Goldman Sachs Initiates Coverage with Buy Ratings on 3 Hotel Chains
Skift Take
Goldman Sachs is cautiously optimistic about the lodging sector, with Buy ratings on Hilton, Wyndham, and Marriott, while holding Neutral or Sell ratings on others, especially in the timeshare segment.
The markets got what they wanted from the Fed with a 50 basis point cut but after a brief rally, they sold off modestly. The end of the day had the DJIA down 103, Nasdaq down 55, the S&P 500 down 16 points and the 10 year treasury yield up .04 to 3.69%. Lodging stocks were mixed.
Goldman Sachs initiated coverage of the lodging sector, and we can describe it as cautiously optimistic. They acknowledged a choppy environment with many companies lowering 2H forecasts, but GS believes much of that is priced in. They are rather sour on timeshare. On the Buy side, they have Hilton ($245 PT), Wyndham ($96), and Marriott ($267), while they have a Neutral rating on Hyatt ($151). They initiated Travel + Leisure ($44) with a Neutral rating and said Hilton Grand Vacations and Marriott Vacations have Sell ratings.
STR reported US lodging data for the week ended 9/14. US hotel RevPAR was down -1.4%, with rates up 0.2%. Group
