Based in Bethesda, Maryland, Host Hotels & Resorts, Inc. (HST) is a prominent real estate investment trust (REIT) focused on luxury and upper-upscale hotels. The company boasts a market capitalization of $12.7 billion and collaborates with esteemed brands like Marriott, Ritz-Carlton, Westin, and Hyatt to manage properties in key markets.
Classified as a “large-cap stock,” HST’s valuation exceeds the $10 billion mark. It currently oversees 76 properties across the U.S. and five internationally, totaling around 43,400 rooms. The firm adopts a disciplined strategy for capital allocation while implementing proactive asset management.
Currently, HST is trading at 14.5% below its 52-week peak of $21.31, achieved on March 5. In the last three months, HST shares have dropped 2.5%, trailing behind the Dow Jones Industrial Average’s ($DOWI) increase of 2.6% during the same period.
Examining a longer timeline, HST shares have decreased by 7.8% over the past year, notably lagging behind DOWI’s returns of 15.8%. Though HST shares have shown slight gains over the last six months, they still fell short of the DOWI’s 9.9% growth.
To validate its positive trend, HST has been trading just above its 200-day and 50-day moving average since late December.
On November 6, HST reported its Q3 earnings. The company’s adjusted funds from operations (AFFO) stood at $0.36 per share, meeting analysts’ expectations but declining 12.2% compared to the previous year. Total revenues increased by 8.6% year-over-year, reaching $1.32 billion, which slightly surpassed forecasts.
Despite the positive revenue report, HST faced challenges from Hurricanes Helene and Milton, along with slow recovery from wildfires in Maui, leading the company to lower its full-year 2024 adjusted EBITDA and AFFO guidance. This announcement resulted in a subdued response from investors.
In comparison with its competitor, Pebblebrook Hotel Trust (PEB), which fell by 14.3% over the last year, HST has performed better over the same period.
Looking forward, analysts maintain a moderately optimistic outlook for Host Hotels & Resorts. Among the 18 analysts covering the stock, it holds a consensus rating of “Moderate Buy.” The average price target of $20.55 indicates a potential upside of about 12.8% from its current trading levels.
On the date of publication, Neharika Jain 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.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
