Host Hotels & Resorts (HST) AI Stock Analysis

• Market Cap: $12.73B
• Dividend Yield: 4.9%
• Average Volume (3M): 8.35M
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.87
• Revenue Growth: 6.45%
• EPS Growth: 3.79%
• Country: US
• Employees: 165
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.23
• Shares Outstanding: 687,689,450
• 10 Day Avg. Volume: 8,175,129
• 30 Day Avg. Volume: 8,350,388
• PEG Ratio: -3.67
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 2.16
• P/FCF Ratio: 12.95
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 5.36
• Enterprise Value/Ebitda: 9.47
• 1Y Price Target: $19.53
• Price Target Upside: 5.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.03
• Revenue Forecast (FY): $6.02B

• Rating: 77 Outperform
• Price Target: $20.00 ▲(8.05% Upside)

Host Hotels & Resorts demonstrates strong financial performance and attractive valuation, supported by positive technical indicators. The company's strategic capital allocation and reinvestment strategies are driving growth, despite challenges in specific revenue segments. The stock is well-positioned for continued stability and growth in the REIT - Hotel & Motel industry.

Positive Factors

Revenue Growth

The company's robust revenue growth highlights its effective market positioning and ability to capitalize on demand in the hospitality sector, supporting long-term financial stability.

Capital Allocation

Strategic capital allocation through asset disposals at favorable multiples enhances portfolio quality and financial flexibility, supporting sustainable growth.

Portfolio Reinvestment

Effective reinvestment in the portfolio through transformational programs enhances property value and competitive positioning, driving future revenue growth.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth may impact the company's ability to fund operations and investments, posing a risk to financial flexibility and growth initiatives.

EBITDA Margin Decline

Decreased EBITDA margins due to rising expenses can pressure profitability, potentially affecting the company's ability to maintain competitive pricing and service quality.

Group Room Revenue Decline

A decline in group room revenue, affected by renovation disruptions and calendar shifts, may indicate challenges in maintaining occupancy and revenue in key segments.

Host Hotels & Resorts Business Overview & Revenue Model

Company Description

Host 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 Money

Host Hotels & Resorts generates revenue primarily through the leasing of its hotel properties to various hotel operators under long-term management agreements. The company earns rental income based on fixed fees and a percentage of the hotel revenues, which are tied to the performance of the properties. Additionally, Host Hotels & Resorts may receive income from ancillary services, such as food and beverage sales, parking, and other hotel-related amenities. Key revenue streams are further supported by their strategic partnerships with major hotel brands, which help attract a steady flow of guests and enhance occupancy rates. Market dynamics, tourism trends, and economic conditions also play a crucial role in influencing the company's earnings.

Host Hotels & Resorts Financial Statement Overview

Summary

Host Hotels & Resorts shows strong financial performance with robust revenue growth and healthy profit margins. The balance sheet is well-managed with moderate leverage and solid returns on equity. However, a decline in free cash flow growth requires attention, though cash generation remains strong.

Income Statement

Host Hotels & Resorts has demonstrated strong revenue growth with a 20.2% increase in the TTM period. The company maintains healthy margins, with a gross profit margin of 53.3% and a net profit margin of 12.4%. The EBIT and EBITDA margins are also solid at 17.0% and 30.2%, respectively, indicating efficient operations and profitability. The consistent revenue growth and robust margins highlight the company's strong financial performance in the hospitality sector.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.85, indicating moderate leverage. The return on equity stands at 11.1%, showcasing effective utilization of shareholder funds. The equity ratio of 51.1% suggests a balanced capital structure, providing a cushion against potential financial risks. Overall, the balance sheet portrays a well-managed financial strategy with controlled leverage and solid returns.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by 16.9% in the TTM period, which could be a concern. However, the operating cash flow to net income ratio is strong at 0.99, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio of 0.52 suggests that a significant portion of earnings is converted into free cash flow, although the recent decline in growth warrants attention. Overall, the cash flow position is stable but requires monitoring for potential improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.94B	5.68B	5.31B	4.91B	2.89B	1.62B
Gross Profit	3.17B	3.03B	2.85B	2.71B	1.49B	487.00M
EBITDA	1.79B	1.70B	1.67B	1.49B	851.00M	-138.00M
Net Income	738.00M	697.00M	740.00M	633.00M	-11.00M	-732.00M
Balance Sheet
Total Assets	13.04B	13.05B	12.24B	12.27B	12.35B	12.89B
Cash, Cash Equivalents and Short-Term Investments	539.00M	554.00M	1.14B	667.00M	807.00M	2.33B
Total Debt	5.64B	5.64B	4.77B	4.78B	5.46B	6.15B
Total Liabilities	6.23B	6.27B	5.42B	5.39B	5.78B	6.46B
Stockholders Equity	6.66B	6.61B	6.63B	6.71B	6.44B	6.32B
Cash Flow
Free Cash Flow	671.00M	950.00M	795.00M	912.00M	-135.00M	-806.00M
Operating Cash Flow	1.30B	1.50B	1.44B	1.42B	292.00M	-307.00M
Investing Cash Flow	-489.00M	-2.04B	-183.00M	-618.00M	-1.16B	-195.00M
Financing Cash Flow	-865.00M	-13.00M	-771.00M	-874.00M	-657.00M	1.23B

Host Hotels & Resorts Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HST, the sentiment is Positive. The current price of 18.51 is above the 20-day moving average (MA) of 17.82, above the 50-day MA of 17.19, and above the 200-day MA of 15.84, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 62.70 is Neutral, neither overbought nor oversold. The STOCH value of 88.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HST.

Host Hotels & Resorts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HST	77 Outperform	$12.73B	17.44	11.04%	4.90%	6.45%	3.79%
RHP	66 Neutral	$6.17B	26.43	36.38%	5.01%	6.98%	-32.02%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DRH	65 Neutral	$1.89B	35.29	3.98%	5.10%	0.95%	-8.40%
APLE	64 Neutral	$2.88B	16.52	5.41%	8.30%	0.57%	-13.58%
SHO	57 Neutral	$1.74B	994.57	0.88%	3.93%	3.04%	-98.77%
PK	56 Neutral	$2.18B	-145.41	-0.36%	12.82%	-3.57%	-104.55%

Host Hotels & Resorts Corporate Events

Host Hotels & Resorts Q3 Earnings Call Highlights

The recent earnings call for Host Hotels & Resorts painted a generally positive picture, highlighting strong revenue and growth metrics, particularly in Maui. Despite some declines in adjusted EBITDAre and FFO, the company showcased effective capital allocation and reinvestment strategies, leading to improved guidance and significant RevPAR gains. However, challenges remain in specific revenue segments due to external factors.