First-quarter 2023 has come and gone and what we are left with is a conundrum : publicly traded hotel companies are reporting fantastic numbers , so why are their stock prices not reflecting it ?
The answer is as easy as it seems unfair . Wall Street is a “ what have you done for me lately ” kind of institution . Even though hotel revenues and profits were up , bolstered by higher room rates resulting in strong RevPAR gains , the future is cloudier . Travel and discretionary spend have a high correlation to the mood of the economy and the presumption of an imminent recession — small or otherwise — keeps hotel stock prices enervated .
Still , hotel operators are doing a fine job managing properties and making their owners happy with hearty returns . The opening of China should make the coming months even better as the world ’ s largest population with spending heft gets back on the road — domestically and internationally .
Here is a recap of the first quarter from some of the most important companies in the business .
12 hotelsmag . com June 2023