The Strong State of U.S. Hotels

• CBRE released its US Hotels State of the Union March 2023 Edition. Key takeaways include February marked nine consecutive months of easing inflation.
• Baird said that with industry wide March RevPAR being better than expected, it de-risked 1Q23 earnings a bit, and the trade is likely higher into the earnings prints.
• Jefferies said they continue to believe Host Hotels is best-positioned among peers to generate growth and expanding cash flows irrespective of macro challenges and has yet to receive valuation credit.

The DJIA fell 143 points on Friday while Nasdaq was down 43, the S&P 500 fell 9 points and the 10-year treasury yield was up .07 to 3.52%. Lodging stocks were modestly lower. VCSA and SOND both traded down to new all-time lows. AHT was down -5%. Baird said that with industry wide March RevPAR being better than expected, it de-risked 1Q23 earnings a […]