Fri, Jun. 24, 10:30 AM
- A sharp drop in long-term rates and vanquished expectations for even one rate hike this year has income players bidding up the prices of utility stocks (XLU +0.7%) and certain REITs even as the major average fall more than 2% post-Brexit.
- A check of Fed Funds futures finds traders not fully pricing in a 25 basis point rate hike until 2018!
- The mortgage REIT sector (REM +0.5%) welcomes the news, with players like Annaly (NLY +1.7%), American Capital Agency (AGNC +1.1%), Two Harbors (TWO +1.7%), and Chimera (CIM +1.3%) leading the way. Western Asset Mortgage (WMC -0.8%) is a laggard after slashing its dividend by more than 30% last night.
- Equity REITs are decidedly mixed. Retail names like Realty Income (O +2.4%), National Retail (NNN +2%), and Vereit (VER +0.9%) are higher, as are healthcare players like HCP (HCP +1.2%) and Medical Properties Trust (MPW +0.1). Apartment REITs are mostly lower, as are mall operators like Simon Property (SPG -0.8%) and General Growth (GGP -0.7%).
- The dollar is surging post-Brexit, however, and that's taking a chunk out of the hotel REITs: Hospitality Properties (HPT -1.5%), Sunstone Hotel (SHO -2.7%), LaSalle (LHO -3.8%), Pebblebrook (PEB -2.4%), RLJ Lodging (RLJ -2.5%).
- ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, PUI, SDP, PSCU, FUGAX, UTLF, JHMU, VNQ, IYR, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, RFI
Wed, Jun. 15, 10:01 AM
- The San Francisco Board of Supervisors last week passed a bill requiring home-sharing services like Airbnb (Private:AIRB) to remove listings of units that have not been registered with the San Francisco Office of Short-Term Rentals.
- The team at Canaccord expects a near-term reduction of Airbnb listings of 80%, and nearly 50% on a stabilized basis. This should be a "marginal tailwind," and help San Francisco relative to other major hotel markets in coming months. Other cities are likely to follow suit.
- Buy rated stocks remain: Apple Hospitality (APLE +0.6%), DiamondRock (DRH +2%), Summit Hotel (INN +0.6%), Marriott (MAR +0.9%), and RLJ Lodging (RLJ +1.6%).
- Meanwhile, the lodging sector as a whole has its tail in the air as not only this news, but Airbnb's agreement to begin collecting occupancy tax in Pennsylvania filters through.
- Ashford (AHP +1.6%), (AHT +1.2%), Starwood (HOT +0.8%), Hospitality Properties (HPT +0.8%), Host Hotels (HST +1.5%), LaSalle (LHO +2.2%), Sunstone Hotel (SHO +1.1%), Pebblebrook (PEB +2.2%), Chesapeake (CHSP +1.3%), Chatham (CLDT +1.2%), Hersha (HT +1.4%)
Thu, May 19, 11:12 AM
- "Lodging demand is clearly slowing," says BAML analyst Shaun Kelley, downgrading Hilton (HLT -3.1%), Hyatt (H -3.9%), RLJ Lodging (RLJ -6.1%), and Hersha Hospitality (HT -3.5%). He's most bearish on RLJ, which is cut two notches to Underperform; the other three are downgraded to Neutral.
- RevPAR dipped 1.1% in the first two weeks of May, says Kelley, and if the trend continues, RevPAR growth from May 2014 to May 2016 would be the slowest of any two-year period since the financial crisis.
- "The lodging cycle that began in March 2009 is over," he says, and hotel names have 15-40% of downside from current levels.
Thu, May 19, 9:58 AM
- RLJ Lodging Trust (RLJ -5.1%) is the recipient of a two-notch downgrade to Underperform from Buy at BAML.
- The sector as a whole is under a great deal of pressure again today, still reacting to the FOMC's surprising hawkishness yesterday. Not only do higher rates compete with these dividend payers, but operationally there's pain as the resultant stronger dollar slows foreign demand for rooms.
