Book: Host Hotels & Resorts
Host Hotels & Resorts (HST) is a real estate investment trust that invests in premium upscale and luxury properties such as the Four Seasons, Fairmont Hotels and Resorts and the Ritz-Carlton, in partnership with major brands. The trust most recently acquired the 426-room Hyatt Place Waikiki Beach in Honolulu for $138.5 million.
HST is attractive on a valuation standpoint — its forward price-to-earnings ratio of 12 is below the sector average of 15, and price/earnings-to-growth is 0.95, also indicating it’s slightly undervalued. It also yields a modest 2.3% in dividends.
But it’s Host’s focus on high-end properties — markets that are experiencing the most robust profit margin growth right now — that really puts HST in the sweet spot of the hospitality industry.