Hospitality Stockwatch – December 2024

Authors
Arun Upneja, Ph.D. MBA, Dean, Boston University School of Hospitality Administration
Steve Kent, Ph.D., CFA, Assistant Professor, Molloy University-School of Business

The past month delivered outstanding performance with the S&P 500 up 5.7% and achieving a remarkable 27.2% gain year-to-date.  While these results are compelling, investors have expressed concerns about two key issues: (1) the dominance of seven of the tech stocks driving results; and (2) elevated valuations, as broader market multipliers remain high relative to historical ranges. 

The reversals in performance trends from earlier this year were notable. Car rental stocks accelerated up 54%, recovering some ground after a 44% year-to-date decline in 2024. Hertz was the most significant driver, possibly due to a relief rally, after the company noted the fleet rotation of its cars would be completed by the end of 2025, removing an overhang to the shares. Meanwhile, Assisted Living stocks were down a modest 2.3% after a solid run earlier this year on the stability and growth of the sector.  

Click here to download Hospitality Stockwatch – Current as of December 2, 2024
View previous Hospitality Stockwatch Issues