Business travel has been a persistent pain point for hotels and airlines throughout the pandemic. However, Baird now bets the tide is starting to reverse as travel emerges from a long COVID-induced winter.
“Major technology and financial services companies have begun their return to office processes, which bodes well for the recovery of business travel in the near term,” Baird analyst Michael Bellisario wrote in the newsletter. company travel.
He added that conversations with hotel management have been overwhelmingly positive, airline bookings continue to increase, and major cities like Boston, Washington and New York are once again becoming destinations for business conferences. In the report, business travel was noted at its highest level since the start of the pandemic, putting the overall travel recovery at a “high point”.
“Recent data points and commentary in the travel industry suggest that broader demand remains elevated and mid-week commercial and urban markets are trending positively,” Bellisaro concluded. “The reopening momentum is palpable, and the continued strength in leisure demand coupled with the rapid resumption of business travel mid-week gives us even more confidence that a more normalized travel environment will unfold over the next few months. coming months.”
As a result, 7 stocks were rated “outperforming” by Bellisaro, 10 were rated “neutral”, while no travel stocks were designated “underperforming”.
Equities rated “Neutral”: Ashford Hospitality Trust, Inc. (AHT), Braemar Hotels & Resorts (BHR), Choice Hotels International Inc (CHH), Hyatt Hotels Corporation (H), Host Hotels and Resorts Inc (HST), Hersha Hospitality Trust (HT), Marriott International (MAR)l, Pebblebrook Hotel Trust (PEB), Sunstone Hotel Investors Inc (SHO), Wheels Up Experience (UP).
Shares rated “Outperform”: Apple Hospitality REIT Inc (APLE), DiamondRock Hospitality Company (DRH), RLJ Lodging Trust (RLJ), Wyndham Hotels & Resorts Inc (WH), Xenia Hotels & Resorts Inc (XHR), Summit Hotel Properties (INN) and Hilton Hotels Corporation (HLT).