Bethesda, Maryland-based Host Hotels & Resorts, Inc. (HST) is a leading lodging real estate investment trust (REIT) based in the United States. With a market cap of $9.4 billion, it primarily owns luxury and upper-upscale hotels located in key urban and resort markets, managed under well-known global brands such as Marriott, Ritz-Carlton, Westin, Hyatt, and Hilton.
The company is all set to unveil its Q1 earnings results after the market closes on Wednesday, Apr. 30. Ahead of this event, analysts expect the REIT to report an AFFO of $0.55 per share, down 8.3% from $0.60 per share in the year-ago quarter. The company has a track record of either surpassing or meeting Wall Street's AFFO estimates in the last four quarters. Its AFFO of $0.44 per share in the previous quarter beat the consensus estimate by 10%.
For the current year, analysts expect HST to report an AFFO of $1.85 per share, down 6.1% from $1.97 per share in fiscal 2024. However, its EPS is projected to rebound, rising 3.8% annually to $1.92 in FY2026.
Shares of HST have declined 29.7% over the past 52 weeks, significantly lagging behind both the S&P 500 Index's ($SPX) 4.4% return and the Real Estate Select Sector SPDR Fund’s (XLRE) 10.5% return over the same time frame.
On Apr. 10, shares of Host Hotels & Resorts dropped more than 5%, as growing economic concerns sparked a sharp selloff across the travel and leisure sector. Investors grew increasingly uneasy amid signs of a potential slowdown in consumer spending and persistent inflationary pressures, leading to broad-based declines in companies tied to discretionary travel.
Wall Street analysts are reasonably upbeat about the stock, with a "Moderate Buy" rating overall. Among the 16 analysts covering the stock, nine recommend "Strong Buy," one suggests a “Moderate Buy,” and six recommend “Hold.”
The mean price target for HST is $18.79, which indicates a 40.1% potential upside from the current price levels.
