NEW YORK Bloomberg recently reported that Starwood Hotels & Resorts Worldwide and Host Marriott Corp. were upgraded by a Morgan Stanley Dean Witter & Co. analyst who said hotel stocks would rise in 2002 as consumer demand grows faster than the supply of rooms. Mike Happel upgraded both Starwood and Host Marriott to “strong buy” from “outperform.”
Happel said demand for hotel rooms in 2002 is likely to outstrip supply growth of 2.1%. For this year, hotel companies including Host Marriott and Starwood have said their growth in RevPAR would decline from 2000 because of less business travel.
“We view 2002 as the beginning of a multiyear sweet spot for the lodging industry that will be characterized by slower supply growth and an improving economy,” Happel told Bloomberg News. (5/9/01)
SOURCE:Bloomberg News