Shift To Virtual Meetings Declines, Boosting Hotel Industry Outlook: Morgan Stanley
Portfolio Pulse from Shivani Kumaresan
Morgan Stanley's 21st annual Global Hotel Corporate Travel Survey indicates a positive outlook for the hotel industry. The survey found that 2024 travel budgets are expected to be 8% above 2023, well above consensus expectations for 2% RevPAR growth. About 40% of respondents have returned to pre-COVID travel levels. Room rates are expected to increase by 5% YoY in 2024, with 5-6% growth expected for major global chains like Marriott, Hilton, InterContinental Hotels Group, and Accor SA. The shift to virtual meetings is declining, providing a tailwind to spend.
November 06, 2023 | 6:46 pm
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NEGATIVE IMPACT
The trend of budget hotels outperforming upscale ones in tough economic environments is negative for Hyatt Hotels Corporation.
The trend of budget hotels outperforming upscale ones in tough economic environments could negatively impact Hyatt Hotels Corporation.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Accor SA is expected to see 5-6% room rate growth in 2024.
The expected increase in room rates and travel budgets indicates a positive outlook for Accor SA.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The trend of budget hotels outperforming upscale ones in tough economic environments is positive for Choice Hotels International, Inc.
The trend of budget hotels outperforming upscale ones in tough economic environments could positively impact Choice Hotels International, Inc.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Hilton Worldwide Holdings is expected to see 5-6% room rate growth in 2024.
The expected increase in room rates and travel budgets indicates a positive outlook for Hilton.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
InterContinental Hotels Group is expected to see 5-6% room rate growth in 2024.
The expected increase in room rates and travel budgets indicates a positive outlook for InterContinental Hotels Group.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Marriott International is expected to see 5-6% room rate growth in 2024.
The expected increase in room rates and travel budgets indicates a positive outlook for Marriott.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The trend of budget hotels outperforming upscale ones in tough economic environments is positive for Wyndham Hotels & Resorts Inc.
The trend of budget hotels outperforming upscale ones in tough economic environments could positively impact Wyndham Hotels & Resorts Inc.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70