Marriott International, Inc.
Leisure companies have come a long way since their lows in 2008/2009 when leisure spending, and tourism came to an almost complete halt. As the economy turned around for the better, three companies have benefited from an improved environment.
No negotiating here
Despite the seasonality of revenue, the hotel and motel industry requires constant renovations and maintenance to keep businesses healthy. In such a competitive environment, most global hotel companies are searching to augment guest satisfaction and gain a better foothold in the industry. Hence, brand conversion and remodeling are very important.
I am going to analyze three companies, focusing on their investments and performance.
Big investments and ambitious renovation plans
Starwood 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.
Orient-Express is a leading luxury hotel operator, owning more »
TripAdvisor recently published a bi-annual survey showing that travel spending and hotel profitability should increase in 2013. The report states that 42% of US 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 published March 6.
The Global Business more »
Good response in 2012 from international markets led to a positive and optimistic outlook for 2013 for the hotel industry. The industry reported high double-digit gains in “revenue per available room” or RevPAR, and expects to see good growth in the U.S. this year.
This growth is expected to be driven by the increase in the “average daily rate” and the “occupancy rate.” With macro trends indicating positive growth more »
The U.S. lodging industry is currently benefiting from a shortage of hotel rooms due to growth of demand outpacing that of supply. As a result, hotels and other lodging businesses should continue to to increase profitability as the cyclical tailwinds blow strong.
In addition to the current environment of higher demand than supply, hotel chains also benefit from barriers to entry due to high switching costs among the property 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 »
During his tenure as CEO of Bridgewater Associates, Ray Dalio was required by the SEC to disclose his fund’s positions every quarter. Although he has since stepped down (though is still contributing as a mentor), the fund continues to meet these filing obligations. The public documents can be accessed and researched by anyone, and we have done our own due diligence to see how the fund manipulated its $9 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 Q4 Report shows Price Increases Slow for Larger Hotel Deals
By DOROTHY PARIS
By the end of 2012, transactions were brisk on the high-end, as well as with the smaller deals in the hotel business, but prices are leveling off, according to the latest edition of the Cornell's real estate market indices.
Choice Hotels International (NYSE: CHH) announced its overseas expansion into Europe, but the hotel chain is not alone in its pursuit to push the "Made in America" brand overseas. How does this affect investors? Don't expect any short-term gains, but expect that the hospitality industry overall is planning for the long haul.
The Silver Spring, Md.-based company -- parent to such names as Comfort Suites, Comfort Inn, Cambria Suites more »
Waste Management (NYSE: WM), the largest trash hauling and recycling company in the United States, recently saw its shares jump 2% on a rumor that it was considering changing into a real estate investment trust (REIT). Would such a conversion make sense?
The real estate investment trust structure was created to allow individuals access to institutional level real estate. One of the best features of the REIT structure is more »
Mario Gabelli, a famous investment manager, has recently shown his interest in the theater business. On Jan. 8he increased his stake by nearly 23.5% in Marcus Corporation (NYSE: MCS) to own 743,113 shares in the company. On the same day, Marcus announced a buyback program to purchase up to 3 million shares. Should investors follow Gabelli into Marcus now? Let’s find out.
Marcus, the 6 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.
% Gain in Stock 2012
% increase in EPS 2012
5 Yr Expected PEG more »
The world is an interesting place. Asia continues to grow though China's demographics have already reached their peak. Europe continues to suffer periodic repercussions from its debt crisis. Austerity measures are dragging down the weaker countries which are starting to impact Germany and France. The United States has entered into a low growth period with highly elevated levels of unemployment from the 2008 recession. It is in this environment more »
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.
First, I’ll give you a more »
After identifying the most popular stocks among hedge funds according 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 »
Penn National Gaming (NASDAQ: PENN) shares shot up after it announced plans to split itself into a gaming company and a real estate investment trust (REIT). This follows on the heels of a number of other companies announcing or making similar shifts. While it makes sense for some companies, it is probably best for investors to avoid Penn National's “casino REIT” when, and if, it comes along.
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.
High more »
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.
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