Host Hotels & Resorts Inc

Host Hotels & Resorts raised its full-year 2026 RevPAR growth guidance by 125 basis points at the midpoint to a range of 4.75% to 5.25% after second-quarter comparable hotel RevPAR climbed 7% to $251.53. CEO James Risoleo attributed the strength to luxury resort demand and high-profile events, with transient revenue up 6.9% to $559 million and group room revenue up 7.4% to $332 million on 1.1 million room nights sold. The World Cup added roughly 160 basis points to quarterly RevPAR growth, and Maui RevPAR rose 14% as occupancy gained more than 8 percentage points. CFO Sourav Ghosh cautioned that margin comparisons will moderate in the second half as rate growth slows and tailwinds fade, while a Kona low rainstorm is expected to cause $27 million to $32 million in property damage and the Four Seasons condo development at Walt Disney World saw its 2026 EBITDA guidance trimmed to $16 million to $20 million from $20 million to $25 million. The company also paid a $0.72 per share special dividend in July on top of its regular $0.20 payout, funded in part by a $500 million gain from selling its Four Seasons resorts, with leverage at 2.2 times.

Host Hotels & Resorts reported second-quarter 2026 comparable hotel RevPAR growth of 7.0% and comparable hotel Total RevPAR growth of 5.9%, driven by strong leisure transient demand, group business, and a boost from the FIFA World Cup. The company raised its full-year 2026 comparable hotel Total RevPAR and RevPAR growth guidance ranges to 4.75% to 5.25%. GAAP net income was $241 million, a 7.1% increase from the prior year, while Adjusted EBITDAre rose 5.8% to $525 million. The company also declared a second-quarter dividend of $0.92 per share, including a $0.72 special dividend tied to gains from Four Seasons sales.

Zacks Equity Research has identified Host Hotels & Resorts, Realty Income, and Simon Property Group as three real estate investment trusts with the potential to deliver positive earnings surprises this season. Host Hotels carries a Zacks Rank #2 and an Earnings ESP of +1.48%, with consensus estimates pointing to quarterly revenues of $1.62 billion and adjusted funds from operations per share of 62 cents. Realty Income also holds a Zacks Rank #2 and an Earnings ESP of +0.92%, with consensus revenues of $1.54 billion and AFFO per share of $1.09. Simon Property Group has a Zacks Rank #3 and an Earnings ESP of +0.39%, with consensus revenues of $1.71 billion and funds from operations per share of $3.18. All three companies are scheduled to report second-quarter results in early August, and Zacks notes that the combination of a favorable rank and a positive Earnings ESP has historically indicated a roughly 70% chance of an earnings beat.

Host Hotels & Resorts is scheduled to release second-quarter 2026 earnings on August 5 after market close, with analysts projecting higher revenues and adjusted funds from operations per share. The Zacks Consensus Estimate for quarterly revenues stands at $1.62 billion, implying a 2.2% increase from the prior-year period, while the consensus for AFFO per share has risen to 62 cents over the past month, indicating a 6.90% year-over-year gain. The lodging REIT is expected to benefit from continued recovery in group demand and stable transient and leisure travel, supporting RevPAR growth, with the consensus RevPAR estimate at $244.77 compared to $239.64 a year ago. However, the average occupancy rate is forecast to decline to 72.09% from 73.80%, and elevated interest expenses are anticipated to weigh on bottom-line growth. Host Hotels carries a Zacks Rank of 2 and an Earnings ESP of +1.48%, suggesting a likely AFFO beat based on the quantitative model.

Host Hotels & Resorts has raised its full-year guidance for comparable hotel RevPAR and EBITDAre, tying expectations more closely to travel demand and the company's exposure to the 2026 FIFA World Cup. The stock has returned 7.62% over the past 30 days and 75.13% over the past year. Analysts have a consensus price target of $24.50, slightly below the last close of $25.13, implying the stock is about 3% overvalued, though the most bullish target is $28.00 and the most bearish is $21.00. The company trades at a P/E of 17x, compared with a peer average of 42.5x and a fair ratio of 28.1x, suggesting a different valuation story. Rising capital and labor costs, as well as exposure to extreme weather events, remain key risks.

Host Hotels & Resorts received price target increases from two analysts, with Argus raising its target to $27 from $20 and Ladenburg lifting its to $28 from $25, both maintaining Buy ratings. Argus analyst Marie Ferguson cited the World Cup as a potential catalyst, forecasting a boost of up to 60 basis points in revenue per available room. The REIT reported first-quarter 2026 adjusted funds from operations of $0.67 per share, up 4.7% from $0.64 a year earlier, while earnings per share of $0.72 and revenue of $1.65 billion both exceeded consensus estimates. Ladenburg noted that RevPAR gains have surpassed expectations, though its outlook remains modest.

Host Hotels & Resorts shares have surged 59% over the past year, dramatically outperforming the broader real estate sector. The stock is trading just 1.4% below its 52-week high of $25.36, with a 31.2% gain over the past three months compared to a 4.4% rise in the State Street Real Estate Select Sector SPDR ETF. Year-to-date, Host Hotels has returned 41.1% versus the ETF's 8.7%, and first-quarter revenue rose 3.2% to $1.65 billion while adjusted funds from operations per share reached $0.67, beating estimates. Analysts maintain a consensus Moderate Buy rating with a Street-high target of $28, implying further upside.