Truist Says 2025 Will Look a Lot Like 2024
Skift Take
Truist projects 2025 will closely resemble 2024’s hotel performance—with modest RevPAR growth, potential M&A, and continued cost pressures for REITs—while favoring Wyndham and Ryman Hospitality.
The markets surged and treasury yields fell with the news being everything from a tamer-than-expected CPI report to an agreement on a cease-fire in the Middle East. Whatever the combination, the DJIA jumped 703 points, Nasdaq was up 467, the S&P 500 rose 107 points, and the 10-year treasury yield dropped .14 to 4.05%. Lodging stocks were higher.
Morgan Stanley said they see 2025 as a cycle extension, not a new cycle, leading to sluggish overall growth but pockets of acceleration due to the new administration. They downgraded Choice Hotels and Sunstone Hotels to Underweight from Equal Weight while favoring Travel + Leisure. They remain overweight at Hilton, Marriott, and Wyndham. The downgrade of SHO and CHH is after the rally in both stocks, as they see a more negative risk/reward from here.
Truist also said 2025 is shaping up like 2024 but warned to look out for unintended consequences
