Hotel REITs See Softer U.S. RevPARs
Photo Credit: A room at the 1 Hotel Brooklyn Bridge Starwood
Skift Take
Marriott plans a dual-branded AC Hotel and Moxy Hotel in Dallas, while other hotel companies announce global openings and renovations.
The DJIA ended the short week with a further decline of 527 points while the Nasdaq only fell 21 and the S&P 500 was up 7 points. Today was truly a mixed day as hotel stocks held their own. AHT was the only mover of note, up 5%. The shortened treasury trading day ended with the 10-year treasury yield up .05 to 4.33%.
Baird gave updated perspectives on the Hotel REITs, describing investor sentiment as extremely negative. Baird said they estimate U.S. RevPAR is tracking at 300 to 400 basis points below prior expectations, while REIT guidance had been for 1% to 3% growth. They are hearing investors say the stocks look cheap, but Baird thinks RevPAR trends will likely weaken further with demand risks skewed to the downside. They did call out Summit Hotels and Xenia Hotels as two names that look interesting at current levels.
Ashford Hospitality Trust said they expect to report occupancy of 68% for 1Q25 with an ADR of approximately $196
