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Goldman Sachs Lowers U.S. Hotels Outlook – Image Credit Unsplash
Excerpt from FMP
Investor sentiment in the U.S. hotel industry took a hit on Monday, with Goldman Sachs sharply lowering its RevPAR growth forecast amid signals of weakening consumer demand, rising economic uncertainty, and industry challenges spilling over from the airline sector.
Revised Outlook for Hotel Performance
Goldman Sachs now expects U.S. hotels’ average revenue per available room (RevPAR) to grow a modest 0.4% in 2025, a significant downgrade from its previous estimate of 1.4%. The bank’s revised forecast does not factor in the risk of a recession—which history tells us could trigger further declines, potentially driving RevPAR down by double digits.
This pessimistic stance has led Goldman analysts to downgrade key hotel stocks:
In response, shares of Hyatt fell 3% on Monday, while Marriott and Hilton experienced declines of roughly 1% each, even as the broader market posted gains.
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