U.S. Interest Rate Increase Pushes Lodging Stocks Lower
Skift Take
- STR gave U.S. lodging data for the week ended 3/18. US hotel RevPAR rose 10.4% year over year. When compared with the same week in 2019, US hotel RevPAR was up 20.8%.
- We can’t tell if the markets genuinely hate U.S. Fed Chief Jerome Powell or if the guy should just have a stand-in for his press conferences.
- Redburn Partners lowered its rating on InterContinental Hotels Group to Sell. UBS Group downgraded shares of Melia Hotels International from a Buy rating to a Sell rating.
The U.S. Federal Reserve Board raised interest rates by a quarter of a point and the financial markets rallied. Then Fed Chief Jerome Powell held his press conference and the DJIA ended the day down 530 points, Nasdaq was down 190, the S&P 500 fell 66 points but the 10-year treasury yield was down .11 to 3.50%. We can’t tell if the markets genuinely hate Powell or if the guy should just have a stand-in for his press conferences. Lodging stocks were lower. AHT was down -8%, APLE, PEB, BHR, RLJ, DRH and XHR were each down -6% and just about every other REIT was down -5% today.
Compass Point cut its rating on Sunstone Hotels to Sell from Neutral, lowering their price target to $9 from $12. Host Hotels was cut to Neutral from Buy with the PT going down to $18 from $25. They also cut their rating on Apple Hospitality to Neutral from Buy, cutting their PT to $17 from $22.
Redbur
