Host Hotels Reveals Generous Payout Package: Should You Add HST to Your Holdings?

Host Hotels & Resorts Inc. (HST) just made headlines with a dual-pronged dividend announcement that’s turning heads in the REIT space. The hospitality real estate investment trust revealed plans to distribute an additional 15 cents per share on top of its regular 20-cent quarterly dividend. Combined, these payouts will reach shareholders on January 15, 2026, for those holding stock as of December 31, 2025.

The numbers tell an compelling story. With this new payout structure, Host Hotels’ total annual dividends now hit 95 cents per share. Based on the December 11 closing price of $18.13, this translates into an attractive annualized yield of 5.24%—a meaningful return in today’s investment landscape. Over the past five years, HST has upped its dividend eight separate times, boasting an impressive 47.73% annualized growth rate in payouts.

Why REITs Distribute Special Dividends

Special dividend payouts serve a specific purpose in the REIT world. When these companies realize gains from selling assets, they often distribute those profits as special dividends to shareholders while minimizing their own tax burden. U.S. regulations mandate that REITs pass along at least 90% of their taxable income to investors annually through dividends—a feature that makes them attractive for income-focused portfolios.

The Investment Case for HST: Fundamentals in Lodging Operations Look Promising

Host Hotels operates a premium portfolio of luxury and upper-upscale properties across America’s most desirable markets and the booming Sunbelt region. The company’s fundamentals in lodging operations have strengthened considerably. Recent quarters show steady improvement in transient customer demand, driving occupancy rates higher and boosting revenue per available room (RevPAR) metrics.

Beyond operational momentum, HST’s management team continues executing aggressive asset recycling strategies that position the company for sustained long-term growth. The balance sheet reflects financial discipline: the company maintained $2.2 billion in total available liquidity as of Q3 2025.

What sets Host Hotels apart from competitors? It stands alone among lodging REITs with an investment-grade credit rating. Moody’s assigned a Baa2/Stable rating, while S&P Global and Fitch awarded BBB-/Stable and BBB/Stable ratings respectively. These ratings provide meaningful advantages when accessing debt markets at competitive rates.

Performance metrics further validate the investment thesis. Host Hotels generated a trailing 12-month return on equity of 11.11%—substantially outpacing the industry average of 2.71%. This gap demonstrates management’s superior effectiveness in deploying shareholder capital compared to peer companies.

Should You Buy HST Now?

The combination of strong operational momentum, fortress-like balance sheet strength, and attractive income generation suggests HST deserves consideration for your portfolio. Over the past three months, the stock has appreciated 2.7% while the broader lodging industry declined 0.6%. Currently ranked as a Zacks #2 (Buy), Host Hotels appears well-positioned to capitalize on near-term opportunities.

Alternative REIT Opportunities

For investors evaluating similar income opportunities, Welltower (WELL) and Cousins Properties (CUZ) also merit attention, each holding Zacks #2 rankings. Welltower’s 2025 funds from operations (FFO) per share consensus estimate stands at $5.25, representing 21.5% year-over-year growth. Cousins Properties shows 2025 FFO estimates of $2.84 per share, indicating a 5.6% increase from the prior year.

FFO, a standard metric for evaluating REIT performance, represents funds available for distributions after covering operating expenses and capital maintenance—distinct from traditional earnings metrics used for other stock sectors.