Lodging Stocks Rebound After President Trump Pulls Back on Tariffs
Skift Take
Hotel industry sees major market gains as Trump reduces tariffs, while various properties announce openings, renovations, and rebranding.
The world changed at around 1 p.m. today when word circulated that President Trump was pulling back on the tariffs, with the exception of the battle with China. We had a Melt-Up in the markets with the DJIA ending the day up 8% or 2,963 points, Nasdaq up 12.2% or 1,857 and the S&P 500 rising 10% or 474 points. The 10-year treasury yield was up .14 to 4.40%. It would be a lot shorter of a list to have the lodging stocks that were not up 10% or more so we will just do those up in the teens. SHCO and RLJ were both up 17%, INN was up 15%, SVC, ABNB, and HGV were each up 15%, APLE, H, PK, XHR, and DRH were up 14% each, and TNL was up 13% on the day.
Jefferies said they are more conservative on lodging stocks given the macro and market uncertainty and decelerating global travel. They feel lodging REITs will see a more negative impact than the C-Corps, resulting in the firm downgrading their ratings on Host Hotels, Park Hotels, and Xenia
