NewcrestImage Expands Portfolio with Three Marriott Hotel Acquisitions
Skift Take
- Truist expects strong international and group earnings in 3Q lodging reports but weak domestic leisure.
- CoStar reports higher hotel performance in September 2023, with New York City leading in occupancy.
- Several hotel transactions and developments are mentioned, including Omni Pontoque Resort and Alt Hotel Calgary University District.
The DJIA fell 251 points, Nasdaq was down 128, the S&P 500 was down 37 and the 10 year treasury yield was up .08 to 4.99%. We should have started with Fed Chief Powell spoke today so you would know what to expect from the indexes. Lodging stocks were lower. SOHO and VCSA traded down to new all time lows. VCSA was down another -6%.
Truist said they expect international and group areas of strength showing up in 3Q lodging earnings reports but domestic leisure will be soft. Management commentary should remain positive especially on the group outlook. If HLT and MAR provide 2024 commentary, Truist expects about 200 basis points above consensus with unit growth in line. Hotel owners (REITs) should be touching on margin pressures. They do not expect an upbeat earnings season for vacation ownership companies. Truist’s favorite names remain Hyatt and Ryman Hospitality.
According to CoStar, the U.S. hotel industry reported higher September 2023 performance results than the previous month. September 2023 (percentage change from September 2022): Occupancy: 66.2% (-05%); ADR: $160.18 (+3.5%); and RevPAR: $106.07 (+29%). Among the Top 25 Markets, New York City experienced the highest occupancy level (87.6%), up 1.6% year over year. Markets with the lowest occupancy for the month included New Orleans (53.0%) and Houston (59.5%). The Top 25 Markets showed higher occupancy and ADR than all other markets.
A joint venture tied to a Pacific Investment Mortgage Co. (PIMCO) fund surrendered a portfolio of 20 hotels with a $240 million mortgage. The properties, located in cities including San Antonio and Carmel, Indiana, were forfeited in a deal that closed in September. The Pimco portfolio, valued at $326 million when the deb
