Highgate Will Purchase Viceroy Hotels
Skift Take
- JP Morgan said they see more compelling value and better risk-rewards in gaming versus lodging, given better values and differing sets of investors’ expectations for fundamentals.
- Barclays gave their US Gaming, Lodging & Leisure outlook, saying their preference is the Cruise Lines out of the sub-sectors.
- Highgate has entered into a definitive agreement to purchase Viceroy Hotels & Resorts.
The DJIA fell 764 points, Nasdaq was down 360, the S&P 500 fell 100 points and the 10 year treasury yield was down .05 to 3.45%. Lodging stocks were lower. AHT and MCG were down -6%, while VCSA was down -5%, SLNA traded down to a new low.
JP Morgan gave their Gaming & Lodging 2023 outlook. JPM said they see more compelling value and better risk-rewards in gaming versus lodging, given better values and differing sets of investors’ expectations for fundamentals. Larger cap lodging C-Corps like MAR and HLT possess above average valuations versus history, according to JPM, reflecting a higher set of investor expectations where RevPAR will grow in the low to mid-single digit range with the leisure segment continuing its resiliency with more acute corporate/group demand segment recoveries. JPM does see lodging having really attractive growth through 1Q23 but then comps get difficult in 2Q through the rest of the year. Their Overwe
