Canadian Halal Investor.

NASDAQ Shariah screener · October 2026

Is Host Hotels & Resorts, Inc. (HST) Halal?

FAIL

Host Hotels & Resorts, Inc. · NASDAQ: HST · Real Estate

The short answer

Host Hotels fails the Shariah screen: its $5.08 billion of interest-bearing debt is 33.06% of its ~$15.37 billion market cap, just above the 33% ceiling. Its lodging-REIT business passes the business gate and interest income of about 0.91% of revenue is well under the 5% ceiling, but the debt gate fails.

Gate 1 — Business activity: PASS

Gate 1 — business activity: PASS. Host Hotels & Resorts, Inc., headquartered in Bethesda, Maryland, is a self-managed real estate investment trust (REIT) that owns luxury and upper-upscale hotel properties. Per its Form 10-K (Item 1, Business), the company describes itself as the largest publicly traded lodging REIT, with a portfolio of 81 hotels and about 43,400 rooms as of February 2025 (about 41,300 rooms across 70 US and 5 international properties after 2025 dispositions, per company disclosures). Its hotels operate under brands including Marriott, Ritz-Carlton, Westin, Sheraton, St. Regis, Hyatt, Hilton, Fairmont and others; the hotels are operated day-to-day by third-party managers, while Host owns the real estate. Host Inc. conducts operations through Host Hotels & Resorts, L.P., of which it is the sole general partner.

The 10-K discloses no gambling or casino operations and no alcohol, tobacco, pork or interest-based lending revenue. Alcohol is served only incidentally as part of food and beverage service at the hotels' restaurants and bars (food and beverage was $1,803 million of $6,114 million in FY2025 revenue), run by third-party operators — disclosed here for transparency. The core business is owning and leasing lodging real estate, which is permissible, so the business passes gate 1.

Gate 2 — Debt and cash: FAIL

Gate 2 — interest-bearing debt: FAIL (33.06%, ceiling 33%). Per Host Hotels' Q2 2026 Form 10-Q (condensed consolidated balance sheet at June 30, 2026, unaudited, in millions), the 'Debt' section shows senior notes of $3,990 million, a credit facility of $998 million (including $999 million of term loans), and mortgage and other debt of $94 million, for total debt of $5,082 million. Lease liabilities of $563 million are excluded — the 10-K notes that finance leases total less than $1 million, so these are operating (mainly ground) leases, not interest-bearing debt.

$5.08 billion of interest-bearing debt against a market capitalization of about $15.37 billion (Finnhub, October 2, 2026) is 33.06% — just above the 33% ceiling. Cash and cash equivalents of $1,953 million at June 30, 2026 represent about 12.7% of market cap. As a REIT, Host runs structurally high leverage, and that leverage tips this gate over the limit.

Gate 3 — Non-compliant income: PASS

Gate 3 — non-compliant income: PASS (0.91%, ceiling 5%). Host Hotels separately discloses an 'Interest income' line on its condensed consolidated statements of operations. Per the Q2 2026 Form 10-Q (in millions), interest income was $30 million year-to-date ended June 30, 2026 ($18 million for the second quarter), against total revenues of $3,285 million year-to-date — about 0.91%, well under the 5% ceiling.

The FY2024 Form 10-K (consolidated statements of operations, in millions) similarly discloses interest income of $54 million against total revenues of $5,684 million (0.95%). Non-compliant income is a small fraction of revenue in either period.

Key figures used

Frequently asked questions

What does Host Hotels do?

Host Hotels & Resorts, Inc. (NASDAQ: HST) is a self-managed real estate investment trust (REIT) based in Bethesda, Maryland. Per its Form 10-K and recent disclosures, it is the largest lodging REIT and one of the largest owners of luxury and upper-upscale hotels, with 70 properties in the United States and five internationally totaling about 41,300 rooms. Its hotels operate under brands such as Marriott, Ritz-Carlton, Westin, Sheraton, St. Regis, Hyatt, Hilton and others, and are run day-to-day by third-party managers. Host Inc. conducts its operations through Host Hotels & Resorts, L.P., of which it is the sole general partner. It is an S&P 500 constituent.

Is Host Hotels's business Shariah compliant?

Host Hotels owns hotel real estate - rooms, food and beverage outlets, meeting space - rather than lending money or producing tobacco, pork or gambling products. Its 10-K discloses no gaming or casino operations, and no alcohol, tobacco, gambling or pork revenue is broken out; alcohol is served only as part of the food and beverage service at its hotels' restaurants and bars, which are run by third-party operators like Marriott and Hyatt. That incidental hospitality use is disclosed for transparency. Assessed on its core business of owning and leasing lodging real estate, the business passes this screener's first gate.

How much interest-bearing debt does Host Hotels have?

Host Hotels' interest-bearing debt is its senior notes, credit facility draws and mortgage debt - the 'Total debt' line on the Q2 2026 condensed consolidated balance sheet (June 30, 2026). Senior notes were $3,990 million, the credit facility (including $999 million of term loans) was $998 million, and mortgage and other debt was $94 million, for total debt of $5,082 million. The 10-K notes finance leases total less than $1 million, and the $563 million of lease liabilities are operating (mainly ground) leases, which are excluded as they are not interest-bearing debt. $5.08 billion against a market capitalization of about $15.37 billion is 33.06%, which exceeds the 33% ceiling - so this gate fails.

How much interest income does Host Hotels earn?

Host Hotels separately discloses an 'Interest income' line on its income statements. Per its Q2 2026 Form 10-Q (condensed consolidated statements of operations, in millions), interest income was $18 million for the quarter ended June 30, 2026 and $30 million year-to-date, against total revenues of $1,640 million and $3,285 million respectively. Year-to-date interest income of $30 million against $3,285 million of revenue is about 0.91% - under the 5% non-compliant income ceiling. Its FY2024 Form 10-K shows interest income of $54 million against $5,684 million of revenue (0.95%). Zoya's HST page cites FY2025 interest income of $32 million against $6,114 million of revenue (0.52%) - that figure comes from Zoya, not from the filing I verified.

What do third-party Shariah screeners say about Host Hotels?

Zoya publishes a Host Hotels (HST) page and currently flags the stock as not Shariah-compliant, though its page FAQ text is internally contradictory about interest income, so treat its published reasoning with caution. I could not verify a Musaffa rating page for HST or a ShariaPortfolio rating from public sources. Third-party screeners apply different assumptions and update on different schedules, and their results can change when new financial statements are published - always check the latest screening before investing.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).