10Y annualized return is
negative
at -3.7% per year
HST has met or exceeded earnings expectations in
some
recent quarters (1/2)
Attractive Price-to-Earnings Ratio
Reasonable Price-to-Sales Ratio
Strong Net Profit Margin
Good Return on Equity
Manageable Debt Levels
Strong Interest Coverage
🏨 Operational Improvements
💰 Strong Capital Allocation
🌍 Geographic Diversification
📈 Growth in Group and Business Transient Demand
🔧 Ongoing Capital Investments
High Price-to-Cash-Flow Ratio
Ev/EBITDA Ratio
Operating Profit Margin
High Dividend Payout Ratio
Low Current and Quick Ratios
Cash Ratio Concerns
⚖️ Margin Pressure
⚠️ Uncertainty in Maui Recovery
📉 Margin Compression Forecast
Host Hotels & Resorts is demonstrating strong operational performance and effective capital allocation, supported by a diversified portfolio. However, margin pressures and uncertainties in recovery, particularly in Maui, present challenges. The company is positioned for growth through increasing group demand and ongoing investments in its properties.
Analysis Date: February 20, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Host Hotels & Resorts, Inc. is a company that owns and manages hotels. They have a lot of well-known hotel brands, like Marriott and Ritz-Carlton, and they own 74 hotels in the United States and 5 in other countries, with a total of about 46,100 rooms. Basically, they focus on providing places for people to stay when they travel, especially in nice and upscale settings. By partnering with these popular brands, they ensure guests have good experiences at their hotels.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$38.10
Current Market Price: $13.04
IV/P Ratio: 2.92x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
66.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for HST
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (13.28)
P/B ratio ≤ 1.5 (1.40)
Current ratio ≥ 2.0 (0.65x)
Long-term debt < Net current assets (-10.46x)
Margin of safety (66.0%)
HST does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
10.38%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
37.84%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
12.26%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
With a net profit margin of 12.26%, the company demonstrates effective cost management and profitability relative to its sales.
A return on equity of 10.38% indicates that the company is generating a decent return for shareholders on their equity investment.
The operating profit margin of 13.86% is lower than some industry peers, indicating potential issues in operational efficiency.
A dividend payout ratio of 105.74% suggests that the company is paying out more in dividends than it earns, which could be unsustainable.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.75x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.65x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
The debt-to-equity ratio of 0.77 indicates a relatively moderate use of debt, which is manageable for growth.
An interest coverage ratio of 3.67 suggests that the company can comfortably meet its interest obligations, indicating good financial health.
Current and quick ratios of 0.65 indicate potential liquidity issues, suggesting the company may struggle to meet short-term obligations.
A cash ratio of 0.40 is concerning, as it indicates limited cash available to cover short-term liabilities.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Host Hotels & Resorts demonstrated operational enhancements in 2024, marked by a 1.7% increase in adjusted EBITDAre and a 2.6% rise in adjusted FFO per share. The company successfully capitalized on rate growth and ancillary spending, particularly in its Maui resorts, which resulted in strong transient revenue.
The company effectively allocated capital with $1.5 billion in acquisitions across four hotels and returned over $844 million to shareholders through dividends and share repurchases, demonstrating a commitment to enhancing shareholder value.
Host's geographically diversified portfolio is a significant competitive advantage. The addition of properties in new markets enhances its market position and provides resilience against local economic downturns.
The comparable hotel EBITDA margin decreased by 60 basis points year-over-year primarily due to rising wages and fixed expense pressures. This trend may impact future profitability if not managed effectively.
The company is witnessing strong growth in group bookings and business transient revenues, with expectations of a 16% increase in definite group room nights for 2025. This positive trend indicates a robust recovery and future revenue potential.
Host's commitment to capital expenditures of $580 million to $670 million in 2025 for property enhancements and redevelopment projects positions it well for future growth and operational efficiency.
While there are positive signs of recovery in Maui, the uncertainty surrounding the timeline for group business recovery poses risks to achieving full operational potential in the region.
Future projections indicate a potential decline in EBITDA margins due to wage increases and reduced business interruption proceeds, which could hinder profitability in the coming year.