Los Cabos, Mexico’s Growth Attracts More Hotel Brands

The DJIA fell 8 points while Nasdaq was down 39, the S&P 500 fell 12 points and the 10 year treasury yield was up .08 to 3.78%. Lodging stocks were mostly lower. SOND was up 6% but that was pretty much it for any type of positive movement.  MCG fell another -11%, SLNA was down -7%, SOHO and ABNB both fell -5% and VCSA traded down to a new low.

JP Morgan lowered their rating on Membership Collective Group to Neutral from Overweight. JPM said their downgraded was based on MGC’s exposure to Europe, where they expect a weaker consumer backdrop, its lowered unit growth expectation, JPM’s expectation that inflation will impact non-membership house revenues as well as profitability, and its CEO transition, all of which they think merits a lower multiple. JPM lowered their target price to $7 from $9.

Los Cabos Tourism Board announced unprecedented growth in tourism arrivals is expected by the end of 2022 with more than 3.3 million visitors, a more than 20% projected growth when compared to 2021 and a 32% compounded growth over the last five years with 800 thousand more passengers than 2017. Los Cabos has over 1. million seats from the United States scheduled for October 2022 to March 2023, representing a 35.2% increase when compared to the same period in 2019. In the Canadian market, the destination also projected 19.3% more available seats for the next six months, an in the domestic market the increase in available seats is 95.8%, both compared to the same period in 2019. With more than 1,500 new hotel rooms expected from 2022-2024, Los Cabos continues to attract renowned