---
title: "Lodging Sector Sees Strong Q1 Results but High Expectations Limit Upside, BofA Says"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285969544.md"
description: "The lodging and leisure sector reported strong Q1 earnings, with 14 of 17 companies exceeding earnings estimates by an average of 5%. However, stock reactions were muted due to high pre-earnings expectations, according to BofA Securities. Companies raised their 2026 EBITDA outlooks by 1.3%, reflecting Q1 results rather than future expectations. BofA also increased price targets for Apple Hospitality REIT, Host Hotels & Resorts, and Marriott Vacations Worldwide. Current stock price is $13.93, down 1.44%."
datetime: "2026-05-11T15:43:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285969544.md)
  - [en](https://longbridge.com/en/news/285969544.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285969544.md)
---

# Lodging Sector Sees Strong Q1 Results but High Expectations Limit Upside, BofA Says

11:43 AM EDT, 05/11/2026 (MT Newswires) -- The lodging and leisure sector delivered strong Q1 earnings, but stocks reacted modestly because expectations were already high, BofA Securities said in a note on Monday.

For the quarter, 14 of 17 lodging and leisure companies beat earnings estimates by about 5% on average, according to the note.

Companies also raised their 2026 earnings before interest, taxes, depreciation, and amortization outlooks by an average of 1.3%, mainly reflecting the strong Q1 results rather than higher expectations for future quarters, the analysts said.

"Sentiment was the highest in recent years heading into earnings, resulting in muted stock reactions," the analysts said, adding that they believe company outlooks may still be conservative.

BofA raised its price targets for Apple Hospitality REIT ( APLE ) to $13.50 from $13, for Host Hotels & Resorts (HST) to $23.50 from $22.00, and for Marriott Vacations Worldwide ( VAC ) to $70 from $65.

Price: 13.93, Change: -0.20, Percent Change: -1.44

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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