AI Takeaway
HST delivered solid FY2025 results with revenue rising 7.6% to $6.11B and net income up 9.8% to $765M, though operating margin contracted 140 basis points to 14.0% amid higher costs.
Revenue
$6.11B
++7.57% YoY
EPS (Basic)
$1.11
++12.12% YoY
Operating Income
$855M
-2.29% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
HST grew total revenue by 7.6% year-over-year from $5.68B to $6.11B in FY2025, reflecting continued strength in its hotel portfolio and improved occupancy and rate dynamics across its properties.
Source: Source: 10-K Financial Data (Income Statement)
Despite top-line growth, operating income declined 2.3% from $875M to $855M, causing operating margin to contract from 15.4% to 14.0%, suggesting cost pressures outpaced revenue gains at the operating level.
Source: Source: 10-K Financial Data (Income Statement & Key Ratios)
Net income rose 9.8% to $765M and diluted EPS increased 11.1% to $1.10, outpacing operating income growth likely due to favorable below-the-line items such as tax benefits or non-operating income.
Source: Source: 10-K Financial Data (Income Statement)
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Upgrade to unlockHST's operating margin fell from 15.4% to 14.0% in FY2025 despite a 7.6% revenue increase, indicating that operating costs are growing faster than revenues. If this trend persists, profitability could be further pressured even in a growing revenue environment.
Source: Source: 10-K Financial Data (Key Ratios)
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Upgrade to unlockReported EPS of $0.31 versus the $0.19 analyst consensus — a +66.0% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.11B | $5.68B | +7.57% |
Operating Income | $855M | $875M | -2.29% |
Net Income | $765M | $697M | +9.76% |
EPS (Basic) | $1.11 | $0.99 | +12.12% |
EPS (Diluted) | $1.10 | $0.99 | +11.11% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $13.05B | $13.05B | +0.01% |
Total Liabilities | $6.32B | $6.27B | +0.73% |
Stockholders' Equity | $6.56B | $6.61B | -0.77% |
Cash & Equivalents | $768M | $554M | +38.63% |
Long-Term Debt | $1.27B | $896M | +42.19% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.51B | $1.5B | +0.80% |
Investing Cash Flow | $-507M | $-2.04B | +75.15% |
Financing Cash Flow | $-868M | $-13M | -6576.92% |
Share Buybacks | $205M | $107M | +91.59% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 14.0% | 15.4% | -1.41% |
Net Margin | 12.5% | — | — |
ROE | 11.7% | — | — |
ROA | 5.9% | — | — |
Debt to Equity | $0.963 | — | — |
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HST delivered solid FY2025 results with revenue growing 7.6% to $6.11B and net income rising 9.8% to $765M. Diluted EPS improved 11.1% to $1.10, supported by share buybacks that nearly doubled to $205M.
HST's operating margin fell from 15.4% to 14.0% in FY2025 because operating costs grew faster than revenues, causing operating income to dip 2.3% to $855M even as total revenue rose 7.6%. This margin compression is a key concern despite the strong top-line performance.
HST's long-term debt surged 42.2% from $896M to $1.27B in FY2025, pushing the debt-to-equity ratio to approximately 0.96. At the same time, cash and equivalents grew 38.6% to $768M, suggesting the company raised debt while maintaining solid liquidity.
HST repurchased $205M worth of shares in FY2025, nearly double the $107M in buybacks from the prior year, reflecting increased confidence in returning capital to shareholders. This contributed to the 11.1% growth in diluted EPS to $1.10.
HST generated $1.51B in operating cash flow in FY2025, essentially flat with the prior year's $1.50B, demonstrating consistent cash generation from its hotel portfolio. Investing outflows dropped sharply from -$2.04B to -$507M, indicating significantly lower capital deployment compared to FY2024.