NYSE:HST

Stock Analysis Report

Executive Summary

Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels.

Rewards

Trading at 32.2% below its fair value

Earnings grew by 30.5% over the past year

Pays a high and reliable dividend of 4.81%

Risk Analysis

Earnings are forecast to decline by an average of -29.8% per year for the next 3 years

Large one-off items impacting financial results



Snowflake Analysis

6 star dividend payer and undervalued.


Similar Companies

Share Price & News

How has Host Hotels & Resorts's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HST has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

HST

0.9%

US REITs

0.6%

US Market


1 Year Return

2.8%

HST

18.9%

US REITs

24.6%

US Market

Return vs Industry: HST underperformed the US REITs industry which returned 17.9% over the past year.

Return vs Market: HST underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

HSTIndustryMarket
7 Day-0.7%0.9%0.6%
30 Day-6.3%3.9%3.0%
90 Day4.3%0.1%10.6%
1 Year7.7%2.8%23.8%18.9%27.3%24.6%
3 Year8.8%-5.2%35.5%18.4%50.5%40.8%
5 Year-5.8%-25.4%46.8%16.5%78.9%59.1%

Price Volatility Vs. Market

How volatile is Host Hotels & Resorts's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Host Hotels & Resorts undervalued compared to its fair value and its price relative to the market?

33.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HST ($17.68) is trading below our estimate of fair value ($26.09)

Significantly Below Fair Value: HST is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HST is good value based on its PE Ratio (11.4x) compared to the REITs industry average (37.8x).

PE vs Market: HST is good value based on its PE Ratio (11.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: HST's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HST is good value based on its PB Ratio (1.7x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Host Hotels & Resorts forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

-29.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HST's earnings are forecast to decline over the next 3 years (-29.8% per year).

Earnings vs Market: HST's earnings are forecast to decline over the next 3 years (-29.8% per year).

High Growth Earnings: HST's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HST's revenue is expected to decline over the next 3 years (-2.4% per year).

High Growth Revenue: HST's revenue is forecast to decline over the next 3 years (-2.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HST's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

  • Explore growth companies in the Real Estate industry.

Past Performance

How has Host Hotels & Resorts performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HST has a large one-off gain of $582.0M impacting its September 30 2019 financial results.

Growing Profit Margin: HST's current net profit margins (20.7%) are higher than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: HST's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: HST's earnings growth over the past year (30.5%) exceeds its 5-year average (10.8% per year).

Earnings vs Industry: HST earnings growth over the past year (30.5%) exceeded the REITs industry 8.1%.


Return on Equity

High ROE: HST's Return on Equity (15.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Host Hotels & Resorts's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HST has a high level of physical assets or inventory.

Debt Coverage by Assets: HST's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: HST's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if HST has a sufficient allowance for bad loans.

Low Risk Liabilities: HST reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if HST has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HST has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if HST has an appropriate level of bad loans.


Next Steps

Dividend

What is Host Hotels & Resorts's current dividend yield, its reliability and sustainability?

4.85%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: HST's dividend (4.81%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: HST's dividend (4.81%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: HST's dividends per share have been stable in the past 10 years.

Growing Dividend: HST's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.6%), HST's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HST's dividends in 3 years are forecast to be thoroughly covered by earnings (0.07% payout ratio).


Next Steps

Management

What is the CEO of Host Hotels & Resorts's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Jim Risoleo (63yo)

3yrs

Tenure

US$7,981,175

Compensation

Mr. James F. Risoleo , also known as Jim, serves as the President, Chief Executive Officer and Member of the Board of Directors of Host Hotels & Resorts Inc Since January 2017. Mr. Risoleo has been an Inde ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD7.98M) is about average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.0yrs

Average Tenure

57yo

Average Age

Experienced Management: HST's management team is considered experienced (3 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

