The Earnings Parade Continues

The DJIA fell 85 points while Nasdaq was up 15, the S&P 500 fell 6 points and the 10-year treasury yield was down .05 to 3.93%. Lodging stocks were mixed. AHT was down -5% while SLNA traded down to a new low.

The earnings parade continues with REITs dominating the past 24 hours. PebbleBrook Hotel Trust reported 4Q results that matched their pre-announcement but gave 1Q guidance that was softer than expected. PEB has been changing things back and forth, keeping analysts on their toes. Their pre-announcement in late December roiled the REIT sector but then an update in January gave a slightly better look. Now the 1Q guidance is well below expectations. Analysts did focus on the $83 million worth of common shares PEB has repurchased since November as a positive surprise. Apple Hospitality reported results in line with estimates but gave 2023 full year guidance which was modestly below expectations. Analysts were actually taking a positive view since they are one of the very few to give full year guidance and were taking this to mean margin pressures may not be as bad as feared. That being said, it was not lost on them that APLE expects expense growth of 5.6%-7.6% while RevPAR growth is expected to only be 3% to 7%.

Sunstone Hotel Investors results came in slightly ahead for 4Q with an extra $10 million insurance gain also put in there. SHO bought back shares, totaling 5.2% of the shares outstanding from 2022 to now. 

Park Hotels reported strong results even with San Francisco continued weakness. PK said group revenue is back to 83% of pre-pandemic levels. Between the dividend reinstatement and share repurchases of $30 million already this year, the sale of the Hilton Miami Airport is all showing positives for cash f