Baird Expects Growth in Hotel Revenue Per Available Room
Skift Take
- Baird provides insights into investor sentiment and expectations for 2024 RevPAR growth among hotel brands.
- Several hotel renovation and construction projects are announced, including a new Westin Resort in Cocoa Beach, Florida, and a Ritz Carlton Residences in Lake Woodlands, Texas.
- Multiple hotel acquisitions and developments are highlighted, such as the Kastrati Group's acquisition of SLS Brickell in Miami and IHG Hotels & Resorts introducing the Kimpton brand in Portugal with Kimpton Algarve Sao Rafael Atlantico.
The DJIA rose 39 points on Friday, but the Nasdaq was down 167, and the S&P 500 was down 22 points, so it was a down day across most stocks, lodging included. The 10-year treasury yield fell .08 to 4.63%. The only mover of note in lodging stocks was SOND, down -9%.
Baird gave a hotel check-in on recent conversations and investor sentiment. They sense a bigger picture fundamental focus among investors on 2024 RevPAR growth expectations and building blocks for the Hotel brands, similar to the Hotel REITs. They are seeing a lot of dispersion existing among investors’ questions. Following Marriott’s Investor Day and with growth rates normalizing, Baird sees investors focused on companies’ growth algorithms and net unit growth outlooks.
Baird is a bit surprised at Buy-Side RevPAR growth expectations of only 1.5% to 2.5%, particularly given the likely upside in 2024 from
