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Host Hotels (HST) to Post Q2 Earnings: What's in the Cards?
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Host Hotels & Resorts, Inc. (HST - Free Report) is scheduled to release second-quarter 2022 earnings on Aug 3, after market close. HST’s quarterly results will likely highlight year-over-year growth in revenues and funds from operations (FFO) per share.
In the previous quarter, the Bethesda, MD-based lodging real estate investment trust (REIT) delivered a surprise of 50% in terms of adjusted FFO per share. Results were mainly driven by a recovery in leisure travel with strong rates at resort properties. In addition, the urban markets witnessed improvements, with group revenues increasing sequentially.
Over the trailing four quarters, Host Hotels’ bottom line surpassed estimates on all occasions, the average beat being 93.53%. The graph below depicts this surprise history:
Host Hotels & Resorts, Inc. Price and EPS Surprise
Host Hotels’ portfolio comprises well-positioned properties in markets with strong demand generators like central business districts of main cities, close to airports and in resort/conference destinations. Given the ongoing economic recovery and widespread vaccination drives, the lodging industry has resumed its operations in full swing.
Consequently, leisure demand is expected to have continued to gain pace in the second quarter as well. Also, HST is likely to have witnessed improvement in the business transient and group demand during the quarter.
Backed by the recovery in demand for HST’s properties, growth in occupancy rate and revenue per available room (RevPAR) is anticipated to have taken place during the to-be-reported quarter.
The Zacks Consensus Estimate for average occupancy rate is pegged at 68%, suggesting an improvement from the prior quarter’s reported figure of 55%. The same for RevPAR stands at $202, indicating a rise from the March-ended quarter’s $167.
Host Hotels has been making strategic capital allocations to improve its portfolio quality and strengthen its position in the United States, with a greater scale and competitive advantage.
Further, HST follows a capital-recycling program whereby it disposes of non-core assets that have lower growth potential or properties with significant capital expenditure requirements and utilizes the proceeds to add premium properties to its portfolio and invest in existing assets. In April 2022, it sold off the Sheraton New York Times Square Hotel for around $373 million. The sale of the 1,780-room hotel represented a 28 times EBITDA multiple on the 2019 EBITDA.
The Zacks Consensus Estimate for Host Hotels’ second-quarter revenues is presently pegged at $1.3 billion, suggesting a whopping jump of 94.3% from the prior-year period’s reported figure of $649 million.
The Zacks Consensus Estimate for the quarterly FFO per share has been revised 2.1% upward in the past week to 49 cents, suggesting a surge from the year-ago quarter’s reported figure.
Earning Whispers
Host Hotels has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — for increasing the odds of an FFO beat.
Earnings ESP: Host Hotels has an Earnings ESP of +9.18%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks that are worth considering from the REIT sector, as our model shows that these too have the right combination of elements to deliver a surprise this reporting cycle:
Life Storage is scheduled to report quarterly figures on Aug 3. LSI has an Earnings ESP of +0.09% and a Zacks Rank of 3 presently.
Armada Hoffler Properties (AHH - Free Report) is scheduled to report quarterly figures on Aug 4. AHH has an Earnings ESP of +4.17% and a Zacks Rank of 2, currently.
Public Storage (PSA - Free Report) is slated to report quarterly numbers on Aug 4. PSA has an Earnings ESP of +0.31% and carries a Zacks Rank of 3.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Host Hotels (HST) to Post Q2 Earnings: What's in the Cards?
Host Hotels & Resorts, Inc. (HST - Free Report) is scheduled to release second-quarter 2022 earnings on Aug 3, after market close. HST’s quarterly results will likely highlight year-over-year growth in revenues and funds from operations (FFO) per share.
In the previous quarter, the Bethesda, MD-based lodging real estate investment trust (REIT) delivered a surprise of 50% in terms of adjusted FFO per share. Results were mainly driven by a recovery in leisure travel with strong rates at resort properties. In addition, the urban markets witnessed improvements, with group revenues increasing sequentially.
Over the trailing four quarters, Host Hotels’ bottom line surpassed estimates on all occasions, the average beat being 93.53%. The graph below depicts this surprise history:
Host Hotels & Resorts, Inc. Price and EPS Surprise
Host Hotels & Resorts, Inc. price-eps-surprise | Host Hotels & Resorts, Inc. Quote
Factors at Play
Host Hotels’ portfolio comprises well-positioned properties in markets with strong demand generators like central business districts of main cities, close to airports and in resort/conference destinations. Given the ongoing economic recovery and widespread vaccination drives, the lodging industry has resumed its operations in full swing.
Consequently, leisure demand is expected to have continued to gain pace in the second quarter as well. Also, HST is likely to have witnessed improvement in the business transient and group demand during the quarter.
Backed by the recovery in demand for HST’s properties, growth in occupancy rate and revenue per available room (RevPAR) is anticipated to have taken place during the to-be-reported quarter.
The Zacks Consensus Estimate for average occupancy rate is pegged at 68%, suggesting an improvement from the prior quarter’s reported figure of 55%. The same for RevPAR stands at $202, indicating a rise from the March-ended quarter’s $167.
Host Hotels has been making strategic capital allocations to improve its portfolio quality and strengthen its position in the United States, with a greater scale and competitive advantage.
Further, HST follows a capital-recycling program whereby it disposes of non-core assets that have lower growth potential or properties with significant capital expenditure requirements and utilizes the proceeds to add premium properties to its portfolio and invest in existing assets. In April 2022, it sold off the Sheraton New York Times Square Hotel for around $373 million. The sale of the 1,780-room hotel represented a 28 times EBITDA multiple on the 2019 EBITDA.
The Zacks Consensus Estimate for Host Hotels’ second-quarter revenues is presently pegged at $1.3 billion, suggesting a whopping jump of 94.3% from the prior-year period’s reported figure of $649 million.
The Zacks Consensus Estimate for the quarterly FFO per share has been revised 2.1% upward in the past week to 49 cents, suggesting a surge from the year-ago quarter’s reported figure.
Earning Whispers
Host Hotels has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — for increasing the odds of an FFO beat.
Earnings ESP: Host Hotels has an Earnings ESP of +9.18%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Host Hotels currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Stocks That Warrant a Look
Here are some other stocks that are worth considering from the REIT sector, as our model shows that these too have the right combination of elements to deliver a surprise this reporting cycle:
Life Storage is scheduled to report quarterly figures on Aug 3. LSI has an Earnings ESP of +0.09% and a Zacks Rank of 3 presently.
Armada Hoffler Properties (AHH - Free Report) is scheduled to report quarterly figures on Aug 4. AHH has an Earnings ESP of +4.17% and a Zacks Rank of 2, currently.
Public Storage (PSA - Free Report) is slated to report quarterly numbers on Aug 4. PSA has an Earnings ESP of +0.31% and carries a Zacks Rank of 3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.