U.S. Investors Optimistic About the Hotel Market
Skift Take
The 2024 CBRE Global Hotel Investors Intentions Survey indicates U.S. hotel investors are optimistic, with plans to increase investments, despite challenges like debt servicing and rising costs, favoring urban and leisure markets such as New York City, Miami, Charleston, and Boston.
The DJIA was down 217 points, while Nasdaq was up 99 in another mixed-up market. The S&P 500 rose a point, and the 10-year treasury yield jumped .08 to 4.54%. Lodging stocks were lower across the board. VCSA was the biggest loser, down 16% to another new low, while SOND was down 8% on the day.
Baird upgraded its rating on Sunstone Hotel Investors to Outperform. The firm upped their price target to $12 as they believe investors are overly discounting the renovation-related disruption and they view the earnings ramp up and 2025-2026E outlook as attractive and not fully captured in current estimates, which appear too low.
Baird maintained their balanced view on Hotel REITS. While fundamentals have been better, it is still sluggish overall so far quarter to date. Baird believes urban markets and the group segment continue to outperform, and narrative/expectations remain strong among investors. They believe in
