U.S. Hotel Construction Reaches 16-Month High
Skift Take
The U.S. hotel construction pipeline has reached a 16-month high with significant growth in midscale and economy segments, driven by newer brands and extended-stay projects.
The DJIA ended Friday with a drop of 377 points while Nasdaq was down 144, the S&P 500 fell 40 points and the 10-year treasury yield was up .05 to 4.24%. It didn't take long for lodging stocks to give back some of the gains they had the few weeks before. The biggest mover of note on Friday was AHT, down -7%.
JP Morgan, as part of their US lodging 2Q24 earnings preview, lowered their rating on Choice Hotels to Underweight from Neutral. They kept their price target at $120. JPM views CHH's valuation as full after the recent rally as compared to Wyndham Hotels. They don't believe this makes sense given CHH has less net rooms growth versus WH and their Q2 sequential quarterly planned development pipeline declined. Overall for the sector, JPM thinks their estimates for hotel companies possess limited risk going into earnings season. But they see less attractive valuations generally for the large C-Corps though they still li
