Truist Sees Normalization of U.S. Demand for Short-Term Rentals
Skift Take
- Stock market sees mixed performance, with DJIA and Nasdaq rising while lodging stocks show mixed results.
- Wells Fargo initiates coverage on Airbnb with an Underweight rating.
- Significant developments in the hotel industry, including new hotel projects in Ann Arbor, Ottawa, Mexico City, and Portland, as well as the restoration of Book Tower in Detroit.
The DJIA rose 169 points, Nasdaq was up 134, the S&P 500 rose 26 points and the 10-year treasury yield was down .07 to 3.71%. Lodging stocks were mixed. AHT was the only mover of note, down -6% on the day.
Wells Fargo initiated coverage on Airbnb with an Underweight rating and $99 price target.
Truist Securities published a report on ABNB and the short-term rental business following their attendance at Skift Short-Term Rental Summit. Truist said they came away with two key high-level themes that most panels and conversations centered around. The consensus is there will be a normalization of domestic demand and pricing following significant strength from 2020-2022. Growth will still be 10.4% in 2023 and 8.5% in 2024. Truist said for ABNB they don’t believe decelerating growth rates will lend themselves to expanding valuation multiples. The second takeaway is that there are opportunities for market
