Is Host Hotels & Resorts Stock Underperforming the S&P 500?

Headquartered in Bethesda, Maryland, Host Hotels & Resorts, Inc. (HST) is a leading U.S. real-estate investment trust (REIT) specializing in the ownership and operation of luxury and upper-upscale hotels. The company has a geographically diverse portfolio comprising high-quality hotels across prime U.S. markets. Host Hotels & Resorts has a market capitalization of $11.9 billion.

Companies with a market cap of $10 billion or more are typically recognized as “large-cap stocks,” a classification that reflects their financial strength, stability, and industry influence. Host Hotels & Resorts fits firmly within this category, underscoring its scale and resilience as a premier lodging REIT. This strong positioning not only reinforces Host Hotels & Resorts’ leadership in the hospitality real estate sector but also highlights its ability to deliver consistent performance, capitalize on travel demand trends, and maintain a competitive edge among its peers.

The stock is down by 10.6% from its 52-week high of $19.36, achieved on Dec. 11, 2024. However, shares of the REIT have gained 11.7% over the past three months, outpacing the broader S&P 500 Index’s ($SPX) gains of around 8.4% during the same period.

Longer term, HST is down 1.1% on a year-to-date (YTD) basis, lagging behind $SPX’s 12.3% gains. Meanwhile, the stock has declined 4.9% over the past 52 weeks, compared to the broader benchmark’s 15.4% returns over the same time frame.

The stock has mostly traded below the 50-day and 200-day moving averages over the past year, but has gained some traction lately, trading above the moving averages since mid-August. 

HST stock is pressured due to rising costs impacting margins, broader economic concerns, inflationary pressure, and slower-than-expected recovery in business and group travel demand. While operations show resilience, these headwinds temper growth prospects and limit near-term stock price appreciation.

HST has outperformed its peer, Park Hotels & Resorts Inc.’s (PK) 19.8% drop on a YTD basis and 22.7% plunge over the past 52 weeks.

Meanwhile, HST carries analyst optimism tempered by caution. Among the 17 analysts covering the stock, the consensus rating is a “Moderate Buy.” Plus, the price target of $18.56 suggests a 7.2% upside potential from current price levels.