Canada Notches Record High Average Room Rates
Skift Take
- Wedbush initiated coverage on lodging REITs, with Ryman Hospitality and Host Hotels receiving Outperform ratings and price targets of $94 and $19, respectively. Park Hotels and Pebblebrook Hotel Trust were initiated with Neutral ratings and price targets of $13 and $14, respectively.
- Keybanc downgraded Airbnb's rating to Sector Weight from Overweight.
- A report by Morning Consult indicates that the "revenge travel" trend may be declining, with travel intentions increasing in some countries but declining in others, particularly in Europe. China is experiencing a significant surge in travel, driven by pent-up demand.
The DJIA fell 431 points while Nasdaq was down 248, the S&P 500 fell 59 and the 10-year treasury yield jumped another .12 to 4.80%. Lodging stocks were lower. New lows were set by VAC and AINC. SOND and AHT were each down -7%, while PEB and ABNB were down -6%.
Wedbush initiated coverage on some lodging REITs this morning. Ryman Hospitality and Host Hotels were started at Outperform with price targets of $94 and $19 respectively. Park Hotels and Pebblebrook Hotel Trust were initiated at Neutral with $13 and $14 price targets respectively.
Keybanc cut their rating on Airbnb to Sector Weight from Overweight.
A new report by Morning Consult shows that, after years of inflation and rising travel costs, the era of “revenge travel” may be coming to a close. According to The State of Travel & Hospitality report, travel intentions are increasing in several countries, but flat lining or falling in others, most notably in Europe. Intentions to travel dropped 11 percentage points in France and six in Germany. Interest to travel also fell in Canada and Russia (-4 percentage points each). Pent-up demand was expected to have greater staying power in Asia-Pacific, where Covid border restrictions were kept in place longer than other parts of the world. Pent-up demand fueled travel in AP in the first half of 2023, but since then, the trend is starting to reverse, noting a drop in Singaporean visitors to Malaysia following a surge in late 2022. Japanese enthusiasm to travel remains muted, with just 53% of respondents planning leisure travel in the next 12 months, the lowest of the 15 countries in the survey. Travel is booming in China though. As the country celebrates the Golden Week holiday, domestic bookings are up nearly 6x, and outbound bookings more than 20x, year-on-year.
Average room rates reached record highs across Canada this summer. Driven by a strong and sustained rebound in tourism and overnig
