Host Hotels & Resorts (NASDAQ:HST) recently held its second-quarter earnings call, and the numbers gave management enough confidence to raise full-year guidance by more than expected. The company’s comparable hotel RevPAR climbed 7% to $251.53 in the quarter, with CEO James Risoleo attributing the growth to luxury resort demand and a run of high-profile events.

The combination of these factors pushed the company to lift its 2026 RevPAR growth range by 125 basis points at the midpoint, to 4.75% to 5.25%. This move reflects the company’s optimism about the future of luxury travel and its ability to capitalize on the growing demand for high-end accommodations.

Bull Case: Luxury Travelers Are Still Spending Freely

Every demand segment moved in the same direction, with transient revenue rising 6.9% to $559 million, the strongest growth in seven quarters. Group room revenue grew 7.4% to $332 million on a sellout of 1.1 million room nights. The World Cup added roughly 160 basis points to second-quarter RevPAR growth, and RevPAR in World Cup host markets jumped 15% in June against 12% elsewhere.

Maui also continued its recovery, with RevPAR up 14% and occupancy up more than 8 percentage points. Golf revenue there now sits 9% ahead of levels seen before the wildfires. These positive trends suggest that luxury travelers are still spending freely, and Host Hotels is well-positioned to benefit from this demand.

Bear Case: The Easy Comparisons Are Running Out

CFO Sourav Ghosh was direct about what comes next, saying the company expects margin comparisons to moderate in the second half largely because rate growth will not repeat at the same pace. Much of the first half’s strength leaned on tailwinds that fade as the year goes on, including the World Cup and a busy events calendar.

Costs are creeping in from other directions too. A Kona low rainstorm in Hawaii is expected to cause $27 million to $32 million in property damage, and while insurance should cover most of it, remediation alone runs about $2 million. The Four Seasons condo development at Walt Disney World, with 28 of 40 units closed, saw its 2026 EBITDA guidance trimmed to $16 million to $20 million from $20 million to $25 million purely on closing timing.

Wage rates are still climbing 5% for the year, and labor makes up about half of total hotel operating expenses. These headwinds may slow down the company’s growth in the second half, but management’s confidence in the luxury travel market suggests that the company is well-equipped to handle these challenges.

Host Hotels enters the second half of 2026 with real momentum and a balance sheet strong enough to keep funding both renovations and dividends. Management itself is signaling that the tailwinds behind that momentum, from World Cup matches to easy comparisons, are already fading. The renovation program’s track record of stabilized RevPAR share gains argues for demand that outlasts any single event calendar.

Where Wall Street Money Stands

Hedge fund ownership in Host climbed from 38 funds to 41 in the most recent quarter, a modest sign of accumulating conviction. Short interest sits at 8.91% of the float, high enough to suggest a real bear camp has formed around the stock. As of August 14, shares trade at a forward P/E of 23.58, a premium that assumes the RevPAR strength seen in the first half continues rather than fades.