59.2 % 91.6 %

Miami 2 2 526.83 70.2 % 369.84 641.42 533.31 66.9 % 356.86 624.20 3.6 % 2.8 %

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Phoenix 3 3 395.73 70.0 % 276.93 646.95 397.16 71.7 % 284.75 628.10 (2.7 %) 3.0 %

Florida Gulf Coast 5 5 388.97 60.6 % 235.74 497.91 418.86 62.2 % 260.47 509.76 (9.5 %) (2.3 %)

Nashville 2 — 355.16 81.3 % 288.88 467.80 — — % — — — % — %

Orlando 2 2 383.93 65.1 % 249.76 528.04 384.63 67.9 % 261.32 521.26 (4.4 %) 1.3 %

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San Diego 3 3 293.18 78.9 % 231.22 433.50 282.20 78.4 % 221.29 414.34 4.5 % 4.6 %

Florida Gulf Coast 5 5 467.55 65.7 % 307.37 642.56 388.97 60.6 % 235.74 497.91 30.4 % 29.1 %

Boston 2 2 280.30 78.1 % 218.97 287.46 264.18 78.2 % 206.66 275.90 6.0 % 4.2 %

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Philadelphia 2 2 237.00 80.4 % 190.56 289.97 231.94 79.7 % 184.83 288.44 3.1 % 0.5 %

Austin 2 2 269.26 65.7 % 176.88 311.25 271.65 69.5 % 188.91 324.19 (6.4 %) (4.0 %)

Northern Virginia 2 2 258.13 72.5 % 187.25 296.74 243.70 70.4 % 171.48 268.97 9.2 % 10.3 %

Chicago 3 3 255.54 70.4 % 180.01 249.73 243.59 68.9 % 167.80 238.73 7.3 % 4.6 %

San Francisco/San Jose 6 6 251.98 66.4 % 167.25 244.44 230.88 63.0 % 145.42 211.87 15.0 % 15.4 %

Seattle 2 2 248.84 68.3 % 169.99 230.55 239.33 66.8 % 159.81 218.64 6.4 % 5.5 %

Atlanta 2 2 190.67 74.0 % 141.12 227.52 181.81 72.2 % 131.35 205.87 7.4 % 10.5 %

Austin 2 2 256.02 66.3 % 169.83 300.41 269.26 65.7 % 176.88 311.25 (4.0 %) (3.5 %)

San Francisco/San Jose 6 6 241.04 65.3 % 157.34 231.55 251.98 66.4 % 167.25 244.44 (5.9 %) (5.3 %)

Houston 5 5 214.37 69.6 % 149.28 208.63 201.17 69.4 % 139.51 195.30 7.0 % 6.8 %

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Denver 3 3 199.13 66.8 % 133.12 205.67 192.48 63.3 % 121.90 181.72 9.2 % 13.2 %

Atlanta 2 2 202.78 61.8 % 125.29 206.10 190.67 74.0 % 141.12 227.52 (11.2 %) (9.4 %)

Other 10 10 308.67 65.6 % 202.53 314.00 313.84 64.2 % 201.47 308.08 0.5 % 1.9 %

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The information below is derived from business mix results from the 78 comparable hotels owned as of December 31, 2024.

Improvements in 2023 compared to 2022 were primarily driven by an increase in group business, through increases in occupancy and room rates.

At the same time, the recovery in business transient demand continued, driven by demand from small and medium-sized businesses, which accounted for a greater share of demand after the COVID-19 pandemic, compared to demand from large companies.

Business transient demand improvement was partially offset by weaker leisure demand due to the effects of the wildfires in Maui and moderating transient rates at our resort hotels, although resort transient rates still remain more than 50% above 2019.

Improvements in 2024 compared to 2023 were primarily driven by an increase in group business, through increases in average rates and occupancy, as our convention and downtown properties continued to benefit from group demand.

The growth in group demand was partially offset by a 0.3% decrease in transient revenue, reflecting the impacts of the Maui wildfires and moderating leisure demand.

The following are the results of our transient, group and contract business:

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Our primary sources of cash include cash from operations, proceeds from the sale of assets, borrowings under our credit facility and debt and equity issuances.

