Truist Unveils Forecasts for Hotels
Skift Take
Truist reports slight downward revisions in U.S. hotel booking and pricing trends for 3Q and 4Q, with modest growth expected in 2025, but no signs of a sudden pullback or near-term upside for RevPAR.
The DJIA fell 38 points while Nasdaq was down 52, the S&P 500 fell 9 points, and the 10-year treasury yield was down .08 to 3.77%. Lodging stocks were lower on the day.
Truist updated estimates and price targets following 2Q24 earnings. They lowered Airbnb to $124 from $134, Choice Hotels to $134 from $144, DiamondRock Hospitality to $10 from $11, Host Hotels to $20 from $23, and Park Hotels to $18 from $20 while they kept Sunstone Hotels at a price target of $12.
Truist also reported on forward booking and pricing trends for mid and higher-end U.S. hotels from their checks. They said 3Q is tracking close to 0%-2% than the 1%-3 previously expected. For 4Q, Truist introduced a forecast of -1% to +1%. Their first look into 2025 has Truist expecting a positive 1%-3% forecast, with growth driven by ADR offsetting a slight decline in o
