Los Cabos

Truist remains optimistic about US hotel demand and RevPAR, favoring C-Corp stocks like HLT, MAR, and H, and recommending Hyatt and Ryman Hospitality among REITs. Hilton is expanding in Baja California, Mexico with Tapestry Collection hotels. Ashford Hospitality Trust faces lawsuits over loan defaults. Accor announced executive appointments and a new hotel in Poland with Allenort Group.

Hilton Grand Vacations is acquiring Bluegreen Vacations for approximately $1.5 billion, expanding its membership base and resort portfolio. HEI Hotels & Resorts takes over management of the Renaissance Times Square hotel in New York. Hyatt is collaborating with Parks Hospitality Holdings to develop four new properties in Mexico, including the Park Hyatt Cancun and Grand Hyatt Mexico Santa Fe.

Choice Hotels has urged Wyndham Hotels to consider a merger, but Wyndham has firmly declined any interest in the proposal. The chairman of Wyndham revealed they almost acquired Choice Hotels 20 years ago. The U.S. construction pipeline shows growth, with over 5,700 projects and 672,000 rooms, driven by a strong upper midscale chain scale presence. Renovation and conversion projects are on the rise, and new hotel openings are expected to increase in the coming years. Several hotel and resort projects are underway, including Westin Washington, DC Downtown, Opry Entertainment Group's renovation in Austin, Four Seasons expanding its Private Retreats collection, and Tommy Bahama's debut resort in California. Additionally, new developments in Florida, Rhode Island, and Indiana are on the horizon.

Stock markets experienced mixed performance, with DJIA and Nasdaq rising, while S&P 500 increased. Mortgage holders who didn't lock in rates may regret their decision as the 10-year treasury yield rose. Several lodging stocks had varied results, with SHCO and SLNA showing gains, while AINC rebounded and INN, AHT, and VAC hit new lows. SOND declined. B of A Securities raised the price target for Soho House, Argus Research initiated coverage on Choice Hotels, and Baird discussed Hersha Hospitality Trust's preliminary proxy statement.

Sonder Holdings announces a 1 for 20 reverse split to maintain its Nasdaq listing, with Selina also considering a reverse split. STR reports US hotel data with a slight increase in US hotel RevPAR but a decrease in Group RevPAR for the week ending 9/16. Various hotel acquisitions and developments are underway, including Omni Hotels & Resorts in Raleigh, Travel + Leisure Co.'s sports-themed resorts, Life House in Palm Springs, and more.

Marriott is planning a new Residence Inn in Cary, North Carolina, featuring 122 guestrooms, meeting facilities, and various amenities. Hilton has opened Motto by Hilton New York City Times Square, marking the second Motto by Hilton brand in the city and the sixth Motto by Hilton overall. IHG Hotels & Resorts has celebrated the opening of a new Holiday Inn property in South Philadelphia after a $10 million conversion, marking their first IHG-banded property in the area.

Wyndham Hotels & Resorts received a much better response to their earnings report than Hilton did yesterday. Pebblebrook Hotel Trust kicked off the Lodging REIT earning season with Hersha Hospitality . Hersha Hospitality revenue was in line, EBITDA was lower than expected.

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.

TD Cowen upped their price targets on Hilton to $142 from $140 and Marriott to $172 from $170. HVS gave their findings from the Hunter Conference . HVS said early 2023 comparisons continue to look favorable with easy comparisons in 1Q due to last year’s Omicron outbreak. Canada’s hotel performance increased from the previous month, with February RevPAR exceeding C$100 for the first time on record