Truist Discusses Challenges in Choice Hotels and Wyndham Deal
Skift Take
- JP Morgan expects strong international performance in 3Q23 RevPAR, net rooms, and pipeline growth, particularly driven by ADR gains.
- Truist discusses potential challenges and concerns in the Choice Hotels and Wyndham Hotels deal, including antitrust issues and franchisee resistance.
- US hotel industry reports a modest 0.8% YoY increase in RevPAR, with ADR compensating for soft occupancy; group RevPAR up 0.9% for the week ending 10/14.
The DJIA fell 333 points, the Nasdaq fell 219, the S&P 500 was down 59 points, and the S&P 500 is one inflation or jobs report away from 5%, up another .06 to 4.90%. Lodging stocks were lower. SOHO traded down to a new low. VCSA was down -7% and is close to a new all-time low after the reverse split. SOND was down -6%, and SLNA fell -5% on the day.
JP Morgan said they expect relatively strong international 3Q23 RevPAR, net rooms, and pipeline growth, though to varying degrees between chain scale exposures and geographies. They also expect commentary from MAR and HLT around 2024 fundamentals to bracket Consensus RevPAR and net unit growth forecasts. JPM is selective on the lodging sector as they believe we face primarily ADR-driven year-over-year RevPAR gains with occupancy improvements limited to group and larger corporate tra
