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High-End Hotels Told Not to Fear Airbnb

This hedge fund manager says only lower-end chains need worry about disruption.
Airbnb Said to Be Raising Funding At $10 Billion Valuation
Photographer: Andrew Harrer/Bloomberg

In his bullish call on Hyatt Hotels Corp., John Khoury of Long Pond Capital LP said the high-end leisure market shouldn’t worry about Airbnb Inc. The budget hotel market, however, may be in for a rough ride.

Speaking at the Sohn Investment Conference in New York, Khoury touted Hyatt, saying shares have more than a 60 percent upside despite lodging being the most “out of favor” piece of the real estate sector. One of the reasons he cited for his optimism is that, unlike leisure travel, Airbnb and its online community of accommodations is unlikely to damage the industry's revenue stream from business and high-end travelers.