In the short term, our cash obligations include $400 million of senior notes due in April of 2024.

We believe we have sufficient liquidity to repay them with available cash at maturity, or we can refinance the notes with our access to capital markets.

In the short term, our cash obligations include $500 million of senior notes due in June 2025.

We believe we have sufficient liquidity to repay them at maturity, or we can refinance the notes with our access to capital markets.

For our long-term senior note and credit facility obligations, we historically have refinanced these amounts prior to their maturity through the issuance of new senior notes or the entry into new credit facility agreements.

Whether we will refinance the April 2024 senior notes upon maturity with new senior notes will depend upon market conditions generally, including the interest rate environment, and our cash requirements.

As discussed further below, we amended our credit facility effective January 4, 2023, extending the maturity date among other things.

Whether we will refinance the June 2025 senior notes upon maturity with new senior notes will depend upon market conditions generally, including the interest rate environment, and our cash requirements.

Also, in the short term, our cash obligations include the minimum lease payments on our ground leases, which in 2025 are approximately $31 million, and most of our other operating obligations.

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Average annual R&R spend over the last five years has been $245 million.

Our 2024 capital expenditures budget includes approximately $25 million for restoration work following Hurricane Ian in September 2022, primarily at The Ritz-Carlton, Naples.

While all of our hotels have fully reopened, we have continued our restoration efforts, for which we estimate the total property reconstruction and remediation costs, including significant enhancements, to be approximately $300 million to $320 million of which approximately 30% relates to remediation costs.

As of December 31, 2023, we have received $213 million of insurance proceeds related to these claims, of which $80 million has been recognized as a gain on business interruption, with any remaining proceeds expected to be received in 2024.

Our expected potential insurance recovery is $310 million for covered costs, including the property remediation and reconstruction costs and the near-term loss of business;

however, there can be no assurances that we will be able to collect the full amount.

As part of our investment in our Noble joint venture, we have made a $211.5 million capital commitment to Noble Fund V.

As of December 31, 2023, we have funded $33 million of this commitment, with the remaining amounts to be paid as the fund calls them.

Our 2025 capital expenditures budget includes approximately $70 million to $80 million for restoration work at our Florida properties affected by Hurricanes Helene and Milton in 2024, primarily at The Don CeSar, which sustained significant damage and remains closed.

We estimate the total property reconstruction and remediation costs from the storms, including resiliency enhancements, for The Don CeSar to be approximately $100 million to $110 million of which approximately 25-30% relates to remediation costs.

We believe our insurance coverage will be sufficient to cover the property remediation and reconstruction costs and the near-term loss of business in excess of our deductibles of approximately $20 million, although the timing for the receipt of insurance proceeds remains uncertain.

As part of our investment in our Noble joint venture, we have made a $211.5 million capital commitment to Noble Fund V and an additional capital commitment of $30 million through a related co-investment.

As of December 31, 2024, we have funded $72 million and $13 million of these commitments, respectively, with the remaining amounts expected to be paid within the next two years.

As a REIT, Host Inc.

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“Financial Statements and Supplementary Data – Note 17.

Legal Proceedings, Guarantees and Contingencies” for a discussion of obligations under contingent liabilities or guarantees and a more detailed description of the damage caused by Hurricane Ian.

Legal Proceedings, Guarantees and Contingencies” for a discussion of obligations under contingent liabilities or guarantees and a more detailed description of the damage caused by Hurricanes Helene and Milton.

Capital Resources.

As of December 31, 2024, we had $554 million of cash and cash equivalents, $242 million in our FF&E escrow reserve and $1.5 billion available under the revolver portion of our credit facility.

In the near term, we expect to fund our above cash requirements, including our dividends, capital expenditures program, debt service and operating and corporate costs, primarily through hotel operations and our existing cash reserves.

In the near term, with the exception of the $500 million Series E senior notes due in June 2025, as described above, we expect to fund our above cash requirements, including our dividends, capital expenditures program, debt service and operating and corporate costs, primarily through hotel operations and our existing cash reserves.

Based on our cash balance at December 31, 2024 and our expected cash obligations, we believe we will have sufficient liquidity to meet our near-term obligations.

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Repurchases of debt will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.

