Los Cabos, Mexico’s Growth Attracts More Hotel Brands
Skift Take
- Lodging stocks were mostly lower. SOND was up 6% but that was pretty much it for any type of positive movement. MCG fell another -11%, SLNA was down -7%, SOHO and ABNB both fell -5%.
- JP Morgan lowered their rating on Membership Collective Group to Neutral from Overweight. JPM said their downgraded was based on MGC’s exposure to Europe.
- Los Cabos Tourism Board announced unprecedented growth in tourism arrivals is expected by the end of 2022 with more than 3.3 million visitors.
The DJIA fell 8 points while Nasdaq was down 39, the S&P 500 fell 12 points and the 10 year treasury yield was up .08 to 3.78%. Lodging stocks were mostly lower. SOND was up 6% but that was pretty much it for any type of positive movement. MCG fell another -11%, SLNA was down -7%, SOHO and ABNB both fell -5% and VCSA traded down to a new low.
JP Morgan lowered their rating on Membership Collective Group to Neutral from Overweight. JPM said their downgraded was based on MGC’s exposure to Europe, where they expect a weaker consumer backdrop, its lowered unit growth expectation, JPM’s expectation that inflation will impact non-membership house revenues as well as profitability, and its CEO transition, all of which they think merits a lower multiple. JPM lowered their target price to $7 from $9.
Los Cabos Tourism Board announced unprecedented growth in tourism arrivals is expected by
