NEW YORK— According to Bear Stearns analyst Jason Ader, Starwood Hotels & Resorts Worldwide likely would be hit the hardest in the lodging sector if companies opt to expense stock options, Dow Jones Newswires recently reported. In a note, Ader estimated Starwoods 2002 earnings would be cut by 28% to $0.84 cents a share from his current estimate of $1.17 a share. Extended Stay America weighs in next, Ader said, with its 2002 earnings expected to fall 13% to $0.53 a share from his current projection of $0.61 a share. Marriott International would see earnings decline about 11% to $1.62 a share from Aders current projection of $1.81 a share. And Ader said Hilton Hotels Corp. would only take an 8% hit, with earnings slipping to $0.44 a share from his current projection of $0.48. Hotel real estate investment trusts would be impacted the least by expensing options, Ader said. MeriStar Hospitality Corp. would see funds from operations tick down only 2% to $1.88 a share from $1.93, while FelCor Lodging Trust and Host Marriott Corp. would see no change in FFO. Ader said hed like to see all hotel companies expense options. “Were in an environment where were moving toward transparent reporting, and this would provide investors with a clear and truly transparent perspective,” he said. SOURCE: Dow Jones Newswires
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