HotelNewsNow.com updates the performance of publicly traded hotel companies each Friday. Included in this week’s update are: Boyd Gaming Corporation, Morgans Hotel Group Company, and Starwood Hotels and Resorts Worldwide.
Baird/STR Hotel Stock Index
The Baird/STR Hotel Stock Index (www.hotelstockindex.com) was at 2308.01 as of 10:30 a.m. this morning. It closed Thursday at 2298.57.
Also, the Stock Index ended November at 2199.4, up 1.7% for the month and up 37.2% year-to-date. The index ended 2009 at 1603.
“Though the Baird/STR Hotel Stock Index reported a smaller increase in November, the year-to-date increase remains strong, which shows that investors are still attracted to the hotel industry,” said Randy Smith, CEO at STR. “We are projecting that hotels will show increases in all three key performance metrics during 2011, which should fuel further interest from investors.”
Boyd Gaming Corporation
Wells Fargo has rated Las Vegas-based Boyd Gaming Corporation (NYSE: BYD) at “market perform,” according to StreetInsider.com. The valuation range was lifted from US$5-$8 to US$9-$12.
The company’s stock closed Thursday at US$9.87 per share and is up 17.9% year-to-date.
Morgans Hotel Group Company
New York-based Morgans Hotel Group Company (NASDAQ: MHGC) this week reached a new 52-week high of US$10 per share.
The stock closed Thursday at US$9.81 per share. It is up 114.7% year-to-date.
Starwood Hotels and Resorts Worldwide
Starwood Hotels and Resorts Worldwide (NYSE: HOT) said it is assuming “a normal, cyclical recovery” during the next three years.
Through 2013, the company is expecting earnings before interest, taxes, depreciation and amortization growth of 14%-18%, annual earnings per share growth of 35%-42%, and annual worldwide revenue per available room gains of 7%-9%.
Meantime, Goldman Sachs maintained its “Conviction Buy” rating on the company and raised its price target to US$70 per share from US$64, according to StreetInsider.com.
Starwood’s stock ended Thursday at US$60.90 per share. Year-to-date, the stock is up 66.5%.
Starwood also announced it received a US$245-million IRS tax refund related to the company’s 1998 disposition of World Directories. http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NzM5MDl8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
The payout reflects paid taxes and interest related to the deal. The refund was formally agreed to by the company and IRS in October.
Whitbread PLC, the United Kingdom operators of the Premier Inn brand, slipped to £17.66 after HSBC cut its rating to “neutral” from “overweight.”