REIT - Hotel & Motel · NASDAQ
Current Price
$24.89
PE Ratio (TTM)
17.0x
Intrinsic Value
$19.15
-30.0% margin of safety
COMPETITIVE MOAT
↑Premium Property Portfolio
Host Hotels & Resorts owns a collection of luxury and upper-upscale hotels in prime locations. This prime real estate provides a competitive advantage in attracting high-spending travelers.
↑Strategic Location Advantage
Their hotels are situated in major travel hubs and destinations. This strategic positioning ensures consistent demand and access to key markets.
↑FIFA World Cup 2026 Positioning
The company is well-positioned to capitalize on the surge in travel demand for the FIFA World Cup 2026. This event-driven demand can boost occupancy and revenue.
INVESTMENT RISKS
↓Intense Industry Competition
The hotel industry is highly competitive, with numerous players vying for market share. Host Hotels faces competition from other REITs, hotel brands, and alternative accommodations like Airbnb.
↓Economic Sensitivity
Hotel performance is closely tied to economic conditions and consumer spending. Downturns can lead to reduced travel and lower occupancy rates.
↓Dependence on Major Events
While events like the FIFA World Cup can be beneficial, over-reliance on such sporadic demand creates revenue volatility. A cancellation or lower-than-expected turnout poses a risk.
Base case
A base case PE valuation for HST estimates a fair value of about $19.15 per share, against a current price of $24.89. The model assumes -2.0% annual earnings growth, a 17x target PE multiple, and a 10% discount rate.
Intrinsic Value
$19.15
Margin of safety
-30.0%
Expected annual return
-5.1%
Base case assumptions: -2.0% annual earnings growth, 17x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Host Hotels & Resorts, Inc. respond.
Open PE Calculator for HSTHost Hotels & Resorts, Inc., a distinguished member of the S&P 500 index, stands as the world's foremost lodging real estate investment trust (REIT) and a leading proprietor of luxury and upper-upscale hotel properties. The company boasts an extensive portfolio comprising roughly 46,100 rooms distributed among 74 locations across the United States and five international sites. Beyond these owned assets, it also holds non-controlling stakes in seven joint ventures—six domestically and one internationally. The firm's operational approach is characterized by a stringent capital allocation methodology and robust asset management tactics. It collaborates with a broad array of esteemed hospitality brands, including Marriott, Ritz-Carlton, Westin, Sheraton, W, St. Regis, The Luxury Collection, Hyatt, Fairmont, Hilton, Swissôtel, ibis, and Novotel, in addition to various independent hotel labels.
PE Ratio (TTM)
17.0x
PEG Ratio
0.33
Earnings Yield
5.87%
ROE (TTM)
15.2%
Revenue/Share (TTM)
$8.90
Dividend Yield
3.82%
Debt/Equity
0.83x
The trailing twelve-month PE ratio of HST reflects how much investors pay per dollar of Host Hotels & Resorts, Inc.'s earnings. This metric is most useful when compared to REIT - Hotel & Motel peers and the company's own historical range.
HST's PE of 17.0x combined with a PEG ratio of 0.33 provides a growth-adjusted perspective. A PEG below 1.0 suggests HST may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical REIT - Hotel & Motel, a DCF analysis may be more appropriate.
To value Host Hotels & Resorts, Inc. using PE: (1) Compare the current PE (17.0x) against the REIT - Hotel & Motel median to assess relative pricing, (2) check the PEG ratio (0.33) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
HST's PEG ratio is 0.33, calculated by dividing the PE ratio (17.0x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
PE ratio gives a quick relative read — how HST is priced versus REIT - Hotel & Motel peers. DCF provides an absolute value based on projected free cash flows. For HST, with a strong ROE of 15.2%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
P/E and DCF value HST with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.