Zacks Industry Outlook Highlights: Starwood Hotels and Resorts Worldwide,
Marriott International, Wyndham Worldwide and Home Inns & Hotels Management
CHICAGO, Dec. 6, 2013
CHICAGO, Dec. 6, 2013 /PRNewswire/ -- Today, Zacks Equity Research discusses
the U.S. Hotels & Lodging, including Starwood Hotels and Resorts Worldwide
Inc. (NYSE:HOT-Free Report), Marriott International, Inc. (Nasdaq:MAR-Free
Report), Wyndham Worldwide Corp. (NYSE:WYN-Free Report) and Home Inns & Hotels
Management Inc. (Nasdaq:HMIN-Free Report).
Industry: Hotels & Lodging
The year 2013 is expected to end on a positive note for the hotel & lodging
industry based on growing global travel demand and improving lodging
performance indicators in most parts of the world. The recent run in the
sector was largely supported by better-than-expected improvement in the job
market in Oct 2013.
Though the partial U.S. government shutdown in early October had been a
dampener, the lodging sector should continue its recovery into next year,
underpinned by rising consumer confidence, growing U.S. business and strong
international travel and tourism volumes.
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 making every effort to improve their primary performance metrics like
occupancy and RevPAR (revenue per available room).
A recent report by Price Waterhouse Coopers shows that the fiscal cliff
notwithstanding, the lodging sector will continue to outperform in 2014 and
2015 on the back of robust booking trend and a solid travel and tourism
market. The market researcher expects RevPAR growth of 5.5% in 2013 and 5.9%
in 2014, driven by increased occupancy rate and higher average daily rate
(ADR). As per Price Waterhouse Coopers, 2014 will be the fifth consecutive
year of positive RevPAR growth.
Price Waterhouse Coopers also added that high-priced segments will be the
major driver of industry growth.
Furthermore, mega sporting events in South America scheduled in 2014 through
2016 will boost tourism. As owners and operators strive to enhance value and
competitiveness, industry-best practices, like sustainability and brand
refreshment, will remain industry priorities.
How Well Did Leading Hoteliers Do in Q3?
The third quarter of 2013 was quite strong for most of the sector heavyweights
Starwood Hotels and Resorts Worldwide Inc. (NYSE: HOT - Free Report), Marriott
International, Inc. (Nasdaq: MAR- Free Report), Wyndham Worldwide Corp.
(NYSE: WYN - Free Report) and Home Inns & Hotels Management Inc. (Nasdaq: HMIN
- Free Report). All these hoteliers surpassed their respective Zacks Consensus
Estimate for both earnings and revenue.
Most of these hoteliers have witnessed significant growth in both RevPAR and
ADR during the quarter. Moreover, Wyndham and Starwood have both raised their
earnings guidance for the full year on the back of strong third-quarter
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