NEW YORK ABN AMRO, a Dutch investment bank, launched its U.S. lodging and gaming practice March 29, and tagged the buy-rated Starwood Hotels & Resorts its favorite stock out of the gate, HOTEL BUSINESS. has learned.
Other stocks in its coverage universe and their ratings are Extended Stay America (buy); Hilton Hotels, Sun International (both adds); Four Seasons, Marriott International and Orient Express (all holds). Second quarter will launch coverage of a similar amount of gaming companies.
Joseph Greff, formerly with Prudential Securities, heads the practice as vp/senior lodging and gaming analyst, a newly created position.
“We believe the current negative sentiment surrounding lodging stocks provides investors with a select number of attractive value plays,” commented Greff. “We believe that downside for certain stocks should be limited.”
Greff said his group expected room supply growth to decline considerably as a result of a tightened lending environment for new lodging development, and should ultimately lead to increasing pricing power for hotel operators. “Given the prospect of an improving room demand-room supply relationship, we believe the lodging group should be a core holding for investors as we head into 2002,” said Greff.
While limited in the U.S., ABN AMRO has 3,500 branches worldwide with total assets of $479.28 billion. ABN AMRO s European analysts cover lodging groups such as Accor S.A., Bass Plc, Compass and Rank Group.
The lodging/gaming practice is located here at 1290 Avenue of the Americas. (3/29/01) Stefani C. O Connor