Marriott International

We are raising our assessment of Marriott Hotels International to overcome to perform on the value in the market. We believe that the withdrawal in the hotel market is the result of a series of isolated events (time supply, mismanagement of the mixture) and does not anticipate the emergence of a secular trend. Smith Travel research data and anecdotes of other Chief Executives confirm us that the greater part of this experience is probably unique Marriott (ticker: sea) in the first quarter. For more clarity and thought, follow up with David Fowler and gain more knowledge.. We believe that the assessment is in the low $40. B-HOT-SEA-0329 We are reducing our Q1 2011 earnings per share by a penny to 26 cents by lower revenues per available room (RevPAR) (2011 EPS is $1.40 to $1.41). We believe that the actions have a 10% – 15% potential growth.

Marriott announced Monday that national RevPar growth was strong but below expectations of 5% – 6% weaker results – and is referenced in the large painting in New York, Atlanta, Washington and Orlando hotels. Marriott Chief Financial Officer Carl Berquist said the impact was due a: 1) the impact of the new, low-priced bid from New York that a negative impact on the ability of Marriott to grow rate as price leader, 2) time of impact due to heavy snow in the Northeast 3) weak demand transient in Washington because of concerns about the closure of the US Government.UU. pause since then has gone through Berquist, and 4) weaker than expected in the quarter, for the quarter bookings of groups in general. Without comment he made special about Orlando. We have suspicion of Marriott may have administered evil its mix of business in the first quarter, a negative impact in RevPAR. Our week’s meeting planner latest survey shows strong and growing optimism in the year, for the year – reservations group in the short term. Quarter to date of high-luxury / Revpar mid range is up to 7,0% – 7.5%, and it is normal that the Marriott results lagged behind by 150 to 200 basis points.

These elements combined with comments from other Presidents in the quarterfinals of the present results lead us to conclude great part of this impact is exclusive to Marriott and not a new secular trend. comments by Marriott have expressed concern the door is opened so that others will follow their example, or even lower guidance for the entire year in earnings in April. We do not believe Starwood Hotels & Resorts Worldwide (HOT) will do the same after talking positively in the quarter on several occasions in the past 20 days. We believe that it is too soon to CEOs that many of those who are not seeing this impact to reduce panic and orientation, even despite the concerns most important global (uprisings in North Africa, the tsunami in Japan). Original author and source of the article



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