Any retirement before the maturity date will affect earnings and NAREIT FFO per diluted share as a result of the payment of any applicable call premiums and the accelerated expensing of

previously deferred and capitalized financing costs.

Any retirement before the maturity date will affect earnings and NAREIT FFO per diluted share as a result of the payment of any applicable call premiums and the accelerated expensing of previously deferred and capitalized financing costs.

Accordingly, considering our priorities in managing our capital structure and liquidity profile and given prevailing conditions and relative pricing in the capital markets, we may, at any time, subject to applicable securities laws and the requirements of our credit facility and senior notes, be considering, or be in discussions with respect to, the repurchase or issuance of exchangeable debentures and/or senior notes or the repurchase or sale of our common stock.

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Two programs currently are in place relating to purchases and sales of our common stock.

First, on May 31, 2023, we entered into a distribution agreement with J.P.

First, 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.

In the fourth quarter of 2024, no shares were repurchased.

For full year 2024, we repurchased 6.3 million shares at an average price of $16.99 per share, exclusive of commissions, for a total of $107 million.

At December 31, 2024, we had $685 million available for repurchase under the program.

Second, on May 31, 2023, we entered into a distribution agreement with J.P.

Morgan Securities LLC, BofA Securities, Inc., Goldman Sachs & Co.

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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 in 2023.

No shares were issued in 2023 or 2024.

As of December 31, 2024, there was $600 million of remaining capacity under the agreement.

Second, in August 2022, Host Inc.’s Board of Directors authorized an increase in the existing program to repurchase Host Inc.

common stock up to $1 billion.

The 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.

In the fourth quarter of 2023, we repurchased 1.9 million shares at an average price of $16.50, exclusive of commissions, for a purchase price of approximately $31 million.

For full year 2023, we repurchased 11.4 million shares at an average price of $15.93 per share, exclusive of commissions, for a total of $181 million.

At December 31, 2023, we had $792 million available for repurchase under the program.

We continue to explore potential acquisitions and dispositions.

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Sources and Uses of Cash.

In 2023, our primary sources of cash included cash from operations and proceeds from the repayment of notes receivable and asset sales.

Our primary uses of cash during the year consisted of capital expenditures, operating costs, share repurchases and distributions to equity holders.

We anticipate that our sources and uses of cash will be similar in 2024, other than the proceeds from the two notes receivable that were repaid in 2023.

In 2024, our primary sources of cash included cash from operations and proceeds from debt issuances.

Our primary uses of cash during the year consisted of acquisitions, capital expenditures, operating costs, debt repayments, share repurchases and distributions to equity holders.

We anticipate that our sources and uses of cash will be similar in 2025.

Cash Provided by Operating Activities .

Our net cash provided by operating activities for 2023 was $1,441 million, an increase of $25 million compared to 2022, reflecting the improved operations at our hotels compared to 2022, along with remediation insurance proceeds which exceeded remediation costs incurred in 2023.

Our net cash provided by operating activities for 2024 was $1,498 million, an increase of $57 million compared to 2023, reflecting the reopening of The Ritz-Carlton, Naples, which was closed for the first half of 2023, as well as operations from our 2024 Acquisitions, partially offset by payments for the development of condo units at Four Seasons Resort Orlando at Walt Disney World ® Resort.

Cash Used in Investing Activities .

Approximately $2,040 million of cash was used in investing activities during 2024 compared to $183 million in 2023.

In addition to the acquisition and disposition activity detailed in the charts below, cash used in investing activities included $646 million of capital expenditures in 2023, compared to $504 million in 2022.

These amounts include certain internal costs and interest expense associated with our capital expenditures projects that have been capitalized in accordance with GAAP.

The increase reflects the significant acquisition and joint venture investment activity in 2024 compared to the disposition-related activity in 2023 as detailed in the charts below.

Additionally, cash used in investing activities included $548 million of capital expenditures in 2024, compared to $646 million in 2023.

amounts include certain internal costs and interest expense associated with our capital expenditures projects that have been capitalized in accordance with GAAP.

These capitalized costs were $18 million, $24 million and $20 million for 2024, 2023 and 2022, respectively.

