Goldman Upgrades Marriott to Outperform from In-Line
Goldman upgraded Marriott (MAR ) to outperform from in-line, explaining that hotel stocks are likely to benefit from factors such as increasing corporate travel and higher profits.
Analyst Steven Kent says he's been bullish on hotel stocks for the past 1-1/2 years, given factors such as rising rates on rooms. He expects these trends to continue into 2006. Additionally, he believes that the market leader, Marriott, will benefit from its remodeling program, timeshare growth, and recycling of capital into additional management contracts which should lead to outsized gains relative to the group.