Based in Bethesda, Maryland, Host Hotels & Resorts, Inc. (HST) is a leading real estate investment trust (REIT) specializing in the ownership and management of upscale hotels. With a market cap of $12.82 billion, Host Hotels is renowned for its diverse portfolio of premium properties and commitment to enhancing guest experiences across various markets, including urban, resort, and convention destinations. The company is set to announce its fiscal Q2 earnings results after the market closes on Wednesday, Jul. 24.
Ahead of the event, analysts expect HST to report funds from operations (FFO) of $0.56 per share, up 5.7% from $0.53 per share in the year-ago quarter. In the last four quarters, the company has surpassed or matched Wall Street’s bottom-line estimates in three and missed on another occasion.
Its FFO of $0.60 per share for the last reported quarter surpassed the consensus estimate by 11.1%. The last quarterly performance was driven by increased banquet revenues from group business and strong food and beverage demand despite comparable hotel RevPAR and EBITDA declines.
For fiscal 2024, analysts expect HST to report an FFO of $2.01, up 4.7% from $1.92 in fiscal 2023.
HST stock is down 6% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 18.1% gains and the Advisorshares Hotel ETF’s (BEDZ) 3.7% returns over the same time frame.
HST shares declined slightly on May 1 following mixed Q1 results, which included a drop in comparable hotel RevPAR and expected reductions in comparable hotel EBITDA margins.
The consensus opinion on HST stock is optimistic, with an overall “Moderate Buy” rating. Out of 18 analysts covering the stock, 12 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, four recommend a “Hold,” and one suggests a “Strong Sell.” HST's average analyst price target is $22.21, indicating a potential upside of 21.3% from the current levels.
On the date of publication, Rashmi Kumari 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.
