PK - Host Hotels & Resorts: Probably The Best House In A Bad Neighborhood

2024-04-22 10:05:01 ET

Summary

• Despite the generally unattractive nature of the travel industry, particularly affected by economic cycles and competition, Host Hotels & Resorts is probably one of the best lodging REITs.
• Host Hotels has demonstrated resilience with healthy profit margins, a strategic buyback program, and significant returns on sustainability investments, outperforming many of its peers even in challenging conditions.
• Looking ahead, Host Hotels expects continued revenue growth per available room but faces potential pressures on margins due to rising costs. The company also faces competition from alternative accommodation providers.

The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines. Here a durable competitive advantage has proven elusive ever since the days of the Wright Brothers. - Warren Buffett

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