Raymond James downgrades hotel REITs on higher interest costs, macro headwinds

Sunstone Hotel Investors

09/12/2022 12:32

** Raymond James downgrades hotel REITs Pebblebrook  PEB.N 
and Xenia  XHR.N  to "market perform" from "outperform"
    ** Also downgrades Sunstone  SHO.N  to "underperform" from
"market perform"
    ** Brokerage says rating downgrades reflect higher interest
expenses and gloomy macroeconomic outlook in 2023
    ** Says recovery in hotel fundamentals likely to be stalled
for next few months, but should pick up in Q1 of FY23
    ** SHO shares slip 1.8% to $10.1, while PEB falls 0.8% in
light premarket trading
 (Reporting by Shristi  Achar A in Bengaluru)
 ((Shristi.AcharA@thomsonreuters.com;))