The quarter modestly exceeded the published bar. Adjusted FFO was $0.63 per diluted share, versus a published consensus of approximately $0.62; diluted EPS was $0.35, compared with an estimated $0.34. That makes this a small operational beat, not a major earnings surprise.
| Metric | Q2 2026 | Q2 2025 | Change / expectation |
|---|---|---|---|
| Comparable hotel RevPAR | $251.53 | $235.05 | +7.0% (Hotel Operating Data) |
| Comparable hotel Total RevPAR | $417.58 | $394.27 | +5.9% (Hotel Operating Data) |
| Adjusted EBITDAre | $525 million | $496 million | +5.8% (Reconciliation of Net Income to EBITDAre) |
| Adjusted FFO per diluted share | $0.63 | $0.58 | +8.6%; ~ $0.62 consensus (FFO reconciliation) |
| Diluted EPS | $0.35 | $0.32 | +9.4%; ~ $0.34 consensus (Income Statement) |
| 2026 Adjusted FFO guidance | $2.15–$2.18 | — | Prior range $2.10–$2.16 (2026 Guidance) |
The real strength was rate, not occupancy. Comparable RevPAR increased 7.0%, while room nights declined 0.7% for transient guests; room revenue still rose 6.9%, showing that pricing and mix—not broad-based volume growth—drove the quarter. Group room nights grew 3.5% and group room revenue rose 7.4%, while the FIFA World Cup provided an identifiable boost to the comparison. (Transient, Group and Contract Statistics; Hotel Operating Data)
Margins improved despite labor pressure. Comparable hotel EBITDA rose 7.8% to $497 million, and the comparable hotel EBITDA margin expanded to 31.9% from 31.3%. Higher room rates more than offset wage increases, higher incentive management fees and lower cancellation-related payments. (Comparable Hotel Results)
Management raised the operating outlook, but the upgrade was measured. Full-year comparable RevPAR growth guidance increased to 4.75%–5.25% from 3.0%–4.5%, and Total RevPAR growth to 4.75%–5.25% from 3.5%–5.0%. The midpoint increases were 125 basis points for RevPAR and 75 basis points for Total RevPAR, while Adjusted EBITDAre rose by $20 million at the midpoint to $1.83 billion. (2026 Guidance)
The net read is positive, but not transformational. The company delivered a narrow FFO/EPS beat and raised guidance, which is better than the standing expectation. However, the quarter benefited from World Cup demand and resort strength, while full-year revenue guidance was unchanged at $6.124–$6.153 billion and second-half room-rate growth is expected to moderate. (2026 Guidance; Management Outlook)
Read the original 8-K on SEC EDGAR ↗