Host Hotels & Resorts(US:HST) ZACKS·2025-12-01 18:11Core Viewpoint - Host Hotels & Resorts Inc. (HST) is well-positioned for growth due to improved group travel and business transient demand, a strong portfolio of luxury and upper-upscale hotels, and effective capital-recycling efforts [1][6]. Group 1: Financial Performance - The Zacks Consensus Estimate for HST's 2025 funds from operations (FFO) per share has increased by 4 cents to $2.04, indicating solid fundamentals and positive estimate revisions [2]. - Over the past six months, HST shares have gained 14.1%, outperforming the industry average increase of 3.2% [2]. Group 2: Market Position and Demand - HST has a strong presence in the top 21 U.S. markets and significant exposure in the Sunbelt region, with properties located in central business districts and near airports, driving demand [4]. - The company has experienced growth in occupancy and revenue per available room (RevPAR) due to improved group and transient demand, with expectations of approximately 3% RevPAR growth in 2025 [5][6]. Group 3: Capital Management - HST has disposed of $1.8 billion in non-strategic assets and invested $3.3 billion into higher-yield opportunities since 2021, demonstrating prudent capital-management practices [6][7]. - The company maintains a healthy balance sheet with $2.2 billion in liquidity and holds investment-grade ratings from major credit agencies, allowing access to favorable debt market conditions [8]. Group 4: Return on Equity and Dividends - HST's trailing 12-month return on equity is 11.11%, significantly higher than the industry average of 2.71%, indicating efficient use of shareholders' funds [9]. - The company has reinstated its dividend payments, matching pre-pandemic levels of 20 cents per share, and has increased its dividend eight times in the last five years, reflecting strong shareholder confidence [10][11].