One-glance verdict
Undervalued
$26.69 our estimate vs market $22.32
Wall Street consensus: $25.29 (-5.3% lower than our fair-value estimate)
16% below our estimate, below the bear case
Fundamentals snapshot
Host Hotels & Resorts, Inc.
HST · NMS · Real Estate · REIT - Hotel & Motel
Current price
$22.32
52-week range
$15.61 - $25.71
Market cap
$15.51B
Balance sheet
Stretched
3.54x Stretched
Net debt $3.69B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 1.7% last year.
- Reward Returns 15.6% on equity, ahead of 60% of its peers.
- Risk Forward P/E (21.1x) is higher than trailing (15.0x) - earnings are expected to drop.
- Risk Net debt grew 18.4% over 3 years.
What this company does
Host Hotels & Resorts, Inc.
Host Hotels & Resorts is a company that owns the physical buildings for many fancy hotels and resorts, partnering with well-known brands like Marriott and Hyatt to manage the day-to-day guest experience. The company makes its money from room bookings, events, and other guest spending at these properties. This means its success is closely linked to the overall health of the travel and tourism industry, doing well when more people are booking trips for business or vacation.
How the company got here
Host Hotels & Resorts' story begins with the Marriott Corporation, which was founded by J. Willard and Alice Marriott in 1927 as a root beer stand. In 1993, Marriott Corporation split into two companies: Marriott International, which manages and franchises hotels, and Host Marriott Corporation, which owned the hotel real estate. This separation allowed Host to focus on owning properties. Over the years, it sold off other businesses to concentrate on high-end hotels and in 1999, it became a Real Estate Investment Trust (a REIT, which is a company that owns and often operates income-producing real estate). A major turning point was the 2006 acquisition of Starwood's hotel properties, which diversified its portfolio beyond Marriott-branded hotels and led to its renaming as Host Hotels & Resorts.
What it actually does
Host Hotels & Resorts is the largest American Real Estate Investment Trust (REIT) that focuses on hotels. Think of it this way: instead of running the hotels, Host owns the physical buildings and the land they sit on, much like a landlord owns an apartment building. It partners with well-known, high-end hotel brands like Marriott, Hyatt, and Hilton, who manage the day-to-day operations, from checking in guests to cleaning the rooms. Host makes money by owning a collection of luxury and upper-upscale hotels in desirable locations, and its goal is to own properties that can command high room rates and attract both business and leisure travelers.
Hotel Ownership
This is the company's single and primary business. Host owns a portfolio of about 75 luxury and upper-upscale hotels, primarily in the United States, with a few properties in Canada and Brazil. The main way it generates money is through the revenue its hotels produce, which is broken down into a few key areas. The largest portion comes from guests paying for rooms. Another significant part comes from food and beverage sales at the hotels' restaurants, bars, and from catering for events. A smaller slice of revenue comes from other on-site spending, such as parking fees or spa services.
What management is betting on now
The company's current strategy focuses on continuously improving the quality of its hotel portfolio. This involves a process called 'capital recycling' (selling off older, less profitable hotels and using that money to buy newer, more promising ones in high-growth markets). Management is also investing heavily in renovating and upgrading its existing properties to attract guests who are willing to pay for a premium experience. By focusing on irreplaceable, high-end properties in top tourist and business destinations, Host aims to maintain its ability to charge high room rates and generate strong returns for its investors.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$262.00M
FY2024 Q4
$235.00M
FY2025 Q1
$259.00M
FY2025 Q2
$381.00M
FY2025 Q3
$143.00M
FY2025 Q4
$445.00M
FY2026 Q1
$291.00M
FY2026 Q2
$451.00M
Revenue
$1.64B
Net income
$237.00M
Diluted EPS
0.35
Operating cash flow
$503.00M
Free cash flow
$451.00M
Fetching…
Sources
Revenue
$1.65B
Net income
$494.00M
Diluted EPS
0.72
Operating cash flow
$342.00M
Free cash flow
$291.00M
Fetching…
Sources
Revenue
$1.60B
Net income
$135.00M
Diluted EPS
0.20
Operating cash flow
$543.00M
Free cash flow
$445.00M
Fetching…
Sources
Revenue
$1.33B
Net income
$161.00M
Diluted EPS
0.23
Operating cash flow
$218.00M
Free cash flow
$143.00M
Fetching…
Sources
Revenue
$1.59B
Net income
$221.00M
Diluted EPS
0.32
Operating cash flow
$444.00M
Free cash flow
$381.00M
Fetching…
Sources
Revenue
$1.59B
Net income
$248.00M
Diluted EPS
0.35
Operating cash flow
$305.00M
Free cash flow
$259.00M
Fetching…
Sources
Revenue
$1.43B
Net income
$108.00M
Diluted EPS
0.15
Operating cash flow
$331.00M
Free cash flow
$235.00M
Fetching…
Sources
Revenue
$1.32B
Net income
$82.00M
Diluted EPS
0.12
Operating cash flow
$349.00M
Free cash flow
$262.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $26.69 vs current price $22.32
Wall Street consensus is the average analyst price target: $25.29 (-5.3% lower than our fair-value estimate).
Our most-likely fair value is $26.69 a share — about 19.6% above today's price of $22.32, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $3.7B. Interest coverage 3.5x.
Net debt
$3.69B
Interest coverage
3.54x
Host Hotels & Resorts, Inc.'s profit covers its interest bill about 3.5 times over. which is stronger than every peer shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
HST
BASELINE
Host Hotels & Resorts, Inc.
Total debt $5.65B Interest coverage 3.54x This is the baseline the peer rows are being compared against.
Total debt $4.13B Interest coverage 2.04x -42% vs HST Carries about 1.7x less debt cushion than HST.
Total debt $4.10B Interest coverage 0.85x -76% vs HST Carries about 4.2x less debt cushion than HST.
Total debt $975.03M Interest coverage 1.54x -56% vs HST Carries about 2.3x less debt cushion than HST.
Total debt $2.46B Interest coverage 0.74x -79% vs HST Carries about 4.8x less debt cushion than HST.
Total debt $2.23B Interest coverage 0.22x -94% vs HST Carries about 16.0x less debt cushion than HST.
What you should know
The case for and against HST
3 Rewards
3 Risks
Rewards
-
Revenue grew 1.7% last year.
-
Returns 15.6% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Forward P/E (21.1x) is higher than trailing (15.0x) - earnings are expected to drop.
-
Net debt grew 18.4% over 3 years.
-
Insider ownership is only 1.5% (peer median: 2.6%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
14.98x
Forward P/E
21.15x
P/B
2.39x
P/S
2.49x
EV/EBITDA
11.14x
PEG ratio
3.31x
Profitability
How much profit each dollar creates
Gross margin
29.2%
Operating margin
18.2%
Net margin
16.5%
ROE
15.6%
ROA
4.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.85x
Current ratio
1.67x
Quick ratio
1.67x
Total debt
$5.65B
Total cash
$1.95B
Growth
How the business has been compounding
Revenue TTM
$6.22B
Revenue 5Y CAGR
20.6%
EPS TTM
1.49
EPS 5Y CAGR
7.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.61B
Free CF TTM
$1.23B
FCF margin
19.7%
Dividend
Shareholder payout
Yield
3.7%
Payout ratio
53.7%
Last ex-div date
2026-09-30