Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Host Hotels & Resorts had a gross margin of 54.89% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Host Hotels & Resorts Gross Margin % Related Terms
Host Hotels & Resorts Gross Margin % Historical Data
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The historical data trend for Host Hotels & Resorts's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:HST vs RHP, APLE, PK: Gross Margin % Comparison
For the REIT - Hotel & Motel subindustry, Host Hotels & Resorts's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Host Hotels & Resorts Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Host Hotels & Resorts's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Host Hotels & Resorts's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Host Hotels & Resorts (MEX:HST) has a Gross Margin % of 54.89% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Host Hotels & Resorts and its competitors. This is near median its historical median of 52.26. Over the past decade, Host Hotels & Resorts' Gross Margin % has ranged from 30.06 to 55.23. According to the industry distribution chart, Host Hotels & Resorts ranks #552 out of 680 companies in the REITs industry, placing it in the top 81.2%.
Is Host Hotels & Resorts' Gross Margin % too high?
Host Hotels & Resorts' current Gross Margin % of 54.89% is near median its 10-year median of 52.26. Over the past 10 years, this metric has ranged from a low of 30.06 to a high of 55.23. The REITs industry median Gross Margin % is 69.61. Host Hotels & Resorts' value of 54.89% is 21.1% below this industry median. Based on the distribution chart, Host Hotels & Resorts ranks #552 out of 680 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Host Hotels & Resorts has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Host Hotels & Resorts' Gross Margin % compare to RHP and APLE?
According to the REITs industry distribution chart, Host Hotels & Resorts ranks #552 out of 680 companies for Gross Margin %. This places Host Hotels & Resorts in the lower half of its industry. The industry median Gross Margin % is 69.61. Host Hotels & Resorts' value of 54.89% is 21.1% below this benchmark. Historically, Host Hotels & Resorts' own Gross Margin % has ranged from 30.06 to 55.23 over the past decade. While the company's 10-year median is 52.26 vs. the industry median of 69.61, Host Hotels & Resorts has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a REITs company?
The median Gross Margin % among REITs companies is 69.61, based on 680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Host Hotels & Resorts's current Gross Margin % of 54.89% is 21.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Host Hotels & Resorts and its competitors. For the REITs industry, the median Gross Margin % is 69.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Host Hotels & Resorts's current Gross Margin % is 54.89%, which is near median its own 10-year median of 52.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Host Hotels & Resorts stock overvalued right now?
Host Hotels & Resorts (MEX:HST) has a current Gross Margin % of 54.89%. The stock's GF Value™ is MXN260.68, compared to a current price of MXN306.34 — trading 17.5% above its estimated fair value. The current Gross Margin % is 54.89%, which is near median its 10-year median of 52.26 and 21.1% below the REITs industry median of 69.61. Host Hotels & Resorts' overall GF Score™ is 79/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Host Hotels & Resorts (MEX:HST), the current Gross Margin % is 54.89% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Host Hotels & Resorts (MEX:HST) Overvalued in 2026?
Based on GuruFocus' analysis, Host Hotels & Resorts stock appears to be overvalued.
The current stock price of MXN306.34 is trading 17.5% above its estimated GF Value™ of MXN260.68.
Key valuation signals for MEX:HST:
Gross Margin %: 54.89% (near median its 10-year median of 52.26)
GF Value™: MXN260.68 vs. price of MXN306.34 (17.5% above fair value)
Industry Position: 21.1% below the REITs median (#552 of 680)
No single metric tells the full story. See the MEX:HST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Host Hotels & Resorts owns 78 predominantly urban and resort upper-upscale and luxury hotel properties representing over 42,000 rooms, mainly in the United States. Host sold off the company's interests in a joint venture owning a portfolio of hotels throughout Europe and also sold other joint ventures that owned properties in Asia and the United States. The majority of Host's portfolio operates under the Marriott and Starwood brands.
79GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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