When our Macro outlook jives with our analyst’s Sector research that is truly a state of “macro research nirvana.” That’s exactly what our analysts are seeing in the U.S. economy today. Both our Macro team and Gaming, Lodging & Leisure (GLL) team see American growth accelerating.
We have 11 Sector teams at Hedgeye, with over 40 research analysts ranging from Retail and Industrials to Energy and Technology – all of whom are seeking their own industry and company-level truths. “This is one of the many un-talked about important components of my process,” says Hedgeye CEO Keith McCullough.
Take our Gaming, Lodging & Leisure team for instance.
In the video above, GLL analyst Sean Jenkins describes his team’s Hotel industry leading indicator. This model predicts, on a forward-looking basis, whether revenue per available room (RevPar) will accelerate or decelerate in the coming quarter. This is a critically important metric to watch for the industry, Jenkins explains, because “when RevPar is accelerating, [hotel industry] multiples expand.”
Our GLL team’s current RevPar outlook is for an acceleration through the back half of 2017.
“Hotels are a pretty big part of the business cycle,” McCullough says. “So that’s embedded in my view and that’s an important thing that is corroborating our bullishness.”
By the way, if you want a stock to play the Hotel industry's accelerationg check out, "CHA-CHING! Get Long Las Vegas... Buy This Stock."