$LEISURE - Demographic tailwinds favor leisure travel and experiences over material goods, with younger generations prioritizing travel spending. AI automation may further increase demand for human interaction through travel.
$SENIORHOUSING - Senior housing identified as the most interesting residential subsector opportunity over the past 2.5 years, with EOS making significant investments in the space through their residential platform.
$DRIVETOTRAVEL - Drive-to leisure travel showed exceptional resilience during COVID and continues to outperform, with domestic travel proving more stable than international travel due to visa issues, flight costs, and other friction.
$HOTELCREDIT - Hotel credit presents a generational opportunity created by bank regulation changes and private credit market evolution, with significant holes in the lending market creating attractive risk-reward.
Bearish:
$BUSINESSTRAVEL - Business travel has structurally declined post-COVID due to Zoom adoption, with the trend accelerating rather than reversing. This represents a permanent shift in corporate travel behavior.
$USHOTELS - Two concerning structural breaks in 40-year hotel demand trends: US hotel demand declined in 2023 for first time outside global shocks since 1987, and US shifted from net importer to net exporter of travel with both components negative.