Host Hotels & Resorts, Inc. (HST) is the largest lodging real estate investment trust, with a market cap of $12.9 billion. Based in Bethesda, Maryland, it owns 72 properties in the U.S. and five internationally, focusing on luxury and upper-upscale hotels and partnering with premier brands like Marriott, Ritz-Carlton, and Hilton.
Shares of Host Hotels have significantly underperformed the broader market over the past 52 weeks. HST has gained 7.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 26.9%. In 2024, shares of HST are down 5.8%, compared to the SPX's 11.6% gains on a YTD basis.
Zooming in further, HST stock has also underperformed the Advisorshares Hotel ETF’s (BEDZ) 14.8% gains over the past 52 weeks.
HST shares have underperformed relative to the broader indexes amid formidable headwinds in the hotel industry, such as heightened competition, reduced business travel, and structural shifts impacting average revenue per room growth. Also, the stock fell marginally on May 1 following mixed Q1 results, including a decrease in comparable hotel revenue per available room (RevPAR) and anticipated reductions in comparable hotel EBITDA margins.
For the current fiscal year, ending in December, analysts expect HST's EPS to grow by 4.7% to $2.01 on a diluted basis. The company's earnings surprise history is mixed. It beat or matched the consensus forecast in three of the past four quarters while missing on one other occasion.
Out of the 18 analysts assessing HST stock, the consensus rating is "Moderate Buy." That's based on 12 "Strong Buy" ratings, one "Moderate Buy," four "Holds," and one "Strong Sell."
This configuration is slightly less bullish than three months before, with 13 analysts suggesting a "Strong Buy."
On April 19, UBS Group (UBS) maintained a "Neutral" rating and decreased their target price on Host Hotels shares to $20, implying an upside potential of 9.1% from current levels.
The mean price target of $22.42 represents a premium of 22.2% to HST's current levels. The Street-high price target of $25, assigned by Barclays on March 15, implies a potential upside of 36.3% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
