Host Hotels & Resorts

Methodology

This EPS-based method has fundamental limitations for Host Hotels as a lodging REIT, since depreciation distorts reported earnings despite hotels potentially appreciating in value. The company's premium hotel properties generate cyclical cash flows from business and leisure travel. Investors should use FFO or AFFO-based models that better capture hotel operating cash flows and normalize for occupancy and rate cycles.

Methodology

Traditional PEG analysis is problematic for Host Hotels given GAAP depreciation that doesn't reflect economic reality of well-located hotel real estate. If using PEG, substitute FFO or AFFO growth for EPS growth. Even then, hotel REITs are highly cyclical—valuation depends more on RevPAR trends, asset quality, and travel demand positioning than earnings-based growth multiples.

Methodology

Host Hotels' meaningful dividend yield represents an important component of total return for a lodging REIT, though dividends fluctuate with hotel operating performance. The company balances current income with capital recycling into higher-quality properties. PEGY provides context, though for hotel REITs, RevPAR growth trajectories, asset locations, and travel cycle positioning matter more than simple dividend-adjusted earnings metrics.