The DJIA rebounded 254 points, Nasdaq bounced 169, the S&P 500 rose 43 points and the 10-year Treasury yield ticked up .01 to 4.62%. Lodging stocks were higher. VCSA and SOHO traded down to new lows but SOHO bounced 5% on the day. BHR was up 7% and SOND was up 6%.
Goldman Sachs cut their target price on Vacasa to $9.50 from $11. They maintained their Neutral rating.
Baird gave their views on the upcoming 1Q results for Lodging REITs. They believe 1Q24 RevPAR trends were weaker than expected across the board due to all the factors we have discussed. They lowered 1Q24 estimates and put full-year expectations now well below guidance midpoints. Baird believes management teams could/should reduce at least the high end of their FY guidance ranges. They believe 1Q24 should be the toughest comp quarter of the year.
Selina Hospitality said they received a staff determination letter from the Nasdaq Stock Market, notifying them of their intention to commence the process to delist SLNA’s securities due to the closing bid price being below $0.10 for 10 consecutive days. SLNA plans to appeal the decision with the hearing request staying the decision. SLNA said they will most likely implement a 1 for 30 reverse stock split to get back into compliance. That was approved by shareholders at their annual meeting. The problem is the stock has dropped so much that a 1 for 30 only gets them to $1.80 and with a very small float, it could be a few trades and the stock is back below $1, hypothetically.
The Peninsula New York is undergoing a major renovation. The hotel’s operator, HSH, will be souping up the tech in its 217 rooms to install control-all touch screen tablets, as well as radically improving the aesthetics. The overhaul also includes the lobby and its restaurants, with the rooftop Salon de Ning reborn