Stocks DRH, AHT, SHO, MAR, H, CHH, PEB, INN, RLJ, STAY, HLT, BHR, APLE, XHR, WH, HT, HST
Analyst: Bellisario, Michael J.
Reporter: Michael Bull
Publication: America's Commercial Real Estate Show
Publication Type: Radio
Date: June 17, 2020
Topic: Hotel update, recent travel trends, demand recovery
Materials:
Phone Interview: yes
Comments:
Non Covered Tickers


Disclosures:

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A current listing of all companies covered by Baird U.S. Equity Research and applicable research disclosures can be accessed at http://www.rwbaird.com/research-insights/research/coverage/third-party-research-disclosures.aspx


DiamondRock Hospitality Co.

Ashford Hospitality Trust Inc.

Sunstone Hotel Investors, Inc.

Marriott International, Inc.

Hyatt Hotels Corporation

Choice Hotels International, Inc.

Pebblebrook Hotel Trust

Summit Hotel Properties, Inc.

RLJ Lodging Trust

Extended Stay America, Inc.

Hilton Inc.

Braemar Hotels & Resorts, Inc.

Apple Hospitality REIT, Inc.

Xenia Hotels & Resorts, Inc.

Wyndham Hotels & Resorts, Inc.

Hersha Hospitality Trust

Host Hotels & Resorts

1 Robert W. Baird & Co. Incorporated makes a market in the securities of DRH.


1 Robert W. Baird & Co. Incorporated makes a market in the securities of AHT.


1 Robert W. Baird & Co. Incorporated makes a market in the securities of SHO.


1 Robert W. Baird & Co. Incorporated makes a market in the securities of MAR.


1 Robert W. Baird & Co. Incorporated makes a market in the securities of H.


1 Robert W. Baird & Co. Incorporated makes a market in the securities of CHH.


1 Robert W. Baird & Co. Incorporated makes a market in the securities of PEB.


1 Robert W. Baird & Co. Incorporated makes a market in the securities of INN.


1 Robert W. Baird & Co. Incorporated makes a market in the securities of RLJ.


1 Robert W. Baird & Co. Incorporated makes a market in the securities of STAY.


1 Robert W. Baird & Co. Incorporated makes a market in the securities of HLT.


2 Robert W. Baird & Co. Incorporated and/or its affiliates managed or co-managed a public offering of securities of Braemar Hotels & Resorts, Inc. in the past 12 months. 3 Robert W. Baird & Co. Incorporated and/or its affiliates have received investment banking compensation from Braemar Hotels & Resorts, Inc. in the past 12 months.

1 Robert W. Baird & Co. Incorporated makes a market in the securities of BHR.


10 Robert W. Baird & Co. Incorporated and/or its affiliates have been compensated by Apple Hospitality REIT, Inc. for non-investment banking-securities related services in the past 12 months.

1 Robert W. Baird & Co. Incorporated makes a market in the securities of APLE.


1 Robert W. Baird & Co. Incorporated makes a market in the securities of XHR.


1 Robert W. Baird & Co. Incorporated makes a market in the securities of WH.


1 Robert W. Baird & Co. Incorporated makes a market in the securities of HT.

2 Robert W. Baird & Co. Incorporated and/or its affiliates managed or co-managed a public offering of securities of Hersha Hospitality Trust in the past 12 months. 3 Robert W. Baird & Co. Incorporated and/or its affiliates have received investment banking compensation from Hersha Hospitality Trust in the past 12 months.

1 Robert W. Baird & Co. Incorporated makes a market in the securities of HST.


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Robert W. Baird & Co. Incorporated (“Baird”) and/or its affiliates expect to receive or intend to seek investment-banking related compensation from the company or companies mentioned in this report within the next three months. Baird may not be licensed to execute transactions in all foreign listed securities directly. Transactions in foreign listed securities may be prohibited for residents of the United States. Please contact a Baird representative for more information.

Investment Ratings: Outperform (O) - Expected to outperform on a total return, risk-adjusted basis the broader U.S. equity market over the next 12 months. Neutral (N) - Expected to perform in line with the broader U.S. equity market over the next 12 months. Underperform (U) - Expected to underperform on a total return, risk-adjusted basis the broader U.S. equity market over the next 12 months.

Risk Ratings: L - Lower Risk – Higher-quality companies for investors seeking capital appreciation or income with an emphasis on safety. Company characteristics may include: stable earnings, conservative balance sheets, and an established history of revenue and earnings. A - Average Risk – Growth situations for investors seeking capital appreciation with an emphasis on safety. Company characteristics may include: moderate volatility, modest balance-sheet leverage, and stable patterns of revenue and earnings. H - Higher Risk – Higher-growth situations appropriate for investors seeking capital appreciation with the acceptance of risk. Company characteristics may include: higher balance-sheet leverage, dynamic business environments, and higher levels of earnings and price volatility. S - Speculative Risk – High growth situations appropriate only for investors willing to accept a high degree of volatility and risk. Company characteristics may include: unpredictable earnings, small capitalization, aggressive growth strategies, rapidly changing market dynamics, high leverage, extreme price volatility and unknown competitive challenges.

Valuation, Ratings and Risks. The recommendation and price target contained within this report are based on a time horizon of 12 months but there is no guarantee the objective will be achieved within the specified time horizon. Price targets are determined by a subjective review of fundamental and/or quantitative factors of the issuer, its industry, and the security type. A variety of methods may be used to determine the value of a security including, but not limited to, discounted cash flow, earnings multiples, peer group comparisons, and sum of the parts. Overall market risk, interest rate risk, and general economic risks impact all securities. Specific information regarding the price target and recommendation is provided in the text of our most recent research report.

Distribution of Investment Ratings. As of May 29, 2020, Baird U.S. Equity Research covered 725 companies, with 60% rated Outperform/Buy, 39% rated Neutral/Hold and 1% rated Underperform/Sell. Within these rating categories, 12% of Outperform/Buy-rated and 5% of Neutral/Hold-rated companies have compensated Baird for investment banking services in the past 12 months and/or Baird managed or co-managed a public offering of securities for these companies in the past 12 months.

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A complete listing of all companies covered by Baird U.S. Equity Research and applicable research disclosures can be accessed at http://www.rwbaird.com/research-insights/research/coverage/third-party-research-disclosures.aspx. You can also call 800-792-2473 or write: Robert W. Baird & Co., Equity Research, 777 E. Wisconsin Avenue, Milwaukee, WI 53202.

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