Takeaways From Hotel Earnings Season
Skift Take
Key events included DiamondRock Hospitality's upgrade, Hyatt and Apple Hospitality lowering guidance, and IHG reporting strong new room signings despite challenges in China.
The DJIA was up 294 points while Nasdaq rose 167, the S&P 500 was up 54 points and the 10 year treasury yield was up .10 to 3.89%. It was better than the last few days but 5 days like that are needed. Lodging stocks were modestly higher. VCSA and APLE both traded down to new lows. SOND was up 6% while SHCO was down -6%.
Compass Point upgraded DiamondRock Hospitality to Buy from Neutral. Their price target is $10.
Hyatt Hotels picked a good day to report a 2Q24 EBITDA miss. Given the decline in stocks the past week, it looked like investors were either already discounting the miss and the guide down, or it was just overshadowed by a rebounding stock market. Regardless, H lowered its full-year RevPAR growth target to 3% to 4% from 3% to 5%. After Marriott lowered, we doubt anyone was surprised. During 2Q24, Hrepurchased 906,875 shares for $134 million.
IHG Hotels & Reso
