Two Perspectives on Hotel Recovery
Skift Take
- The DJIA fell 139 points on Friday while Nasdaq was down 104, the S&P 500 fell 28 points and the 10-year treasury yield was down .01 to 3.45%.
- Citigroup cut its rating on IHG Hotels & Resorts to Sell from Neutral. Citi believes the incomplete recovery in corporate travel will weigh on IHG’s RevPAR.
- Berenberg, on the other hand, sees hotels as the top travel play. The brokerage firm says concerns about the hotel industry are overblown and the outlook for RevPAR for 2023 and 2024 will strengthen further.
The DJIA fell 139 points on Friday while Nasdaq was down 104, the S&P 500 fell 28 points and the 10-year treasury yield was down .01 to 3.45%. Lodging stocks were mostly lower. While AINC was up 5%, we saw -5% declines in MAR, H, ABNB and IHG.
Citigroup cut its rating on IHG Hotels & Resorts to Sell from Neutral. Citi believes the incomplete recovery in corporate travel will weigh on IHG’s RevPAR. Citi expects downward pressure on corporate travel to increase as a recent study suggests only 16% of major corporations have adequate business travel reduction targets related to carbon emissions. Citi said mid-term environmental pressure combined with the impact of the adoption of virtual meetings might lower corporate room demand by 5% to 10%.
Berenberg, on the other hand, sees hotels as the top travel play. The brokerage firm says concerns about the hotel industry are overblown and the outlook for Re
