CHART DU JOUR: Q3 REVPAR ACCELERATION

Takeaway: HOT and H remain our favorite names in the strong hotel sector

Q2 is good but Q3 should be even better

  • We maintain our rosy outlook on US RevPAR growth for 2013 and beyond.  3Q should experience the best growth of the year.
  • With one week to go, there has been some concern of a slow May - month-to-date, US upper upscale RevPAR growth has been trending ~5%.
  • However, quarter-to-date, UUP RevPAR is tracking up 7.6% - above operators' 2Q guidance of 4.5-7.0% growth. June RevPAR of "only" 5% should bring growth back down into the higher end of that range
  • July should see a surge, up almost 8%, according to our model

CHART DU JOUR: Q3 REVPAR ACCELERATION - hh