Update shared on 20 Nov 2025
Fair value Increased 3.61%Analysts have increased their price target for Host Hotels & Resorts from $18.86 to $19.54 per share, citing stronger than expected revenue growth, higher profit margins, and raised company guidance following robust recent results.
Analyst Commentary
Recent Street research has provided further detail on the drivers behind the revised price target for Host Hotels & Resorts, focusing on both positive developments and potential concerns.
Bullish Takeaways- Bullish analysts point to outperformance in Q2 revenue per available room (RevPAR) and EBITDA, both of which significantly exceeded market expectations.
- The company raised its fiscal 2025 guidance above prior estimates, signaling confidence in continued demand and operational execution.
- Stronger profit margins were attributed to efficient cost management and favorable market conditions. This supports higher valuations.
- Consistent delivery on key operational metrics enhances perceptions of sustainable growth and justifies upward price target revisions.
- Bearish analysts maintain a neutral stance due to the current valuation, suggesting that much of the good news may already be reflected in the share price.
- Ongoing macroeconomic uncertainties and potential fluctuations in travel demand could impact future revenue growth momentum.
- There are concerns that profit margins may face headwinds if cost pressures rise in upcoming quarters.
What's in the News
- The company has updated its financial guidance for Q4 and the full year 2025, now expecting low single-digit RevPAR growth for the quarter and improved full-year guidance. This update is attributed to robust performance so far. (Key Developments)
- Estimated RevPAR growth in October reached 5.5%, contributing to optimism for continued strong results. (Key Developments)
- For the year, revised guidance includes comparable hotel RevPAR growth of about 3% and total RevPAR growth of 3.4% compared to 2024 expectations. (Key Developments)
- Host Hotels & Resorts was recently removed from the FTSE All-World Index (USD), which may affect certain index-tracking investments. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $18.86 to $19.54 per share, reflecting a modest uptick in fair value expectations.
- Discount Rate has increased marginally from 7.77% to 7.94%, indicating a subtle adjustment in risk assessment.
- Revenue Growth projections have improved from 1.94% to 2.11%, suggesting a more optimistic outlook for future sales growth.
- Net Profit Margin has risen from 11.07% to 11.86%, highlighting expectations for improved profitability.
- Future P/E ratio has decreased modestly from 22.17x to 21.40x, signaling a slight adjustment in anticipated valuation multiples.
Disclaimer
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