Latest news with #ChadBeynon
Yahoo
23-07-2025
- Business
- Yahoo
Hilton's upbeat Q2 earnings: Why this analyst is still Neutral
Hilton (HLT) posted higher profit and revenue in the second quarter and raised its full-year outlook, but softer net income guidance and weaker occupancy are dragging on investor sentiment. Chad Beynon, Macquarie Group gaming, lodging & theatres analyst, joins Market Catalysts to explain why Hilton's upscale mix is a key factor behind his Neutral rating on the stock. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. Let's continue this travel conversation because Hilton is posting higher profit and revenue in the second quarter. It also raised its earnings outlook for the year. Still, the hotel operator's revenue per available room fell half a percent due to occupancy decline. Joining me now, Chad Beynon, Macquarie Group, Gaming, lodging, and theaters analyst. It's good to see you. So, um, as we are looking at, uh, these numbers, it looks like the company did trim its net income forecast a little bit. Um, although some of its metrics look good, what's your read on the quarter? Yeah, sure. Julie, thanks for having me. Uh, second quarter came in slightly better than expected. I think some of that was timing around termination fees and just kind of how, um, the holidays impacted some leisure versus, uh, business travel. Um, their third quarter guidance came in a little below expectations and where consensus was. So positive on Q2, negative on Q3, and then for the year, they kind of, uh, stood pat in terms of how they were thinking about the year. I would say the tone was slightly more positive, particularly, um, calling for more of a business travel recovery, uh, in the back half of the year. And then as it relates to the leisure traveler, as your last guest talked about, um, I think things are fine. I think consumers continue to prioritize experiences and we saw that, uh, this summer, uh, effects could be a slight positive because, uh, going to Europe or leaving the country is a little bit more expensive this year. Um, so as we've seen, uh, you know, people might stay closer home and vacation, uh, with drive to or shorter haul flights. Well, and I was talking earlier too about what we heard from the airlines, which seemed to be that sort of full service premium customers were holding up better. Are we seeing that play out in the lodging world as well? Absolutely. Uh, when we analyze the chain scale, uh, trends, um, revenue and occupancy in the United States, um, those higher-end full-service brands continue to outperform. I think that's been the case for almost a year now. So it certainly calls the question what's going on with that lower-end economy chain scale focused, uh, uh, brand or portfolio. Uh, so we continue to like those that lean a little bit more upscale, as we know the consumer is kind of fickle here. Um, you know, people are enjoying experiences. But the last two or three years, I think people extended their budgets in every, uh, age bracket. So the, uh, you know, people in that luxurious, uh, level were spending a little bit more. But also people in kind of the lower chain scales were, were spending more. So that's kind of what we're keeping an eye on. And our ratings kind of reflect a view towards some of the higher-end, uh, brands. Well, I was going to ask, I know you got a neutral rating, right? On Hilton? Um, is that why? Because they, you know, just because of their sort of hotel mix and who who their who their audience is? Yeah, I'd say fundamentally, I think net unit growth has probably been better than expected, uh, during the past couple years. The Rev par, uh, which is a key focus for analysts, um, has been roughly in line. I think one of the reasons why lodging stocks outperformed in 23 and 24, uh, compared to, uh, the S&P, it's really the business model, right? The franchisor business model continues, um, to receive praise from investors. And it was about a 10% outperformance for the group in 23 and in 24. So we're looking at these stocks trading, you know, around 30 times earnings, which is where we see high growth stocks, uh, in the market trading. So they're clearly in that category. And that's kind of been why we've maintained our neutral rating. It's certainly above historical trading levels and we are waiting for a little bit of a broader recovery, uh, to become more constructive on Hilton. Related Videos US equities lead 2025 ETF flows: A closer look at global trends Hasbro Q2 beat, MARA to raise $850M, Otis issues weak guidance GE Vernova, Thermo Fisher, Enphase Energy: Trending Tickers Japanese auto stocks are surging on Trump's tariff deal Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-06-2025
- Business
- Yahoo
How to play lodging stocks: Hyatt, Hilton, and Marriott
Macquarie US Equity Research gaming, lodging, and theatres analyst, Chad Beynon, joins Market Domination with Julie Hyman and Josh Lipton to discuss how to play travel industry stocks, specifically the lodging space. Beynon also outlines his outlook for Hyatt (H), Marriott (MAR), and Hilton (HLT). To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Well, travel hitting a turbulent patch amid macro uncertainty. However, cautious optimism creeping in for one area in the leisure landscape. We're looking at how to play the trends in the lodging industry and our investor playbook. Macquarie US Equity Research lodging and leisure analyst Chad Beynon joins us now to discuss. Chad, always good to see and have you on the show. Maybe, uh, sort of big picture, Chad. You look at that travel industry, at least based on on your coverage universe, Chad. You know, you're reading those earnings reports, you're listening to calls, doing your checks. How would you kind of generally characterize the travel industry right now, Chad? You know, is it healthy? Is it resilient? Showing cracks? What What are you telling clients? Sure. Thanks, Josh. Yes, so it's been about four months, uh, right around Liberation Day where we've seen a pause in terms of forward bookings. Now, usually when you think about leisure travel, people thinking about spring breaks, vacations, you know, future travel, it's at least 30 days out. So what