Relative Optimism for Hotel Earnings Season Among Analysts
Skift Take
- Truist expects varied 2Q earnings for the hotel sector, with C-Corps' results depending on geography and customer mix.
- U.S. hotel industry performance in June 2023 showed improvements from the previous month but lower year-over-year changes.
- RLJ Lodging Trust's Nashville property joins Hilton's Tapestry Collection after a comprehensive renovation, marking the company's third conversion in 2023.
The DJIA rose 164 points, but Nasdaq plunged 295, the S&P 500 fell 31 points, and the 10-year treasury yield bounced back up .11 to 3.85%. Lodging stocks were lower on the day.
Oppenheimer downgraded RLJ Lodging Trust, Chatham Lodging Trust, and Braemar Hotels & Resorts to Perform from Outperform. They upgraded Host Hotels to Outperform from Perform.
Truist said they expect a mixed bag for 2Q earnings from the hotel sector, depending on geographic location and customer mix. They expect C-Corps to report results at least in-line with expectations, if not modestly higher. For the domestic-centric midscale & economy-focused C-Corps, like CHH and WH, they would be surprised if results were above initial expectations. Truist sees RevPAR at the low end of expectations for the lodging REITs and said the wildcard for their EBITDA will be how well they can control margins. They expect the glob
