Host Hotels Sells Two Four Seasons Resorts as U.S. Hospitality Real Estate RevPAR Rebounds in Q1 2026

Host Hotels & Resorts has sold two marquee hospitality real estate assets — the Four Seasons Jackson Hole and the Four Seasons Resort Orlando at Walt Disney World — to an affiliate of merchant bank BDT & MSD Partners, according to a market commentary published May 7, 2026, by Newport Beach, California-based commercial real estate advisory firm Talonvest Capital. The transactions come as the broader U.S. hospitality sector posted stronger-than-expected revenue performance in the first quarter of 2026, with national RevPAR rising 3.9% year-over-year in the trailing 28 days ending March 21, per STR/CoStar data.

Host Hotels also confirmed the January close of its previously announced real estate acquisition — the disposition of the 232-key St. Regis Houston for $51 million. Since 2018, the company has sold hotels for a combined $6.4 billion at a blended 16.7x EBITDA multiple, according to Talonvest Capital's report.

Hospitality Real Estate Transactions Signal Renewed Institutional Appetite

The Host Hotels dispositions reflect a broader, if selective, thaw in hospitality real estate transaction activity. Hotel transaction volume rose approximately 7% in 2025 to roughly $6.5 billion, with price-per-key trending upward through the year, according to CoStar data cited in the Talonvest Capital report. A survey of top U.S. hotel brokers conducted by HVS found that 65% expect market conditions to improve or significantly improve in the first half of 2026.

Despite renewed activity, the report notes that disciplined underwriting has returned to the market. Lender selectivity, increased operating expenses, and high-cost, brand-mandated property improvement plans are requiring deals to stand on firmer financial footing. Hotel REITs remain largely sidelined, trading at 30–50% discounts to net asset value. The active buyers in the current environment are private equity firms, family offices, and specialist operators, according to the report, which cited the Hunter Conference 2026 as a source.

The report also highlighted a structural entry point for buyers: U.S. full-service urban hotels are trading at an implied approximately 71% discount to replacement cost as of the first half of 2025, meaning assets can be acquired for roughly 30 cents on the dollar relative to new development. Construction costs remain 30–40% above pre-2019 levels, and institutional capital allocations to hospitality have declined from approximately 12% during the 2007–2011 period to approximately 6% today, according to data from Kemmons Wilson Hospitality Partners, JLL Research, and Green Street Advisors.

Q1 2026 RevPAR Rebound Outpaces Forecasts

The hospitality real estate sector entered 2026 following what STR/CoStar described as the first non-recessionary RevPAR decline on record in 2025, when national RevPAR fell 0.3%, with occupancy at 62.3% and average daily rate at $161. The Q1 2026 data has surprised to the upside. In addition to the 3.9% gain in the trailing 28 days ending March 21, February RevPAR came in at +4.3% year-over-year.

HVS President Rod Clough noted in March that even the firm's above-consensus forecast "may be too conservative." For the full year, HVS now projects occupancy of 62.7%, ADR of $163 — a 1.5% increase — and RevPAR of $102, representing a 2.2% gain.

Hilton reported Q1 system-wide comparable RevPAR growth of 3.6% year-over-year on total revenues of approximately $2.94 billion and adjusted EBITDA of $901 million, beating expectations with adjusted EPS of $2.01. The company raised its full-year RevPAR guidance to +2% to +3% and net unit growth to 6–7%. Marriott reported Q1 2026 RevPAR growth of 4.0% year-over-year in the U.S. and Canada. Hyatt has also raised its year-end 2026 guidance, according to the report.

Demand Bifurcation: Group and Luxury Outperform as Economy Segment Struggles

The composition of demand recovery is uneven across hospitality real estate segments. Group demand is the standout performer: STR reported Group RevPAR up 7.5% for the week ended March 7, driven primarily by rate. Xenia Hotels reported group pacing approximately 10% ahead for the balance of the year, with nearly 70% of 2026 already definite as of January. Convention bookings at the 30 largest U.S. centers are expected to be up 8% in 2026, according to the report.

Monty Bennett of Ashford was quoted in the Talonvest Capital report: "Asset quality matters most when demand gets selective. If you own a full-service hotel that is properly positioned and capitalized, the back half of 2026 is yours to capture."

Corporate transient demand, meanwhile, is expected to remain roughly 10% below pre-pandemic levels, as AI and hybrid work have structurally reduced one-night commercial travel, according to the report.

Chain-scale performance projections from CoStar/STR illustrate a K-shaped recovery: Luxury is forecast at +3.2% RevPAR growth, Upper Upscale at +1.6%, Upscale at -0.1%, Upper Midscale at +0.1%, Midscale at -0.6%, and Economy at -1.5%. Kalibri Labs data indicates that reductions in one-night stays are disproportionately affecting lower- and mid-tier hotels. Extended Stay is identified as an outperformer, supported by project-based corporate demand and insurance displacement travel.

Geographic performance is also highly variable. LARC Analytics' Ryan Meliker noted in the firm's Q1 2026 webinar that in 2025, markets including San Francisco, Palm Beach, and St. Louis posted RevPAR growth of approximately +9%, while Houston, Las Vegas, and Savannah fell close to -9% — an 18-point spread in a single year. San Francisco is cited as benefiting from AI sector expansion, a recovering convention calendar, and improved city leadership. Washington, D.C. faces structural headwinds from government travel cuts and excess supply near Capitol Hill.

Debt Maturities and Supply Constraints Shape Hospitality Real Estate Outlook

Over $114 billion in U.S. hotel debt matures through 2027, with $46 billion peaking in 2026 alone, according to data from Kemmons Wilson Hospitality Partners, HVS, JLL Research, and MSCI Real Capital Analytics. The report notes that many owners face a challenging refinancing landscape: higher rates, stricter underwriting, increased operating expenses, and property improvement plan requirements. Cap rates for stabilized full-service and limited-service assets are pricing at 8.0–8.5%, with exit caps 100 basis points higher.

On the supply side, LARC Analytics forecasts U.S. supply growth of just 0.6% in 2026 and a five-year compound annual growth rate of 0.8% — less than half the long-run historical average of 1.8%. At the Upper Upscale level, only 0.7% of existing inventory is currently under construction. Historically, when supply is at or below the 1.6% long-run threshold, RevPAR has grown at 5.1% annually, according to the report.

The 2026 FIFA World Cup, to be held across 11 U.S. cities, is generating attention from hospitality real estate investors. CoStar/STR projects host-city RevPAR growth of 12.7% in June and July, with Houston hotels reportedly seeing bookings up 130% and rates up 300% for the match window. However, the net national effect is estimated at approximately 40 basis points of incremental full-year RevPAR. Bennett was quoted in the report: "The World Cup is not a broad U.S. lodging trade. It is a micro-location trade."

Looking ahead, HVS projects RevPAR of $106 in 2027 (+3.6%) and $110 in 2028 (+4.3%), with supply expected to remain constrained at 0.8% over the next five years. The Talonvest Capital report summarized the consensus view from the Hunter Conference 2026: "The next phase of hospitality will not be defined by who grows fastest — it will be defined by who grows smartest."