Zacks Industry Outlook Highlights: Starwood Hotels and Resorts Worldwide Inc., Marriott International Inc., Marcus Corp., Choice Hotels International Inc. and Wyndham Worldwide Corp.

Chicago, IL – November 19, 2009 – Zacks.com announces the latest Industry Outlook. Today, Zacks Equity Research discusses the Hotels and Lodging Industry, including Starwood Hotels and Resorts Worldwide Inc. (HOT - Analyst Report), Marriott International Inc. (MAR - Analyst Report), Marcus Corp. (MCS - Snapshot Report), Choice Hotels International Inc. (CHH - Snapshot Report) and Wyndham Worldwide Corp. (WYN - Analyst Report).

The operating environment in the hotels and lodging sector has continued to deteriorate in the last few quarters, and we expect hotel industry operating metrics to remain stretched in the near term. As the recession continues, both business and leisure travelers are cutting back on their trips.

However, with some early signs of economic recovery, we believe that hotel occupancy will improve in the fourth quarter of 2009 and in 2010. Though occupancy levels are expected to pick up, pricing pressures will continue as hotels will carry on offering heavily discounted rates to draw in travelers. As such, profits will remain cagey in this environment.

In evaluating hotel companies such as Starwood Hotels and Resorts Worldwide Inc. (HOT - Analyst Report) and Marriott International Inc. (MAR - Analyst Report) during this down cycle, we will be paying close attention to changes in average daily room rates as an indication of how quickly the sector may recover once the economy improves.

When researching potential investments in the sector, however, we would advise investors to pay close attention to the ADR reported by lodging companies. We expect that companies that are best able to maintain room rates through the downturn will be the best positioned to capitalize once economic conditions do improve.

We have a Neutral recommendation on Marriott. The company has benefited from the implementation of the cost reduction initiatives. We believe that Marriott is better positioned to command a premium room rate relative to the overall lodging industry. We are also positive about the prospects of Marcus Corp. (MCS - Snapshot Report), Choice Hotels International Inc. (CHH - Snapshot Report) and Wyndham Worldwide Corp. (WYN - Analyst Report).

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