Host Hotels & Resorts (HST): Evaluating Valuation After $400 Million Debt Move and Analyst Downgrade

Host Hotels & Resorts (HST) has drawn attention after it announced a $400 million senior notes offering. This decision could reshape its capital structure and affect investor perception. The announcement comes after a recent analyst downgrade, even though the company reported positive earnings results.

See our latest analysis for Host Hotels & Resorts.

Host Hotels & Resorts has seen its share price gather momentum recently, posting a 10% gain over the past month after news of its $400 million notes offering and a top executive's share sale. While short-term price moves have been positive, the total shareholder return over the past year stands at just 1.3%. This reminds investors that long-term gains have been more modest despite upbeat earnings and bold financial moves.

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With shares recently rallying, but analysts lowering their outlook even after strong results, the key question emerges: is Host Hotels & Resorts undervalued at current levels, or are investors already anticipating future gains in the price?

Most Popular Narrative: 9.8% Undervalued

The most followed narrative puts Host Hotels & Resorts’ fair value at $19.54, which is notably above the recent close of $17.63. This gap signals expectations for substantial upside, resting on upgraded company guidance and future profit improvements.

The ongoing rebound and expansion in leisure and experiential travel is driving outsized transient demand at Host's luxury and upper-upscale resorts. This is evidenced by double-digit RevPAR and F&B growth at destinations like Maui and Miami. As travel preferences continue tilting toward experiences, this trend is expected to support above-average revenue and margin growth over the long term.

Read the complete narrative.

Want to know the financial engine powering this valuation? The answer lies in the bullish forecast for future profits, a shrinking share count, and a premium earnings multiple that rivals growth sectors. Curious how analyst expectations translate into this price? Find out what’s fueling the optimism in the full narrative.

Result: Fair Value of $19.54 (UNDERVALUED)

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

However, ongoing headwinds in business travel and exposure to climate-related risks could challenge Host Hotels & Resorts' outlook if trends shift in an unfavorable direction.

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

Build Your Own Host Hotels & Resorts Narrative

If you think there’s more to the story or want to explore the numbers in your own way, you can easily create a custom narrative 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 5 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.