Analysis of Tripadvisor's Excellent to Terrible Experience Scale - Wells Fargo (PEB) (HT) (CLDT) (BEE) (LHO) (RHP)

March 5, 2014 2:36 PM EST Send to a Friend
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Rating Summary:
    2 Buy, 7 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 12 | Down: 27 | New: 5
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PebbleBrook Hotel Trust (NYSE: PEB), Hersha Hospitality Trust (NYSE: HT), Chatham Lodging Trust (NYSE: CLDT), LaSalle Hotel Properties (NYSE: LHO), and Strategic Hotels & Resorts, Inc. (NYSE: BEE) ranked high on analysis of Tripadvisor's Excellent to Terrible experience scale, noted a report by Wells Fargo analyst Jeffrey J. Donnelly. Trends effect occupancy rates, noted the report.

"In our view, Tripadvisor has become an important tool for customers to weigh future hotel stay decisions and for hotels to influence future bookings through how they interact with their past and potential guests. Based on Tripadvisor's Excellent to Terrible experience scale, we calculated a weighted average ranking by company and found that companies with smaller hotels and/or higher-end hotels in their portfolios achieved the highest average rankings," said Donnelly. "We also found that hotels with the highest percentage of "net positive" rankings tended to achieve the highest occupancy rates."

"We found that smaller hotels, on average, received a higher rating than larger hotels possibly due to their ability to deliver a more personalized, intimate service experience. This may also speak to the management structure at small versus hotels. Smaller hotels are typically managed by third-parties often under short, cancellable contracts. The largest hotels are typically brand-managed under very long-term, non-cancellable contracts. The contract structure may give rise to a culture difference. This relationship might explain why a company with very large, brand-managed hotels such as Ryman Hospitality Properties (NYSE: RHP) scores lowest among the lodging REITs despite a strong customer service culture," added the analyst.

For an analyst ratings summary and ratings history on PebbleBrook Hotel Trust click here. For more ratings news on PebbleBrook Hotel Trust click here.

Shares of PebbleBrook Hotel Trust closed at $34.39 yesterday.

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