Gaming, Lodging, & Leisure Weekly Matters

Research evidence excerpt

Gaming, Lodging, & Leisure Weekly Matters

folk, we estimate BYD could generate ~

$100M of incremental medium-term EBITDA on a $750M investment, representing a +7% uplift

to current consensus EBITDAR. With two greenfield projects scheduled to come online in 4Q27

and iGaming legalization under consideration, we believe Virginia has a credible path to becoming

a top-10 regional market by GGR (currently 13th). In a sector characterized by limited growth,

our view is that operators with meaningful exposure to Virginia represent compelling investment

opportunities. Note HERE.

CHH CEO Transition. On Wednesday (5/20), CHH announced that Pat Pacious will step down as

President and CEO, a role he has held since 2017. The Board appointed Dominic Dragisich, former

Chief Growth and Strategy Officer, as Interim CEO. Our view is that Mgt. should use this transition

to focus on domestic rooms growth in its core Comfort Inn & Suites and Quality Inn brands, which

represent ~50% of domestic rooms, and declined ~2% Y/Y and -4% the past three years. While we

believe CHH maintains a solid core portfolio from which to grow, leadership uncertainty could limit

near-term upside in the shares. Note HERE.

XHR NDR Coming this Week. JEF is hosting investor meetings with CFO Atish Shah in SoCal on

5/26, which should support the momentum in RevPAR trends, notably in group business, where the

company is benefiting from its repositioned Hyatt Regency Scottsdale. As well, comments on the

revised F&B strategy at the W Nashville should also be expected. With the shares +12.5% YTD and

30% LTM, focus on the Lodging REIT group remains active.

WH NDR Coming This Week. JEF is hosting investor meetings with Interim CEO Amit Sripathi, and

SVP IR and FP&A Matt Capuzzi in Canada.