-- Accelerating revenue per available room trends in the hospitality sector amid a cyclical demand rebound in the US should offset Middle East impacts, Morgan Stanley said in a Friday research note.
The Morgan Stanley analysts upgraded Ryman Hospitality Properties (RHP) to overweight from equalweight with 7% upside to its price target on robust RevPAR trends and a compelling valuation setup, according to the note.
The Wall Street firm said was reiterating its overweight rating on most c-corps, citing visibility in room growth, AI optionality, and ancillary upside. It views AI's impact on lodging real estate investment trusts primarily as a cost benefit.
Liquidity is improving in the lodging transaction environment and higher-than-expected quarterly EBITDA guidance sets the stage for beats in fiscal 2026 on easier comparisons and World Cup support, according to analysts.
Provision rates are high industry-wide compared with pre-2023 levels, but the market is showing signs of stabilization as companies balance conservative reserving with operational improvements in underwriting, analysts wrote.
Price: $100.17, Change: $+1.83, Percent Change: +1.86%