FBR Capital on Real Estate/Lodging: RevPAR Up a Strong 11% YOY Last Week
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19 Buy, 18 Hold, 2 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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FBR Capital on Real Estate/Lodging: RevPAR Up a Strong 11% YOY Last Week
FBR analyst said, "For the week ending May 7, based on Smith Travel Research data, U.S. RevPAR was +11.1%, or several hundred basis points better than the previous week’s +5.5% (week ending April 30), which was modestly affected by Easter Sunday falling in that week. While there were no significant calendar distortions visible in last week’s results (Mother’s Day fell on a Sunday both last week and in the comparable week), weekday results were notably strong, which we view to be due to some residual positive impact from the calendar shift in the previous week. Additionally, RevPAR from Thursday through Saturday was observed to be notably higher (in low to mid teens) around Mother's Day. So far on a quarter-to-date basis, we observe U.S. RevPAR to be +7.6%, luxury RevPAR to be +9.2%, and upper-upscale RevPAR to be +4.7%. The strength in U.S. RevPAR growth continues to come largely from luxury and midscale/economy segment hotels. We surmise that next week’s results should be comparatively free of significant calendar distortions."
Highlighted Key Points Include:
Based on Smith Travel Research data, total U.S. RevPAR growth for last week was 11.1% year over year. Occupancies were +340 bps, or +6.0%, from a year earlier, while the ADR change was +4.8%.
Luxury and upper-upscale hotel RevPAR. Luxury and upper-upscale hotels saw RevPAR changes of +13.1% (occupancy: +380 bps, ADR: +7.2%) and +12.0% (occupancy: +370 bps, ADR: +6.1%), respectively.
Midscale and the economy segment RevPAR. RevPAR for the midscale segment was +6.5% (occupancy: +290 bps, ADR: +0.6%), while for the economy segment, RevPAR was +8.2% (occupancy: +300 bps, ADR: +2.0%).
Performance by location. Looking at hotel RevPAR performance across locations, we observed urban hotels at +14.3%, suburban at +10.2%, airport at +12.2%, resort hotels at +10.1%, and highway hotels at +8.4%.
San Francisco outperforms top five markets. Across the top five markets, RevPAR in Boston was +12.0%, Chicago was +19.7%, San Francisco was +37.1%, New York was +6.6%, and D.C. was +7.3%.
Lodging stocks include: Marriott (NYSE: MAR), Host (NYSE: HST), Starwood (NYSE: HST), Simon Property Group (NYSE: SPG), Intercontinental Hotels (NYSE: IHG), Choice Hotels (NYSE: CHH), Wyndham (NYSE: WYN), and Sonesta (Nasdaq: SNSTA) and Marcus Corp (NYSE: MCS)
FBR analyst said, "For the week ending May 7, based on Smith Travel Research data, U.S. RevPAR was +11.1%, or several hundred basis points better than the previous week’s +5.5% (week ending April 30), which was modestly affected by Easter Sunday falling in that week. While there were no significant calendar distortions visible in last week’s results (Mother’s Day fell on a Sunday both last week and in the comparable week), weekday results were notably strong, which we view to be due to some residual positive impact from the calendar shift in the previous week. Additionally, RevPAR from Thursday through Saturday was observed to be notably higher (in low to mid teens) around Mother's Day. So far on a quarter-to-date basis, we observe U.S. RevPAR to be +7.6%, luxury RevPAR to be +9.2%, and upper-upscale RevPAR to be +4.7%. The strength in U.S. RevPAR growth continues to come largely from luxury and midscale/economy segment hotels. We surmise that next week’s results should be comparatively free of significant calendar distortions."
Highlighted Key Points Include:
Based on Smith Travel Research data, total U.S. RevPAR growth for last week was 11.1% year over year. Occupancies were +340 bps, or +6.0%, from a year earlier, while the ADR change was +4.8%.
Luxury and upper-upscale hotel RevPAR. Luxury and upper-upscale hotels saw RevPAR changes of +13.1% (occupancy: +380 bps, ADR: +7.2%) and +12.0% (occupancy: +370 bps, ADR: +6.1%), respectively.
Midscale and the economy segment RevPAR. RevPAR for the midscale segment was +6.5% (occupancy: +290 bps, ADR: +0.6%), while for the economy segment, RevPAR was +8.2% (occupancy: +300 bps, ADR: +2.0%).
Performance by location. Looking at hotel RevPAR performance across locations, we observed urban hotels at +14.3%, suburban at +10.2%, airport at +12.2%, resort hotels at +10.1%, and highway hotels at +8.4%.
San Francisco outperforms top five markets. Across the top five markets, RevPAR in Boston was +12.0%, Chicago was +19.7%, San Francisco was +37.1%, New York was +6.6%, and D.C. was +7.3%.
Lodging stocks include: Marriott (NYSE: MAR), Host (NYSE: HST), Starwood (NYSE: HST), Simon Property Group (NYSE: SPG), Intercontinental Hotels (NYSE: IHG), Choice Hotels (NYSE: CHH), Wyndham (NYSE: WYN), and Sonesta (Nasdaq: SNSTA) and Marcus Corp (NYSE: MCS)
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