Barclays Forecasts Optimistic Outlook for 2024

The DJIA ended Friday down 145 points while Nasdaq was down 131, the S&P 500 fell 24 points and the 10-year treasury yield was up .06 to 4.30%. Lodging stocks were mostly lower. SOND was up 11% but AINC and SLNA fell -7% and AHT was down -5%.

Barclays updated their US lodging REIT estimates ahead of the onslaught of earnings that are coming. Barclays is expecting lodging REITs to initiate relatively conservative 2024 earnings guidance in terms of RevPAR growth and margins but expresses optimism regarding group bookings, stabilization of leisure demand and continued improvement in business transient demand. Expense pressure will again be the focus. Barclays expects Group and Urban to likely be the favored segments into 2024. Barclays made some modest changes to price targets with Host Hotels being the biggest change, upping their PT to $23 from $21. Pebblebrook and Sunstone were the others they raised targets on, $16 from $15 and $10 from $9 respectively.

HRI Hospitality and Hilton announced the opening of the 306-room Tempo by Hilton Nashville Downtown. Developed and owned by HRI Hospitality and operated by HRI Lodging, the 16-story hotel features over 9,500 square feet of flexible indoor and outdoor meeting spaces, a fitness center, immersive Topgolf Swing Suites, vast rooftop outdoor bar and pool area, outdoor event space, and a variety of food and beverage concepts.

Ashford Hospitality Trust, Inc. signed a definitive agreement to sell the 144-room Residence Inn located in Salt Lake City, Utah for $19.2 million. The sale is expected to be completed in early March a