Bethesda, Maryland-based Host Hotels & Resorts, Inc. (HST) is a lodging real estate investment trust that owns and operates luxury and upper-upscale hotels. Valued at a market cap of $12.7 billion, the company partners with premium brands such as Marriott, Ritz-Carlton, Westin, Sheraton, W, St. Regis, The Luxury Collection, Hyatt, Fairmont, 1 Hotels, Hilton, Four Seasons, Swissôtel, ibis, Novotel, and other independent brands in the operation of properties in major markets.
Companies valued at over $10 billion are typically classified as “large-cap stocks,” and HST fits the label perfectly with its market cap exceeding this threshold. The leading REIT currently owns 76 properties in the United States and five properties internationally, totaling approximately 43,400 rooms, and is guided by a disciplined approach to capital allocation and aggressive asset management.
HST is currently trading 14.5% below its 52-week high of $21.31, reached on Mar. 5. Shares of this lodging REIT have declined 2.5% over the past three months, underperforming the broader Dow Jones Industrials Average’s ($DOWI) 2.6% gain during the same time frame.
Moreover, in the longer term, HST has dropped 7.8% over the past 52 weeks, significantly underperforming DOWI’s 15.8% returns. Over the past six months, shares of HST have increased marginally, lagging behind DOWI’s 9.9% gains over the same time frame.
To confirm its bullish trend, HST has been slightly trading above its 200-day and 50-day moving average since late December.
HST released its Q3 earnings results on Nov. 6. The company’s AFFO of $0.36 per share came in line with the consensus estimates but decreased 12.2% from the year-ago quarter. Meanwhile, higher room, food and beverages, and other revenues led to an 8.6% year-over-year increase in revenues to $1.32 billion, which surpassed the forecasted figure by 2.3%.
However, noting significant disruptions caused by Hurricanes Helene and Milton and slower-than-expected recovery from wildfires in Maui, the company lowered its full-year 2024 adjusted EBITDA and AFFO guidance. This might have offset its better-than-expected performance, leading to a stable reaction from the investors.
HST has outpaced its rival, Pebblebrook Hotel Trust (PEB), which declined marginally over six months and fell 14.3% over the past 52 weeks.
Despite Host Hotels & Resorts’ recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 18 analysts covering it, and the mean price target of $20.55 suggests a modest 12.8% premium to its current levels.
