“Hotels & Lodging Stock Review - June 2010” plus 3 more |
- Hotels & Lodging Stock Review - June 2010
- Chatham Lodging will join Russell Index
- Chatham Lodging Trust to Join Russell 2000 Index
- 9 Hotels in Toronto Have Now Been Awarded the Prestigious Green Eco-Leaf Rating
| Hotels & Lodging Stock Review - June 2010 Posted: 23 Jun 2010 10:00 PM PDT With a gradual recovery of the global economy, the hotels and lodging industry is experiencing an increase in demand. The operating metrics are looking up, and year-over-year comparisons are becoming easier as the operating environment was significantly stressed in the prior year. Though businesses are still cost-conscious, the recovery in the economy has seen a return of business travelers, with leisure demand increasing as well. However, the rate of improvement is still sluggish, in keeping with the slow pace of the economic revival. Since the U.S. market is somewhat saturated, hoteliers are exploring growth opportunities abroad. Hotel companies are seeing higher demand in the international market, as the pace of economic recovery is particularly fast outside the U.S. U.S.-based companies are targeting the fast-growing emerging economies. The Asia-Pacific region specifically promises solid growth, and companies such as Starwood Hotels and Resorts Worldwide Inc. (NYSE: HOT - News) and Marriott International Inc. are increasing their pipeline in this region. Countries that are of specific interest include China and India. In these countries, where a potential increase in gross domestic product (GDP) within the next few years will considerably increase disposable income, the demand for hotels is expected to considerably outpace supply. Additionally, the availability of local capital is another positive factor. Metrics Analysis In evaluating hotel companies, we will be paying close attention to changes in average daily room rates as an indication of how quickly the sector recovers with the improvement in the economy. A key operating metric in the lodging industry is RevPAR (revenue per available room). This metric is derived by multiplying the occupancy percentage of a hotel over a given period by the average daily room rate (ADR) over that same period. Changes in either occupancy or ADR will impact RevPAR, but with different implications for bottom-line profitability. The downturn in the U.S. economy was hard on hotel occupancy rates. In response, some hotel owners initiated price cuts to fill beds. In most cases, this tactic has caused material long-term damage to the business for two primary reasons:
Ultimately, the ability of lodging companies to maintain room rates proved to be critical to their ability to weather the downturn. Cutting rates meaningfully should be an absolute last-ditch effort to survive. By keeping an eye on changes in ADR, investors can gain some insight to the companies that are the best poised to benefit when economic growth rebounds. OPPORTUNITIES We believe that the recovery of the hotel industry has begun. The trend of positive demand growth is expected to continue in 2010 and beyond driven by economic recovery. According to the data from Smith Travel Research, the leading information and data provider for the lodging industry, the U.S. hotel industry reported mostly positive results in all three key performance measurements -- occupancy level, ADR and RevPAR -- in recent weeks. The operating environment in the international market is however better, which in turn is driving hoteliers to increase their share of the pie. Hotels in the Asia/Pacific region experienced increases in all three key performance metrics in recent months, according to data from Smith Travel Research. In April, the Asia-Pacific region's occupancy rose 11.7% to 65.3%, ADR increased 13.1% to $130.06 and RevPAR jumped 26.4% to $84.96. Currently, there are a number of stocks in the hotel industry universe with a Zacks #2 Rank ("Buy). These include Marriott, Starwood, Home Inns & Hotels Management Inc. , Hyatt Hotels Corporation , Intercontinental Hotels Group plc. and Wyndham Worldwide Corporation (NYSE: WYN - News). We believe companies such as Marriott and Starwood are better positioned to benefit from their global pipeline. Also, the availability of local capital frees the U.S. companies from invest much -- or even any -- capital in this region. WEAKNESSES While the occupancy levels are showing positive trends, it is noticeable that the ADR has yet to show meaningful improvements in the U.S. Though the rate of decline in ADR has moderated and is currently flat compared with the prior-year period, there is a lack of any significant positive catalyst in the room rates. Given the lower levels of room revenue, margin gains have remained restricted in recent quarters. However, we expect higher room rates by the end of this year, though the pace of improvement is expected to be slow as the economy is projected to improve only sluggishly. Besides, some sort of volatility is not unusual in the hotel industry performance metrics. However, we expect stability in the upcoming quarters with an