Host Hotels & Rsorts' quality over quantity approach has led to short-term downward pressures on revenue, but has created a moat of customer stickiness, property appreciation, and consistent cash flow. Increased competition from Airbnb is fading, providing HST a landscape of stability and acquisitions over the coming years. Recent property acquisitions seem promising for FY2025 growth that has not been fully factored into HST's valuation.
Investors need to pay close attention to Host Hotels & Resorts stock based on the movements in the options market lately.
HST gains from rising travel demand and smart capital moves, but high interest costs and macro risks cloud 2025 growth.
Host Hotels & Resorts boasts one of the strongest balance sheets among lodging REITs. The company's stable, well-covered 5%+ dividend yield, restored to pre-pandemic levels, offers attractive income with minimal risk of a cut. Given its financial strength and stable dividends, I maintain my Buy rating for income-focused investors.
HST's Q1 results reflect year over year rise in revenues due to comparable hotel RevPAR growth, driven by increase in room rates.
The headline numbers for Host Hotels (HST) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Host Hotels (HST) came out with quarterly funds from operations (FFO) of $0.64 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to FFO of $0.60 per share a year ago.
HST's Q1 earnings are likely to have benefited from its group business and strategic capital allocations. However, high interest expenses remains a concern.
HST to gain from its luxury hotel portfolio, strategic capital recycling and a healthy balance sheet. Macroeconomic uncertainty and high interest expenses ail.
According to the analysts at Goldman Sachs,
Host Hotels & Resorts is trading at a significant discount to its intrinsic value, offering a compelling investment opportunity despite its capital-intensive business model. The company has a solid balance sheet, investment-grade ratings, and a well-covered dividend yield of roughly 6%. Recession risks are mitigated by geographic diversification, a focus on affluent customers, and a share price that appears to be already partially discounting an economic downturn.
Host Hotels & Resorts, Inc. (NASDAQ:HST ) Q4 2024 Earnings Conference Call February 20, 2025 10:00 AM ET Company Participants Jaime Marcus - SVP-IR Jim Risoleo - President and CEO Sourav Ghosh - EVP and CFO Conference Call Participants Michael Bellisario - Baird Smedes Rose - Citigroup Chris Woronka - Deutsche Bank David Katz - Jefferies Duane Pfennigwerth - Evercore ISI Chris Darling - Green Street Robin Farley - UBS Aryeh Klein - BMO Capital Markets Jay Kornreich - Wedbush Securities Floris van Dijkum - Compass Point Operator Good morning, and welcome to the Host Hotels & Resorts Fourth Quarter 2024 Earnings Conference Call. Today's conference is being recorded.