10 Most Undervalued Hotel Stocks To Invest In Now

5. Host Hotels & Resorts Inc. (NASDAQ:HST)

Forward P/E: 16.16

Analysts’ Upside Potential: 16.09%

Host Hotels & Resorts Inc. (NASDAQ:HST) is an American real estate investment trust (REIT) that owns a diverse collection of luxury and upper-upscale hotels across the United States and internationally. The company currently manages 76 properties in the US and five abroad, totaling approximately 43,400 rooms. Host Hotels & Resorts Inc. (NASDAQ:HST) ranks among the most undervalued stocks in the hotel industry.

In July 2024, Host Hotels & Resorts Inc. (NASDAQ:HST) made strategic acquisitions, purchasing the 234-room 1 Hotel Central Park for $265 million and the 450-room Ritz-Carlton O’ahu for $680 million. These investments enhance the company’s portfolio and position the company well for future growth.

Recently, the company faced challenges due to Hurricanes Helene and Milton, which struck Florida in September and October 2024. Four properties were temporarily closed due to evacuation orders and power outages, although three have since reopened. The most significant impact was on The Don CeSar, which remains closed with plans for a phased reopening expected by late Q1 2025.

Financially, Host Hotels & Resorts Inc. (NASDAQ:HST) reported a comparable hotel Total RevPAR (Revenue per Available Room) of $328.86 for Q3 2024, showing a 3.1% increase from the same quarter in the previous year. This growth was driven primarily by higher food and beverage revenues from group business and ancillary spending.

HST is currently trading at only 16 times its forward earnings. Host Hotels & Resorts Inc.’s (NASDAQ:HST) strategic acquisitions combined with its cheap valuation contribute to its attractiveness as a hotel stock.