Hotel Transactions in the U.S. Are Projected to Increase
Skift Take
A report from last week's Lodging Conference points to a surge in hotel transactions due to maturing loans, growing construction, and renovation projects, despite labor challenges and softening RevPAR trends.
The DJIA fell 344 points while Nasdaq was up 50, the S&P 500 fell 11 points but the 10-year treasury yield jumped .11 to 4.18%. Lodging stocks were lower but we did have new highs in IHG and CHH. SVC traded down to another new low but then bounced for the first time since they announced their dividend cut and planned hotel sales. SOND plunged -14%, SOHO was down -8% and VCSA and AHT both fell -5% on the day.
Evercore ISI Group raised price targets on some names in their lodging coverage. They upped Hyatt's price target to $155 from $145; Hilton to $240 from $210 and Marriott to $270 from $245. They maintained In-Line ratings for all three.
Hilton was downgraded to Hold from Buy by Melius Research.
Powell & Aucello gave a summary of what they learned at the recent 2024 Lodging Conference. They are expecting a significant increase in hotel transactions, with approximately $5.8 billio