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Acquisitions/Investments

November 2022 Acquisition of Four Seasons Resorts and Residences Jackson Hole⁽¹⁾ $ (315)

January 2022 Investment to acquire non-controlling interest of a joint venture with Noble Investment Group⁽²⁾ (91)

Total acquisitions $ (406)

(1) Investment amount represents total consideration, including the assumption of $19 million of hotel-level liabilities, net of $5 million of cash retained at the property.

(2) Investment consisted of $35 million of cash and the issuance of approximately $56 million of Host L.P.

January - December 2024 Investment in Noble JV $ (52)

July 2024 Acquisition of The Ritz-Carlton O'ahu, Turtle Bay (1)

July 2024 Acquisition of 1 Hotel Central Park (265)

April 2024 Acquisition of 1 Hotel Nashville and Embassy Suites by Hilton Nashville Downtown (530)

Total acquisitions/investments $ (1,527)

(1) Investment amount represents a sales price of $725 million net of $45 million of key money received from Marriott International in connection with the conversion of the property to The Ritz-Carlton brand and includes the acquisition of a 49-acre land parcel entitled for development.

Investment amount also includes the assumption of $15 million of hotel-level liabilities.

Transaction Date Description of Transaction Net Proceeds ⁽¹⁾

February 2025 Receipt of The Camby, Autograph Collection note receivable⁽²⁾ $ 79 —

November 2023 Receipt of Sheraton New York note receivable⁽³⁾ 250 $ —

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March 2023 Disposition of The Camby, Autograph Collection⁽²⁾ 36 110

August 2022 Disposition of Chicago Marriott Suites Downers Grove 14 16

April 2022 Disposition of YVE Miami Hotel 49 50

April 2022 Disposition of Sheraton New York Times Square Hotel⁽²⁾ 106 373

February 2022 Disposition of Sheraton Boston⁽³⁾ 67 233

Total dispositions $ 528 $ 110

(1) Proceeds are net of transfer taxes, other sales costs and FF&E replacement funds deposited directly to the property or hotel manager by the purchaser.

(2) In connection with the sale of The Camby, Autograph Collection, we issued a $72 million loan to the purchaser.

The disposition proceeds shown are net of the loan.

The loan was repaid in February 2025.

(3) In connection with the sale of the Sheraton New York Times Square Hotel, we extended a $250 million bridge loan to the purchaser.

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The loan was repaid in September 2023.

(4) In connection with the sale of The Camby, Autograph Collection, we issued a $72 million loan to the purchaser.

The disposition proceeds shown are net of the loan.

Cash Used in Financing Activities .

Net cash used in financing activities was $13 million for 2024, compared to $771 million in 2023.

Cash used in financing activities in 2023 primarily related to the payment of common stock dividends and common stock repurchases.

Cash used in financing activities in 2022 included a repayment on the revolver portion of the credit facility and payment of common stock dividends, following the reinstatement of the quarterly common stock dividend in the first quarter of 2022, as well as the repurchase of common stock.

Cash used in financing activities in 2024 and 2023 included the payment of common stock dividends and common stock repurchases, and, in 2024, these were mostly offset by a net issuance of senior notes of $867 million.

We utilized the revolver under our credit facility for various funding needs in 2024 with all borrowings repaid by year end.

The following table summarizes other significant debt issuances, net of deferred financing costs and issuance discounts, that have been completed from January 1, 2023 through February 21, 2025 (in millions):

Transaction Date Description of Transaction Net Proceeds

Debt Issuances

August 2024 Issuance of $700 million 5.5% Series L senior notes $ 683

May 2024 Issuance of $600 million 5.7% Series K senior notes 584

Total issuances $ 1,267

The following table presents significant debt repayments, including prepayment premiums, that have been completed from January 1, 2023 through February 21, 2025 (in millions):

Transaction Date Description of Transaction Transaction Amount

Debt Repayments

April 2024 Repayment of $400 million 3 ⅞% Series G senior notes (400)

Total cash repayments (400)

Equity/Capital Transactions.

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January 2025 Dividend payment⁽¹⁾⁽²⁾ $ (210)

January - October 2024 Dividend payments⁽²⁾ (737)

May - September 2024 Repurchase of 6.3 million shares of Host Inc.

common stock (107)

January - December 2023 Repurchase of 11.4 million shares of Host Inc.

