JP Morgan Publishes Report on Lodging Development Pipelines

In the report, JP Morgan writes, “We believe that lodging investors' focus has been so keen on near-term / next year RevPAR growth (a valid focus given slowing worldwide GDP growth), that medium term value creation associated with the larger cap lodging C-corps' (HOT, H, MAR) development pipelines have been ignored… . In summary, we attribute the highest inherent equity value per share to HOT's development pipeline (at ~$6.00/share, 14% of current price), which in our minds makes the most sense given its largely international, full-service pipeline (~85% of rooms in contract), followed by H (at ~$2.50/share, or 8% of current price) and MAR (at $2.00/share, or 6.6% of current price)”. Companies included in the J.P. Morgan report are: Starwood Hotels & Resorts Worldwide HOT, Hyatt Hotels Corporation H, and Mariott International MAR