Wells Fargo cuts PTs of US lodging REITs, says market view remains negative

Chatham Lodging Trust

13/09/2024 12:53

** Wells Fargo cuts PTs for lodging REITs citing negative
investor sentiment for sector, heading into fall season
                                  
 Company                          Median PT -
                     New          LSEG data
                     PT     Old   
                            PT    
                                  
                                  
 Apple Hospitality   $15    $16   $16.5
  APLE.N                          
 DiamondRock         $9     $9.5  $10
 Hospitality                      
  DRH.N                           
 Host Hotels &       $19    $21   $21
 Resorts  HST.O                   
 Park Hotels &       $14.5  $17   $17.5
 Resorts  PK.N                    
 Pebblebrook Hotel   $13    $15   $15
 Trust  PEB.N                     
 RLJ Lodging Trust   $9     $11   $13
  RLJ.N                           
 Ryman Hospitality   $115   $127  $126
 Properties  RHP.N                
 Service Properties  $4     $5    $5.5
 Trust  SVC.O                     
 Xenia Hotels &      $15    $16   $16
 Resorts  XHR.N                   
    ** Brokerage notes that with consumer spending remaining
pressured by U.S. macroeconomic headwinds, its outlook for the
sector's leisure segment revenue growth remains the most
cautious compared with group and business transient segments
    ** "Consumer headlines remain a greater concern to us than
earnings risk" - brokerage
    ** S&P 500 Hotel & Resort REITs sub-index  .SPLHRRI  had
fallen 11.7% YTD

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))