Deutsche Bank: Strong Dollar Will Hurt U.S. Lodging Stocks

In a recent report, analysts at Deutsche Bank addressed the effect that the strong U.S. dollar will have on domestic lodging stocks. In particular, the report focused on the likely decline of international tourism in 2015 coming from Canada and Europe. Analysts believe the strong dollar will discourage international travelers from visiting the U.S. this year.
Projections
Analysts believe that a falloff in international visitors from Europe and Canada will shave about 30 basis points off of year-over-year domestic lodging growth in 2015. For 2014, the report indicates that about seven percent of domestic room nights were sold to Canadian and Western European visitors. In 2015, analysts see a 4.3 percent decline in this number based on historical trends.