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Host Hotels & Resorts Down to Sell on Market Concerns - Analyst Blog

On Apr 15, Zacks Investment Research downgraded Host Hotels & Resorts, Inc. HST to a Zacks Rank #4 (Sell).

Why the Downgrade?

Though supply of new properties in the West Coast is low, higher supply in the East Coast has considerably dented the revenue per available room (RevPAR) of the company’s properties in the recent quarters.

Moreover, going forward, growth in the company’s New York and Washington D.C. markets remains challenged amid increased supply in both markets as well as renovation activity in Washington, D.C. Further, disruption in travel due to severe snowstorms in the Northeast region is anticipated to impact RevPAR growth in New York for first-quarter 2015.

Apart from this, the strengthening of the U.S. dollar might negatively impact the company’s international properties, affecting RevPAR as well as EBITDA reaped from those hotels. Interest rate issues also add to our concerns. Nevertheless, the company boasts a solid portfolio of upscale hotels across vibrant markets and its West Coast market remains attractive.

Reflecting similar sentiments, over the past 30 days, the Zacks Consensus Estimates for both 2015 and 2016 edged down a cent to $1.54 and $1.69 per share, respectively.

Other Stock Picks

Investors interested in the REIT industry may consider better-ranked stocks like Ashford Hospitality Prime, Inc. AHP, Chesapeake Lodging Trust CHSP and Hospitality Properties Trust HPT. All these stocks hold a Zacks Rank #2 (Buy).


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HOST HOTEL&RSRT (HST): Free Stock Analysis Report
 
CHESAPEAKE LODG (CHSP): Free Stock Analysis Report
 
HOSPITALITY PRP (HPT): Free Stock Analysis Report
 
ASHFORD HOSP PR (AHP): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

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