Hotel-Branded Residential Developments Grow in Popularity
Skift Take
- Stock market performance: DJIA up 66 points, Nasdaq up 97, S&P 500 up 19 points, and 10-year treasury yield down to 4.60%.
- Lodging industry updates: US hotel RevPAR increased 5.2%, Group RevPAR was up 29.5%. Stifel lowered target price on Wyndham Hotels & Resorts, while Exane BNP Paribas downgraded IHG Hotels & Resorts.
- International travel data: International visitors spent $19.0 billion on US travel in August 2023, with a trade surplus of $1.8 billion. Travel and tourism accounted for 7.4% of US exports of goods and services in August 2023.
The DJIA was up 66 points, Nasdaq was up 97, the S&P 500 rose 19 points and the 10 year treasury yield was down .06 to 4.60%. Lodging stocks were mixed. The two biggest movers were to the upside with both SHCO and VCSA both up 7% on the day.
STR reported US lodging data for the week ended 10/7. US hotel RevPAR was up 5.2% year over year on a 5.4% jump in ADR. Group RevPAR was up 29.5%
Stifel lowered their target price on Wyndham Hotels & Resorts to $83 from $84. They maintained their Buy rating on WH.
Exane BNP Paribas downgraded IHG Hotels & Resorts to Underperform from Neutral. The analysts called IHG its least preferred European hotel company given its US exposure and capped upside risk. Exane BNP believes US pricing has peaked and that US stocks look unattractive.
Data recently released by the National Travel and Tourism Office shows that in August 2023 international visitors spent $19.0 bill
