Host Hotels & Resorts vs. MGM Resorts International: Which Destination Hotel Stock Is a Better Buy in 2026?

Choosing between travel plays depends on whether you prefer asset ownership or global gaming operations. Is Host Hotels & Resorts (NASDAQ:HST) or MGM Resorts International (NYSE:MGM) the better buy for your portfolio?

Host Hotels operates as a real estate investment trust focused on premium properties, while MGM is a global entertainment giant managing casinos and hotels. Both benefit from travel spending, but their business models offer different exposures to the hospitality industry. Comparing them helps clarify whether a landlord or an operator strategy fits your specific financial goals.

The case for Host Hotels & Resorts

For those interested in real estate investing, Host Hotels operates as a real estate investment trust that owns a vast portfolio of luxury and upper-upscale hotels. It currently holds 76 hotels with roughly 41,700 rooms in top destinations, mostly across the United States. This focus on premium properties targets high-spending business and leisure travelers who frequent major coastal cities and resort locations.

In FY 2025, revenue reached nearly $6.1 billion, up approximately 7.6% from the previous year. The company reported a net income of about $765 million, up from $697 million in 2024. This resulted in a net margin of close to 12.5%, indicating how much profit the company earns on every dollar of sales.

As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.9x. The current ratio, which measures the ability to pay short-term debts with current assets, is roughly 21.9x. Free cash flow for the year was approximately $858.0 million, representing cash left after operating expenses and capital improvements, but before dividends.

The case for MGM Resorts International

MGM Resorts International is a global gaming and entertainment giant with 31 hotel and gaming destinations. The company employs roughly 83,000 people and operates across major markets like Las Vegas and Macau. It also reaches the digital market through BetMGM for online betting, combining traditional hospitality with the high-energy gaming and live entertainment sectors.

In FY 2025, the company generated revenue of nearly $17.5 billion, an increase of approximately 1.7% from the prior year. Net income for the period was approximately $918 million, resulting in a net margin of roughly 5.2% for the fiscal year. This margin compares current profitability to the 4.3% net margin recorded in 2024.

As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 23.1x. The current ratio is roughly 1.2x, showing the company has enough short-term assets to cover its immediate obligations. Free cash flow reached nearly $1.7 billion for the year, which is the cash generated after accounting for all capital investments in its properties.

Risk profile comparison

Host Hotels faces risks from the cyclical nature of the lodging industry and its heavy reliance on Marriott International (NASDAQ:MAR) for management. Geographic concentration in major cities like New York and San Francisco makes the company vulnerable to regional economic downturns. Additionally, its total debt of nearly $5.1 billion could limit financial flexibility during market shifts.

MGM Resorts faces significant geographic risk due to its high concentration of properties on the Las Vegas Strip. The company also manages regulatory uncertainty in Macau and competition from DraftKings (NASDAQ:DKNG) and FanDuel parent Flutter Entertainment (NYSE:FLUT) in the digital space. Furthermore, past cybersecurity issues highlight ongoing risks to operational integrity and potential litigation costs.

Valuation comparison

Host Hotels appears to be the more conservatively valued option based on its lower Forward P/E relative to future earnings estimates.

Sector benchmark uses the SPDR XLRE sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

MGM Resorts International has the glitz of multiple properties in Las Vegas, like the Bellagio, New York New York, and Luxor. But the heavy reliance on one city and both in-person and online gambling brings risks. In particular, visits to Las Vegas are down notably from 2025, which itself was a down year for visitors to Sin City. Fewer tourists mean weaker room prices and fewer high rollers in the casinos. MGM Resorts has managed to inch revenue and net income higher the past few years, but Wall Street is skeptical they can keep the streak going in 2026. Consensus estimates predict a dip in revenue and profits this year.

On the other hand, Host Hotels & Resorts is far less reliant on any one market, with properties in 21 U.S. cities. The company is betting that cash-strapped consumers continue to make the choice to travel even if they have to cut back spending in other parts of their lives. Besides strong revenue per room (RevPAR) in the first quarter, up 4.6% from Q1 2025, Host is seeing strength in non-room spending, such as banquets and corporate events, helping its bottom line. A good sign for the long haul is management’s commitment to reinvesting in upkeep of its properties. That capital spending ensures it can continue to offer properties that are destinations in themselves, for which they can charge a premium. Add the fact that HST has a lower forward price-to-earnings ratio (19.1) than MGM (27.1), and that makes Host Hotels the better investment.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool recommends Flutter Entertainment Plc and Marriott International. The Motley Fool has a disclosure policy.