Bethesda, Maryland-based Host Hotels & Resorts, Inc. (HST) is the world’s largest lodging real estate investment trust and one of the largest owners of luxury and upscale hotels. With a market cap of $11.2 billion, Host owns and operates several properties in the United States and internationally.
The REIT has significantly underperformed the broader market over the past year. HST stock has plummeted 10.3% on a YTD basis and 11.7% over the past 52 weeks, lagging behind the S&P 500 Index’s ($SPX) 7.8% gains in 2025 and 16.6% returns over the past year.
Narrowing the focus, Host has also underperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 1.8% gains in 2025 and a marginal 29 basis point uptick over the past 52 weeks.
Host Hotels & Resorts’ stock prices dropped 2.5% in yesterday’s trading session following the release of its Q2 results on Jul. 30. While the company’s financials came ahead of Street expectations, the overall performance remained mixed. The company observed a notable increase in revenues per available room, boosting its total revenues by 8.2% year-over-year to $1.6 billion, surpassing expectations by a notable 5%. However, Host has failed to optimize its cost structures, resulting in a 5.1% decline in operating profit to $277 million.
Moreover, its adjusted funds from operations (AFFO) declined by about 1% to $400 million. This raised serious concerns about the REIT’s ability to generate earnings and cash flow growth.
For the full fiscal 2025, ending in December, analysts expect HST to report a 2.5% year-over-year drop in AFFO to $1.92 per share. On the positive note, the company has a solid earnings surprise history. It has matched or surpassed the Street’s bottom-line estimates in each of the past four quarters.
Host maintains a consensus “Moderate Buy” rating overall. Of the 16 analysts covering the stock, opinions include eight “Strong Buys,” one “Moderate Buy,” and seven “Holds.”
This configuration is slightly less bullish than a month ago, when nine analysts gave “Strong Buy” recommendations.
On Jul. 31, Stifel analyst Simon Yarmak maintained a “Buy” rating on HST, while raising the price target from $17 to $19.
Host’s mean price target of $17.91 represents a 13.9% upside potential. Meanwhile, the Street-high target of $21 suggests a notable 33.6% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
