Seeking Alpha

FBR survey points to soft Priceline hotel numbers (updated)

  • An FBR survey found Booking.com's (PCLN -0.8%) hotel count has fallen since the end of Q1, and that the site's net adds have come solely from vacation rentals.
  • The firm adds Priceline could see its per-property productivity get pressured, and that its findings back up the notion its core hotel business is maturing.
  • Priceline saw a 32% Y/Y increase in hotel room-night growth in Q1. But that growth rate is lower than the figure posted for any quarter in 2012 or 2013.
  • Also: Priceline is guiding for its total Y/Y bookings growth to fall to 22%-32% in Q2 from Q1's 34.2%. However, the company has a history of guiding conservatively.
  • Update (12:45PM): FBR has backtracked on its report, and now says hotel count is up Q/Q.
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Comments (3)
  • dallas75206
    , contributor
    Comments (5) | Send Message
     
    It appears FBR's figures are not correct. On face value alone it would be hard to believe Booking.com's hotel count suddenly declined after increasing double digits for a decade.

     

    Sure enough, Cowen & Company has called out FBR, saying their data on Priceline was WRONG. Priceline remains a fantastic stock to own.

     

    http://yhoo.it/1pCVtlB

     

    3 Jun 2014, 12:27 PM Reply Like
  • jabobeast
    , contributor
    Comments (35) | Send Message
     
    I guess now FBR could raise their price target to 1600?
    Does anyone even pay attention to these sell-side clowns anymore?
    3 Jun 2014, 01:00 PM Reply Like
  • Misho ILIEV
    , contributor
    Comments (626) | Send Message
     
    Yeah, they have a $1500 price target, right? And talking about hotel count decline... A bit weird...
    4 Jun 2014, 05:35 PM Reply Like
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