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Host Hotels & Resorts (HST)
NASDAQ:HST
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Host Hotels & Resorts
(NASDAQ:HST)74Outperform
Positive Factors
Balance Sheet Strength
HST's balance sheet remains a differentiator with low leverage.
Revenue and Performance
RevPAR growth was +0.8% vs. a -0.3% estimate; total comparable revenues were +3.2%, and upside was driven by stronger-than-expected group performance during the quarter.
Negative Factors
Cost Pressures
Higher wage growth on new union contracts is the biggest headwind with 2025 margins down.
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.
Guidance and Expectations
HST's 2025 outlook missed expectations, with EBITDA guidance below consensus.
Host Hotels & Resorts (HST) vs. S&P 500 (SPY)
Market Cap
$11.28B
Dividend Yield4.96%
Average Volume (3M)9.14M
Price to Earnings (P/E)16.3
Beta (1Y)1.14
Revenue Growth7.02%
EPS Growth-4.78%
CountryUS
Employees163
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)0.99
Shares Outstanding699,106,800
10 Day Avg. Volume11,115,668
30 Day Avg. Volume9,140,696
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.01
Price to Cash Flow (P/CF)8.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.75Price Target Upside24.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Host Hotels & Resorts Business Overview & Revenue Model
Company DescriptionHost Hotels & Resorts, Inc. (HST) is a leading publicly traded real estate investment trust (REIT) that specializes in the ownership and management of high-quality lodging properties. The company is primarily focused on luxury and upper-upscale hotels, which are operated under prestigious brand names such as Marriott, Ritz-Carlton, Westin, and Hyatt. Host Hotels & Resorts' portfolio consists of premier properties in key urban and resort markets across the United States and select international locations.
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
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.85
Very Positive
Balance Sheet
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.75
Positive
Cash Flow
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.90
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2019 |
|---|---|---|---|---|
| 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
Negative
15.85
Price Trends
16.90
Negative
17.30
Negative
17.19
Negative
Market Momentum
-0.26
Positive
34.87
Neutral
19.39
Positive
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 15.85 is below the 20-day moving average (MA) of 16.40, below the 50-day MA of 16.90, and below the 200-day MA of 17.19, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 34.87 is Neutral, neither overbought nor oversold. The STOCH value of 19.39 is Positive, 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 32 risk factors in its most recent earnings report. Host Hotels & Resorts reported the most risks in the “Finance & Corporate” 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $11.28B | 16.29 | 10.55% | 4.96% | 7.02% | -4.78% | |
71 Outperform | $3.48B | 16.34 | 6.55% | 6.59% | 6.52% | 14.45% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
61 Neutral | $1.42B | ― | -0.16% | 0.33% | 2.35% | 57.81% | |
60 Neutral | $1.70B | 44.81 | 2.40% | 1.46% | 5.12% | -49.88% | |
58 Neutral | $1.41B | 33.83 | 1.88% | 5.32% | 3.31% | -15.16% | |
54 Neutral | $1.34B | 85.53 | 1.30% | 3.58% | 1.33% | -10.65% |
* Real Estate Sector Average
Performance Comparison
HST
Host Hotels & Resorts
15.85
-3.94
-19.91%
DRH
Diamondrock
8.11
-1.03
-11.27%
PEB
Pebblebrook Hotel
11.84
-4.15
-25.95%
RLJ
RLJ Lodging
9.33
-2.13
-18.59%
XHR
Xenia Hotels & Resorts
13.18
-1.68
-11.31%
APLE
Apple Hospitality REIT
14.50
-0.89
-5.78%
Host Hotels & Resorts Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -7.20% | 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.