Lodging Sector Set For Second-Quarter Beats Amid US RevPAR Acceleration, Morgan Stanley Says
Most lodging companies are poised to report second-quarter results above Wall Street's projections, as growth in revenue per available room in the US likely accelerated sequentially, Morgan Stanley said in a Friday report.Year-over-year growth in US revPAR -- a key performance indicator in the hospitality industry -- is estimated to have picked up by more than 200 basis points to about 5.5% in the second quarter from the prior three-month period, Morgan Stanley said.US revPAR benefitted from the FIFA World Cup, which bolstered June, while the industry began lapping the "Liberation Day," when President Donald Trump imposed sweeping tariffs in April 2025, the brokerage said. "Accelerating US trends should outweigh weaker China and Middle East pressures, leading to upside in the (quarter)," Morgan Stanley said.The investment firm expects sector-wide upward revisions to full-year 2026 guidance.Morgan Stanley revised its price targets higher for several lodging companies ahead of the release of second-quarter results, including overweight-rated names such as Wyndham Hotels & Resorts (WH), Hyatt Hotels (H), and Travel & Leisure (TNL).Price targets moved to $93 from $89 for Wyndham, to $218 from $208 for Hyatt and to $83 from $78 for Travel & Leisure.The brokerage also raised its price targets on Hilton Worldwide (HLT), Marriott International (MAR), DiamondRock Hospitality (DRH), Pebblebrook Hotel Trust (PEB) and Park Hotels & Resort (PK), among others.Price: $12.49, Change: $+0.21, Percent Change: +1.67%
