NEW YORK Goldman Sachs is cutting earnings estimates on several lodging stocks due to sustained economic weakness predicted for the industry throughout the year as demand drops in the cooling U.S. economy.
Goldman lowered its 2001 earnings estimate for Four Seasons Hotels to $3.32 a share from $3.45 a share and 2002 estimate to $3.84 a share from $4.00 a share, keeping it on the “U.S. recommended for purchase list.”
Goldman cut its 2001 earnings estimate for Hilton Hotels Corp. to $0.74 per share from $0.77 per share and cut 2002 earnings estimates to $0.85 per share from $0.90 per share. Goldman rates Hilton stock a “market outperformer.”
Goldman cut its 2001 earnings estimate for Marriott International to $2.10 per share from $2.17 per share and 2002 earnings estimate to $2.35 a share from $2.45 a share. Analysts said the shares are on the “U.S. recommended for purchase list.”
The company also cut its 2001 earnings estimate for Starwood Hotels & Resorts Worldwide to $2.20 per share from $2.25 per share and 2002 estimates to $2.45 per share from $2.55 per share. The stock is rated as a “market outperformer.”
Goldman cut its 2001 estimate form Wyndham International to a loss of $0.70 per share from a loss of $0.65 per share and its 2002 estimate to a loss of $0.48 per share from a loss of $0.42 per share. The stock is rated as a “market performer.”
Goldman lowered its 2001 estimate for MeriStar Hospitality to $4.20 per share from $4.30 per share and 2002 estimates to $4.40 per share from $4.50 per share. Goldman rates the stock as a “market outperfomer.”
Finally, earnings estimates for Orient Express Hotels Ltd. were cut to $1.55 per share from $1.60 per share and 2002 earnings estimates to $1.80 per share from $1.90 per share. The stock is rated a “market outperfomer.” (3/22/01)