Host Hotels & Resorts Details $105M Hurricane Costs
Host Hotels & Resorts discloses a $105 million damage estimate from 2024 hurricanes at The Don CeSar in Florida, highlighting rising climate capex.
Stock photo for illustration only, not from the actual event
- Host Hotels & Resorts reported a $105 million damage estimate for hurricanes Helene and Milton at The Don CeSar
- The company spent $75 million, or about 11.6% of its 2025 capex, on hurricane and restoration work
- Host received $73 million in insurance payouts, reflecting compensation for lost business interruption
- Roughly 8% of capex over six years went toward climate resilience projects like hardened building envelopes
Financial disclosures in Host Hotels & Resorts' year-end 2025 filing have shed light on the tangible costs of hurricane repairs and preparedness within the hospitality sector. The report details an estimated $105 million in damages caused by hurricanes Helene and Milton when they struck The Don CeSar in St. Pete Beach, Florida, in 2024, with approximately 30% of that total tied directly to remediation efforts.
The severe storm impact forced The Don CeSar to remain closed until late March 2025, with all resort amenities fully reopening by the third quarter of the year. To address these damages and other portfolio-wide restorations, Host spent $75 million—accounting for roughly 11.6% of its overall capital expenditures—on hurricane and restoration work throughout 2025.
On the insurance front, Host had collected $73 million in payouts related to the hurricanes by the time of the filing, which successfully offset a portion of the lost business during the closure. Furthermore, the company directed about 8% of its total capital expenditures over the six-year period leading to December 2025 toward making its properties more resilient against climate risks, implementing measures such as reinforced building envelopes and elevated equipment.
"Investing in resilience doesn’t reduce risk to zero, but it successfully protected our Ritz-Carlton in Naples during the 2024 storms."
Stock photo for illustration only, not from the actual event
Context and Analysis: Climate-related capital expenditure (climate capex) is rapidly evolving from a corporate social responsibility initiative into a core financial survival strategy for coastal hotel owners and REITs. Allocating double-digit percentages of annual budgets toward storm hardening underscores how extreme weather events directly impact property valuations, insurance premiums, and long-term operational continuity in global tourism markets.
While the Atlantic hurricane season has experienced an unusual quiet period driven by record vertical wind shear, the Pacific basin has seen multiple active storms, including Category 3 Hurricane Lowell near Hawaii. Climate scientists warn that global warming is continuing to raise the probability of faster-intensifying and stronger storms, forcing destinations and hospitality portfolio managers to fundamentally rethink their long-term capital allocation strategies.
Source: Skift
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