BEDZ: 3rd Quarter 2023 Portfolio Review
After two positive quarters, BEDZ had a negative return in the third quarter of 2023. BEDZ’s net asset value (NAV) was down 3.47%. The Fund’s performance barely trailed that of the S&P 500 which was down 3.27% for the quarter.
The hotel sector plays a crucial role within the worldwide travel and tourism industry. It comprises a diverse range of lodging options, spanning luxury hotels, resorts, budget-friendly accommodations, boutique hotels, and beyond. This sector’s dynamics are significantly shaped by factors like economic conditions, evolving travel patterns, advancements in technology, and global occurrences. The industry has sustained its expansion, driven by the strong desire to travel in the post-pandemic era and a rise in corporate travel, even in the face of concerns about an economic downturn.
The portfolio’s leaders for the quarter were Target Hospitality Corp. (TH), up 18.33% and Booking Holdings Inc. (BKNG), up 14.21%. The portfolio’s quarterly laggards were MGM Resorts International (MGM), down 16.30%, and GreenTree Hospitality Group (GHG), down 15.83%.
During the 3rd quarter, several trades were made, including the removal of Choice Hotels International Inc. (CCH), Red Rock Resorts Inc. (RRR), and Service Properties Trust (SVC). There was a reduction of 2,000 shares of Host Resorts & Hotels Inc. (HST) and 6,000 shares of Playa Resorts & Hotels (PLYA). Our positions were increased in Target Hospitality Corp. (TH) by 3,000 shares, Expedia Group Inc. (EXPE) by 1,000 shares, and VICI Properties Inc (VICI) by 1,000 shares. Other trades involved smaller tactical adjustments to the portfolio. BEDZ added a new position in Trip.com Group (TCOM) with 6,700 shares.
|Ticker||Security Description||Portfolio Weight %|
|BKNG||BOOKING HOLDINGS INC||6.56%|
|MAR||MARRIOTT INTERNATIONAL -CL A||6.25%|
|TCOM||TRIP.COM GROUP LTD-ADR||5.80%|
|TH||TARGET HOSPITALITY CORP||5.78%|
|BVH||BLUEGREEN VACATIONS HOLDING||5.37%|
|HLT||HILTON WORLDWIDE HOLDINGS IN||5.10%|
|ABNB||AIRBNB INC-CLASS A||5.01%|
|BYD||BOYD GAMING CORP||4.89%|
|EXPE||EXPEDIA GROUP INC||4.80%|
As of 09.30.2023. 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.
The demand for domestic travel has somewhat softened, while international travel remained strong as consumers opt for vacations abroad. Hotel occupancy fell slightly, while TSA Checkpoint Data and Global Commercial Flights remained above pre-pandemic levels. Hotels continue to adapt to changing customer preferences, such as an increased focus on hygiene, flexible booking policies, and digital experiences.