- Goldman Sachs (NYSE:GS) analysts revise hotel REIT ratings to reflect RevPAR growth for full-service hotels flattening to 0% by 2020 as supply growth increases and reflecting recession risk.
- An average macro downturn could result in FY2020 EBITDA estimates being cut by 20%-25% and FFO/share estimates by 30%-40% write analysts led by Stephen Grambling.
- DiamondRock Hospitality (NYSE:DRH) cut to neutral; higher competitive supply growth, less exposure to high-demand markets.
- Park Hotels & Resorts (NYSE:PK) upgraded to neutral from sell; faces fewer supply pressures. Gains 2.1% in premarket trading.
- InterContinental Hotels Group (NYSE:IHG) cut to neutral from buy on lower U.S. RevPAR estimates; slips 1.4%.
- Pebblebrook Hotel Trust (NYSE:PEB) -1.5% after reinstated with sell rating; leverage from LaSalle deal tips risk-reward to negative.
- Grambling also cuts price targets and estimates for gaming stocks on macro slowdown; VICI Properties (NYSE:VICI) raised to buy from neutral on "visibility and idiosyncratic growth potential."
- Source: Bloomberg First Word.
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