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The Zacks Analyst Blog Highlights Host Hotels & Resorts, Pebblebrook Hotel and Park Hotels & Resorts
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For Immediate Release
Chicago, IL – October 6, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Host Hotels & Resorts, Inc. (HST - Free Report) , Pebblebrook Hotel Trust (PEB - Free Report) and Park Hotels & Resorts, Inc. (PK - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Lodging REITs Witness Robust Post-Pandemic Rebound in Demand
The coronavirus outbreak has deeply affected the operations of the hotel and lodging industry. However, with the effect of the pandemic waning and widespread vaccination drives, this industry is on its pathway to recovery.
As a result, lodging real estate investment trusts (REITs) are experiencing a rise in demand for their properties, with leisure travel to drive-in destinations increasing. Also, business transient and group demand in the urban markets have been improving.
Notably, REITs like Host Hotels & Resorts, Inc., Pebblebrook Hotel Trust and Park Hotels & Resorts, Inc. have started witnessing an improvement in their operating trend, with most metrics nearing or surpassing the pre-pandemic levels.
In the second quarter of 2022, Host Hotels' all-owned-hotel revenue per available room (RevPAR) of $219.3 million almost doubled from the prior-year quarter's $110.7 million. It was also the first time since the onset of the pandemic that the company's quarterly RevPAR exceeded the 2019 levels.
HST's all-owned-hotel average occupancy percentage in the second quarter remained strong at 73.9%, rising from the prior-year quarter's 44.9%. Further, average occupancy was close to 81.8% recorded in second-quarter 2019.
Pebblebrook, too, has been benefiting from the recovery in travel demand. Per the company's recent operating update, its estimated operating results for August, despite a normal back-to-school seasonality, were in line with its expectations owing to the recovery in business demand and strong rate premiums.
With many companies implementing a return-to-office policy, business transient and group demand have picked pace. Per PEB's latest operating update, face-to-face meetings are receiving a boost, and companies are actively booking their business travel for the remainder of 2022. However, the demand for this segment is yet to reach the pre-pandemic levels.
As restrictions started declining across the United States, Park Hotels, too, started experiencing improvement in demand from mid-February 2022, with its urban hotels witnessing a return in business travel and group demand.
In June 2022, group bookings for PK's properties for the remainder of 2022 and 2023 continued to gain, with the addition of around 100,000 room nights compared with May 2022.
Per Thomas J. Baltimore, Jr., chairman and CEO of PK, "Leisure demand remains strong in our Hawaii, Florida and Puerto Rico markets, while business transient and group demand continue to strengthen, helping to drive average rates at our urban hotels above 2019 levels by over 2% and group rates to 2019 levels during the second quarter."
Further, we anticipate that the upcoming holiday season will be a catalyst for lodging REITs like HST, PEB and PK.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Host Hotels & Resorts, Pebblebrook Hotel and Park Hotels & Resorts
For Immediate Release
Chicago, IL – October 6, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Host Hotels & Resorts, Inc. (HST - Free Report) , Pebblebrook Hotel Trust (PEB - Free Report) and Park Hotels & Resorts, Inc. (PK - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Lodging REITs Witness Robust Post-Pandemic Rebound in Demand
The coronavirus outbreak has deeply affected the operations of the hotel and lodging industry. However, with the effect of the pandemic waning and widespread vaccination drives, this industry is on its pathway to recovery.
As a result, lodging real estate investment trusts (REITs) are experiencing a rise in demand for their properties, with leisure travel to drive-in destinations increasing. Also, business transient and group demand in the urban markets have been improving.
Notably, REITs like Host Hotels & Resorts, Inc., Pebblebrook Hotel Trust and Park Hotels & Resorts, Inc. have started witnessing an improvement in their operating trend, with most metrics nearing or surpassing the pre-pandemic levels.
In the second quarter of 2022, Host Hotels' all-owned-hotel revenue per available room (RevPAR) of $219.3 million almost doubled from the prior-year quarter's $110.7 million. It was also the first time since the onset of the pandemic that the company's quarterly RevPAR exceeded the 2019 levels.
HST's all-owned-hotel average occupancy percentage in the second quarter remained strong at 73.9%, rising from the prior-year quarter's 44.9%. Further, average occupancy was close to 81.8% recorded in second-quarter 2019.
Pebblebrook, too, has been benefiting from the recovery in travel demand. Per the company's recent operating update, its estimated operating results for August, despite a normal back-to-school seasonality, were in line with its expectations owing to the recovery in business demand and strong rate premiums.
With many companies implementing a return-to-office policy, business transient and group demand have picked pace. Per PEB's latest operating update, face-to-face meetings are receiving a boost, and companies are actively booking their business travel for the remainder of 2022. However, the demand for this segment is yet to reach the pre-pandemic levels.
As restrictions started declining across the United States, Park Hotels, too, started experiencing improvement in demand from mid-February 2022, with its urban hotels witnessing a return in business travel and group demand.
In June 2022, group bookings for PK's properties for the remainder of 2022 and 2023 continued to gain, with the addition of around 100,000 room nights compared with May 2022.
Per Thomas J. Baltimore, Jr., chairman and CEO of PK, "Leisure demand remains strong in our Hawaii, Florida and Puerto Rico markets, while business transient and group demand continue to strengthen, helping to drive average rates at our urban hotels above 2019 levels by over 2% and group rates to 2019 levels during the second quarter."
Further, we anticipate that the upcoming holiday season will be a catalyst for lodging REITs like HST, PEB and PK.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.