Morgan Stanley Is Bullish on Hotel Sector
Skift Take
- Morgan Stanley remains optimistic about the hotel industry's growth, forecasting a 2% RevPAR growth globally for next year, with potential for higher growth.
- Selina Hospitality faces stock value decline and plans for delisting from Nasdaq.
- The Leading Hotels of the World welcomed new members, including newly opened or renovated hotels in New York, California, China, France, Greece, Spain, Italy, and Venice.
The DJIA fell 41 points while the Nasdaq was down 120, the S&P 500 fell 25 points. The 10 year treasury yield was up .06 to 4.29% and lodging stocks were mixed. RHP, HLT and IHG traded up to new highs but SLNA was down another -8% to another new low.
Morgan Stanley gave a global view of the hotel industry, saying RevPAR growth is slowing and it is unnerving investors. They remain comfortable with their 2% RevPAR growth forecast for next year and said it could be materially stronger. RevPAR growth has slowed in Europe and the UK while picking up in the US. While they are comfortable with 2% global RevPAR growth in 2024, MS said their top-down framework suggests a base case of 3%-4% RevPAR growth and they could make a case for high single digit growth. They remain positive on the hotel sector with key Overweight ratings on Accor and Whitbread in Europe and Hilton, Marriott, Hyatt and Wyndham in the US.
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