Host Hotels & Resorts (HST) AI Stock Analysis

587 Followers

Top Page

Host Hotels & Resorts

(NASDAQ:HST)

74Outperform

Host Hotels & Resorts' overall score is driven by strong financial performance and a positive earnings call that highlights strategic growth and capital returns. Despite technical indicators suggesting bearish momentum, the stock's valuation remains fair. Key risks include managing increased debt and external challenges impacting margins.

Positive Factors

Balance Sheet

HST's balance sheet remains a differentiator with low leverage.

Valuation

Shares can continue to see modest expansion in valuation multiples toward longer-term historical ranges.

Negative Factors

Earnings Impact

Host is forecasting a -$15 million earnings impact in 4Q24 due to hurricane-related disruption, primarily at The Don CeSar in St. Pete Beach, FL.

Labor Costs

Higher wage growth on new union contracts is the biggest headwind with 2025 margins down.

Host Hotels & Resorts (HST) vs. S&P 500 (SPY)

Market Cap

$9.03B

Dividend Yield6.3%

Average Volume (3M)11.37M

Price to Earnings (P/E)13.0

Beta (1Y)1.03

Revenue Growth7.02%

EPS Growth-4.78%

CountryUS

Employees165

SectorReal Estate

Sector Strength86

IndustryREIT - Hotel & Motel

Share Statistics

EPS (TTM)0.99

Shares Outstanding699,106,800

10 Day Avg. Volume13,395,571

30 Day Avg. Volume11,365,913

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)1.79

Price to Cash Flow (P/CF)7.70

P/FCF Ratio7.70

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$17.77

Price Target Upside24.96% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering12

Host Hotels & Resorts Business Overview & Revenue Model

Company DescriptionHost Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 74 properties in the United States and five properties internationally totaling approximately 46,100 rooms. The Company also holds non-controlling interests in six domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The Luxury Collection®, Hyatt®, Fairmont®, Hilton®, Swissôtel®, ibis® and Novotel®, as well as independent brands. For additional information, please visit the Company's website at www.hosthotels.com.

How the Company Makes MoneyHost Hotels & Resorts generates revenue primarily through the ownership and leasing of hotel properties. The company earns income from hotel operations, which includes room charges, food and beverage sales, and other guest services. As a REIT, Host Hotels & Resorts also benefits from favorable tax treatment, provided it distributes the majority of its taxable income to shareholders in the form of dividends. Additionally, the company may engage in strategic asset dispositions and property renovations to enhance the value and profitability of its portfolio. Host Hotels & Resorts often enters into management agreements with leading hotel operators, allowing it to leverage their expertise and global brand recognition to optimize revenue and occupancy rates at its properties.

Host Hotels & Resorts Financial Statement Overview

Summary

Host Hotels & Resorts demonstrates strong financial performance with significant revenue growth and improved profitability metrics. The balance sheet remains stable with a manageable debt-to-equity ratio, though increased debt requires careful management. Cash flow is robust, with a substantial increase in free cash flow, supporting reinvestment and debt servicing.

Income Statement

Very Positive

The income statement indicates strong revenue growth with a 7% increase from the previous year and a steady EBIT margin of 15.4%. The net profit margin improved to 12.3%, reflecting operational efficiency. Despite a slight decrease in net income, the company maintains robust profitability metrics.

Balance Sheet

Positive

The balance sheet shows a stable financial position with a manageable debt-to-equity ratio of 0.77 and an equity ratio of 50.7%. However, a slight decrease in stockholders' equity and an increase in total debt compared to previous years may pose potential risks if not managed effectively.

Cash Flow

Very Positive

Cash flow analysis reveals a substantial increase in free cash flow by 88.4%, driven by strong operating cash flows. The free cash flow to net income ratio is robust at 2.15, indicating efficient cash generation relative to net income, supporting potential reinvestment and debt servicing capabilities.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2019
Breakdown
Income Statement		Total Revenue
5.68B	5.31B	4.91B	2.89B	5.47B
	Gross Profit
3.03B	1.57B	2.93B	1.59B	3.11B
	EBIT
875.00M	827.00M	775.00M	81.00M	799.00M
	EBITDA
1.70B	1.67B	1.42B	843.00M	1.47B
	Net Income Common Stockholders
697.00M	740.00M	633.00M	-11.00M	920.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
554.00M	1.14B	667.00M	807.00M	1.57B
	Total Assets
13.05B	12.24B	12.27B	12.35B	12.30B
	Total Debt
5.08B	4.77B	4.78B	5.46B	4.40B
	Net Debt
4.53B	3.63B	4.12B	4.65B	2.83B
	Total Liabilities
6.27B	5.42B	5.39B	5.78B	4.84B
	Stockholders Equity
6.61B	6.63B	6.71B	6.44B	7.32B
Cash Flow		Free Cash Flow
950.00M	795.00M	912.00M	-135.00M	692.00M
	Operating Cash Flow
1.50B	1.44B	1.42B	292.00M	1.25B
	Investing Cash Flow
-2.04B	-183.00M	-618.00M	-1.16B	58.00M
	Financing Cash Flow
-13.00M	-771.00M	-874.00M	-657.00M	-1.31B

