Host Hotels & Resorts (HST): Assessing Valuation After Strong Q3 Earnings Beat and Raised Guidance

Host Hotels & Resorts (HST) just posted third quarter results that surpassed expectations, showing impressive gains in both earnings and revenue per available room. Net income jumped, supported by property sales and strong resort performance.

See our latest analysis for Host Hotels & Resorts.

Host Hotels & Resorts’ upbeat third-quarter numbers sparked a sharp rally, with an 11.4% seven-day share price return and a solid 16.2% gain over the past three months. Recent earnings strength and portfolio upgrades have revived momentum for the stock, which has delivered a 4.7% total shareholder return over the past year and a remarkable 59.8% total return over five years.

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But with shares rallying after such a strong earnings beat and upgraded outlook, investors are left to wonder if Host Hotels & Resorts is still undervalued or if future growth is already reflected in the stock price.

Most Popular Narrative: 5.4% Undervalued

Host Hotels & Resorts' most widely followed narrative assigns a fair value of $18.86 per share, modestly above the last close of $17.84. This small valuation gap signals that, at least by prevailing analyst assumptions, the stock’s current price is slightly lagging behind measured expectations for future growth.

The company's strategic focus on upgrading and repositioning premium assets in top markets, exemplified by substantial ROI from major renovations and development projects, continues to enhance RevPAR index and property values. This signals a strong runway for RevPAR-led earnings growth as consumer demand for high-end urban and resort experiences rises.

Read the complete narrative.

Want to see what's powering this price target? Analysts are projecting a dynamic blend of disciplined reinvestment, changing travel behavior, and an earnings forecast that could rival industry leaders. Which one swings the fair value most? Read the complete breakdown to uncover which financial lever shapes the whole thesis.

Result: Fair Value of $18.86 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, concerns about weaker business travel and mounting climate-related costs could challenge Host Hotels & Resorts’ current momentum if conditions shift unexpectedly.

Find out about the key risks to this Host Hotels & Resorts narrative.

Build Your Own Host Hotels & Resorts Narrative

If the story doesn’t quite fit your perspective, or you'd rather dig into the numbers yourself, try building your own view in just a few minutes. Do it your way

A great starting point for your Host Hotels & Resorts research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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