The emerging middle class in India with increasing expendable income is becoming a target for the hospitality industry, including hotel chains Marriot International (NYSE:MAR), Starwood Hotels & Resorts Worldwide (NYSE:HOT) and Wyndham Worldwide (NYSE:WYN).
Marriot has already entered into a preliminary deal with India's SAMHI Hotels to expand its Fairfield brand in India.
There is no doubt a lot of potential, but the companies must be patient, as the business atmosphere in India can be stifling and frustrating, although the country is slowing becoming more investment-friendly.
Infrastructure is also being improved and labor is inexpensive at this time.
Gross domestic product in India is growing at an 8 percent rate, and that should be sustainable for years.
Marriot was trading at $34.04, down $0.15, or 0.44 percent, as of 12:44 PM EDT. Starwood was at $56.53, down $0.51, or 0.89 percent. Wyndham was trading at $31.02, falling $0.41, or 1.30 percent.
Showing posts with label Marriot. Show all posts
Showing posts with label Marriot. Show all posts
Thursday, April 14, 2011
Thursday, March 3, 2011
Wynn Resorts (WYNN) Most Admired in Las Vegas
In the Las Vegas hotel-casino industry, Wynn Resorts (NASDAQ:WYNN) has come out on top this year in the most admired in Las Vegas, and came in fourth place in the overall hotels, casinos and resorts category of Fortune magazine's rankings.
The list is compiled in response to surveys of analysts and industry participants.
Strengths of Wynn noted in the survey included innovation, quality of products and services as well as global competitiveness and quality of management. Weaknesses cited were long-term investment, financial soundness and social responsibility.
In the overall category of hotels, casinos and resorts, the leader was Marriott International (NYSE:MAR), followed by Hyatt Hotels (NYSE:H) and Starwood Hotels and Resorts (NYSE:HOT).
For casinos, MGM Resorts International (NYSE:MGM), dropped to No. 9 while Las Vegas Sands (NYSE:LVS) was No. 8 and Harrah's, now Caesars Entertainment Corp., was ranked No. 10.
In the top 50 of the general most admired companies, only Marriott International, who was ranked No. 37, landed on the list, of companies in that sector.
The list is compiled in response to surveys of analysts and industry participants.
Strengths of Wynn noted in the survey included innovation, quality of products and services as well as global competitiveness and quality of management. Weaknesses cited were long-term investment, financial soundness and social responsibility.
In the overall category of hotels, casinos and resorts, the leader was Marriott International (NYSE:MAR), followed by Hyatt Hotels (NYSE:H) and Starwood Hotels and Resorts (NYSE:HOT).
For casinos, MGM Resorts International (NYSE:MGM), dropped to No. 9 while Las Vegas Sands (NYSE:LVS) was No. 8 and Harrah's, now Caesars Entertainment Corp., was ranked No. 10.
In the top 50 of the general most admired companies, only Marriott International, who was ranked No. 37, landed on the list, of companies in that sector.
Thursday, December 23, 2010
Wyndam (NYSE:WYN), Intercontinental (NYSE:IHG), Choice Hotels (NYSE:CHH), Interval Leisure (Nasdaq:IILG) Top FBR Hotel Picks
Commenting on the hotel sector, FBR said their favorite picks at this time are Wyndam (NYSE:WYN), Intercontinental Hotels (NYSE:IHG), Choice Hotels (NYSE:CHH) and Interval Leisure Group(Nasdaq:IILG), based on strength in the upper-upscale segments.
FBR noted, "In our view, we see good investing opportunities, especially in names that have higher exposure to the upscale, midscale, and the economy segments where RevPAR is beginning to outpace gains in the upper-upscale segments. The names we favor most are Wyndam, Intercontinental Hotels, Choice Hotels , and Interval Leisure Group, with the common characteristic being greater exposure to chain scale segments, high-single- to low-double-digit free cash flow yields, and opportunity for valuation multiple expansion, which we see as less likely in names such as Host (NYSE:HST), Marriott (NYSE:MAR), Starwood (NYSE:HOT), and Hyatt (NYSE:H).
"So far, quarter-to-date transient and group segment trends are shaping up to be stronger than in the third quarter of this year. We observe all U.S. transient occupancies to be higher by 180 bps (was +150 bps in 3Q), group occupancies to be higher by 230 bps (was +200 bps in 3Q), transient ADR to be tracking higher by 4.1% (was +4.4% in 3Q), and group ADR to be tracking +0.7% (was –1.0% in 3Q) through the quarter to date ending December 4. Of note, group ADR trended higher by this magnitude for the first time since late 2008."
Wyndam closed Wednesday at $31.02, down $0.06, or 0.19 percent. Intercontinental Hotels closed at $19.62, level from the prior close. Choice Hotels ended the session at $39.31, up $0.30, or 0.77 percent. Interval Leisure closed at $17.08, down $0.26, or 1.50 percent.
FBR noted, "In our view, we see good investing opportunities, especially in names that have higher exposure to the upscale, midscale, and the economy segments where RevPAR is beginning to outpace gains in the upper-upscale segments. The names we favor most are Wyndam, Intercontinental Hotels, Choice Hotels , and Interval Leisure Group, with the common characteristic being greater exposure to chain scale segments, high-single- to low-double-digit free cash flow yields, and opportunity for valuation multiple expansion, which we see as less likely in names such as Host (NYSE:HST), Marriott (NYSE:MAR), Starwood (NYSE:HOT), and Hyatt (NYSE:H).
