Barclays on U.S. Lodging: Poised for Continued Growth
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Price: $356.72 +1.19%
Rating Summary:
19 Buy, 18 Hold, 2 Sell
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
19 Buy, 18 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays on U.S. Lodging: Poised for Continued Growth
Barclays analyst says, "Following meetings with several lodging companies, it remains clear that the industry recovery is well under way, as demand continues to improve in the US and abroad, and supply remains muted. While the current environment contains uncertainties (booking windows are still short, unemployment remains high, global events continue to affect demand and 1Q11 results were choppy), we expect improved results for the remainder of the year."
"Marriott International (NYSE: MAR) is optimistic regarding its business for the remainder of the year and believes the stock is undervalued, as evidenced by its recent repurchase activity and upsized buyback program. Marriott believes it can get to peak EBITDA margins sooner than it did in the last cycle. While we have heard rumblings about potential disruption created by the company's new group sales transformation, the company (and industry sources) maintains that most of the disruption occurred last year..."
"DiamondRock (NYSE: DRH) is focused on growing via acquisitions and is currently vetting several opportunities, after completing $325mn of acquisitions last year. As of 1Q11, the company had about $400mn in acquisition capacity consisting of cash and full availability on its $200mn credit facility..."
"LaSalle Hotels (NYSE: LHO) reiterated its RevPAR guidance for growth of 6-8% in 2011, which should be driven mostly by rate, and continues to focus on maintaining conservative leverage levels (debt/EBITDA of 3.5x as of March 31)..."
Barclays analyst says, "Following meetings with several lodging companies, it remains clear that the industry recovery is well under way, as demand continues to improve in the US and abroad, and supply remains muted. While the current environment contains uncertainties (booking windows are still short, unemployment remains high, global events continue to affect demand and 1Q11 results were choppy), we expect improved results for the remainder of the year."
"Marriott International (NYSE: MAR) is optimistic regarding its business for the remainder of the year and believes the stock is undervalued, as evidenced by its recent repurchase activity and upsized buyback program. Marriott believes it can get to peak EBITDA margins sooner than it did in the last cycle. While we have heard rumblings about potential disruption created by the company's new group sales transformation, the company (and industry sources) maintains that most of the disruption occurred last year..."
"DiamondRock (NYSE: DRH) is focused on growing via acquisitions and is currently vetting several opportunities, after completing $325mn of acquisitions last year. As of 1Q11, the company had about $400mn in acquisition capacity consisting of cash and full availability on its $200mn credit facility..."
"LaSalle Hotels (NYSE: LHO) reiterated its RevPAR guidance for growth of 6-8% in 2011, which should be driven mostly by rate, and continues to focus on maintaining conservative leverage levels (debt/EBITDA of 3.5x as of March 31)..."
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