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High-End Hotels Shouldn’t Fear Airbnb. Budget Hotels, On The Other Hand…

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Airbnb isn't a threat to high-end hotels—but budget hotels should be worried, says hedge fund manager John Khoury of Long Pond Capital.

Khoury, in his talk at Sohn Investment Conference, said Hyatt shares have more than a 60% upside even though lodging is the most unfavored piece of the real estate market, Bloomberg reports. One key reason for his optimism is his prediction that Airbnb will not cut deeply into the business and high-end traveler market, which is largely responsible for luxury hotels' revenue.

Several Wall Street firms agree with his assessment—a note from Cowen Group last month showed hotels have a strong advantage among business travelers. On the flip side, a Goldman Sachs survey earlier in the year concluded that once you go Airbnb, you don't go back (for holiday travel). [Bloomberg]