Highgate

JP Morgan upgraded their rating on Accor to Neutral from Underweight with a price target of €30, up from €24.50. Hyatt Hotels Corporation  and  Mr & Mrs Smith  announced an agreement for a Hyatt affiliate to acquire Mr & Mrs Smith, a platform offering direct booking access to boutique hotels.

B of A Securities initiated coverage on Hilton Grand Vacations with a Neutral rating and $50 price target. OYO plans to expand its market presence in the U.S. with an addition of over 100 hotels in CY2023. Morgan Stanley cut their price target on Park Hotels to $13 a share from $14 while maintaining their Equal Weight rating.

Red Roof will open 50 properties, new builds and conversions , in 2023, representing 60% year-on-year growth. The Greater Las Vegas Short-Term Rental Association wants the Supreme Court to rule on the constitutionality of short-term rental regulations in Clark County, Nevada. The newly minted penny stocks, VCSA and SOND, both traded down to new lows, dropping another -4% and -7% respectively. SLNA hit a new low, down another -7%.

Lodging stocks were higher with the only big mover of note once again being AHT, up another 6%. Baird gave their 2023 Hotel REIT outlook saying they are taking a more balanced approach in early 2023 as macroeconomic risks and growing expense pressures keep them selective. STR announced U.S. lodging data for the week ended January 7th. Year over year RevPAR was up 21.8% on easy comps due to holiday/school timing and the Omicron outbreak last year.

Jefferies downgraded both Marriott and Hilton to Hold , leaving only Wyndham with a Buy rating in their C-Corp coverage. They continue to favor Host Hotels and Hersha Hospitality. 1 Hotel Hanalei Bay is opening on February 15 on Kauai’s north shore. The resort will be the flagship hotel for 1 Hotels. The DJIA fell 113 points, Nasdaq was up 66, the S&P 500 was down 3 points and the 10-year treasury yield was down .05 to 3.52%. How was that for a mixed market?

JP Morgan said they see more compelling value and better risk-rewards in gaming versus lodging , given better values and differing sets of investors’ expectations for fundamentals. Barclays gave their US Gaming, Lodging & Leisure outlook, saying their preference is the Cruise Lines out of the sub-sectors. Highgate has entered into a definitive agreement to purchase Viceroy Hotels & Resorts.

We may be seeing a short week slowdown already starting in the financial markets. Lodging stocks were modestly lower. Deutsche Bank 's  Gaming, Lodging, Leisure & Restaurant Conference 'soverarching chorus was stability in trends and company outlooks. Pebblebrook Hotel Trust , in their monthly update, referenced that the end of October brought a return of seasonality.

Lodging stocks were higher again with MCG up 11%, HT up 8%, ABNB up 7%, SLNA up 6% and SVC up another 5%. Both Marriott International and Hilton announced an increase in their share buyback authorizations. Hilton announced its board of directors authorized the repurchase of an additional $2.5 billion of common stock under its existing stock repurchase program.

The DJIA rose 334 points, Nasdaq was up 52, the S&P 500 rose 21 points and the 10 year treasury yield was down .09 to 4.13%. Apple Hospitality reported a modest beat with RevPAR up 7.5% versus 3Q19. In September and October APLE bought back a modest amount of stock just above $14 a share. Sunstone Hotel Investors reported a slight 3Q beat. SHO continues to be a buyer of their own stock under $10.

Ryman Hospitality Properties beat 3Q EBITDA estimates while giving a small 4Q guidance raise. Lodging stocks were mixed. SOND rose 8% but Selina (SLNA) plunged another -23% and is now down to near where it was in price when they completed the merger with BOA. Timeshare is definitely a mixed bag this earnings season. Following up on TNL’s disappointing results, Marriott Vacations gave a mixed 3Q along with guidance that seems mixed as well.