IHG Launches New Brand Garner
Skift Take
- Market Performance: DJIA, Nasdaq, and S&P 500 experienced declines while the 10-year treasury yield increased. Lodging stocks showed mixed to modestly lower results. BHR traded down to a new low.
- Hotel Investment Insights: Baird reported on meetings with Xenia Hotels & Resorts' management, highlighting patience required due to leisure trends and Scottsdale renovation disruption. S&P upgraded XHR's ratings based on improved RevPAR and EBITDA outlook.
- Industry Developments: Hilton plans automatic housekeeping, Courtyard Wichita completes renovation, District Hospitality Partners acquires Westin Annapolis, Cascade Hotel Kansas City to open, Aimbridge to manage Marriott properties, Hyatt introduces Hyatt Studios brand, IHG launches midscale brand Garner, various expansion and renovation projects noted.
The DJIA fell 181 points, Nasdaq was down 156, the S&P 500 was down 34 points, and the 10-year treasury yield was up .04 to 4.26%. Lodging stocks were mixed to modestly lower. BHR traded down to another new low.
Baird reported on investor meetings they held with Xenia Hotels & Resorts’management team. Baird said there is no change to their longer-term outlook, but some patience could be required due to still-normalizing leisure trendsand expected near-term disruption from renovation in Scottsdale. They continue to have a favorable view of the portfolio’s Sunbelt and greater than peer group exposures. Investors are focused on leisure trends, comparisons, renovation disruption, and all the puts/takes looking out to 2024. Meanwhile, Standard & Poor’s Global Ratings raised all their ratings on XHR by one notch, including the issuer credit rating to B+ from B. They also raised their issue-level