"So far, quarter-to-date transient and group segment trends are shaping up to be stronger than in the third quarter of this year. We observe all U.S. transient occupancies to be higher by 180 bps (was +150 bps in 3Q), group occupancies to be higher by 230 bps (was +200 bps in 3Q), transient ADR to be tracking higher by 4.1% (was +4.4% in 3Q), and group ADR to be tracking +0.7% (was –1.0% in 3Q) through the quarter to date ending December 4. Of note, group ADR trended higher by this magnitude for the first time since late 2008."
Wyndam closed Wednesday at $31.02, down $0.06, or 0.19 percent. Intercontinental Hotels closed at $19.62, level from the prior close. Choice Hotels ended the session at $39.31, up $0.30, or 0.77 percent. Interval Leisure closed at $17.08, down $0.26, or 1.50 percent.
Friday, December 17, 2010
Marriott (NYSE:MAR), Starwood (NYSE:HOT) Expect Multyear RevPAR Growth
After their investor days, Marriott (NYSE:MAR) and Starwood (NYSE:HOT) recently said their multiyear RevPAR growth rates will be in the mid to high single digits.
FBR said, "In the wake of Marriott’s (Market Perform) and Starwood’s (Market Perform) recent bullish investor days, where management teams outlined multiyear RevPAR growth expectations in the mid to high single digits, rather than just take it as blind faith that these rates of growth will happen, we felt it prudent to examine the underlying economic drivers that we believe will ultimately drive a sustained recovery. As we look out at the forward reservations that the industry has on its books, we note that after 3Q11, the number of reservations is statistically insignificant and therefore, investing in lodging stocks requires that investors believe economic conditions will continue to improve in order to assume these RevPAR growth rates will come to fruition. In this regard, we examine the impact that GDP, corporate profits, inflation, and unemployment will have on RevPAR, occupancy, and ADR growth.
"Our analysis gives us confidence that 2011 and 2012 will be years of high-single-digit RevPAR growth, and as long as the economy continues to grow at even a moderate pace (+2%), lodging companies should be able to maintain pricing power (pricing power being an important driver in investor sentiment). We believe that a scenario of high-single-digit RevPAR growth will continue to fuel the up-cycle in lodging stock price appreciation."
Marriott closed Thursday at $41.26, up $0.35, or 0.86 percent. Starwood closed at $59.63, up $1.72, or 2.97 percent.
FBR said, "In the wake of Marriott’s (Market Perform) and Starwood’s (Market Perform) recent bullish investor days, where management teams outlined multiyear RevPAR growth expectations in the mid to high single digits, rather than just take it as blind faith that these rates of growth will happen, we felt it prudent to examine the underlying economic drivers that we believe will ultimately drive a sustained recovery. As we look out at the forward reservations that the industry has on its books, we note that after 3Q11, the number of reservations is statistically insignificant and therefore, investing in lodging stocks requires that investors believe economic conditions will continue to improve in order to assume these RevPAR growth rates will come to fruition. In this regard, we examine the impact that GDP, corporate profits, inflation, and unemployment will have on RevPAR, occupancy, and ADR growth.
"Our analysis gives us confidence that 2011 and 2012 will be years of high-single-digit RevPAR growth, and as long as the economy continues to grow at even a moderate pace (+2%), lodging companies should be able to maintain pricing power (pricing power being an important driver in investor sentiment). We believe that a scenario of high-single-digit RevPAR growth will continue to fuel the up-cycle in lodging stock price appreciation."
Marriott closed Thursday at $41.26, up $0.35, or 0.86 percent. Starwood closed at $59.63, up $1.72, or 2.97 percent.
Wednesday, December 1, 2010
Marriott (NYSE:MAR) Should Continue to Steal Market Share
Saying Marriott International (NYSE:MAR) should continue to steal market share from smaller competitors, Argus maintains their "Buy" rating on the company while raising their price target.
Argus said the EPS estimates of Marriot are already on the high side of consensus and will keep their own estimates in place.
With an extensive range inexpensive and low-service hotels under their control, expectations are consumers will continue to go that route as they travel in light of the ongoing recession.
Marriot has also said they're going to increase new rooms in Asian and Middle Easter markets by 25 percent.
With a strong financial position they funding is already close to being secured before construction has even begun.
Marriot closed Tuesday at $39.21, gaining $0.07, or 0.18 percent. Argus increased their price target on them from $43 to $46.
Argus said the EPS estimates of Marriot are already on the high side of consensus and will keep their own estimates in place.
With an extensive range inexpensive and low-service hotels under their control, expectations are consumers will continue to go that route as they travel in light of the ongoing recession.
Marriot has also said they're going to increase new rooms in Asian and Middle Easter markets by 25 percent.
With a strong financial position they funding is already close to being secured before construction has even begun.
Marriot closed Tuesday at $39.21, gaining $0.07, or 0.18 percent. Argus increased their price target on them from $43 to $46.
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