Still very cheap at 10x this year's earnings, considering many other companies of similar ilk are trading for 2-3x that.- A Goldman Sachs analyst boosted the price targets of some lodging companies Tuesday, citing slowing supply growth and an uptick in demand. Many lodging operators saw declining demand during the recession as consumers looked to trim costs and held back on booking trips or took shorter vacations. Supply growth also began to wane during the economic downturn, as hotels looked for ways to reduce expenses and avoid oversupply.
- Signs of an economic recovery on the horizon bodes well for the industry, according to analyst Steven Kent. "As we go further out in time we expect increased economic activity to ultimately result in more travel, which will boost occupancy and rate thereafter," he wrote in a client note.
- Kent increased Marriott International Inc.'s price target to $33 from $27.79 and lifted Starwood Hotels & Resorts Worldwide Inc. to $43 from $35. He raised the price target of Choice Hotels International Inc. to $36 from $32. Among the other price target increases included those for Gaylord Entertainment Co., Orient-Express Hotels Ltd., Interval Leisure Group Inc., Host Hotels & Resorts Inc. and Wyndham Worldwide Corp.
[May 1, 2009: Bookkeeping - Creating New Position in Wyndham Worldwide]
[May 1, 2009: A Stroll Through the Hotel Space]
EDIT 1:30 PM - looks like I made an error today, when trying to punch in a stop loss order instead I put in a limit order to sell, and hence have dropped out of a good 75% of the position. So we'll rebuy what we sold today north of $16 on a breakout over $16.50 or on a pullback. *smack self in head*
Long Wyndham Worldwide in fund; no personal position
