Hotel Recovery Hurt as Superstorm Sandy Causes Cancellations

Revenue growth at U.S. hotels, already hurt by slowing traveler demand, will be hampered further by Sandy, the superstorm that blacked out much of southern Manhattan and flooded areas along the East Coast.

Starwood Hotels & Resorts Worldwide Inc. and real estate investment trusts including Host Hotels & Resorts Inc., owner of the Westin New York Grand Central, and Hilton Times Square landlord Sunstone Hotel Investors Inc. are among the companies that probably will be most affected by Sandy because of their properties in the U.S. Northeast, said Nikhil Bhalla, a senior lodging analyst at FBR & Co. in Arlington, Virginia.