Hotel Stocks Are Improving, but Risks Persist

  • 📰 WSJ
  • ⏱ Reading Time:
  • 69 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 31%
  • Publisher: 63%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Hotel-property stocks are improving, but questions over Covid-19 variants and business travel could undercut a rebound

Hotel-property stocks have trailed the market in recent months. New data show that the companies’, but significant questions over Covid-19 variants and business travel could still undercut a rebound.

Real-estate investment trusts are behind many hotels and resorts. Companies such as Host Hotels & Resorts Inc. and Apple Hospitality REIT Inc. own the hotel properties and earn revenue from rooms rented and food and drinks sold. In turn, the REITs pay management fees to operators such as Marriott International Inc. to run the properties.

Hotel REITs are among the riskier real-estate bets because rooms turn over every day and travel is particularly vulnerable to economic swings. They were among the hardest hit when the pandemic began. New data suggest things are getting better. In the second quarter, hotel REITs’ cumulative funds from operations—an earnings metric widely used in commercial real estate—turned positive for the first time since early last year, according to the National Association of Real Estate Investment Trusts.

Higher revenues helped Apple Hospitality and Pebblebrook Hotel Trust deliver their first quarterly net profits since late 2019 and early 2020, respectively, while losses at Host and another big hotel REIT, Ryman Hospitality Properties Inc., both narrowed substantially. “That’s a really encouraging development,” said Calvin Schnure, a senior economist for the association, noting that business travel has rebounded far less than leisure trips. “You have a lot more potential upside in that sector,” he said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 98. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

European stocks struggle for traction with London out for a holidayEurope stocks inched higher on Monday, with some gains in the chemical sector, but in a mostly lackluster session marked by a U.K. holiday.
Source: MarketWatch - 🏆 3. / 97 Read more »

Analysts name the chip stocks set to pop on the electric vehicle boomFirms that make chips for cars are set to see big benefits if electric car sales continue rise. Here are some of Goldman, UBS and Morgan Stanley's stock picks. Pro A little late to the party. Pro Pro For all those who are new to this working from home Bitcoin trading options Here's a little tip: Get a trusted Bitcoin expert and stick to her earn_with_Jens Invest and play at similar times each day. Because : In times of chaos, your investment is your anchor to success
Source: CNBC - 🏆 12. / 72 Read more »

Asia-Pacific stocks set for mixed start; Meituan earnings aheadInvestors will look ahead to the release of earnings from Chinese food delivery giant Meituan. nice
Source: CNBC - 🏆 12. / 72 Read more »

Here are the most recommended stocks to buy in Asia's top-performing marketIndia's stock market is powering ahead as economic recovery picks up momentum following a devastating resurgence in Covid-19 cases earlier this year. Pro good Pro Need a 30/30/..40/40.fantasy/minute player? What about Averitt F. Phillips..PG/F..first-team NBA all-defensive guaranteed..shoots 40-50% from three. handles the ball like a first-team point guard...rebounds/passes well..high basketball IQ!.512-285-0253… Pro Averitt Freemoney Phillips,Jr. for President!... Every citizen receives a minimum of a million-dollar citizen bank balance each year to spend how they wish!.. Community service/self-development mandate required! ....50% tax rate on all businesses! -----WHAT DO YOU THINK?.
Source: CNBC - 🏆 12. / 72 Read more »