Hotel Stocks, Like Many Others, Probably Not a Good Investment Right Now
As predicted Marriott Hotels are not alone in this tough economy. Starwood Hotels just announced their second quarter earnings which were also down but by a "better-than-expected" 16.4 percent. Still Starwood expects lodging demand to keep weakening for the rest of the year.
And if you were thinking about investing in hotel stocks, think again.
In morning trading, Starwood shares fell $3.25, or 8.2 percent, to $36.57. During the past 52 weeks, the stock has dropped from a high of $74.05 last July to touch a low of $30.26 last week.
Not all is bleak here though. Starwood is doing "solid" internationally, while hotel bookings in the US have dropped off a bit. The mega hotel chain which counts Ws, Sheratons, St. Regis, and the new Aloft as its brands, reported a 3 percent increase in RevPar in America.
And despite the cutback in predicted earnings, Starwood will keep expanding by adding more than 120,000 rooms including almost 60 percent outside the United States. We bet most of those domestic properties will be Aloft and Element so look for them in a town near a town near you!
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