Bullish on Hotel stocks? Be careful, explains Gaming, Lodging & Leisure analyst Sean Jenkins.
An important trend is developing that isn’t positive for U.S. hotel operators. The amount of American travel volume abroad is up 8% over the past month, Jenkins explains. Meanwhile, inbound travel (i.e. international folks travelling to the U.S.) is down -20%, despite Covid protocols being scrapped for international visitors.
“If you’re a U.S. hotel operator who over-earned from leisure customers because they couldn’t travel many places until late last summer, you’re facing really difficult comps this coming summer,” Jenkins explains in this clip from The Call @ Hedgeye. “And you’re not getting the commiserate inbound visitation to offset the folks looking to travel outbound.”
Keith McCullough adds: “Like I needed another fundamental and independent research data point that’s empirical as opposed to narrative-driven to get more negative on the U.S. retail and consumer environment.”
Watch the full clip above.
