Truist's Earnings Season Projections
Skift Take
Truist expects hurricanes to boost midscale hotel RevPARs but raise insurance costs, while labor pressures and union demands challenge hotel profitability despite occupancy growth and M&A opportunities.
The DJIA rose 201 points while Nasdaq was up 160, the S&P 500 was up 45 points, and the 10-year treasury yield was up .03 to 4.10%. Lodging stocks were mixed. WH traded up to another new high while the only mover of note was SHCO, with a gain of 5% on the day.
Truist gave a bit of a lodging update ahead of the soon-to-be earnings season. They believe the recent hurricanes could give the Midscale and Economy segment RevPARs a bump up for the next several quarters, highlighting both Wyndham and Choice as potential beneficiaries. On the other hand, hurricane damage will negatively affect future property insurance rates. They also warned of a negative impact on vacation ownership companies from the hurricanes, mostly those in Orlando from Hurricane Milton. Truist described C-Corps as being in the middle of a "brand grab" right now, with investors being focused on headline net rooms g
