Amazon Cost Cutting • Hotel Recovery • Week Ahead

May 23, 2022 | Hoya Capital

Amazon Cost Cutting • Hotel Recovery • Week Ahead Real Estate Daily Recap May 23 Written By U.S. equity markets rebounded Monday as investors cautiously waded back into beaten-down equity sectors after the major benchmark briefly dipped into intra-day "bear market" territory last Friday. Seeking to snap a stretch of seven-straight weeks of declines, the S&P 500 advanced 1.8% today while the Dow rallied 2% as it seeks to snap its worst weekly skid since the Great Depression.

Led by a rebound across growth-oriented property sectors, real estate equities were also broadly higher on the day as the Equity REIT Index gained 1.1% today while Mortgage REITs advanced 1.7%. Industrial REITs remained under pressure, however, on further details about Amazon's plan to cut costs in its logistics network, which may include subletting space or renegotiating leases. AMZN's overcapacity appears company-specific, however, as logistics vacancy rates remain at historic lows.

Pebblebrook Hotel provided reported that its Revenue Per Available Room ("RevPAR") was back to within 6% of 2019-levels in April, citing a long-awaited recovery in its business-heavy urban portfolio. TSA data indicates that travel demand has moderated a bit over the past month amid soaring fuel prices. Income Builder Daily Recap We recently launched Hoya Capital Income Builder - a premier income-focused investment research service through Seeking Alpha Marketplace - that will be the new exclusive home of all of Hoya Capital's investment research.

Income Builder focuses on real income-producing asset classes that offer the opportunity for diversification, monthly income, capital appreciation, and inflation hedging. If you're not already on board, give us a try with a completely risk-free two-week trial and take a look around. U.S. equity markets rebounded Monday as investors cautiously waded back into beaten-down equity sectors after the major equity benchmark briefly dipped into "bear market" territory last Friday. Seeking to snap a stretch of seven-straight weeks of declines, the S&P 500 advanced 1.8% today while the ...