Canadian Hotels Enjoy Record Average Daily Rates
Skift Take
- DJIA, Nasdaq down; S&P 500 fell; 10-year treasury yield up.
- Hotel Trends: Global RevPAR growth; Canada's record ADR and RevPAR; mixed occupancy rates.
- Developments: Hotel expansions, renovations; Hyatt Vacation Club launch; new CEOs, brand in Croatia.
The DJIA fell 374 while the Nasdaq was down 257, the S&P 500 fell 60 points, and the 10-year treasury yield was up .04 to 4.24%. Lodging stocks were lower, but the biggest mover was to the upside, with SOHO bouncing back 7%. VCSA traded down to yet another all-time low.
Deutsche Bank updated their models and price targets on some hotel REITs. They were clearly not updating them to the upside. Still, they did highlight Summit Hotel Properties as a stock that has an undemanding valuation and should perform well from a RevPAR perspective in most macroeconomic scenarios. The biggest cut to price target was Ashford Hospitality, with a drop to $9 from $26. They also slashed their target on Braemar Hotels to $12 from $15. DB switched back to an EV/EBITDA methodology for AHT from a per-room-based valuation because DB does not think AHT will be selling a large number of hotels. They also cut price targe