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January - October 2023 Dividend payments⁽²⁾ (547)

December 2022 Repurchase of 1.7 million shares of Host Inc.

common stock (27)

April - October 2022 Dividend payments⁽²⁾ (150)

Cash payments on equity transactions $ (1,783)

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Series J senior notes, with a rate of 2.9% due December 2031

Series K senior notes, with a rate of 5.7% due July 2034

Series L senior notes, with a rate of 5.5% due April 2035

Total senior notes 3,993 3,120

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Credit facility term loan due January 2028

Mortgage and other debt, with an average interest rate of 4.67% and 4.9% at December 31, 2023 and 2022, respectively, maturing through November 2027

Mortgage and other debt, with an average interest rate of 4.67% at both December 31, 2024 and 2023, maturing through November 2027

Total debt $ 5,083 $ 4,209

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Senior Notes.

On April 1, 2024, we repaid our $400 million 3⅞% Series G senior notes at maturity.

On May 10, 2024, we issued $600 million of 5.700% Series K senior notes in an underwritten public offering for proceeds of $584 million, net of original issue discount, underwriting fees and expenses.

The Series K senior notes are due in July 2034, and interest is payable semi-annually in arrears on January 1 and July 1, commencing January 1, 2025.

The Series K senior notes were issued as a “green bond,” and we allocated an amount equal to the net proceeds from the sale of the Series K senior notes to finance and/or refinance one or more eligible green projects, including the April 2024 acquisition of the 1 Hotel Nashville and Embassy Suites by Nashville Downtown, each of which has received LEED Silver certification.

Following the allocation to eligible green projects, the net proceeds of this issuance were used to repay all $215 million of borrowings that were outstanding under the revolver portion of our credit facility at that time.

The Series K senior notes are not redeemable prior to 90 days before the July 1, 2034 maturity date, except at a price equal to 100% of their principal amount plus a make-whole premium and accrued and unpaid interest to the applicable redemption date.

The Series K senior notes have covenants similar to all other series of our outstanding senior notes.

On August 12, 2024, we issued $700 million of 5.500% Series L senior notes in an underwritten public offering for proceeds of approximately $683 million, net of original issue discount, underwriting fees and expenses.

The Series L senior notes are due in April 2035 and interest is payable semi-annually in arrears on April 15 and October 15 of each year, commencing April 15, 2025.

The net proceeds were used in part to repay all $525 million of borrowings then outstanding under the revolver portion of our senior credit facility, including amounts borrowed during the third quarter in connection with the acquisitions of The Ritz-Carlton O’ahu, Turtle Bay and 1 Hotel Central Park.

The Series L senior notes are not redeemable prior to 90 days before the April 15, 2035 maturity date, except at a price equal to 100% of their principal amount plus a make-whole premium and accrued and unpaid interest to the applicable redemption date.

The Series L senior notes have covenants similar to all other series of our outstanding senior notes.

The following summary is a description of the material provisions of the indenture governing the various senior notes issued by Host L.P.

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As calculated, this ratio excludes from interest expense items such as call premiums and deferred financing charges that are included in interest expense on Host L.P.’s audited consolidated statement of operations.

In addition, the calculation is based on Host L.P.’s pro forma results for the four prior fiscal quarters, giving effect to certain transactions, such as acquisitions, dispositions and financings, as if they had occurred at the beginning of the period.

In addition, the calculation is

based on Host L.P.’s pro forma results for the four prior fiscal quarters, giving effect to certain transactions, such as acquisitions, dispositions and financings, as if they had occurred at the beginning of the period.

Other covenants limiting Host L.P.’s ability to incur debt include maintaining total debt of less than 65% of adjusted total assets (using undepreciated real estate book values), maintaining secured debt of less than 40% of adjusted total assets (using undepreciated real estate book values) and maintaining total unencumbered assets of at least 150% of the aggregate principal amount of outstanding unsecured debt of Host L.P.

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These calculations are performed based on pro forma results for the prior four fiscal quarters, giving effect to transactions such as acquisitions, dispositions and financings as if they had occurred at the beginning of the period.

