The DJIA plunged 476 points, Nasdaq fell 225, the S&P 500 fell 70 points, and the 10-year treasury yield fell .05 to 3.88%. Scrooge took the egg nog away and gave everyone a dose of reality. Lodging stocks were lower. AHT traded down to a new low but BHR was up 5%. SLNA was down -6%, and SHCO fell -5% on the day.
Citigroup cut their rating on Sonder Holdings to Neutral from Buy. Their price target is now $4.
STR reported US lodging data for the week ended 12/16. US hotel RevPAR was up 5.8%, led by a 4.7% rise in rates. Group RevPAR was up 12.8%.
Choice Hotels issued a response to Wyndham Hotels & Resorts’ Board of Directors recommendation for shareholders to reject CHH’s exchange offer. CHHtaunted WH, saying their shareholders should be concerned about the company’s blatant misrepresentation of the lodging industry’s competitive landscape, with WH’s comments calling into question their ability to support franchisees while also generating shareholder value through M&A. CHH said WH contacted them on 12/12 to engage in discussions regarding a potential transaction but on 12/17, WH once again ended the discussions. CHH said that they have engaged with dozens of WH’s institutional holders representing over 40% of the shares outstanding. CHH said many shareholders have consistently expressed support for the merits of a transaction as well as the desire for both parties to work together to reach a resolution. We note CHH did not say how many of the supposed 40% of the shares outstanding support the merits of a transaction.
Hyatt shared its strong development pipeline of more than 35 planned luxury hotels and resorts globally through 2025 across the Park Hyatt, Grand Hyatt, Miraval, Alilia, Andaz, Thompson Hotels, and The Unbound Collection by Hyatt brands, as well as Inclusive Collection brands Zoetry Wellness & Spa Resorts and Dreams Resorts & Spas. While maintaining its asset-light approach, Hyatt has doubled the number of luxury rooms, tripled the number of resort rooms, and quadrupled the number of lifestyle rooms in only five years. Hyatt’s luxury portfolio is expanding to meet demand in new international markets including the debut of Park Hyatt hotels in the UK, Mexico, and Malaysia; the Thompson Hotel brand’s ex