Zacks Industry Outlook Highlights: Starwood Hotels and Resorts Worldwide, Wyndham Worldwide and Marriott International PR Newswire CHICAGO, Aug. 2, 2013 CHICAGO, Aug. 2, 2013 /PRNewswire/ --Today, Zacks Equity Research discusses the U.S. Hotels & Lodging, including Starwood Hotels and Resorts Worldwide Inc. (NYSE:HOT-Free Report), Wyndham Worldwide Corp. (NYSE:WYN-Free Report) and Marriott International (NYSE:MAR-Free Report). (Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO) Industry: Hotels & Lodging Link: http://www.zacks.com/commentary/28391/Hotels-&-Lodging-Stock-Outlook---Aug.-2013 The U.S. hotel & lodging industry saw a solid start to 2013, with lodging performance indicators going up in most parts of the world. With concerns still lingering over a number of macro issues that could still leave the sector in disarray, we have now come halfway through 2013 and would like to take a close look at how things are shaping up. In the second quarter, two of the sector heavyweights --Starwood Hotels and Resorts Worldwide Inc. (NYSE:HOT-Free Report) and Wyndham Worldwide Corp. (NYSE:WYN-Free Report) -- surpassed their respective Zacks Consensus Estimates on earnings. While Wyndham managed to beat on revenues, Starwood missed. Both have raised earnings guidance for the full year. Notwithstanding the common macroeconomic hurdles expected ahead, the lodging sector would continue its recovery trail this year thanks to improving U.S. business as well as strong international travel and tourism volumes. The number of hotels Starwood opened and new deals signed in North America in 2012 were much more than the past couple of years. Other important factors like higher barriers to entry and lower reliance on third-party wholesalers have positioned the hoteliers to attain peak levels not seen since the onset of the global economic crisis in 2007. The hoteliers are giving every effort to improve their primary performance metrics like occupancy and RevPAR (revenue per available room). Market researcher Price Waterhouse Coopers expects RevPAR growth of 5.9% in 2013, representing the fourth year of lodging recovery. According to the market researcher, hotels across the gamut of price tiers, in particular the higher-priced ones, are expected to drive this recovery and a consequent growth in the sector. Owing to gradual economic recovery, the hotel industry continues to see upside. Starwood has estimated high-end travel spending to have grown nearly 40% over the last four years, almost double as fast as global GPD. The supply situation remains tight both in the U.S. and Europe . PWC forecasts 0.8% supply growth and around 1.8% demand growth in 2013. This scenario is anticipated to push up occupancy levels. Supply growth is expected to remain low for a few years to come. For 2014, PKF Hospitality Research predicts RevPAR to increase 7.7% buoyed by a 3.3% rise in demand and an occupancy level of 63.8%. As per the research firm, this is going to be the highest annual occupancy level since 1997. According to Marriott International (NYSE:MAR-Free Report), fewer supplies combined with nearly peak occupancy levels will help hoteliers charge higher for the rooms in 2013. In a nutshell, with lower supply, RevPAR is improving on strong demand and continued higher pricing. About Zacks Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! 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Zacks Industry Outlook Highlights: Starwood Hotels and Resorts Worldwide, Wyndham Worldwide and Marriott International
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