A Sad Sack of Lodging SPACs Struggling as Public Companies
Skift Take
- In an amazing recovery from over 700 points down, the DJIA ended the day down only 280 points while Nasdaq rallied to end up 6. Vacasa’s stock price plunged well into penny stock category, joining Sonder, before recovering somewhat, ending the day down -25%.
- Braemar Hotels & Resorts and Ashford Hospitality Trust both issued press releases, clarifying that their cash holdings are safe.
- STR reported US lodging data for the week ended 3/11. US hotel RevPAR was up 11.1% year over year.
In an amazing recovery from over 700 points down, the DJIA ended the day down only 280 points while Nasdaq rallied to end up 6. The S&P 500 fell 27 points and the 10-year treasury yield plunged another .15 to 4.01%. Lodging stocks were lower but the real damage was on the four names we call the “new age” lodging stocks.
Vacasa’s stock price plunged well into penny stock category, joining Sonder, before recovering somewhat, ending the day down -25%. VCSA reported 4Q results which were ahead of expectations but their 2023 outlook was described as a “transition year”, a lower than expected outlook. Management seemed a tad defensive, saying what is happening to them, the “transition” is an industry function. Skift, parent company of this publication, described it as properties abandoning its platform, something the CEO of VCSA argued that their homeowners were actually outperforming rivals on. Here
