U.S. Hotels Expect a Strong Next 12 Months
Skift Take
U.S. travel demand is robust across hotel segments, driven by higher-income leisure and business travelers, but lower-income travel is declining, and recovery varies by hotel type and market, with international travel lagging behind domestic recovery.
The DJIA rose 244 points but Nasdaq plunged 512 while the S&P 500 was down 79 points and the 10-year treasury yield dropped .02 to 4.15%. There were still some lodging names in positive territory by the close, but a lot of digesting of recent gains took place today.
Barclays is expecting modest EBITDA upside for hotel companies during 2Q24 earning season as better than expected U.S. RevPAR growth should result in at least in-line results, with EBITDA modestly ahead of guidance and consensus. Group business was again the star segment so Barclays is expecting that to help Marriott and Hilton deliver the best RevPAR growth results.
According to Tourism Economics, U.S. travel appears healthy across all of the major hotel demand segments. According to consumer surveys, projected leisure traveler spending in the next 12 months is off the charts. The positive sentiment around travel spending is carried by the higher inc