improvement in the operating environment. Currently, the high rate of unemployment coupled with an expectation of a protracted labor market recovery is expected to restrict margin improvements as these are pushing room rates down. In addition, companies with weak balance sheets -- or even limited financial flexibility -- will likely have a harder time navigating the challenges created by the recent economic recession. Hence at this moment, it is difficult to become enthusiastic on a number of stocks in our universe, which continue to have a Zacks #3 Rank (Hold). These include Choice Hotels International Inc. (NYSE: CHH - News), The Marcus Corporation , Morgans Hotel Group Co. , Orient-Express Hotels Ltd. and Red Lion Hotels Corporation (NYSE: RLH - News). We also remain concerned about the prospects of Great Wolf Resorts Inc. , which currently has Zacks #4 Rank (Sell). CHOICE HTL INTL (CHH): Free Stock Analysis Report STARWOOD HOTELS (HOT): Free Stock Analysis Report HOME INNS&HOTEL (HMIN): Free Stock Analysis Report HYATT HOTELS CP (H): Free Stock Analysis Report INTERCONTL HTLS (IHG): Free Stock Analysis Report MARRIOTT INTL-A (MAR): Free Stock Analysis Report MORGANS HOTEL (MHGC): Free Stock Analysis Report MARCUS CORP (MCS): Free Stock Analysis Report ORIENT EXP HOTL (OEH): Free Stock Analysis Report GREAT WOLF RSRT (WOLF): Free Stock Analysis Report WYNDHAM WORLDWD (WYN): Free Stock Analysis Report
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| Chatham Lodging will join Russell Index Posted: 25 Jun 2010 01:35 PM PDT PALM BEACH, Fla. (AP) -- Chatham Lodging Trust said Friday it will join the Russell 2000 Index, which measures the performance of smallcap companies. Chatham Lodging is a hotel real estate investment trust, or REIT, that focuses on upscale extended-stay hotels and luxury branded hotels. The company currently owns six hotels with a combined 813 rooms and suites and has five additional hotels under contract to purchase. Chatham will join the Russell 2000 after the close of trading Friday. The Index is a subset of the broader Russell 3000 Index, which measures the performance of the 3,000 largest U.S. companies, representing about 98 percent of the investable U.S. equity market. Five Filters featured article: Headshot - Propaganda, State Religion and the Attack On the Gaza Peace Flotilla. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. |
| Chatham Lodging Trust to Join Russell 2000 Index Posted: 25 Jun 2010 12:23 PM PDT PALM BEACH, Fla., June 25 /PRNewswire-FirstCall/ -- Chatham Lodging Trust (NYSE:CLDT - News), a hotel real estate investment trust (REIT) focused on upscale extended-stay hotels and premium branded select-service hotels, today announced the company will join the Russell 2000® Index when Russell Investments reconstitutes its comprehensive set of U.S. and global equity indexes after the close of trading on June 25, 2010. The Russell 2000® Index measures the performance of the small-cap segment of the U.S. equity market and is a subset of the Russell 3000® Index. The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies, representing approximately 98 percent of the investable U.S. equity market. Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for both passive and active investment strategies. About Chatham Lodging Trust Chatham Lodging Trust is a self-advised real estate investment trust that was organized to invest in upscale extended-stay hotels and premium-branded select-service hotels. The company currently owns six hotels with an aggregate of 813 rooms/suites and has five additional hotels under contract to purchase. Additional information about Chatham may be found at www.chathamlodgingtrust.com. This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 about Chatham Lodging Trust, including those statements regarding acquisitions, capital expenditures, future operating results and the timing and composition of revenues, among others, and statements containing words such as "expects," "believes" or "will," which indicate that those statements are forward-looking. Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results or performance to differ materially from those discussed in such statements. Additional risks are discussed in the company's filings with the Securities and Exchange Commission. Five Filters featured article: Headshot - Propaganda, State Religion and the Attack On the Gaza Peace Flotilla. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. |
