Updated
Updated · TheStreet · Jul 3
Analyst Halves Marriott Stake After 61,000 Hospitality Jobs Vanish in June
Updated
Updated · TheStreet · Jul 3

Analyst Halves Marriott Stake After 61,000 Hospitality Jobs Vanish in June

1 articles · Updated · TheStreet · Jul 3

Summary

  • 57,000 U.S. jobs were added in June, and hospitality alone lost 61,000 positions, prompting Ed Ponsi to cut his Marriott holding by half.
  • May payrolls were revised down to 129,000 from 172,000 and April to 148,000 from 179,000, reinforcing his view that hotel demand and sector momentum may be weakening.
  • Marriott, up about 40% from his entry and recently above $400, has slipped below its 50-day moving average even as major indexes remain above that level.
  • Hyatt has gained roughly 32% over 12 months and reports earnings July 10, while IHG is up 52%; Ponsi said he is trimming exposure rather than exiting hotel stocks entirely.

Insights

After a 40% gain, a top analyst is selling hotel stocks. Is this a warning sign of a wider market correction?
Job data signals a downturn while luxury travel booms. Is the hospitality industry splitting into two separate markets?
With consumer confidence at a record low, which hotel segments can survive the coming economic storm?