Under the terms of the credit facility, interest expense excludes items such as the gains and losses on the extinguishment of debt, deferred financing charges related to the senior notes or the credit facility, and non-cash interest expense, all of which are included in interest expense on our audited consolidated statements of operations.

Under the terms of the credit facility, interest expense excludes items such as the gains and losses on the extinguishment of debt, deferred

financing charges related to the senior notes or the credit facility, and non-cash interest expense, all of which are included in interest expense on our audited consolidated statements of operations.

Additionally, total debt used in the calculation of our leverage ratio is based on a “net debt” concept, pursuant to which cash and cash equivalents in excess of $100 million are deducted from our total debt balance.

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Interest and Fees.

The amendment also converted the underlying reference rate from LIBOR to SOFR plus a credit spread adjustment of 10 basis points.

The 2023 amendment and restatement also converted the underlying reference rate from LIBOR to SOFR plus a credit spread adjustment of 10 basis points.

We pay interest on U.S.

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The adjustments will be determined annually on the basis of an annual audited report of Host L.P.’s performance against targets established in the credit facility for (1) the percentage of our consolidated portfolio with green building certifications and (2) the percentage of electricity used at all our consolidated properties that is generated by renewable resources.

Effective June 30, 2023, we achieved a milestone in the progress towards our renewable energy goal, resulting in the applicable basis point reduction in the interest rate on borrowings under the credit facility.

Effective June 26, 2024, we achieved a milestone in the progress towards both of our targets, resulting in the maximum benefit of the basis point reduction in the interest rate on borrowings under the credit facility.

Based on Host L.P.’s unsecured long-term debt rating as of December 31, 2024, we are able to borrow on the revolver at a rate of adjusted SOFR plus 85 basis points less 4 basis points for meeting sustainability milestones for an all-in rate of 5.25% and pay a facility fee of 19 basis points.

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As of December 31, 2024, our mortgage debt has an interest rate of 4.67% and matures in 2027, with principal and interest payments due monthly.

We also own non-controlling interests in joint ventures that are not consolidated and that are accounted for under the equity method.

We also own non-controlling interests in joint ventures that are not consolidated and that are accounted for under the equity

The portion of the mortgage and other debt of these joint ventures attributable to us, based on our ownership percentage thereof, was $240 million at December 31, 2024.

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We believe our credit exposure in each of these cases is limited, as the credit risk is spread among a diversified group of investment grade financial institutions.

We also have counter-party credit risk with respect to our outstanding note receivable, although upon event of a default of the notes, we would seek to enforce our rights against the collateral in accordance with the terms of the loan agreement.

Critical Accounting Estimates

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All our significant accounting policies are disclosed in the notes to our consolidated financial statements.

For a detailed discussion of the critical accounting policy related to impairment testing on our property and equipment, which requires us to exercise our business judgment or make significant estimates, see “Item 8.

For a detailed discussion of the critical accounting policies related to impairment testing on our property and equipment and valuation of acquisitions, which require us to exercise our business judgment or make significant estimates, see “Item 8.

Financial Statements and Supplementary Data – Note 1.

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Comparable Hotel Operating Statistics and Results

Effective January 1, 2023, we ceased presentation of All Owned Hotel results that was used while the COVID-19 pandemic disrupted operations, limiting the usefulness of year-over-year comparisons, and returned to a comparable hotel presentation for our hotel level results.

We believe this provides investors with a better understanding of underlying growth trends for our current portfolio, without impact from properties that experienced closures due to renovations or property damage sustained.

To facilitate a year-to-year comparison of our operations, we present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in our reports on a comparable hotel basis in order to enable our investors to better evaluate our operating performance.

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Often, related to events that cause property damage and the closure of a hotel, we will collect business interruption insurance proceeds for the near-term loss of business.

These proceeds are included in gain on insurance settlements on our consolidated statements of operations.

Business interruption insurance gains related to a hotel that was excluded from our comparable hotel set also will be excluded from the comparable hotel results.

These proceeds are included in net gain on insurance settlements on our consolidated statements of operations.

Business interruption insurance gains covering lost revenues while the property was considered non-comparable also will be excluded from the comparable hotel results.

Of the 81 hotels that we owned as of December 31, 2024, 78 have been classified as comparable hotels.

