Truist Has Its Own Ideas About Choice's Designs on Wyndham
Skift Take
Truist met with Wyndham and Choice franchisees who had strong opinions about the merger and broad frustrations about brand costs and property valuation in limited service today.
The DJIA was up 134 points but Nasdaq dropped 118 while the S&P 500 was down 3 points and the 10-year treasury yield was down .03 to 4.06%. Lodging stocks were modestly higher. HLT, MAR, and IHG traded up to new highs. SLNA was up another 31% while VCSA rose another 10% on the day.
Morgan Stanley tweaked estimates to account for recent RevPAR data. While lodging valuations are more elevated than their sister gaming group, lodging stocks have generally underperformed the market year to date, outside of the quality names like HLT and MAR and deal-related names like CHH. MS sees outlook expectations and room growth as key themes. They remain Overweight HLT, MAR, H, and WH.
Truist had some interesting comments regarding their discussions at ALIS concerning the Wyndham/Choice situation. They met with a few CHH and WH franchisees/hotel owners separately. They had st
