Hotel stocks are starting to outperform relative to the S&P500, as the industry group and consumer discretionary sector shows signs of institutional buying.
Summary
This year, the United States travel sector is anticipating a 35.6% bump, compared to 2020. And next year, the U.S. travel sector is expected to grow by another 28.4%, according to the report, which was produced with Oxford Economics.
“Our research shows that while the global travel [and] tourism sector is slowly beginning to recover; the U.S. is recovering faster than many other regions,” Julia Simpson, WTTC president and CEO, said in a statement shared with T+L, adding because of the “predicted rise in international and domestic spend this year and next, both jobs and GDP are on the rise.” – Travel + Leisure
Dow Jones US Hotel Index
Hotel stocks are starting to outperform relative to the S&P500, as the industry group and consumer discretionary sector shows signs of institutional buying.
The Dow Jones US Hotels Index, in the top panel, is outperforming versus the S&P500 as a whole.
Stochastic is swinging higher from the “buy zone.”
We are looking for volume to pick up over the next few days and weeks as the US economy experiences a recovery of this important industry group.
A follow through day, with the hotels pushing higher, would be a welcome confirmation. If airlines continue higher, that would be a plus.
Hilton Hotels
Hilton Worldwide (HLT) will most likely clear the 146.00 (+/-) zone this week. A push above this level would lead the stock into an area of low supply. We’d would look for follow-through over the next few weeks.
Note the relative strength versus the Hotels index in the lower panel. Hilton is starting to lead.
Click to enlarge the chart.
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