September Marked Third Consecutive Month of U.S. Hotel Construction Growth
Skift Take
- The DJIA fell 91 points, Nasdaq was down 53, the S&P 500 fell 25 points and the 10-year treasury yield rose another .10 to 4.23%.
- Truist believes the companies most likely to see the greatest degree of earnings outperformance this 3Q earnings season will be those with the highest exposure to the group segment.
- A new survey from the Hospitality Asset Managers Association painted a somewhat rosy picture for the industry.
The DJIA fell 91 points, Nasdaq was down 53, the S&P 500 fell 25 points and the 10-year treasury yield rose another .10 to 4.23%. Lodging stocks were mixed.
Truist believes the companies most likely to see the greatest degree of earnings outperformance this 3Q earnings season will be those with the highest exposure to the group segment, namely the REITs in which Ryman Hospitality at 70% of its business is most exposed. They believe US Group RevPAR was up 75% year over year, stronger than individual transient, which was up 20%. Truist also believes Group strength will show up in the Food and Beverage line. For C Corps they believe the upside will likely come from RevPAR at their international locations, namely Europe, Canada and the Caribbean. Truist lowered price targets on BVH to $46 from $56, PEB to $18 from $24 and RLJ to $15 from $17. They maintained Buy ratings on BVH and RLJ and a Hold rating on PEB.
