HST

Host is the largest lodging REIT in the NAREIT index, owning 76 upper-upscale and luxury hotels in the US, Canada and Brazil (per the 10-K). The post-pandemic recovery has matured into steady growth: FY2025 revenue rose 7.6% to $6.11B with net income up 9.8% to $765M and diluted EPS up 11.1% to $1.10, continuing a clean trajectory from a -$11.0M loss in FY2021. Transient business (61% of room sales) and group (34%) are both healthy, and margins are stable (operating margin 14.0%, net margin 12.5%).

The balance sheet is a genuine differentiator for a hotel REIT: liabilities/equity of just 0.96x, $768M cash (+38.6%), and only $1.27B long-term debt. Management is recycling capital well — selling The Westin Cincinnati and Washington Marriott for $237M in 2025, then $1.1B of Four Seasons resorts (Orlando and Jackson Hole) and The St. Regis Houston subsequent to year-end — crystallizing real-estate value while retaining flexibility to buy luxury assets opportunistically. Buybacks rose to $205M (+91.6%) and the dividend ($623M paid) is comfortably covered by $1.51B operating cash flow.