New CEOs for Fairmont and Orient Express
Skift Take
- Truist remains optimistic about US hotel demand and RevPAR, favoring C-Corp stocks like HLT, MAR, and H, and recommending Hyatt and Ryman Hospitality among REITs.
- Hilton is expanding in Baja California, Mexico with Tapestry Collection hotels.
- Ashford Hospitality Trust faces lawsuits over loan defaults. Accor announced executive appointments and a new hotel in Poland with Allenort Group.
The DJIA surged 520 points but Nasdaq was down 32, the S&P 500 was up 17 points and the 10-year treasury yield was up .08 to 4.35%. Lodging stocks were modestly higher. SOHO was the biggest mover, down -6% and VAC traded down to another new low.
Truist gave their latest observations on forward-looking bookings and pricing trends for mid and higher end US hotels. Truist said they are not seeing any signs of newly emerging pullback in demand and their RevPAR projections of +3-4% in 4Q23; +2%-4% in 1Q24 and +3%-5% in 2Q24 are all slightly above consensus. They see group/convention business at or above the high end of those ranges while individual business is at least at the midpoints and leisure is at or below the low ends of the ranges. They believe this is enough for C-Corp stocks like HLT, MAR and H to work but not enough for the REITs. Hyatt is their favorite C-Corp and Ryman Hospitality is the REIT they like.
Hotel Equities det
