Travel & Tourism

What Hurricane Season Means For Hospitality’s Capex

Host Hotels & Resorts’ $105 million work on The Don CeSar puts a real number on the cost of hurricane repairs and preparedness — but, as the company notes, investing...

AAdmin
September 8, 2026
2 min read
What Hurricane Season Means For Hospitality’s Capex

Photo Credit: A Sandals resort in Jamaica suffered extensive damage during Hurricane Melissa. Nikki Adkins

Host Hotels & Resorts’ $105 million work on The Don CeSar puts a real number on the cost of hurricane repairs and preparedness — but, as the company notes, investing in resilience doesn’t reduce risk to zero.

LinkedIn X Facebook Email Gift How does Host's level of resilience capex spending compare to peer hotel owners and REITs? Which coastal destinations are most exposed to faster-intensifying storms, and how are they adapting their infrastructure? What was the total business-interruption revenue loss from The Don CeSar closure, and how much did insurance fully cover? Select a question above or ask something else

Hurricanes have become boilerplate in risk disclosure.

Hospitality companies tend to bundle climate repair costs and damage with other capex projects. Host Hotels & Resorts’ 2025 end-of-year filing, however, puts a price tag on the damage hurricanes Helene and Milton caused when they hit The Don CeSar in 2024: an estimated $105 million, 30% of which related to remediation.

Host spent $75 million — roughly 11.6% of its overall capex — on hurricane and other restoration work in 2025, including in restoring the Florida St. Pete Beach hotel.

It had received $73 million in insurance payouts related to the hurricanes at the time of the filing, reflecting lost business too. The Don CeSar was closed until late March 2025, with all amenities reopening by the third-quarter of the year.

Host spent around 8% of capex on making its properties more resilient to climate risks over the six years to December 2025. I

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