Host Hotels & Resorts Underperforms Market Despite Positive Q1 Earnings

Host Hotels & Resorts, Inc. (HST), based in Bethesda, Maryland, stands as the largest lodging real estate investment trust (REIT), boasting a market cap of $10.2 billion. The company owns 81 properties with a total of approximately 43,400 rooms, partnering with well-known global brands to provide risk-adjusted returns for its investors.

Recent Performance Metrics

Over the past 52 weeks, shares of Host Hotels & Resorts have lagged behind the broader market. Specifically, HST has seen a decline of 22.5%, while the S&P 500 Index ($SPX) has increased by 8%. Year-to-date, HST shares have fallen nearly 17%, contrasting with SPX’s decrease of 4.9%.

This underperformance is further highlighted when comparing HST to the Real Estate Select Sector SPDR Fund (XLRE), which has gained nearly 12% during the same period.

Impact of Recent Earnings Release

Following its Q1 2025 earnings release on April 30, shares of HST rose by 2.9%. This increase was fueled by a 4.9% year-over-year growth in adjusted funds from operations (AFFO) per share, which reached $0.64, surpassing analyst expectations. The company reported total revenues of $1.6 billion, also exceeding estimates, and noted a 7% rise in comparable hotel revenue per available room (RevPAR). Furthermore, HST adjusted its full-year AFFO per share guidance to a range of $1.88 – $1.97, up from previous estimates and above consensus expectations.

For the current fiscal year, which ends in December 2025, analysts forecast a 3.1% decline in AFFO year-over-year, predicting it will reach $1.91 per share. However, HST’s historical performance indicates a tendency to meet or exceed consensus estimates, having done so in the last four quarters.

Analyst Ratings Overview

Among the 16 analysts following HST, the consensus rating stands at “Moderate Buy.” This rating comprises nine “Strong Buy” ratings, one “Moderate Buy,” and six “Holds.”

This consensus is less optimistic than three months prior, when there were 12 “Strong Buy” ratings. Analyst Simon Yarmak of Stifel Nicolaus reaffirmed a “Buy” rating for Host Hotels on April 16, with a price target of $17.

As of now, HST is trading below the average price target of $17.82, while the highest target of $21 implies a potential upside of 43.1% from the current price.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.