Marriott Doesn't See Price Sensitivity Yet
Skift Take
- Stock market: DJIA fell 233 points, Nasdaq rose by 53 points, and S&P 500 increased by 4 points
- Federal Reserve: Paused interest rate hikes but anticipates at least two more in the next 6 months, causing confusion in the financial markets
- Lodging industry: SOND experienced a notable decline of -7%, while other lodging stocks were modestly lower. Various hotel companies reported on post-pandemic themes, opportunities for rate growth, and potential impacts of a recession scenario.
The DJIA fell 233 points while Nasdaq was up 53, the S&P 500 rose 4 points and the 10-year treasury yield was down .04 to 3.80%. Is there anyone who understands a Federal Reserve Board that paused interest rate hikes but tells the financial markets there will be at least two more in the next 6 months? The market had every reason to be confused today. Lodging stocks were modestly lower. SOND was the only mover of note, down -7%.
JP Morgan reported on management meetings held with Marriott. They see post-pandemic themes persisting, namely blended business/leisure travel, group adding incremental demand on top of larger events and large corporates reducing short duration travel. MAR believes there remains opportunity to push ADR outside of the higher end luxury segment where rate is ahead of 2019 levels on a real basis. While visibility is limited, so far there has been no sensitivity on price. MAR sees any potential
