Back to top

Analyst Blog

White Plains, New York-based Starwood Hotels & Resorts Worldwide Inc. (HOT - Analyst Report) recently announced the opening of a hotel - Sheraton Silver Spring Hotel – under its iconic Sheraton Hotels & Resorts brand. This marks the debut of Starwood in Silver Spring, Maryland.

Located in the business and entertainment district of Maryland, Sheraton Silver Spring Hotel was previously known as Crowne Plaza hotel. The hotel is located in the northern part of downtown Washington, D.C. and is in close proximity to major tourist attractions. After going through extensive renovation and brand conversion activity, costing over $5 million, the hotel was reopened under the Sheraton brand. The hotel now features 229 renovated guest rooms along with numerous other modern amenities at par with the standards of the brand. The hotel is owned and managed by Integrated Capital and Crescent Hotels & Resorts.

Silver Spring, the fourth most populous district of Maryland, is well known for hosting several entertainment, musical, and ethnic festivals. The place is among the major tourist destinations of Washington D.C, offering a vivacious blend of arts and entertainment. Starwood’s major competitors – such as Marriott International Inc. (MAR - Analyst Report) and Wyndham Worldwide Corporation (WYN - Analyst Report) – already have a strong presence in Silver Spring.

Since the last couple of quarters, Sheraton is spearheading Starwood’s market share growth. The brand covers almost 36% of the company’s current total global pipeline. Recently, Sheraton announced the opening of its second hotel in Greater Hartford, Sheraton Hartford South Hotel. In the recently completed second quarter of 2012, Sheraton recorded a 6.3% increase in worldwide RevPar for system wide same-store hotels.

In addition to this, Sheraton recently completed a $6 billion brand-wide revitalization program, including $400 million in signature brand initiatives. As of June 30, 2012, Starwood’s Sheraton brand operates more than 400 hotels across 70 countries worldwide, the highest among all the company’s brands. The brand is on an expansion spree to achieve its target of $6 billion global expansion over the next three years.

Starwood reported second quarter 2012 adjusted earnings from continuing operations of 70 cents, beating the Zacks Consensus Estimate by 8 cents. The company increased its adjusted earnings guidance to the range of $2.49–$2.56 per share, from its earlier guidance range of $2.35–$2.46.

Currently, the Zacks Consensus Estimate for 2012 and 2013 adjusted earnings are pegged at $2.54 and $2.72 per share, respectively. We presently have a long-term 'Neutral' recommendation on the stock. However, the company carries a Zacks #2 Rank, which translates into a short-term ‘Buy’ rating.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%