Hotel Stocks Drop Lower

CHICAGO— Hotel stocks tumbled in early trading today in response to the Oct. 8 report from Ernst & Youngs Hospitality Services Group projecting that hotel occupancy would hit 10-year lows. In addition, several large hotel chains were giving up some of the momentum they had regained since the market meltdown of mid-September. Hilton Hotels Corp. slipped $0.28, or 3.2%, to $8.57 while Starwood Hotels & Resorts dropped $0.59, or 2.6%, to $22.06. Four Seasons gave up $1.23, or 3.2%, to $37.15; and Fairmont Hotels & Resorts, despite having a “strong buy” rating by Morgan Stanley, dropped nearly 2%, or $0.30, to $16.45. SOURCE: CBS.MarketWatch