| 9 Hotels in Toronto Have Now Been Awarded the Prestigious Green Eco-Leaf Rating Posted: 25 Jun 2010 07:30 PM PDT 44 Hotels in Toronto are listed as environmentally friendly and 9 have recently been awarded the Green Eco-Leaf Rating by completing a 70 point comprehensive eco-audit survey administered by iStayGreen.org - the online social network of environmentally friendly travel. Toronto, Ontario (Vocus) June 25, 2010 -- Currently 44 hotels in Toronto, ON (istaygreen.org/getcityus.cfm/city/Toronto/st/ON) are listed as environmentally friendly with iStayGreen.org. 9 of the 44 properties have completed the comprehensive environmental audit administered by iStayGreen.org. Ratings range from 1 Green Eco-Leaf to 5 Green Eco Leaf and are summarized as follows: • 1 Green Eco-Leaf - Acceptable Properties that have completed the 70 point comprehensive eco-audit survey are Clarion Hotel and Suites Selby, The Sutton Place Hotel Toronto, Intercontinental Toronto Centre, Quality Hotel and Suites Airport East, Holiday Inn Toronto Yorkdale, Westin Harbour Castle Toronto, Victorias Mansion Guest House, Isabella Hotel And Suites, and Park Hyatt Toronto. Other Toronto properties that are listed in the iStayGreen.org Directory of Environmentally Friendly Lodging as "Green" include Best Western Primrose Hotel Downtown, Cambridge Suites Toronto, Clarion Hotel and Suites Selby, Comfort Hotel Downtown, Cosmopolitan Toronto Hotel Spa, Courtyard by Marriott Downtown Toronto, Courtyard by Marriott Toronto Airport, Days Hotel and Conference Centre - Toronto Airport East, Days Hotel and Conference Centre - Toronto Downtown, Days Inn Toronto E Lakeview, Days Inn Toronto East Beaches, Delta Chelsea Hotel, Hilton Toronto, Holiday Inn Express Downtown, Holiday Inn Midtown, Holiday Inn Toronto International Airport, Holiday Inn Toronto Yorkdale, Howard Johnson Toronto Lakeshore, Hyatt Regency Toronto, Intercontinental Toronto Centre, Isabella Hotel And Suites, Novotel Toronto Centre, Novotel Toronto North York, Pantages Hotel Toronto Centre, Park Hyatt Toronto, Quality Hotel and Suites Airport East, Radisson Hotel Toronto East, Radisson Plaza Hotel Admiral Toronto, Radisson Suite Hotel Toronto Airport, Renaissance Toronto Downtown, Residence Inn by Marriott Toronto Airport, Residence Inn by Marriott Toronto Downtown Entertainment District, Sandman Signature Hotel Toronto, Sheraton Centre Toronto Hotel, Sheraton Gateway Hotel Toronto Airport, Strathcona Hotel, Super 8 Hotel Downtown Toronto, The Fairmont Royal York, The Sutton Place Hotel Toronto, The Westin Bristol Place Toronto Airport, Toronto Marriott Bloor Yorkville Hotel, Toronto Marriott Downtown Eaton Centre Hotel, Victorias Mansion Guest House, and Westin Harbour Castle Toronto . All Green Eco-Leaf Rated properties are committed to environmentally friendly initiatives. Richard Varner, founder of iStayGreen.org states: "Simple changes helped these properties to earn their Green Eco-Leaf Rating and take the environmental lead among the 92 lodging properties in Toronto. It's great to see they're intent on insuring a more sustainable future in travel." To insure a more sustainable future some of the eco-initiatives put in-place at the property include: an on-site Green Team has been created - guests are offered the ability to carbon offset their stay - low energy lighting initiatives are in-place - energy efficient lighting is installed when replacing old lighting - energy sensor initiatives are in-place - HVAC control system installed - off-grid alternative energy source utilized - sheets reuse option for multiple night stays - towels reuse option for multiple night stays - eco-initiatives are actively promoted to the public - eco-incentive programs have been created for staff - water conservation initiatives are in-place - water conserving devices are installed when replacing old fixtures - gray water is recycled - low water consumption landscaping has been installed - recycle containers are located inside guestrooms - recycle containers are located around the property common areas - reusable food & beverage service is used in lieu of disposable service items - compostable disposable service items are utilized - recycled paper products (bath tissue, facial tissue, paper towels, napkins, etc) are utilized - environmentally friendly chemicals are used in cleaning - environmentally friendly detergents are used for laundry - environmentally friendly chemicals are used for carpet cleaning - the entire property is non-smoking - cotton bedding and towels (non-synthetic) are utilized - low VOC materials (paint, adhesives, air freshener, carpet) are used at the property - bulk amenities and soaps are dispensed in guestrooms - plus much more. . iStayGreen.org allows you to filter your search to show only the environmentally friendly hotels in Toronto. The lodging industry recognizes the need to create a sustainable future for travel. While there are currently only 44 Toronto lodging properties that have achieved the Green Eco-Leaf Rating, it is anticipated that many other properties in the area that are promoting eco-friendly initiatives also will seek to be rated. This eco-rating allows the public to know the specific environmental initiatives in place at a property, which enables the environmentally conscious traveler to make informed lodging decisions. To find out how a property can earn the Green Eco-Leaf Rating, contact Richard Varner at 602-864-5553 or iStayGreen.org. About iStayGreen.org: Contact: # # # iStayGreen.org Five Filters featured article: Headshot - Propaganda, State Religion and the Attack On the Gaza Peace Flotilla. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. |
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