Hotel stocks fall after JPM’s bearish comments

Hotel operators declined after J.P. Morgan analysts warned that US RevPAR growth will continue to decelerate, Reuters reported.
It is moderating RevPAR performance of the top 25 US markets following signals of moderating business travel. The analysts lowered their estimates for 2016 RevPAR growth by 150 basis points to between 3.5 percent and 5.0 percent (midpoint).
It cuts PT on Hilton Worldwide Holdings to US$28 from US$33 as the stock touched a record low of US$19.84.
Marriott International Inc is cut to US$81 from US$93, Starwood Hotels & Resorts Worldwide Inc to US$71 from US$82 and Hyatt Hotels Corp to US$50 from US$62.
Shares of Marriott fell 3.4 percent, Starwood 3.9 percent and Hyatt 5.3 percent.
Up to Tuesday’s close, the Dow Jones US Hotels Index had fallen 11.8 percent in the past 12 months.