64yo

Average Age

Experienced Board: HST's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

Insider Buying: HST insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$2,965,20920 Dec 19
Richard Marriott
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares160,195
Max PriceUS$18.51
BuyUS$4,73214 Jun 19
Michael Lentz
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Development
Shares248.14
Max PriceUS$19.07
SellUS$33,23907 May 19
Nathan Tyrrell
EntityIndividual
Role
Chief Investment Officer
Executive VP & Chief Investment Officer
Shares1,685
Max PriceUS$19.73
SellUS$364,22207 Mar 19
Michael Bluhm
EntityIndividual
Role
Senior Key Executive
Senior Advisor
Shares18,360
Max PriceUS$19.84

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jim Risoleo (63yo)

    President

    • Tenure: 3yrs
    • Compensation: US$7.98m
  • Brian MacNamara (59yo)

    Senior VP

    • Joanne Hamilton (61yo)

      Executive Vice President of Human Resources

      • Tenure: 10yrs
      • Compensation: US$1.89m
    • Gee Lingberg

      Senior VP of Investor Relations & Treasurer

      • Jeff Clark

        Senior Vice President of Global Tax & Foreign JV Accounting

        • Nate Tyrrell (46yo)

          Executive VP & Chief Investment Officer

          • Tenure: 3yrs
          • Compensation: US$2.93m
        • Sukhvinder Singh

          Senior Vice President of Information Technology

          • Mike Lentz (55yo)

            Executive Vice President of Development

            • Tenure: 3.8yrs
          • Michael Bluhm (49yo)

            Senior Advisor

            • Tenure: 0.08yrs
            • Compensation: US$3.69m
          • Julie Aslaksen

            Executive VP

            • Tenure: 0.2yrs

          Board Members

          • Richard Marriott (80yo)

            Chairman of the Board

            • Tenure: 27yrs
            • Compensation: US$903.00k
          • Jay Morse (72yo)

            Independent Director

            • Tenure: 16.5yrs
            • Compensation: US$264.36k
          • Walt Rakowich (61yo)

            Independent Director

            • Tenure: 7.8yrs
            • Compensation: US$325.80k
          • Ann Korologos (77yo)

            Independent Director

            • Tenure: 27yrs
            • Compensation: US$262.71k
          • Jim Risoleo (63yo)

            President

            • Tenure: 3yrs
            • Compensation: US$7.98m
          • Sandeep Mathrani (57yo)

            Independent Director

            • Tenure: 3.5yrs
            • Compensation: US$241.75k
          • Mary Baglivo (61yo)

            Independent Director

            • Tenure: 6.5yrs
            • Compensation: US$306.67k
          • Sheila Colleen Bair (65yo)

            Independent Director

            • Tenure: 7.3yrs
            • Compensation: US$287.01k
          • Gordon Smith (66yo)

            Lead Independent Director

            • Tenure: 0.8yrs
            • Compensation: US$294.41k
          • Mary Preusse (50yo)

            Independent Director

            • Tenure: 2.6yrs
            • Compensation: US$290.52k

          Company Information

          Host Hotels & Resorts, Inc.'s company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Host Hotels & Resorts, Inc.
          • Ticker: HST
          • Exchange: NYSE
          • Founded: 1927
          • Industry: Hotel and Resort REITs
          • Sector: Real Estate
          • Implied Market Cap: US$12.752b
          • Market Cap: US$12.565b
          • Shares outstanding: 724.94m
          • Website: https://www.hosthotels.com

          Number of Employees


          Location

          • Host Hotels & Resorts, Inc.
          • 4747 Bethesda Avenue
          • Suite 1300
          • Bethesda
          • Maryland
          • 20817
          • United States

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          HSTNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1968
          HMTDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1968
          0J66LSE (London Stock Exchange)YesCommon StockGBUSDAug 1968
          H1ST34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

          Biography

          Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 75 properties in the United States and five properties internationally totaling approximately 46,500 rooms. The Company also holds non-controlling interests in six domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The Luxury Collection®, Hyatt®, Fairmont®, Hilton®, Swissôtel®, ibis® and Novotel®, as well as independent brands. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/22 23:40
          End of Day Share Price2020/01/22 00:00
          Earnings2019/09/30
          Annual Earnings2018/12/31


          Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.