BEDZ: 2nd Quarter 2023 Portfolio Review
BEDZ continued its positive trend in the 2nd quarter of 2023. BEDZ’s net asset value (NAV) was up 3.57%. The Fund did lag behind the S&P 500, which was up 8.74% for the quarter.
The hotel industry is a vital component of the global travel and tourism sector. It encompasses various types of accommodations, including luxury hotels, resorts, budget hotels, boutique hotels, and more. The industry is highly influenced by factors such as economic conditions, travel trends, technological advancements, and global events. Growth continued to be driven by the post pandemic urge to travel and increases in corporate travel, despite fears of a recession.
The portfolio’s leaders were new position Royal Caribbean Cruises LTD (RCL), up 61.46% for the quarter, and Bluegreen Vacation Holdings (BVH), up 30.4% for the quarter. The portfolio’s laggards were Playa Hotels & Resorts (PLYA), down -13.22% for the quarter, and the REIT Service Properties Trust (SVC), down -12.31% for the quarter.
Important Portfolio Trades
Several trades were made throughout the quarter, including the removal of Chatham Lodging Trust (CLDT) and the reduction of 5,432 shares of Park Hotels & Resorts INC (PK). Our positions were increased in Service Properties Trust (PK) by 2,250 shares and VICI Properties Inc (VICI) by 1,594 shares. Other trades were smaller tactical adjustments to the portfolio.
BEDZ added a new positions in Royal Caribbean Cruises LTD (RCL), as already mentioned, with 2,000 shares and in Ryman Hospitality Properties (RHP) with 2,100 shares.
|Ticker||Security Description||Portfolio Weight %|
|BVH||BLUEGREEN VACATIONS HOLDING||6.40%|
|MAR||MARRIOTT INTERNATIONAL -CL A||5.63%|
|GHG||GREENTREE HOSPITALITY GR-ADR||5.57%|
|BKNG||BOOKING HOLDINGS INC||5.55%|
|BYD||BOYD GAMING CORP||5.38%|
|RCL||ROYAL CARIBBEAN CRUISES LTD||4.96%|
|HLT||HILTON WORLDWIDE HOLDINGS IN||4.77%|
|SVC||SERVICE PROPERTIES TRUST||4.72%|
|HGV||HILTON GRAND VACATIONS INC||4.72%|
As of 06.30.2023. Cash is excluded. Subject to change.
Please see our complete Fund holdings at advisorshares.com/etfs/bedz. The holdings details are updated each market day.
With the summer season and travel restrictions eased, the hotel industry continues to show signs of recovery. The demand for domestic travel has been stronger than international travel, both have reached pre-pandemic levels. Hotels are adapting to changing customer preferences, such as an increased focus on hygiene, flexible booking policies, and digital experiences.