Hotel Asset Sales Pick Up
Skift Take
- Jefferies said the looming recession and stabilizing credit market could be positive for the prospects of timeshare, but with a harder landing not off the table, they see stocks trading at rich valuations.
- Truist said with earnings season about to kick into gear for the lodging sector, they continue to see macro over micro.
- Park Hotels and Resorts Inc. closed on the sale of the 508-room Hilton Miami Airport, located in Miami, Florida, for $118.25 million.
The DJIA fell 128 points on Friday while Nasdaq was down 194, the S&P 500 fell 43 and the 10-year treasury yield bounced higher by .14 to 3.53%. Lodging stocks were mostly lower. MCG was the mover of note, up 5%.
Jefferies said the looming recession and stabilizing credit market could be positive for the prospects of timeshare, but with a harder landing not off the table, they see stocks trading at rich valuations. They maintained their Buy rating on Marriott Vacations but cut their target price to $184 from $195. They downgraded Hilton Grand Vacations and Travel and Leisure to Hold from Buy. HGV’s PT was cut to $52 from $68 and TNL’s PT was lowered to $49 from $71.
Truist said with earnings season about to kick into gear for the lodging sector, they continue to see macro over micro. They see the main driver/wildcard coming from the economic impact of interest rates and inflation with investor sentiment around these being the most important. They do expect most companies to have at least modest 4Q earnings beats and talk positively about expectations for the year with management teams having more conviction for the first half of the year than the back half due to limited visibility. Specifically for hotel REITs, Truist said 4Q results should not be much of a surprise as many gave earnings updates in late December and early January. For C-Corps, they expect most to come out with optimistic tones with the greatest degree of optimism derived from international strength in 4Q, mostly from Europe, Caribbean, and Canada, the resiliency of leisure travel, group/convention strength, the relative stability of new unit pipelines and their ability to return capital to shareholders.
Park Hotels and Resorts Inc. closed on the sale of the 508-room Hilton Miami Airport, located in Miami, Florida, for $118.25 million. Proceeds from the sale will be used to pay off the outstanding $50 million revolver balance and for general corporate purposes. MCR purchased the 14-story hotel, marking the company’s second hotel in the Miami airport submarket following the acquisition of the Hyatt Place Miami Airport East, and it
