Bethesda, Maryland-based Host Hotels & Resorts, Inc. (HST) is the world’s largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. With a market cap of $13.2 billion, Host Hotels & Resorts owns 76 properties in the U.S. and five properties internationally, totaling approximately 43,400 rooms.
Companies worth $10 billion or more are generally described as "large-cap stocks," Host Hotels & Resorts fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the hotel & motel REIT industry. It also holds non-controlling interests in several domestic and international joint ventures.
Host Hotels & Resorts touched its 52-week high of $21.31 on Mar. 5 and is now trading 12.1% below that peak. HST gained 3.7% over the past three months, outpacing the Nasdaq Composite’s ($NASX) 1.3% gains during the same time frame.
However, over the longer term, HST has underperformed NASX. HST gained 15.6% over the past 52 weeks and dipped 3.8% in 2024 compared to NASX’s 33.3% gains over the past year and 19.6% returns on a YTD basis.
To confirm the bearish trend, HST has mostly traded below its 50-day moving average since mid-April and below its 200-day moving average since late May. However, it has been trading above its 50-day moving average since mid-September, which might signify a trend reversal.
Despite reporting better-than-expected earnings, HST stock dropped 4.3% in the trading session after the release of its Q2 earnings on Jul. 31. The company reported a robust 5.2% year-over-year revenue growth, reaching $1.5 billion, and delivered a 13.1% growth in net income, totaling $242 million. Its adjusted funds from operations (FFO) per share grew by 7.5% to $0.57, exceeding the consensus estimates by 1.8%.
Despite the impressive performance in Q2, the hospitality giant lowered its full-year guidance for revenues, operating margins, and comparable hotel EBITDA margin. This adjustment was attributed to a slower-than-expected recovery from the Maui wildfires and a dip in leisure transient demand, primarily due to higher outbound U.S. travel without a matching increase in inbound travel. Nevertheless, the stock has performed well recently, gaining 13.4% over the past month.
Host Hotels & Resorts’ competitor, Park Hotels & Resorts Inc. (PK), gained 26% over the past year and 2% in 2024, outperforming HST.
Among the 19 analysts covering the HST stock, the consensus rating is a “Moderate Buy.” The mean price target of $20.65 suggests a potential upside of 10.3% from current price levels.
On the date of publication, Aditya Sarawgi 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.
