SOHO - Lodging REITs rally on Q3 earnings; U.S. Lodging sector sees slower recovery

S&P Global Ratings estimates that amid the pandemic denting group and business travel, U.S. RevPAR is expected to fall ~50% in 2020 recovering in 2021, but remaining 20% to 30% below 2019 levels.Forecast assumes a medical solution to the COVID-19 virus by mid-2021, with wide dissemination over the remainder of the year. However, with the prospect of a COVID-19 vaccine on the horizon the tables could turnaround.S&P believes that even if demand picks up in mid-2021, the sector will be very competitive, particularly in cities, causing average daily rates to remain depressed. Thus, assuming recovery and normalization continue in 2022, it doesn't expect RevPAR to fully recover until 2023 at the earliest.Earnings take on two of Hotel/Resort REITs:"Our hotel portfolio’s performance continues to exhibit gradual improvement. All but two of our hotels are now open and occupancies have steadily increased to 45.8% in September from a low of 21.0% in April. Our extended

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Lodging REITs rally on Q3 earnings; U.S. Lodging sector sees slower recovery