The operating results of the following properties that we owned as of December 31, 2024 are excluded from comparable hotel results for these periods:

• Hyatt Regency Coconut Point Resort & Spa (business disruption due to Hurricane Ian beginning in September 2022, reopened in November 2022);

• The Don CeSar (business disruption due to Hurricane Helene resulting in closure of the hotel beginning at the end of September 2024);

• Alila Ventana Big Sur (business disruption due to the collapse of a portion of Highway 1, causing closure of the hotel beginning in March 2024, reopened in May 2024);

• The Ritz-Carlton, Naples (business disruption due to Hurricane Ian beginning in September 2022, reopened in July 2023);

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Our consolidated statements of operations and consolidated statements of cash flows include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures.

Additionally, NAREIT FFO per diluted share, Adjusted FFO per diluted share, EBITDA, EBITDA re and Adjusted EBITDA re should not be considered as measures of our liquidity or indicative of funds available to fund our cash needs, including our ability to make cash distributions.

Additionally, NAREIT FFO per diluted share, Adjusted FFO per diluted share, EBITDA,

EBITDA re and Adjusted EBITDA re should not be considered as measures of our liquidity or indicative of funds available to fund our cash needs, including our ability to make cash distributions.

In addition, NAREIT FFO per diluted share and Adjusted FFO per diluted share do not measure, and should not be used as measures of, amounts that accrue directly to stockholders’ benefit.

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We adjust EBITDA re for the following items, which may occur in any period, and refer to this measure as Adjusted EBITDA re :

• Property Insurance Gains – We exclude the effect of property insurance gains reflected in our consolidated statements of operations because we believe that including them in Adjusted EBITDA re is not consistent with reflecting the ongoing performance of our assets.

• Property Insurance Gains and Property Damage Losses – We exclude the effect of property insurance gains reflected in our consolidated statements of operations because we believe that including them in Adjusted EBITDA re is not consistent with reflecting the ongoing performance of our assets.

In addition, property insurance gains could be less important to investors given that the depreciated asset book value written off in connection with the calculation of the property insurance gain often does not reflect the market value of real estate assets.

Similarly, losses from property damage or remediation costs that are not covered through insurance are excluded.

• Acquisition Costs – Under GAAP, costs associated with completed property acquisitions that are considered business combinations are expensed in the year incurred.

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We do not add back corporate-level severance costs or severance costs at an individual hotel that we consider to be incurred in the normal course of business.

• Effective January 1, 2025, we will exclude the expense recorded for non-cash stock-based compensation, as it represents a non-cash transaction and the add back is consistent with the calculation of Adjusted EBITDA for our financial covenant ratios under our credit facility and senior notes indentures and consistent with the presentation of Adjusted EBITDA re for the majority of other lodging REIT filers.

In 2024, this amount totaled $24 million.

In unusual circumstances, we also may adjust EBITDA re for gains or losses that management believes are not representative of the Company’s current operating performance.

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Pro rata EBITDAre of equity investments⁽³⁾ 35 32

EBITDAre⁽¹⁾ 1,726 1,632

Adjustments to EBITDA re :

Gain on property insurance settlement (3) (6)

Adjusted EBITDA re

$ 1,629 $ 1,498

(1) Reflects the sale of one hotel in 2023 and four hotels in 2022.

Net gain on property insurance settlements (70) (3)

Adjusted EBITDAre⁽¹⁾ $ 1,656 $ 1,629

(1) Net income, EBITDA, EBITDA re , Adjusted EBITDA re , NAREIT FFO and Adjusted FFO for the year ended December 31, 2024 include a loss of $6 million related to inventory impairment expense recorded by our Maui timeshare joint venture, reflected through equity in earnings of affiliates.

(2) Reflects the sale of one hotel in 2023.

(3) Unrealized gains of our unconsolidated investments are not recognized in our EBITDA re, Adjusted EBITDA re , NAREIT FFO or Adjusted FFO until they have been realized by the unconsolidated partnership.

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For these reasons, NAREIT adopted the FFO metric in order to promote a uniform industry-wide measure of REIT operating performance.

We also present Adjusted FFO per diluted share when evaluating our performance because management believes that the exclusion of certain additional items described below provides useful supplemental information to investors

regarding our ongoing operating performance.

