If you were going to invest in hospitality CRE, you might want to head to upscale. Although there have been some negative signs in typical bellwethers of the travel industry, other indicators suggest that those who can afford the best expect to keep enjoying themselves.
Recent airline earnings projections seemed to be the logical warning because of Delta’s updated March Q1 2025 outlook. The initial guidance from called for year-over-year revenue of between 7% and 9%; operating margin was supposed to range 6% to 8%; with earnings per share sitting between $0.70 to $1.00.
On March 11, the company announced the new quarter guidance, with revenue expected up only 3% to 4%; operating margin from 4% to 5%; and earnings per share, up $0.30 to $0.50. “The outlook has been impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in Domestic demand,” it wrote.
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