Marriott International (MAR) and other major hoteliers are positioned for Q3 earnings beats and guidance increases as US revenue per available room accelerated during the quarter, Morgan Stanley said Wednesday in a report.
US revenue per available room growth accelerated to 7.1% in Q3 from about 5.6% in Q2 despite a smaller contribution from the World Cup, while luxury hotels continued to lead the sector, the report said.
Forward indicators remain mixed, though year-over-year comparisons should remain favorable into Q4, the report said.
Morgan Stanley boosted its price targets to $403 from $384 on Marriott, to $349 from $336 on Hilton Worldwide Holdings (HLT), to $224 from $211 on Hyatt Hotels (H), and to $97 from $92 on Wyndham Hotels & Resorts (WH).
Marriott shares rose 2% in Wednesday trading, and the other companies gained around 1.1%.
Price: 405.33, Change: +8.02, Percent Change: +2.02
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