Host Hotels & Resorts (HST) AI Stock Analysis

• Market Cap: $12.20B
• Dividend Yield: 5.07%
• Average Volume (3M): 8.46M
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.92
• 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: 6,793,494
• 30 Day Avg. Volume: 8,461,370
• 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: 1.39
• Enterprise Value/Revenue: 2.87
• Enterprise Value/Gross Profit: 5.37
• Enterprise Value/Ebitda: 9.92
• 1Y Price Target: $19.34
• Price Target Upside: 9.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.03
• Revenue Forecast (FY): $6.00B

• Rating: 68 Neutral
• Price Target: $17.50 ▼(-1.35% Downside)

Host Hotels & Resorts shows solid financial performance and positive earnings call sentiment, contributing to a strong overall score. The reasonable valuation and attractive dividend yield further support the stock's appeal. However, technical indicators suggest caution, as the stock is trading below key moving averages.

Positive Factors

Revenue Growth

The consistent growth in RevPAR indicates strong market demand and effective pricing strategies, enhancing long-term revenue stability.

Strategic Partnerships

Partnerships with leading hotel brands enhance brand recognition and customer loyalty, supporting sustained occupancy and revenue growth.

Operational Efficiency

High gross profit margins reflect effective cost control and operational efficiency, contributing to long-term profitability.

Negative Factors

Rising Leverage

Increased leverage can limit financial flexibility and increase risk, potentially impacting future investment capacity and stability.

Decline in Free Cash Flow

A decline in free cash flow may restrict the company's ability to reinvest in growth opportunities and maintain competitive positioning.

Profit Margin Pressure

Decreasing net profit margins suggest rising costs or pricing pressures, which could affect long-term profitability if not addressed.

Host Hotels & Resorts Business Overview & Revenue Model

Company Description

Host Hotels & Resorts, Inc. (HST) is a leading lodging real estate investment trust (REIT) that primarily invests in and owns upscale and luxury hotels, primarily in the United States. The company operates a diverse portfolio of properties across various segments including full-service hotels, select-service hotels, and resorts, catering to both business and leisure travelers. Host Hotels & Resorts focuses on high-quality properties located in key metropolitan areas and resort destinations, leveraging its extensive experience in hotel management and real estate to maximize property value and guest experiences.

How the Company Makes Money

Host Hotels & Resorts generates revenue primarily through leasing its hotel properties to hotel operators under long-term management agreements. The company earns a significant portion of its income from rental payments made by these operators, which are structured to include base rents and performance-based incentives. Additionally, Host Hotels & Resorts benefits from real estate appreciation and capitalizing on asset sales when market conditions are favorable. The company's strategic partnerships with reputable hotel brands, such as Marriott and Hyatt, enhance its revenue-generating potential by attracting a steady stream of guests. Furthermore, the company's focus on operational efficiencies and capital expenditures aimed at property improvements contributes to revenue growth by enhancing guest experiences and increasing occupancy rates.

Host Hotels & Resorts Financial Statement Overview

Summary

Host Hotels & Resorts demonstrates solid financial performance with consistent revenue growth and strong operational margins. However, the slight increase in leverage and decrease in free cash flow are areas to monitor.

Income Statement

Host Hotels & Resorts has shown consistent revenue growth, with a TTM revenue growth rate of 2.07%. The gross profit margin is strong at 56.15%, indicating efficient cost management. However, the net profit margin has slightly decreased to 11.12% from the previous year, suggesting some pressure on profitability. The EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.85, which is manageable but slightly higher than in previous years, indicating increased leverage. The return on equity is 9.91%, showing a slight decline, which may affect shareholder returns. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

Operating cash flow is strong, with a coverage ratio of 1.10, indicating good cash generation relative to net income. However, free cash flow has decreased by 4.04%, which could impact future investments. The free cash flow to net income ratio is 0.56, showing moderate cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.93B	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	1.71B	1.70B	1.67B	1.49B	851.00M	-138.00M
Net Income	659.00M	697.00M	740.00M	633.00M	-11.00M	-732.00M
Balance Sheet
Total Assets	12.96B	13.05B	12.24B	12.27B	12.35B	12.89B
Cash, Cash Equivalents and Short-Term Investments	490.00M	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	6.18B	6.27B	5.42B	5.39B	5.78B	6.46B
Stockholders Equity	6.64B	6.61B	6.63B	6.71B	6.44B	6.32B
Cash Flow
Free Cash Flow	807.00M	950.00M	795.00M	912.00M	-135.00M	-806.00M
Operating Cash Flow	1.43B	1.50B	1.44B	1.42B	292.00M	-307.00M
Investing Cash Flow	-1.46B	-2.04B	-183.00M	-618.00M	-1.16B	-195.00M
Financing Cash Flow	-243.00M	-13.00M	-771.00M	-874.00M	-657.00M	1.23B

Host Hotels & Resorts Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 17.74 is above the 20-day moving average (MA) of 17.18, above the 50-day MA of 16.89, and above the 200-day MA of 15.66, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 59.26 is Neutral, neither overbought nor oversold. The STOCH value of 67.64 is Neutral, 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	68 Neutral	$12.20B	16.72	11.04%	5.07%	6.45%	3.79%
RHP	67 Neutral	$6.02B	25.76	36.38%	4.82%	6.98%	-32.02%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DRH	64 Neutral	$1.87B	34.90	3.98%	5.16%	0.95%	-8.40%
APLE	63 Neutral	$2.83B	16.26	5.41%	8.49%	0.57%	-13.58%
SHO	61 Neutral	$1.80B	1,890.00	0.88%	3.88%	3.04%	-98.77%
PK	52 Neutral	$2.16B	―	-0.36%	13.05%	-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.