Redburn analyst Alexander Brignall initiated coverage of five U.S. hotel stocks with a cautious, but "glass-half-full" view on potential upside from travel demand. Hyatt (H) is his top pick, with his only Buy rating among the group, while Brignall started Wyndham Hotels & Resorts (WH) and Hilton (HLT) with Neutral ratings. Demand weakness and higher financing costs will constrain hotel supply growth "dramatically," said Brignall, who also has concerns about demand’s impact on pricing. In that context, he initiated coverage of Choice Hotels (CHH) and Marriott (MAR) with Sell ratings.
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