Bethesda, Maryland-based Host Hotels & Resorts, Inc. (HST) is a leading lodging real estate investment trust (REIT) specializing in luxury and upper-upscale hotels. With a market cap of $11.2 billion, the company focuses on high-quality properties in prime markets, partnering with prestigious brands to drive long-term returns.
Shares of the lodging real estate investment trust have underperformed the broader market over the past 52 weeks. HST has declined 4% over this time frame, while the broader S&P 500 Index ($SPX) has gained 15.8%. In 2024 alone, HST has seen a notable drop of 18.2%, whereas SPX has increased 8.7% on a YTD basis.
Zooming in further, HST also lagged behind the US Real Estate iShares ETF’s (IYR) 8.3% gains over the past 52 weeks. Moreover, HST’s double-digit YTD loss is pronouncedly worse compared to the exchange-traded fund’s modest 1.6% gain during the same period.
Host Hotels & Resorts has struggled due to a disappointing recovery from the Maui wildfires and a decline in international tourist arrivals. Moreover, the 4.3% drop in the stock following the Q2 earnings report on Jul. 31 was a result of reduced revenue forecasts, slower RevPAR growth, margin compression, persisting difficulties in Maui, and a shift in high-end travelers' preferences.
For the current fiscal year, ending in December, analysts expect HST to report EPS growth of 2.6% year over year to $1.97. The company's earnings surprise history is promising. It beat or met the consensus estimates in all of the last four quarters.
The consensus view on the stock is overall cautiously optimistic. Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buys,” one “Moderate Buy,” four “Holds,” and two “Strong Sells.”
This configuration has been fairly consistent over the past months. However, it is slightly less bullish than three months before, with 12 “Strong Buy” ratings.
On Aug. 1, Compass Point downgraded Host Hotels & Resorts to “Neutral”, reducing its price target to $18.
The mean price target of $21.58 represents a premium of 35.6% to HST's current levels. The Street-high price target of $24 implies a notable potential upside of 50.8% 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.