- Ashford Trust (AHT -3.6%), Sunstone Hotel (SHO -3.5%), LaSalle Hotel (LHO -3.7%), Chesapeake Lodging (CHSP -1.9%), Chatham Lodging (CLDT -1.8%), Host Hotels (HST -4.1%), Hersha Hospitality (HT -5.2%), DiamondRock (DRH -4.9%).
Wed, Apr. 27, 1:12 PM
- Wells Fargo downgraded Ally Financial (ALLY -3.1%) to market perform after it reported earnings miss yesterday.
- Banco Bradesco S.A. (BBDO -0.6%) received a downgrade from Barclays to equal weight.
- Equity Residential (EQR -3.1%) is downgraded at hold from Buy after firm released its earnings yesterday and narrowed its Q2 FFO guidance to $3.05-$3.15.
- Raymond James downgraded RLJ Lodging Trust (RLJ -1.1%) to market perform from Out perform.
- Citigroup downgrades Weingarten Realty Investors (WRI -0.7%) to neutral from buy and set PT of $40.00.
Thu, Feb. 25, 10:42 AM
- Q4 adjusted FFO of $78.8M or $0.60 per share vs. $76.1M and $0.57 one year ago. Full-year AFFO of $2.50 vs. $2.41 in 2014.
- Pro forma RevPAR up 2.5% Y/Y, with ADR up 3.6% offset by a 1% decrease in occupancy. There was particular softness in Houston and NYC.
- Pro forma EBITDA margin of 35.5% down 27 basis points.
- Company bought back 1.1M shares at average price of $24 each during Q4. Full-year buybacks of 8M shares at average price of $27.99. Current price is $20.57. Buyback program has remaining capacity of $174.8M.
- Full-year 2016 outlook: Pro forma RevPAR growth of 3-5%, with EBITDA margin of 36.5-37.5%.
- Previously: RLJ Lodging Trust beats by $0.33, misses on revenue (Feb. 24)
- RLJ +2.65%
Tue, Jan. 19, 10:16 AM
- Unimpressed 50%+ year-over-year (including nearly 20% just in 2016) declines in Pebblebrook Hotel (PEB -2.8%) and RLJ Lodging (RLJ -3.8%) presents investors with any compelling value, Ladenburg Thalman downgrades the two to Sell from Neutral.
- Update: Also part of the downgrade are Chesapeake Lodging Trust (CHSP -1.9%), Apple Hospitality (APLE -2.1%), and LaSalle Hotel (LHO -2.3%).
- LHO and CHSP have equally ugly price charts, though APLE is about flat since its 2015 IPO.
Wed, Jan. 13, 3:30 PM
- LaSalle Hotel Properties (LHO -7.3%) earlier cut its Q4 guidance, saying the weak RevPAR trends for it and the industry continued into the end of the year. At the moment, 2016 isn't looking so promising either, says the company.
- The broad markets are selling off sharply today, but the REITs not so much, and there are even a couple of pockets of green. Not in the lodging sector though:
- Hospitality Properties (HPT -3.1%), Ashford Hospitality (AHT -6.1%), Sunstone Hotel (SHO -6.3%), Pebblebrook Hotel (PEB -4%), Chesapeake Lodging (CHSP -4.9%), Summit Hotel (INN -5.6%), RLJ Lodging (RLJ -6.3%), Chatham Lodging (CLDT -3.2%), FelCor Lodging (FCH -10.2%), Host Hotels (HST -5.5%), Hersha Hospitality (HT -5.1%), DiamondRock (DRH -7.4%), Apple (APLE -1.6%)
Dec. 18, 2015, 12:11 PM
- That both LaSalle Hotel (LHO -3.3%) and RLJ Lodging (RLJ -5.2%) been pounded sharply this year isn't news, but Barclays' Felicia Hendrix - who downgraded both today - takes note of RLJ's significant exposure to Houston, and not just the oil crash but high supply growth. RLJ also has notable exposure to other high supply growth markets like NYC, Denver, and Austin.
- As for LaSalle Hotel, its gateway market and CBD-focused portfolio could be adversely impacted by the strong dollar, Airbnb, and supply growth.
- Heading into the new year, Barclays recommends rotating out of those two, and into Sunstone Hotel Investors (SHO -2.8%).
