When you go to a travel site like Expedia, Travelocity, or Orbitz to book a trip, the websites will often offer travel packages complete with airfare, rental car, and hotel lodging. And they do this for a good reason. Not only do the booking sites make more money through more sales, but they also know travelers often require multiple purchases to fulfill their travel experience. This is a lesson for more »
The lodging industry took a huge blow with the last world economic recession. Some went under, others managed to stay alive. From those who remained in the game, recovery was not easy. Marriott International (NYSE: MAR), Wyndham Worldwide (NYSE: WYN), and IntercontinentalHotels Group (NYSE: IHG) are three companies that were able to stay at the table. Today, all three hold good future prospects, although some, better than others.
TripAdvisor recently published a bi-annual survey showing that travel spending and hotel profitability should increase in 2013. The report states that 42% of U.S. travelers are planning to increase their travel spending in 2013. Globally, 68% of hoteliers are optimistic that profits will increase in 2013. Additionally, 40% of global accommodations were planning to increase their room rates within three months of the report, which was published March 6 more »
In the current stock market boom, P/E ratios continue to climb higher and higher. It has become increasingly difficult to find stocks that appear undervalued based on their current P/E. The S&P 500 currently trades at a P/E of 19.29 versus a historical average of 15.49. Either investors are expecting more growth in the economy, or the market has gotten a bit ahead of more »
In the current stock market boom, P/E ratios continue to climb higher and higher. It has become increasingly difficult to find stocks that appear undervalued based on their current P/E. The S&P500 currently trades at a P/E of 19.29 versus a historical average of 15.49. Either investors are expecting more growth in the economy, or the market has gotten a bit ahead of itself more »
Recently, Barron’s featured luxury hotel operator Orient-Express Hotels(NYSE: OEH), thinking that the company might experienced a decent turnaround under the leadership of its new CEO. Since the beginning of May, Orient-Express’ share price has gone up significantly, from $9.50 per share to nearly $11.70 per share. Should we invest in Orient-Express now? Let’s find out.
Business snapshot
Orient-Express is a leading luxury hotel operator, owning more »
The hotel industry could be a big benefactor from the rebounding economy and increased consumer spending. It appears one of the big winners in the sector so far has been Starwood Hotels & Resorts Worldwide (NYSE: HOT). Starwood posted 1Q 2013 EPS of $0.76, compared to $0.63 for the same period last year, blowing past $0.53 consensus estimates. The question is, does this mean there are more good more »
Since the beginning of 2012, the hotel & lodging industry has entered into recovery mode. According to the preliminary data for 2012, the average daily rate (ADR) and occupancy saw an improvement of 4.3% and 2.3% respectively. This recovery was mainly due to rising volumes of international travel and tourism. In 2013, I anticipate further growth in travel volumes because of rapidly booming BRIC economies. The hotel companies with more »
Year 2012, marked a beginning for the recovery in the hotel & lodging industry. However, some hindrances were seen in the second half of 2012 due to the various fiscal concerns. These swings have affected the overall market sentiment, and have led to a sense of uncertainty in the hotel stocks by the end of 2012. In 2013, I feel the sector is back on the radar bravely; withstanding all the more »
2012 was a great year for the lodging companies with occupancy and RevPAR trends improving. Stock prices of these companies followed their business fundamentals and Marriott International (NYSE: MAR), Wyndham Worldwide (NYSE: WYN) and Intercontinental Hotels (NYSE: IHG) significantly outperformed the S&P 500. The following table shows some of the key parameters for these companies.
Starwood Hotels(NYSE: HOT) is one of the world’s largest hotel companies, with hotels in about 100 countries that operate under nine very recognizable brand names. The company has rebounded very nicely since its 2009 low of $9.00 (congrats to everyone with the foresight to have bought then), however I believe there is still growth to be had in this best-in-breed company.
After identifying the most popular stocks among hedge fundsaccording to their third quarter 13F filings, we have decided to break down the top five stocks that hedge funds love in the hotel industry. As a whole, the hotel industry is expected to see positive growth in the interim as demand grows in the low-single digits in 2012 and 2013; hotel room pricing and occupancy improved 3.7% and 4 more »
The hotel business has been experiencing tough times over the last years due to oversupply on an industry level and uninspiring economic growth on a global scale. But things are slowly turning around for the industry, and one hotel company stands above most competitors in terms of profitability and potential for growth. InterContinental (NYSE: IHG) is a superior hotel operator offering an attractive valuation and solid long term potential.
After doing quite well for most of 2012, with strong revPAR (Revenue per available room), lodging stocks have recently started to underperform. Amongst those punching below its weight are stellar names, including Marriott International(NYSE: MAR), Wyndham Worldwide Corporation(NYSE: WYN), and Intercontinental Hotels Group(NYSE: IHG), all of which have underperformed the Standard & Poor’s 500.
Marriot International
Marriott International, the hospitality major, posted 6% RevPAR in 3Q 2012 more »
After outperforming for most of 2012, lodging stocks have underperformed recently amid concerns about a wobble in 4Q RevPAR (Revenue Per Available Room) extending into 2013. Over the last one month, the stocks of some big hotel companies like Marriott International(NYSE: MAR), Starwood Hotel and Restaurants Worldwide (NYSE: HOT), Wyndham Worldwide Corporation(NYSE: WYN) and Intercontinental Hotels Group(NYSE: IHG), have all underperformed Standard & Poor’s 500.
Marriott International, Inc. (NYSE: MAR) spun out its vacation ownership business a little less than a year ago (in November 2011) and the stock is up about 28% so far in 2012. It’s possible not only that those operations were more valuable as a stand-alone business, but also that Marriott’s management has been better able to focus on core operations without having to devote time and effort to more »
Full disclosure: I love to stay in hotels, nice ones. I had a childhood friend whose father was the general manager of a Hilton and it seemed like he had the most glamorous childhood ever. Ideally, I would be a perpetual traveler mostly living by sugar sand beaches with hot and cold running Mojitos. I’m not the only one who shares this fantasy of hotel living. It has inspired more »
It seems like it has been some time since hotel stocks were anything to get excited about. High unemployment led individuals to take fewer vacations, and the meltdown of the global economy meant that business travelers were finding alternatives. Additionally, as technology continues to improve, business travel is down independent of economic conditions. Despite these factors, evidence shows that bookings have been strong – stocks in the sector have performed well more »
Southeastern Asset Management, a Tennessee-based investment management firm ran by Mason Hawkins, has doubled its position in InterContinental Hotels Group (NYSE: IHG). InterContinental is a manager and franchiser of hotels and resorts, operating all over the world. The company operates such brands as InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn Hotels and Resorts, Holiday Inn Express, Staybridge Suites and Candlewood Suites.
Hotels are not gyms. Some of the best hotels in the world still don't seem to get the traveler that maintains a workout routine, and insist a broom closet with a smelly yoga mat and one 15 lb. weight will be enough to stay in shape. There is, however, a small revolution going on among business traveler oriented hotels, some well-planned, some not so much. Starwood(NYSE: HOT), for more »
