The Hotel Business Is Good. Financing Is the Question Mark
Skift Take
- Hotel industry experiences mixed stock market performance, with DJIA rising while NASDAQ and S&P 500 show declines.
- Renovations and upgrades abound, with notable projects including the multimillion-dollar renovations of Houston Marriott South and Homewood Suites by Hilton New Orleans.
- Exciting developments on the horizon, such as the opening of Raffles Boston and the planned multimillion-dollar mixed-use project by Beck Ventures in Midtown Dallas.
The DJIA rose 92 points but NASDAQ was down 173, the S&P 500 was down 16 points and the 10 year treasury yield jumped .09 to close at 3.78% again. This wound up taking the wind out of the sails of some lodging stocks. The group still ended the day mostly higher but the big movers were to the downside with VCSA down -15%, SOND down -9% and AHT falling -7% on the day.
The Morgan Stanley Travel & Leisure Conference contained much of the same from hotel executives including confirmation that business remains good with financing being the big question mark. The expectations of a future bonanza of Chinese travelers continues to fuel the optimism from hotel companies, particularly the larger international operators. While the leisure and resort business could be facing headwinds, particularly as we get deeper into the summer, Group/Urban/China is still outperforming and executives believe margins can hold up.
Ryman Hospitality Properties upsized their previousl
