Truist Talks U.S. Hotel Trends for Rest of Year
Skift Take
- Stock market indices experienced gains, with DJIA, Nasdaq, and S&P 500 rising while the 10-year treasury yield decreased.
- Truist's RevPAR Monitor highlighted positive and negative trends in the hotel industry, including the recovery of group travel and sluggish corporate individual business/transient segment.
- Various hotel-related announcements were made, including the launch of IHG's Wi-Fi Auto Connect feature, expansion of Saks Fifth Avenue's personal shopping service to luxury resorts, and the opening of new hotels by Hyatt, IHG, Palisociety, and others.
The DJIA rose 153 points while Nasdaq was up 166, the S&P 500 rose 41 points and the 10-year treasury yield was down .03 to 3.61%. Most people would like all of June to be like this. Lodging stocks were modestly higher. The only mover of note was SLNA, up 6% on the day.
Truist issued their May/June RevPAR Monitor. Their latest round of forward-looking checks showed a mix of positives and negatives. The most positive trend continues to be the recovery in Group travel, something they see as the greatest driver of 2023 RevPAR growth for US hotels. They see occupancy for this segment on track to finish flat with 2019 by the end of the year. It was down -19% in January 2023 versus January 2019. Room rates are up approximately low double digits versus the same time last year. For the corporate individual business/transient segment, they see current booking volumes as lethargic and pricing growth in line with inflation.
