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Host Hotels Rises 13.9% in Three Months: Will the Trend Last?
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Key Takeaways
HST gained 13.9% in three months, sharply outperforming the lodging industry's 1.2% decline.
HST
is seeing stronger group and transient demand, lifting occupancy and RevPAR across key U.S. markets.
HST's capital recycling, $2.2B liquidity, and special dividend signal balance sheet strength and discipline.
Shares of Host Hotels & Resorts Inc. (HST - Free Report) have gained 13.9% in the past three months against the industry’s fall of 1.2%.
Host Hotels, which has a portfolio of luxury and upper-upscale hotels in top U.S. Markets and the Sunbelt region, is poised to benefit from the strong demand drivers in these markets.
The continuous improvement in group and transient demand is expected to increase the occupancy level and RevPAR growth. Also, a strategic capital-recycling program and a healthy balance sheet augur well.
Analysts seem positive on this lodging REIT, which currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its 2025 FFO per share has been revised a cent northward to $2.06 over the past month. The consensus estimate for 2026 FFO per share has also moved upward by a cent to $2.05 over the past week.
Image Source: Zacks Investment Research
Factors Behind HST’s Share Price Rise
Host Hotels has a strong Sunbelt exposure and presence in the top 21 U.S. markets. Its properties are advantageously located in central business districts of major cities with proximity to airports and resort/conference destinations, driving demand. The improvement in group and transient demand, including leisure and resort — led by the healthy demand from small and medium-sized businesses— has aided occupancy and revenue per available room (RevPAR) growth over the past few quarters. In 2025, the company expects comparable hotel RevPAR growth of approximately 3%.
Host Hotels undertakes strategic capital allocations to improve the portfolio quality and strengthen its position in the United States, where it has a greater scale and competitive advantage. In the first nine months of 2025, the company incurred $454 million in capital expenditure. For 2025, management expects total capital expenditures to be within $605-$640 million.
The company disposes of non-strategic assets with lower growth potential or properties with significant capital expenditure requirements through its capital-recycling program. It redeploys the proceeds to invest in premium properties in markets expected to recover faster. Per the company’s November 2025 Investor Presentation, from 2021 through Nov. 5, 2025, total dispositions amounted to $1.8 billion. Its acquisitions during this period amounted to $3.3 billion. Such efforts highlight its prudent capital-management practices, preserve balance sheet strength and pave the way to capitalize on long-term growth opportunities.
Host Hotels has a healthy balance sheet. The company has been taking steps to fortify its balance sheet. As of Sept. 30, 2025, the company had $2.2 billion in total available liquidity. Moreover, it is the only company with an investment-grade rating among the lodging REITs, having ratings of Baa2/Stable from Moody’s, BBB-/Stable from S&P Global and BBB/Stable from Fitch. This renders access to the debt market at favorable costs.
Solid dividend payouts are a massive enticement for REIT investors, and Host Hotels has remained committed to that. This month, the company announced a special dividend of 15 cents per share. This is in addition to a quarterly cash dividend of 20 cents per share. HST has increased its dividend nine times over the last five years and has a 40% payout ratio. Such efforts boost investors’ confidence in the stock. Check out Host Hotels & Resorts’ dividend history here.
With the factors mentioned above, the positive trend in the stock is expected to continue in the near term.
Risks Likely to Affect HST’s Positive Trend
Macroeconomic uncertainty and a cautious approach by many businesses are likely to hurt demand for its properties in the near term. The competitive landscape and elevated interest expenses are other concerns.
The Zacks Consensus Estimate for CUZ’s 2025 FFO per share has moved a cent northward to $2.84 over the past three months. The estimate for 2026 FFO per share has moved up by a cent to $2.92 over the past two months.
The Zacks Consensus Estimate for WPC’s 2025 FFO per share has been revised 2 cents upward to $4.94 over the past two months. The estimate for 2026 FFO per share has increased by 2 cents to $5.12 over the past month.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Host Hotels Rises 13.9% in Three Months: Will the Trend Last?
Key Takeaways
Shares of Host Hotels & Resorts Inc. (HST - Free Report) have gained 13.9% in the past three months against the industry’s fall of 1.2%.
Host Hotels, which has a portfolio of luxury and upper-upscale hotels in top U.S. Markets and the Sunbelt region, is poised to benefit from the strong demand drivers in these markets.
The continuous improvement in group and transient demand is expected to increase the occupancy level and RevPAR growth. Also, a strategic capital-recycling program and a healthy balance sheet augur well.
Analysts seem positive on this lodging REIT, which currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its 2025 FFO per share has been revised a cent northward to $2.06 over the past month. The consensus estimate for 2026 FFO per share has also moved upward by a cent to $2.05 over the past week.
Image Source: Zacks Investment Research
Factors Behind HST’s Share Price Rise
Host Hotels has a strong Sunbelt exposure and presence in the top 21 U.S. markets. Its properties are advantageously located in central business districts of major cities with proximity to airports and resort/conference destinations, driving demand. The improvement in group and transient demand, including leisure and resort — led by the healthy demand from small and medium-sized businesses— has aided occupancy and revenue per available room (RevPAR) growth over the past few quarters. In 2025, the company expects comparable hotel RevPAR growth of approximately 3%.
Host Hotels undertakes strategic capital allocations to improve the portfolio quality and strengthen its position in the United States, where it has a greater scale and competitive advantage. In the first nine months of 2025, the company incurred $454 million in capital expenditure. For 2025, management expects total capital expenditures to be within $605-$640 million.
The company disposes of non-strategic assets with lower growth potential or properties with significant capital expenditure requirements through its capital-recycling program. It redeploys the proceeds to invest in premium properties in markets expected to recover faster. Per the company’s November 2025 Investor Presentation, from 2021 through Nov. 5, 2025, total dispositions amounted to $1.8 billion. Its acquisitions during this period amounted to $3.3 billion. Such efforts highlight its prudent capital-management practices, preserve balance sheet strength and pave the way to capitalize on long-term growth opportunities.
Host Hotels has a healthy balance sheet. The company has been taking steps to fortify its balance sheet. As of Sept. 30, 2025, the company had $2.2 billion in total available liquidity. Moreover, it is the only company with an investment-grade rating among the lodging REITs, having ratings of Baa2/Stable from Moody’s, BBB-/Stable from S&P Global and BBB/Stable from Fitch. This renders access to the debt market at favorable costs.
Solid dividend payouts are a massive enticement for REIT investors, and Host Hotels has remained committed to that. This month, the company announced a special dividend of 15 cents per share. This is in addition to a quarterly cash dividend of 20 cents per share. HST has increased its dividend nine times over the last five years and has a 40% payout ratio. Such efforts boost investors’ confidence in the stock. Check out Host Hotels & Resorts’ dividend history here.
With the factors mentioned above, the positive trend in the stock is expected to continue in the near term.
Risks Likely to Affect HST’s Positive Trend
Macroeconomic uncertainty and a cautious approach by many businesses are likely to hurt demand for its properties in the near term. The competitive landscape and elevated interest expenses are other concerns.
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Cousins Properties (CUZ - Free Report) and W.P. Carey (WPC - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CUZ’s 2025 FFO per share has moved a cent northward to $2.84 over the past three months. The estimate for 2026 FFO per share has moved up by a cent to $2.92 over the past two months.
The Zacks Consensus Estimate for WPC’s 2025 FFO per share has been revised 2 cents upward to $4.94 over the past two months. The estimate for 2026 FFO per share has increased by 2 cents to $5.12 over the past month.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.