we're seeing is that 30-day booking period has kind of come down closer to 20 days. So as we get closer to that date, people are booking last minute, but they're not booking as far as ahead as they would have in the past. And also when we think about chain scales, luxury is holding up. So people with that disposable income continue to prioritize travel over things. Uh, but we are seeing some weakness at that low end. Um, and then lastly, I would say, uh, obviously the continuation of a weaker dollar and, you know, just some of the impacts towards Mexico and Canada, some of the inbound tourism continues to to remain weak, probably for the last three or four months. Chad, I want to dig into that last point a little bit. I mean, I keep seeing headlines, at least anecdotal evidence. I think the latest one was about Old Orchard Beach, Maine, that used to see a huge influx every summer of Canadians. And, uh, some of those people at least are not coming. How important is that for US hotel chains? I mean, I realize that some of them, many of them have international holdings as well. But in terms of hotels in the US, how important a factor is those international travelers? Across the country, it's low to mid-single digits. So I would say 3 to 5%, but to your point, there are certain resorts and in gateway cities, um, that are going to have a higher percentage. Um, but yeah, as we blend it, it's it's a lower percentage. What we're also probably going to benefit from this year is fewer outbound travels. I think the last two years, it was the time period where a lot of Americans were registering their passports, maybe for the first time or or, you know, using it for the first time in a while and traveling abroad. Now there's going to be more of those closer to home or domestic destination holidays. But yes, I absolutely expect for inbound, which are longer stays, uh, to be down this summer and through the rest of 2025. Chad, let's talk about some picks. Uh, your top lodging pick would be Hyatt. Now that stock, uh, is down. It's in the red this year and over the past 12 months. You say this one is a buy, Chad. How come? Sure. This is one that has had the journey of going asset light. So the reason why Marriott and Hilton, really the best blue chip stocks in the lodging industry, trade at 25 times earnings is because of their business model. It's a franchise and manage business model. They don't really have to put in much capital expenditure, and it's really just the reservation system, the branding, and the overall ecosystem that they've created that has warranted that higher valuation. Hyatt is in the fifth or sixth inning of this journey. They continue to sell assets to lodging real estate companies that want to own the asset, and then Hyatt will will manage that property from them for a fee. As that happens, we expect for the multiple to increase. So that's reason number one. The second reason is, I think they have continued to focus more on the wellness and luxury customer, particularly here in North America. So they skew more higher end versus, um, you know, some of the other portfolios that that go across each area. Uh, that's reason number two. And then the third reason is, um, to to the point that that you just highlighted here, it's been a little bit of an underperformer. This was an outperformer in 22-23, in the first half of 24. But because of some of those reasons, I think it's been put in the penalty box where the the fundamentals actually appear to be pretty strong, and they have the biggest pipeline of new properties compared to the others. So, Chad, you mentioned Marriott and Hilton as already having converted to that model and trading at a higher multiple as a result. You're neutral on those two names. Is it because they've already sort of captured that upside and there's not as much of a catalyst there? It is. I think from a valuation standpoint, these two will continue to be at the higher end of gaming, lodging, leisure travel multiples, which have obviously, you know, compressed over the past year or two year period. I think from a fundamental standpoint, really what we would need to see for these companies is just a resurgence in the travel fundamentals. I think Hyatt can continue to work here. If we're in this kind of wait and see approach just because of some of the other catalysts that they have. They're also looking to close an acquisition here in the next week or two for a Caribbean Mexican all-inclusive company that they acquired for a little over a billion dollars. So they have more meaningful, um, one-off type of impact opportunities. We still love the Marriott and Hilton business model, their management teams, their portfolio, but we're just waiting for a better entry point. Chad, thanks so much. Great to see you. Thank you. Appreciate it. You too. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-06-2025
- Business
- Yahoo
How to play lodging stocks: Hyatt, Hilton, and Marriott
Macquarie US Equity Research gaming, lodging, and theatres analyst, Chad Beynon, joins Market Domination with Julie Hyman and Josh Lipton to discuss how to play travel industry stocks, specifically the lodging space. Beynon also outlines his outlook for Hyatt (H), Marriott (MAR), and Hilton (HLT). To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
03-05-2025
- Business
- Business Insider
Macquarie Sticks to Its Hold Rating for Hilton Worldwide Holdings (HLT)
In a report released yesterday, Chad Beynon from Macquarie maintained a Hold rating on Hilton Worldwide Holdings (HLT – Research Report), with a price target of $240.00. The company's shares closed yesterday at $240.90. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Beynon covers the Consumer Cyclical sector, focusing on stocks such as Light & Wonder, Hilton Worldwide Holdings, and Churchill Downs. According to TipRanks, Beynon has an average return of 4.2% and a 44.17% success rate on recommended stocks. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Hilton Worldwide Holdings with a $247.25 average price target, implying a 2.64% upside from current levels. In a report released on April 30, Evercore ISI also maintained a Hold rating on the stock with a $245.00 price target.
