After an impressive showing in its most recent quarterly report, Host Hotels (HST) continues to warrant a Buy rating from Zacks senior REIT [real estate investment trust] analyst Greg Sukenik. From his latest research report we garnered these details:

HST reported another strong quarter, as trends in the hospitality sector are encouraging. Improved demand resulted in increased average room rates in most of the company's markets. 2nd quarter FFO [funds from operations] was in line with our estimates. We expect HST's upscale portfolio to see continued growth in 2007, as the company continues to benefit from increased business and leisure spending which is picking up at a healthy pace.

We expect the rest of 2007 to be good for hotel REITs; the economy remains strong and people continue to travel. On a P/FFO basis, the stock is attractively valued compared to other, overpriced REIT sectors.

Currently, HST is valued at 12.7x our 2007 FFO estimates and a 17% premium to sector averages. Considering its impressive quarter and potential for continued growth, HST should trade at a higher premium than its competitors. The company s recent acquisitions, including the Starwoods portfolio are performing well, and we are anticipating 20%+ overall FFO growth in 2007.