Based in Bethesda, Maryland, Host Hotels & Resorts, Inc. (HST) is a lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. Valued at a market cap of $11.9 billion, the company partners with premium brands such as Marriott, Ritz-Carlton, Westin, and Sheraton, to name a few, as well as other independent brands in the operation of properties in major markets. It is expected to announce its fiscal Q4 earnings results after the market closes on Wednesday, Feb. 19.
Ahead of this event, analysts expect the REIT to report an FFO of $0.40 per share, down 9.1% from $0.44 per share in the year-ago quarter. The company has a track record of either surpassing or meeting Wall Street's FFO estimates in the last four quarters. Its AFFO of $0.36 per share in the previous quarter perfectly aligned with the forecasted figure.
For fiscal 2024, analysts expect HST to report an FFO of $1.94 per share, up 1% from $1.92 per share registered in fiscal 2023.
Shares of HST have declined 13.8% over the past 52 weeks, significantly lagging behind both the S&P 500 Index's ($SPX) 25% return and the Real Estate Select Sector SPDR Fund’s (XLRE) 8.1% return over the same time frame.
HST released its Q3 earnings results on Nov. 6, and shares of HST remained fairly stable on the subsequent day. Even though the company’s AFFO slipped 12.2% year-over-year to $0.36 per share, it still came in line with the forecasted figure. Meanwhile, its revenue of $1.3 billion increased 8.6% from the year-ago quarter and narrowly edged past the consensus estimates. Higher room, food and beverages, and other revenues contributed to the top-line growth.
However, noting the impact of significant disruptions caused by Hurricanes Helene and Milton, the company lowered its full-year 2024 adjusted EBITDA and AFFO guidance, now expecting AFFO to be $1.92 per share and adjusted EBITDA to be $1.63 billion at the midpoint. This might have offset the positives and led to a stable reaction from the investors.
Wall Street analysts are moderately optimistic about Host Hotels & Resorts’ stock, with a "Moderate Buy" rating overall. Among 18 analysts covering the stock, 12 recommend "Strong Buy," one suggests a “Moderate Buy,” three recommend “Hold,” and two indicate “Strong Sell.”
The mean price target for HST is $20.50, which indicates a 19.1% potential upside from the current levels.
