Nomura Securities Maintains a 'Neutral' on Host Hotels (HST); Accelerating Into 2013
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Price: $22.90 +0.66%
Rating Summary:
17 Buy, 18 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
17 Buy, 18 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Host Hotels (NYSE: HST) price target raised from $16 to $17.
Analyst, Harry Curtis, said, "Although 2012 RevPAR should be up close to 7%, comp hotel margins are only expected to increase 50-100bp. There are several factors contributing to the slower margin growth: 1) occupancy gains do not drive margins as quickly as ADR increases, 2) HST is doing more F&B business, which has lower margin than room revenue, 3) Both property tax and insurance costs have increased ~8% this year. In addition, healthy REIT valuations, low borrowing costs, and improving debt markets should increase hotel transitions in 2H 12. Although we are increasing our price target to $17 owing to higher 2012E EBITDA, we remain Neutral owing to the valuation. HST trades at 13.6x our 2012 and 11.8x our 2013 EBITDA estimates."
For an analyst ratings summary and ratings history on Host Hotels click here. For more ratings news on Host Hotels click here.
Shares of Host Hotels closed at $16.61 yesterday.
Analyst, Harry Curtis, said, "Although 2012 RevPAR should be up close to 7%, comp hotel margins are only expected to increase 50-100bp. There are several factors contributing to the slower margin growth: 1) occupancy gains do not drive margins as quickly as ADR increases, 2) HST is doing more F&B business, which has lower margin than room revenue, 3) Both property tax and insurance costs have increased ~8% this year. In addition, healthy REIT valuations, low borrowing costs, and improving debt markets should increase hotel transitions in 2H 12. Although we are increasing our price target to $17 owing to higher 2012E EBITDA, we remain Neutral owing to the valuation. HST trades at 13.6x our 2012 and 11.8x our 2013 EBITDA estimates."
For an analyst ratings summary and ratings history on Host Hotels click here. For more ratings news on Host Hotels click here.
Shares of Host Hotels closed at $16.61 yesterday.
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