Yahoo
23-03-2025
- Business
- Yahoo
Is Rush Street Interactive (RSI) Among the Best Casino Stocks to Buy According to Billionaires?
We recently compiled a list of the 10 Best Casino Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Rush Street Interactive, Inc. (NYSE:RSI) stands against the other best casino stocks. The casino industry has rebounded strongly from the COVID-19 pandemic, due to pent-up demand from gamblers and visitors returning to popular places such as Las Vegas. Brick-and-mortar casinos make a substantial profit from hotel operations, conventions, and other events in addition to the revenues that they make from slot machines and table games. Casino stocks are categorized as consumer discretionary since tourism and gambling spending are strongly correlated with the overall economic condition. According to Market Research Future, the global casino market is projected to grow from $309.54 billion in 2024 to $511.6 billion by 2032, with a compound annual growth rate (CAGR) of 6.48% over the forecast period (2024-2032). Furthermore, in 2023, the casino market was estimated to be worth $290.7 billion. Regionally, the Asia Pacific Casino market dominates the industry due to the growing availability of online casinos and the average individual's income. The North American casino market has the second-largest market share due to the legalization of sports betting and the approval of online gambling in the region. Furthermore, the UK casino market grew at the quickest rate in the European region, while the German casino industry held the largest market share. Macquarie analyst Chad Beynon recently highlighted the significant market reaction to casino industry earnings even though the results were essentially in line with forecasts. After five years of underperformance, the industry saw double-digit stock increases due to improving sentiment, potential interest rate drops, and solid early-year trends. Although Macau's recovery is still below pre-pandemic levels, gaming revenue is projected to rise by 8% in 2025, outperforming the U.S. market's flat-to-2% growth. Chinese New Year activity was consistent rather than volatile, showing a healthy demand trend. By bypassing the costs of licensing and regulations, new event-based contracts may pose a threat to established operators. However, Beynon believes that licensed operators will fight back, as they did against sweepstakes and illegal betting. Investor confidence was strengthened by generally favorable remarks regarding recent trends, even if some companies decided not to provide updates during the quarter. The industry is now seen more favorably by analysts after years of weak performance. Apart from analysts, there are also billionaire investors who remain bullish on the casino stocks. Ken Fisher's , with a portfolio worth more than $252 billion, has invested in two renowned casino stocks. In Q4 of 2024, Fisher invested more than $201 million and owned more than 2.3 million shares in a high-end casino and hotel operator in the United States. Fisher's confidence in the market's long-term potential is proven by the fact that the stock makes up 0.07% of his portfolio. In the same quarter, Fisher also made an investment of more than $153 million in an American multinational hospitality, sports, and entertainment company. Meanwhile, in Q4 of 2024, Billionaire Carl Icahn's , which has a $7.4 billion portfolio, showed its trust in the industry by investing over $82 million in the largest casino-entertainment firm in the United States. A closeup shot of slot machines and a player nervously waiting for the spin to stop. For this article, we scanned Insider Monkey's Q4 2024 proprietary database of billionaires' stock holdings and identified casino stocks from the list. These companies are involved in operating casinos, online gaming platforms, sports betting, and resort entertainment. From there, we picked the top 10 stocks with the highest number of billionaires having a stake in them. Where two or more stocks were tied on billionaire sentiment, we used the dollar value of billionaire holdings as a tiebreaker between them. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Billionaires: 12 Billionaire Holdings: 86,592,100 Rush Street Interactive, Inc. (NYSE:RSI) operates sportsbooks and online casinos in the United States, Canada, Mexico, and South America. Along with its social gaming offerings, its real-money online casinos are particularly well-liked by customers. The stock was up by nearly 70% in the past year, making it among the Best Casino Stocks. Companies like Rush Street Interactive, Inc. (NYSE:RSI) can expand and contend with the industry titans as more and more states ease their betting laws. The business has maintained its market share despite competition from larger rivals like DraftKings and Flutter Entertainment. The business ended 2024 with an outstanding quarter, surpassing forecasts for both sales and adjusted EBITDA. Full-year revenue jumped 34% over the previous year. Adjusted EBITDA rose by over 11 times to $92.5 million, showing impressive growth. Online revenue increased by 29% YoY and 54% YoY in North America and Latin America, respectively, displaying exceptionally strong performance. MAUs in Latin America grew 71% to 348,000, while those in North America reached 205,000 (up 28%). Profitability also climbed, with the gross profit margin climbing to 36.5% in Q4, representing a full-year growth of more than 200 basis points. Looking ahead, Rush Street Interactive, Inc. (NYSE:RSI) has set an optimistic sales target of $1.01 billion to $1.08 billion (a 13% year-over-year growth at the midpoint) and a 35% increase in adjusted EBITDA. Financial stability was further reinforced when it improved its cash position to $229 million with no debt, a $61 million rise for the year. Overall, RSI ranks 4th on our list of the Best Casino Stocks to Buy According to Billionaires. While we acknowledge the potential for RSI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RSI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
