Wells Fargo Shows Optimism for U.S. RevPAR in 2025
Skift Take
Wells Fargo predicts a 2% U.S. RevPAR growth in 2025, led by group and luxury segments, upgrading Wyndham Hotels to Overweight and highlighting strength in Asia and Europe.
The DJIA fell 697 points on Friday while Nasdaq fell 317, the S&P 500 was down 91 points, and the 10-year treasury yield continues marching to 5%, up another .08 to 4.78%. Lodging stocks were lower with PK and SOHO hitting new lows, with SOHO down -5% on the day. AHT also was down -5%.
Despite the weakness in lodging stocks, led by the REITs, Wells Fargo expects 2025 U.S. RevPAR to be up 2%, led by group, then improving business transient and leisure. They are overweight Hyatt, and they upgraded Wyndham Hotels to Overweight from Equal Weight with their price target rising to $114 from $103. WF said that by chain scale, they expect the luxury and upper upscale segments to lead (group centric) but said economy/mid-scale has begun inflecting positively and has easing comparisons in 2025, hence the WH upgrade. They also expect Asia (ex-China) to be a bright spot and for Europe to be strong for a third year.
De Pere 230 Development Partners LLC announced that p
