Tuesday, August 25, 2009

Buy or sell a hotel recovery?

NEW YORK (Fortune) -- With its focus on luxury hotels brands like the St. Regis and Westin, Starwood Hotels has been especially hurt by the downturn. The third largest U.S. hotel operator recently cut its 2009 earnings estimate, and CEO Frits van Paasschen expects a slow recovery.
Revenue per available room, the metric that reflects occupancy and the room rates hotels can charge, fell 34% in the last quarter at Starwood's North American hotels. Meanwhile, the company is cutting costs to make up for reduced bookings and selling some properties to raise cash. Yet its stock is up 190% since its March low of $9.52.

Read more:
http://money.cnn.com/2009/08/21/pf/starwood_stock_analysts.fortune/index.htm?section=money_latest

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