The Zacks Analyst Blog Highlights:DiamondRock Hospitality Company, Starwood Hotels and Resorts Worldwide Inc., Arden Group Inc.,

 The Zacks Analyst Blog Highlights:DiamondRock Hospitality Company, Starwood
 Hotels and Resorts Worldwide Inc., Arden Group Inc., Marcus Corporation and
                       Strategic Hotels & Resorts, Inc

PR Newswire

CHICAGO, Nov. 16, 2012

CHICAGO, Nov. 16, 2012 /PRNewswire/ announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include DiamondRock Hospitality Company
(DRH), Starwood Hotels and Resorts Worldwide Inc. (HOT), the Arden Group Inc.
(ARDNA), the Marcus Corporation (MCS) and Strategic Hotels & Resorts, Inc.


Today, Zacks is promoting its ''Buy'' stock recommendations. Four daily picks
are offered free.

Here are highlights from Friday's Analyst Blog:

DiamondRock Debuts in San Francisco

Bethesda-based real estate investment trust (REIT), DiamondRock Hospitality
Company (DRH), recently announced the acquisition of Hotel Rex in San
Francisco for $29.5 million. This major acquisition marks the entry of
DiamondRock in San Francisco.

The 94-room Hotel Rex was opened in 1996 and is managed by Joie de Vivre
Hospitality, Inc. The hotel is situated in the heart of San Francisco city in
close proximity to city landmarks such as Union Square, Moscone Convention
Center, Yerba Buena Gardens and the Museum of Modern Art.

Hotel Rex is a well-equipped boutique hotel, which caters to both leisure and
business travelers, and enjoys current occupancy rate of over 85%. DiamondRock
intends to invest in further renovation and development of the property to
hike Average Daily Rate (ADR) and also avail leased space opportunities for

DiamondRock anticipates that the hotel will generate revenue per available
room (RevPAR) of over $150 in 2012, which represents a year-over-year increase
of 20%. RevPAR is expected to increase over 10% in 2013 backed by strong
demand for all guest types in San Francisco.

The acquisition is in line with the company's ongoing portfolio restructuring
activity. The company is actively selling off the non-core properties and
using the proceeds to purchase assets in fast growing regional markets in the
U.S. In October 2012, DiamondRock sold a Starwood Hotels and Resorts Worldwide
Inc. (HOT) property - Westin Atlanta Perimeter North - for $39.6 million. The
hotel was sold to a joint venture among Carey Watermark Investors Inc., The
Arden Group Inc. (ARDNA) and Marcus Hotels & Resorts of The Marcus Corporation

San Francisco, the leading financial and cultural center of Northern
California and the San Francisco Bay Area, is one of the top tourist
destinations in the world. Year-to-date through October 2012, the city
recorded strong performance with RevPAR growth of approximately 14.0%. The
city's lodging industry mainly benefits from high demand and lack of new hotel

Moreover, the advent of highly profitable events in the city going forward
will likely boost the operating performance of the lodging market in coming
years. These growth factors have caught the attention of DiamondRock. However,
DiamondRock should be wary of its competitors. Its top peers, such as
Strategic Hotels & Resorts, Inc. (BEE),  already have a strong presence in the

DiamondRock owns, acquires, and invests in upscale hotels under the Hilton,
Marriott and Westin brands across the U.S. The company reported adjusted FFO
(funds from operations) of 18 cents in the third quarter of 2012, missing the
Zacks Consensus Estimate by a penny. Its current property portfolio includes
27 hotels with over 11,600 rooms.

We have a long-term Underperform recommendation on DiamondRock. Also, it
carries a short-term Zacks #4 Rank (Sell).

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained
after adding depreciation and amortization and other non-cash expenses to net

Today, Zacks is promoting its ''Buy'' stock recommendations. Four daily picks
are offered free.

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