- Previously: More downgrades for lodging REITs (Dec. 18)
Oct. 23, 2015, 11:46 AM
- Pebblebrook Hotel (after warning last month of a soft Q3), cut its outlook for Q4, noting a softening global economy and weaker job growth in the U.S. It's down 8%.
- LaSalle Hotel is in the "penalty box" after waiting until its earnings report to disclose the near-total shutdown of two NYC hotels in response to union issues in San Francisco. That stock is down 8.3%.
- Hospitality Properties (HPT -3.8%), Sunstone Hotels (SHO -3.2%), Chesapeake Lodging (CHSP -3.4%), Summit Hotels (INN -2.8%), RLJ Lodging (RLJ -1.9%), Chatham Lodging (CLDT -2.3%), FelCor Lodging (FCH -6%), Host Hotels (HST -5.5%), Hersha (HT -4.3%), DiamondRock (DRH -3.2%).
- Previously: LaSalle Hotel tumbles as room closures hit results (Oct. 23)
- Previously: Pebblebrook Hotel sinks after cutting Q4 outlook (Oct. 23)
Sep. 18, 2015, 11:08 AM
- The broad market is lower, but the REIT sector (IYR +0.5%) is tacking on to yesterday's post-FOMC gains.
- The lodging names, however, remain under pressure, with Pebblebrook Hotel Trust's (PEB -5%) Monday warning of weak business in August and September apparently still driving the action.
- Hospitality Properties (HPT -1.3%), Sunstone Hotel (SHO -3.9%), LaSalle Hotel (LHO -4%), Chesapeake Lodging (CHSP -2.9%), RLJ Lodging (RLJ -4.7%), FelCor Lodging (FCH -5.5%), Host Hotels (HST -3%), Hersha Hospitality (HT -2.7%), DiamondRock (DRH -3.9%), Apple Hospitality (APLE -2.5%).
Sep. 15, 2015, 12:21 PM
- Pebblebrook Hotel Trust last night said RevPAR this quarter could miss guidance thanks to weaker-than-expected demand in August and September. The stock is lower by 7.2%, and taking most of the rest of the sector along with it.
- Ashford Hospitality (AHT -2.7%), Ashford Hospitality Prime (AHP -1.8%), Sunstone Hotel (SHO -3.3%), LaSalle Hotel (LHO -4%), Chesapeake Lodging (CHSP -3.4%), Summit Hotel (INN -2%), RLJ Lodging (RLJ -3.6%), Chatham Lodging (CLDT -2.2%), FelCor Lodging (FCH -4.1%), Host Hotels (HST -3.7%), DiamondRock (DRH -3.3%), Hersha Hospitality (HT -3.5%).
- Notable outperformers: Hospitality Properties (HPT -0.8%), Strategic Hotels (BEE flat).
Feb. 19, 2015, 11:25 AM
- Maybe priced for perfection after big runs over the past couple of years, hotel REITs are pulling back after an earnings miss from Lasalle Hotel Properties (LHO -4.3%) and middling guidance from Host Hotels and Resorts (HST -5.4%).
- Hospitality Properties (HPT -1.5%), Ashford Hospitality (AHT -1.2%), Strategic Hotels (BEE -0.9%), Pebblebrook Hotel Trust (PEB -1.7%), Summit Hotel (INN -2.2%), RLJ Lodging (RLJ -2.3%), Chatham Lodging (CLDT -1.1%).
- Bucking the trend is Hersha Hospitality Trust (HT +1.1%) after beating Q4 consensus.
- Previously: Credit Suisse takes profits on Pebblebrook Hotel (Feb. 18)
May 22, 2014, 9:14 AM
- The offering of 7.5M shares included an underwriter greenshoe of 1.125M shares. The current float is about 122M shares.
- RLJ -1.6% premarket
Mar. 19, 2013, 5:44 PM
Mar. 8, 2012, 3:30 PM
RLJ Lodging Trust is a real estate investment trust, which is focused on acquiring premium-branded, focused-service and compact full-service hotels. The company's portfolio consists of hotels in various states and the District of Columbia. Its hotels operate under well-recognized global brands,... More
Industry: REIT - Hotel/Motel
Country: United States
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