{"id":11473,"date":"2024-09-03T13:58:12","date_gmt":"2024-09-03T17:58:12","guid":{"rendered":"https:\/\/www.bu.edu\/bhr\/?page_id=11473"},"modified":"2024-11-06T12:27:44","modified_gmt":"2024-11-06T17:27:44","slug":"hospitality-stockwatch-september-2024","status":"publish","type":"page","link":"https:\/\/www.bu.edu\/bhr\/hospitality-stockwatch-september-2024\/","title":{"rendered":"Hospitality Stockwatch – September 2024"},"content":{"rendered":"

Authors<\/b>
\n<\/b>Arun Upneja, Ph.D. MBA,<\/b><\/a>\u00a0<\/span>Dean, Boston University School of Hospitality Administration
\n<\/b>Steve Kent, Ph.D., CFA<\/a>,<\/b>\u00a0<\/span>Assistant Professor, Molloy University-School of Business<\/b><\/p>\n

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As summer fades, and businesses gear up for the final quarter, September ushers in a critical shift from leisure to business travel, setting the stage for investors to recalibrate their focus on the year ahead.<\/span>\u00a0<\/span><\/p>\n

In recent months, consumer-driven companies like Target and Walmart have reported slowing spending, a trend also seen in the hospitality sector with amusement parks and timeshares. As September unfolds, investors will be closely watching for signs that this cautious spending extends beyond consumers to business travel as well. With the trend moving toward shorter booking windows, management teams in the business travel sector are navigating these uncertainties.<\/span>\u00a0<\/span><\/p>\n

Last month, we highlighted that the industry should pay close attention to the impact of supply growth on overall capacity. Companies reporting earnings did not note excess supply as a reason for moderating results, but they did indicate their focus on unit growth.\u00a0 While adding more hotels, ships, parks, restaurants etc. might offset moderating same-store sales trends, ultimately, it will magnify any shifts in demand.\u00a0<\/span>\u00a0<\/span><\/p>\n

The other major shift is shareholders will start to look toward 2025.\u00a0 September is filled with investor conferences and the CEOs and CFOs will increasingly be questioned about how they feel about 2024 as we round the corner on the last quarter of the year.\u00a0Valuation also shifts to what the company is trading at relative 2025 earnings. The good news is the stocks won\u2019t look as expensive on an absolute basis if we base it on the out year. We can also \u201cdream the dream\u201d and be optimistic in our forecasts.<\/span>\u00a0<\/span><\/p>\n