Barclays Previews First Quarter Results for Hotel Groups
Skift Take
Barclays previewed the first quarter for the lodging sector, suggesting mixed RevPAR results due to the March Easter shift, but maintaining expectations for in-line EBITDA among large caps, while adjusting target prices for major hotel brands including Marriott, Hilton, Hyatt, Wyndham, and Choice Hotels.
The DJIA rose 211 points on Friday but Nasdaq was down 319, the S&P 500 fell 44 points and the 10-year treasury yield was down .03 to 4.62%. Lodging stocks were modestly lower with the mover of note once again being SOND, this time down -17% on the day. SVC traded down to a new 52-week low.
Barclays gave their 1Q preview for the lodging sector. They believe the March Easter shift made 1Q RevPAR beats less likely but they expect more or less in-line EBITDA for the large caps. Wyndham is still their preferred lodging name medium term on what seems like an unsustainable valuation discount to peers but they are more cautious on the WH and Choice Hotels earnings prints.
Barclays upped their target price on Marriott to $240 from $239, Hilton to $216 from $204 but cut target prices on Hyatt to $153 from $156, Wyndham from $90 to $87 and Choice to $114 from
