Starwood Hotels (HOT)
We are upgrading our recommendation on <b>Starwood Hotels & Resorts Worldwide</b> (<a href=http://www.zacks.com/stock/quote/hot>HOT</a>) to Outperform. The company's fourth quarter operating earnings were well ahead of the Zacks Consensus Estimate, primarily driven by better-than-expected revenue. <p> Though the company continued to experience a decrease in revenue per available room (RevPAR), the rate of deterioration has moderated. In fact, in the recent months, the industry is showing signs of RevPAR improvement. <p> Going forward, the company's strong pipeline, significant international exposure, solid balance sheet, shift to a fee-based business model and a less capital-intensive timeshare business augur well. However, considering the sluggish recovery of the economy and the slow booking pace, we expect the top-line improvement to be slow.
April 1, 2010 | Filed Under Stock Picks
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