Host Hotels & Resorts (HST) and Park Hotels & Resorts (PK) are two of the largest hotel REITs in the market, and they differ significantly in size and financial performance.
Host Hotels & Resorts (HST) is much larger, with a market capitalization of approximately $12.59 billion as of October 2024. Over the past 12 months, it generated $5.48 billion in revenue with a net income of $750 million, resulting in a profit margin of around 13.69%. HST owns 77 luxury and upscale hotel properties, primarily in the U.S., and focuses on high-end brands like Marriott, Ritz-Carlton, and Westin. It also has a substantial portfolio of 42,300 rooms
Park Hotels & Resorts (PK) is smaller, with a market capitalization of $2.985 billion. Over the past year, it earned $2.66 billion in revenue and posted a net income of $306 million. PK’s portfolio consists of high-quality hotels, mostly Hilton- and Marriott-branded, with significant operations across the U.S. However, its profit margin is lower than Host’s, at about 2.93%, indicating less operational efficiency
In terms of scale and profitability, Host Hotels & Resorts has a clear advantage due to its larger portfolio and better margins. Park Hotels remains a strong player with a focus on premium hotels.
Here’s a comparison between Host Hotels & Resorts (HST) and Park Hotels & Resorts (PK) based on stock ratios, dividend yields, and growth metrics:
1. Price-to-Earnings Ratio (P/E):
- Host Hotels (HST):
- Trailing P/E: 16.94
- Forward P/E: 19.64Stock Analysis
- Park Hotels (PK):
- Trailing P/E: 10.01
- Forward P/E: 12.35FinanceCharts
Analysis: Park Hotels has a lower P/E ratio, indicating it might be considered more attractively priced relative to its earnings compared to Host. However, HST’s higher P/E reflects the premium investors might pay for its better margins and profitability.
2. Dividend Yield:
- Host Hotels (HST): Dividend yield is 3.46%Stock Analysis
- Park Hotels (PK): Dividend yield is 6.89%FinanceCharts
Analysis: Park Hotels offers a much higher dividend yield, which might attract income-focused investors. However, Host Hotels’ lower yield could indicate more sustainable and moderate payout policies.
3. Revenue Growth (Past Year):
- Host Hotels (HST): Revenue growth of approximately +13.06% over the past 12 monthsStock Analysis.
- Park Hotels (PK): Limited data on recent revenue growth, but the company’s 5-year total return stands at -18.35%, indicating a struggle in past performanceFinanceCharts.
Analysis: Host Hotels shows positive recent growth, benefiting from its premium portfolio and market positioning. Park Hotels, on the other hand, has seen negative long-term returns, possibly due to the challenges in its operational model and lower profitability.
4. Future Growth Prospects:
- Host Hotels (HST): Analysts forecast moderate growth, with its EV/EBITDA ratio of 11.38 signaling a steady financial position and capacity for growthStock Analysis.
- Park Hotels (PK): The Forward P/E ratio of 12.35 suggests expectations for moderate earnings growth in the coming yearsFinanceCharts.
Analysis: Host is seen as having a stronger position due to its higher revenue base and cash flow, while Park is more focused on turnaround efforts and cost management, but its growth prospects are less certain.
Summary:
- HST is larger, with stronger revenue growth and profitability metrics, though its dividend yield is lower. It is more expensive in terms of P/E ratio, reflecting the quality of its assets and premium branding.
- PK offers a higher dividend yield and a more attractive valuation based on its lower P/E ratio. However, its revenue growth has been slower, and future growth expectations are less robust than Host Hotels.
Host Hotels is better positioned for growth and stability, while Park Hotels appeals more to income investors due to its higher dividend yield.
BUY, SELL, KEEP 
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