Marriott, Hilton, Hyatt: What This Top Analyst Sees For 2024
Photo Caption: Interior of the Cambria Hotel Waco in Texas, which is run by Choice. Source: Choice Hotels.
Skift Take
Analyst David Katz of Jefferies forecasts the 2024 prospects for U.S.-based hotel leaders Marriott, Hilton, Hyatt, Wyndham, and Choice.
The 2024 prospects for Marriott, Hilton, Hyatt, and Wyndham look bright. That's according to a report released on Tuesday by David Katz, a managing director at Jefferies Research.
Katz is one of the leading research analysts covering the major hotel groups. He offered an updated view of the underlying factors that may drive the performance of the major hotel companies this year.
Here are key takeaways from Jefferies' 5,000-word report.
Room Rates, Inflation, and OccupancyIf interest rates fall (as many expect), that could favor hotel groups. As banks become willing to underwrite more loans and loan terms become more attractive, more business people will seek to do deals — expanding hotel group pipelines.
Yet Katz said a critical question is "whether revenue per available room growth can continue to exceed cost inflation, notably driven by labor, utilities, and other services." The answer is hard to predict. Katz is cautiously forecasting modest growth in room rates in 2024, with overall average