Management historically has made the adjustments detailed below in evaluating our performance, in our annual budget process and for our compensation programs.

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We do not add back corporate-level severance costs or severance costs at an individual hotel that we consider to be incurred in the normal course of business.

• Effective January 1, 2025, we will exclude the expense recorded for non-cash stock-based compensation, as it represents a non-cash transaction and the add back is consistent with the calculation

of Adjusted EBITDA for our financial covenant ratios under our credit facility and senior notes indentures and consistent with the presentation of Adjusted FFO per diluted share for the majority of other lodging REIT filers.

In 2024, this amount totaled $24 million.

In unusual circumstances, we also may adjust NAREIT FFO for gains or losses that management believes are not representative of our current operating performance.

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We do not consider this adjustment to be reflective of our ongoing operating performance and, therefore, we excluded this item from Adjusted FFO.

The following table provides a reconciliation of the differences between our non-GAAP financial measures, NAREIT FFO and Adjusted FFO (separately and on a per diluted share basis), and net income (loss), the financial measure calculated and presented in accordance with GAAP that we consider most directly comparable:

The following table provides a reconciliation of the differences between our non-GAAP financial measures, NAREIT FFO and Adjusted FFO (separately and on a per diluted share basis), and net income, the financial measure calculated and presented in accordance with GAAP that we consider most directly comparable:

Reconciliation of Diluted Earnings per Common Share to

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Gain on dispositions⁽²⁾ — (70)

Gain on property insurance settlement (3) (6)

Net gain on property insurance settlements (70) (3)

Depreciation and amortization 760 695

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Consolidated partnership adjustments:

FFO adjustment for non-controlling partnerships (1) (1)

FFO adjustments for non-controlling partnerships (1) (1)

FFO adjustments for non-controlling interests of Host L.P.

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We believe these property-level results provide investors with supplemental information about the ongoing operating performance of our comparable hotels.

Comparable hotel results are presented

both by location and for our properties in the aggregate.

Comparable hotel results are presented both by location and for our properties in the aggregate.

We eliminate from our comparable hotel level operating results severance costs related to broad-based and significant property-level reconfiguration that is not considered to be within the normal course of business, as we believe this elimination provides useful supplemental information that is beneficial to an investor’s understanding of our ongoing operating performance.

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Interest expense 215 191

Provision for income taxes 36 26

Benefit (provision) for income taxes 14 36

Gain on sale of property and corporate level income/expense (8) (23)

Severance expense at hotel properties — 2

Property transaction adjustments⁽²⁾ 42 87

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results, net ⁽³⁾ Depreciation and corporate

level items Comparable hotel Results GAAP Results Severance at hotel properties Property transaction

level items Comparable hotel Results GAAP Results Property transaction

adjustments⁽²⁾ Non-comparable hotel

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Corporate and other expenses 123 — — (123) — 132 — — (132) —

Gain on insurance settlements (86) — 75 3 (8) (17) — — — 6 (11)

Net gain on insurance settlements

(110) — 19 70 (21) (86) — 75 3 (8)

Total expenses 4,809 112 (182) (815) 3,924 4,484 212 (69) (826) 3,801

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(2) Property transaction adjustments represent the following items:

(i) the elimination of results of operations of hotels sold or held-for-sale as of December 31, 2023, which operations are included in our unaudited condensed consolidated statements of operations as continuing operations, and (ii) the addition of results for periods prior to our ownership for hotels acquired as of December 31, 2023.

(i) the elimination of results of operations of hotels sold or held-for-sale as of December 31, 2024, which operations are included in our consolidated statements of operations as continuing operations, and (ii) the addition of results for periods prior to our ownership for hotels acquired as of December 31, 2024.

(3) Non-comparable hotel results, net, includes the following items:

(i) the results of operations of our non-comparable hotels, which operations are included in our consolidated statements of operations as continuing operations, and (ii) gains on business interruption proceeds relating to events that occurred while the hotels were classified as non-comparable.

(i) the results of operations of our non-comparable hotels, which operations are included in our consolidated statements of operations as continuing operations, and (ii) gains on business interruption proceeds covering lost revenues while the property was considered non-comparable.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis