Did Disney Lower Hotel Room Rates?

[SamIAm21]

AP
Ahead of the Bell: Citi cuts Disney price target
Thursday October 9, 9:01 am ET
Analyst lowers Disney share price target due to lower hotel room prices at theme parks


NEW YORK (AP) -- A Citi Investment Research analyst cut Walt Disney Co.'s price target Thursday due to lower hotel room rates at its theme parks.
Citi's Jason B. Bazinet said Disneyland and Disney World's room pricing is off approximately 30 percent from the prior-year period.

"As such, unless trends reverse over the next 60 days, we expect Disney to report weak results for calendar fourth quarter," he wrote in a client note.

Bazinet reaffirmed a "Sell" rating and reduced his share price target to $24 from $29.

The analyst said the theme parks' third-quarter results should be all right, as there was no indication of pricing weakness through September. The company is scheduled to report its quarterly results on Nov. 6.

Disney shares advanced 72 cents, or 2.8 percent, to $26.40 in premarket activity.


Did they lower the room rate prices or has occupancy just dropped?

 

[lugnut33]

Well, they were offering rooms at SSR recently for under $100 per night.

 

[burberryplaid]

There have been more "special offers" this season than normal, so in a sense..yes they have.