Host Hotels & Resorts Technical Analysis

Technical Analysis Sentiment

Negative

Last Price14.22

Price Trends

50DMA

15.34

Negative

100DMA

16.38

Negative

200DMA

16.60

Negative

Market Momentum

MACD

-0.44

Positive

RSI

39.98

Neutral

STOCH

21.72

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HST, the sentiment is Negative. The current price of 14.22 is below the 20-day moving average (MA) of 14.25, below the 50-day MA of 15.34, and below the 200-day MA of 16.60, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 39.98 is Neutral, neither overbought nor oversold. The STOCH value of 21.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HST.

Host Hotels & Resorts Risk Analysis

Host Hotels & Resorts disclosed 33 risk factors in its most recent earnings report. Host Hotels & Resorts reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Host Hotels & Resorts Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HST	74 Outperform	$9.03B	13.05	10.53%	6.30%	7.02%	-4.78%
APLE	72 Outperform	$2.91B	13.74	6.50%	9.01%	6.52%	14.45%
SHO	68 Neutral	$1.61B	58.39	2.01%	4.66%	-8.18%	-85.42%
PK	66 Neutral	$1.83B	8.98	5.68%	11.30%	-3.67%	122.68%
RHP	65 Neutral	$5.24B	20.44	48.59%	5.71%	8.39%	-15.41%
DRH	61 Neutral	$1.53B	40.22	2.98%	2.66%	5.12%	-49.88%
Sector *	61 Neutral	$4.31B	16.14	-3.60%	11.88%	6.17%	-20.99%

* Real Estate Sector Average

Performance Comparison

HST

Host Hotels & Resorts

14.22

-5.07

-26.28%

DRH

Diamondrock

7.28

-1.78

-19.65%

SHO

Sunstone Hotel

8.62

-1.96

-18.53%

RHP

Ryman

87.25

-20.53

-19.05%

APLE

Apple Hospitality REIT

12.19

-2.67

-17.97%

Park Hotels & Resorts

10.07

-5.69

-36.10%

Host Hotels & Resorts Earnings Call Summary

Earnings Call Date: Feb 19, 2025 | % Change Since: -15.56% | Next Earnings Date: Apr 30, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant achievements in acquisitions and capital returns, as well as progress in sustainability. However, it also noted challenges such as the impact of wildfires and hurricanes on key markets, and wage pressures affecting margins.

Highlights

Acquisition of Iconic Properties

Host Hotels acquired $1.5 billion of iconic and irreplaceable real estate across four properties, expanding into new markets.

Return of Capital to Stockholders

Returned over $844 million to stockholders through dividends and share repurchases in 2024, including a special dividend of $0.10 per share.

Sustainability Achievements

Host Hotels continued to make progress in sustainability, achieving LEED certification for four properties and reducing interest rates on term loans due to sustainability goals.

Strong Performance in Maui

Leisure recovery in Maui led to a 6.4% increase in Total RevPAR for the quarter, driven by strong transient demand.

Lowlights

Challenges in Maui

The Maui market faced challenges due to previous wildfires, impacting RevPAR by 160 basis points and EBITDA margin by 20 basis points.

Decreased Group Room Revenue

Group room revenue was down approximately 5% year-over-year due to tough comparisons in San Francisco and Maui.

Impacts of Hurricanes

Hurricanes negatively impacted adjusted EBITDAre by $15 million in 2024, with significant remediation costs expected for The Don CeSar.

Wage and Benefit Pressures

Full year 2024 comparable hotel EBITDA margin fell 60 basis points due to increased wages and benefits and fixed expense pressures.

Company Guidance

During the Host Hotels & Resorts Fourth Quarter 2024 Earnings Conference Call, the company reported that they exceeded their guidance estimates for 2024, achieving an adjusted EBITDAre of $1.656 million, a 1.7% increase from 2023, and an adjusted FFO per share of $1.97, a 2.6% year-over-year rise. The company highlighted a 2.1% growth in comparable hotel total RevPAR and a 90 basis points increase in comparable hotel RevPAR compared to 2023. Despite a slight decrease of 60 basis points in comparable hotel EBITDA margin to 29.2%, driven by increased wages and expenses, the company saw strong transient demand and ancillary revenue growth, particularly in Maui, New York, and Oahu. Host also discussed capital allocation, noting $1.5 billion in acquisitions, $107 million in share repurchases, and $844 million returned to stockholders in 2024. For 2025, they expect a gradual improvement in Maui operations and forecast a full-year adjusted EBITDAre midpoint of $1.620 million, with a RevPAR growth guidance of 0.5% to 2.5%.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.