Positive Outlook for RLJ Lodging Trust
Skift Take
- Stock Market Update: DJIA, Nasdaq, and S&P 500 all ended the day with gains, reflecting a broad market
- RLJ Lodging Trust: Baird reports positive investor meetings, highlighting underappreciated growth outlook and company drivers.
- Hotel Developments: AC Hotels by Marriott planned in East Memphis, acquisition of Westin Annapolis, and Equinox Hospitality's acquisition and rebranding of Four Points by Sheraton San Rafael Marin County.
The DJIA ended the day up 47 points, Nasdaq was up 219, and the S&P 500 rose 0.85% on a broad market rally. The 10-year treasury yield dropped -0.10 to 3.76%. The Dow Jones U.S. Hotels Index was up 0.92%. Wyndham's stock price remained at the elevated level it's been since Tuesday.
Baird reported on investor meetings they held with RLJ Lodging Trust’s management team. Baird said they believe RLJ’s 2023-2024 growth outlook and company drivers are underappreciated, especially at current valuation levels. They continue to like the portfolio’s positioning with its urban tilt, smaller group exposure and upside from conversions. Baird said investors primarily asked about the margin outlook and expense pressures, the recovery trajectory in Northern California, and capital allocation decisions/optionality, particularly with a focus on the transaction market and the potential for RLJ to deploy balance sheet capacity towar
