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Host Hotels Gains 23% in Six Months: Will the Trend Last?
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Key Takeaways
Host Hotels shares jumped 23% in six months, outperforming the industry's 5.7% gain.
HST expects 2026 RevPAR growth of 2-3.5%, with Q2 boosted by the World Cup and Easter.
Strategic asset recycling and $2.4B liquidity support growth and balance sheet strength.
Shares of Host Hotels & Resorts Inc. (HST - Free Report) have gained 23% in the past six months compared with the industry’s rise of 5.7%.
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 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 2026 FFO per share has been revised a cent northward to $2.06 over the past two months.
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, has aided occupancy and revenue per available room (RevPAR) growth over the past few quarters. Although the company expects the first quarter of 2026 to be the weakest with growth in the low single digits, it expects the second quarter to be the strongest of the year with mid-single-digit RevPAR growth driven by the World Cup and Easter. In 2026, the company expects comparable hotel RevPAR growth between 2% and 3.5%.
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 2025, the company incurred $644 million in capital expenditure. For 2026, management expects total capital expenditures to be within $525-$625 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 February 2025 Investor Presentation, from 2021 to 2026, total dispositions amounted to $2.9 billion, which is 16.2 times the EBITDA multiple. Its acquisitions during this period amounted to $3.3 billion, which is 13.3 times the EBITDA multiple. 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 Dec. 31, 2025, the company had $2.4 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. HST has increased its dividend nine times over the last five years and has a 38% 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.
View the Zacks #1 Rank List
Image: Shutterstock
Host Hotels Gains 23% in Six Months: Will the Trend Last?
Key Takeaways
Shares of Host Hotels & Resorts Inc. (HST - Free Report) have gained 23% in the past six months compared with the industry’s rise of 5.7%.
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 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 2026 FFO per share has been revised a cent northward to $2.06 over the past two months.
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, has aided occupancy and revenue per available room (RevPAR) growth over the past few quarters. Although the company expects the first quarter of 2026 to be the weakest with growth in the low single digits, it expects the second quarter to be the strongest of the year with mid-single-digit RevPAR growth driven by the World Cup and Easter. In 2026, the company expects comparable hotel RevPAR growth between 2% and 3.5%.
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 2025, the company incurred $644 million in capital expenditure. For 2026, management expects total capital expenditures to be within $525-$625 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 February 2025 Investor Presentation, from 2021 to 2026, total dispositions amounted to $2.9 billion, which is 16.2 times the EBITDA multiple. Its acquisitions during this period amounted to $3.3 billion, which is 13.3 times the EBITDA multiple. 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 Dec. 31, 2025, the company had $2.4 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. HST has increased its dividend nine times over the last five years and has a 38% 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 Prologis (PLD - Free Report) and Ventas (VTR - Free Report) , each carrying a Zacks Rank of #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 PLD’s 2026 FFO per share is pegged at $6.14, which indicates year-over-year growth of 5.7%.
The Zacks Consensus Estimate for VTR’s full-year FFO per share stands at $3.84, which calls for an increase of 10.3% from the year-ago period.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.