Morgan Stanley Gets Cautious About U.S. Hotel Companies
Skift Take
- The DJIA, Nasdaq, and S&P 500 experienced growth with varied changes in lodging stocks. Morgan Stanley adjusted price targets for numerous lodging companies, including Sunstone Hotels and Host Hotels.
- Major hospitality companies, such as Selina Hospitality, Whitestone Companies, and Marriott Hilton Head Resort & Spa, announced important business updates including investments, renovations, and acquisitions.
- EOS Hospitality, Hotel Equities, and Aimbridge Hospitality made key personnel changes. Accor plans to open 1,200 hotels in the next five years, with a RevPAR growth of 15% to 20%. Aimbridge Hospitality will manage the Alliance Palace Aparthotel in Batumi, Georgia.
The DJIA fell 13 points, rose 212 points while Nasdaq was up 220, the S&P 500rose 50 points and the 10-year treasury yield was up .05 to 3.77%. Lodging stocks were mostly higher even though the two biggest movers were to the downside. SOND was down -9% and SLNA was down -5% on the day.
Morgan Stanley upgraded Sunstone Hotels to Equal Weight from Underweight with a price target rising to $10 from $9. They lowered Host Hotels to Underweight from Equal Weight. MS also chopped price targets on many other lodging companies. On the C-Corp said, MS believes most of the companies’ results are trending below 2Q consensus but international trends should act as an offset for several of them. They upped their PT on Marriott to $208 from $210 but lowered their target on Hilton to $163 from $166. Hyatt’s PT was sliced to $136 from $142, Choice Hotels was lowered to $127 from $134 and Wyndham was cut to $
