Host Lodges (HST) to Put up Q2 Earnings: What's within the Playing cards?

Host Lodges & Resorts, Inc. HST is scheduled to launch second-quarter 2022 earnings on Aug 3, after market shut. HST’s quarterly outcomes will doubtless spotlight year-over-year progress in revenues and funds from operations (FFO) per share.

Within the earlier quarter, the Bethesda, MD-based lodging actual property funding belief (REIT) delivered a shock of fifty% by way of adjusted FFO per share. Outcomes had been primarily pushed by a restoration in leisure journey with sturdy charges at resort properties. As well as, the city markets witnessed enhancements, with group revenues growing sequentially.

Over the trailing 4 quarters, Host Lodges’ backside line surpassed estimates on all events, the typical beat being 93.53%. The graph beneath depicts this shock historical past:

Host Lodges & Resorts, Inc. Worth and EPS Shock

Host Hotels & Resorts, Inc. Price and EPS Surprise — Host Lodges & Resorts, Inc. Worth and EPS Shock

Host Lodges & Resorts, Inc. price-eps-surprise | Host Lodges & Resorts, Inc. Quotes

Elements at Play

Host Lodges’ portfolio contains well-positioned properties in markets with sturdy demand mills like central enterprise districts of important cities, near airports and in resort/convention locations. Given the continuing financial restoration and widespread vaccination drives, the lodging trade has resumed its operations in full swing.

Consequently, leisure demand is predicted to have continued to realize tempo within the second quarter as properly. Additionally, HST is prone to have witnessed enchancment within the enterprise transient and group demand throughout the quarter.

Backed by the restoration in demand for HST’s properties, progress in occupancy fee and income per accessible room (RevPAR) is anticipated to have taken place throughout the to-be-reported quarter.

The Zacks Consensus Estimate for common occupancy fee is pegged at 68%, suggesting an enchancment from the prior quarter’s reported determine of 55%. The identical for RevPAR stands at $202, indicating an increase from the March-ended quarter’s $167.

Host Lodges has been making strategic capital allocations to enhance its portfolio high quality and strengthen its place in the USA, with a larger scale and aggressive benefit.

Additional, HST follows a capital-recycling program whereby it disposes of non-core property which have decrease progress potential or properties with vital capital expenditure necessities and makes use of the proceeds so as to add premium properties to its portfolio and spend money on current property. In April 2022, it offered off the Sheraton New York Occasions Sq. Resort for round $373 million. The sale of the 1,780-room resort represented a 28 occasions EBITDA a number of on the 2019 EBITDA.

The Zacks Consensus Estimate for Host Lodges’ second-quarter revenues is presently pegged at $1.3 billion, suggesting a whopping leap of 94.3% from the prior-year interval’s reported determine of $649 million.

The Zacks Consensus Estimate for the quarterly FFO per share has been revised 2.1% upward previously week to 49 cents, suggesting a surge from the year-ago quarter’s reported determine.

Incomes Whispers

Host Lodges has the fitting mixture of the 2 key substances — a constructive Earnings ESP and a Zacks Rank #3 (Maintain) or increased — for growing the chances of an FFO beat.

ESP Earnings: Host Lodges has an Earnings ESP of +9.18%. You’ll be able to uncover one of the best shares to purchase or promote earlier than they’re reported with our Earnings ESP Filter.

Zack Rank: Host Lodges at the moment carries a Zacks Rank of two (Purchase). You’ll be able to see the whole checklist of at the moment’s Zacks #1 Rank (Robust Purchase) shares right here.

Different Shares That Warrant a Look

Listed below are another shares which might be price contemplating from the REIT sector, as our mannequin exhibits that these too have the fitting mixture of components to ship a shock this reporting cycle:

Life Storage LSI is scheduled to report quarterly figures on Aug 3. LSI has an Earnings ESP of +0.09% and a Zacks Rank of three presently.

Fleet Hoffler Properties AHH is scheduled to report quarterly figures on Aug 4. AHH has an Earnings ESP of +4.17% and a Zacks Rank of two, at the moment.

Public Storage PSA is slated to report quarterly numbers on Aug 4. PSA has an Earnings ESP of +0.31% and carries a Zacks Rank of three.

Keep on high of upcoming earnings bulletins with the Zacks Earnings Calendar.

Observe: Something associated to earnings offered on this write-up signify funds from operations (FFO) — a broadly used metric to gauge the efficiency of REITs.

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