Host Hotels vs. MGM Resorts: 2026 travel stock comparison

What happened: Billionaire Barry Diller's company, People (PPLI), offered to buy the shares of MGM Resorts International (MGM) that he does not already own, valuing the casino giant at roughly $43 per share. Meanwhile, Host Hotels & Resorts Inc. (HST), the largest hotel REIT by market capitalization, saw its target price raised to $27 by BMO Capital, citing interest rate sensitivity. Analysts compared HST and MGM, highlighting HST's premium portfolio of luxury properties and MGM's diversified mix of global gaming and hospitality.

Market impact: This narrative impacts the travel and leisure sector, particularly hotel and casino stocks. Diller's buyout proposal for MGM signals confidence in the casino industry's rebound, potentially driving interest in other gaming stocks. HST's price target increase indicates that REITs, particularly those sensitive to interest rates, may attract investors seeking stable dividends and capital appreciation.

What to watch next: Investors should monitor MGM's shareholder response to Diller's buyout proposal, with a potential vote expected by mid-July. Additionally, HST's earnings report on August 3 will provide insights into the hotel REIT's performance and guidance for the remainder of the year. Lastly, keep an eye on broader economic indicators, such as GDP growth and inflation data, which could influence interest rates and, consequently, REIT valuations.