UBS Skeptical On Further Consolidation In Lodging Sector

UBS weighed in on Host Hotels and Resorts Inc HST earlier Wednesday, looking at both its near-term and long-term outlook.

"We saw HST management in New York and...it sounds like we'll see a soft result, exacerbated by holiday shift that helped last week's RevPAR," UBS analysts said. "June RevPAR will likely be better than May because of better group, but May and June overall coming in softer than many expected. HST notes a recent uptick in attrition and cancellations for group business, which is incrementally more negative than what we had been hearing a few weeks ago."

The firm said Host Hotels is "unlikely to acquire any other assets, though perhaps consolidation with a smaller REIT in a stock transaction could make sense."

Shares traded recently at $15.69, down 0.32 percent.