Should You Invest in Host Hotels & Resorts (HST)?

Baron Funds, an investment management company, released its “Baron Real Estate Income Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund decreased 0.23% (Institutional Shares) in the quarter compared to a 1.46% decline for the MSCI US REIT Index (the REIT Index). Since its inception on December 29, 2017, through June 30, 2025, the Fund achieved a cumulative return of 87.02%, more than double the 35.45% return of the REIT Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Real Estate Income Fund highlighted stocks such as Host Hotels & Resorts, Inc. (NASDAQ:HST). Host Hotels & Resorts, Inc. (NASDAQ:HST) is a leading lodging real estate investment trust. The one-month return of Host Hotels & Resorts, Inc. (NASDAQ:HST) was 6.97%, and its shares lost 4.36% of their value over the last 52 weeks. On August 8, 2025, Host Hotels & Resorts, Inc. (NASDAQ:HST) stock closed at $15.35 per share, with a market capitalization of $10.69 billion.

Baron Real Estate Income Fund stated the following regarding Host Hotels & Resorts, Inc. (NASDAQ:HST) in its second quarter 2025 investor letter:

"In the most recent quarter, we acquired shares in Host Hotels & Resorts, Inc. (NASDAQ:HST), the world’s largest lodging REIT. We have a favorable view of the company because it owns and operates a large portfolio of premier hotels in attractive geographic markets that should generate strong growth over time. Management maintains a strong and liquid investment grade balance sheet. We view the company’s current valuation as compelling."

Host Hotels & Resorts, Inc. (NASDAQ:HST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Host Hotels & Resorts, Inc. (NASDAQ:HST) at the end of the first quarter, which was 24 in the previous quarter. While we acknowledge the potential of Host Hotels & Resorts, Inc. (NASDAQ:HST) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Host Hotels & Resorts, Inc. (NASDAQ:HST) and shared the list of best REIT stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.