Truist Sees Some Price Softening at Hotels
Skift Take
Truist analysts said the hotel companies weren’t admitting it, but demand trends had been decelerating before the tariff shock.
We really cannot wait for 1Q25 earnings season to begin, and then be over with, for the lodging group, because we are getting a bit tired of reporting on the day-to-day downgrades and negative revisions from analysts. Truist gave their commentary on the earnings season, with the most important thing being the first comment. They believe 1Q will be in line with expectations, but it won’t really matter as the focus will be on what companies discuss about recent trends and their expectations. Truist said the companies weren’t admitting it, but demand trends had been decelerating before the tariff shock. They would not be surprised to see some companies decide to just pull guidance until they get a better handle on the situation. Truist is the lowest on the Street for expectations and they are expecting Flat to +2% RevPAR for 2Q for U.S. mid and upper-end hotels and -2% to +1% for 3Q. U.S. limited-service hotels should be at least 200 basis points below that. The fi
