Wyndham, Starwood, Hyatt: 5 Hotel Stocks Loved by Hedge Funds

Page 1 of 2

After identifying the most popular stocks among hedge funds (see our entire Top Ten here) according to their third quarter 13F filings, we have decided to break down the top five stocks that hedge funds love in the hotel industry. As a whole, the hotel industry is expected to see positive growth in the interim as demand grows in the low-single digits in 2012 and 2013; hotel room pricing and occupancy improved 3.7% and 4.4%, respectively, last year. Our list includes the hundreds of hedge funds and prominent investors that are required by the SEC to disclose their public equity holdings quarterly. In descending order, we have outlined the most-loved hotel stocks based on the aggregate number of funds owning each.

VINIK ASSET MANAGEMENT

InterContinental Hotels Group PLC (NYSE:IHG) came in fifth with 12 filers owning the stock. InterContinental offers a solid dividend to investors at a 2.4% yield. This hotel company also trades at the cheapest P/E of all five of our hotel stocks at 13x, well below chief competitor Choice Hotels (16x). InterContinental has one of the best long-term expected EPS growth rates at a 15%, according to sell-side analysts. Key catalysts for the hotel stock should come from solid revenue per available room growth in Asia and disposal of underperforming assets in London and the U.S.

Marriott International, Inc. (NYSE:MAR) had 14 filers owning the stock, putting it in fourth – after a net decrease of 5 filers – the largest decrease of all five of our hotel stocks mentioned here. Marriott saw a solid increase in revenue per available room of 6.4% for 2011, with 2012 per room revenue expected to be up by a high single digit margin. Marriott also expects to open a net 25,000 rooms by the end of this year. The hotel does have more exposure to North America than its peers, which is a near-term positive given the prolonged slowdown across the Atlantic. Recent EPS figures for Marriott show a generally positive trend, as the company posted earnings of $0.44 per share last quarter, compared to $0.29 for the same period in 2011, and four cents above consensus. Billionaire and founder of Vinik Asset Management Jeffery Vinik is one of the top fund owners of Marriott (see all of billionaire Vinik’s newest picks here).

Hyatt Hotels Corporation (NYSE:H) had a total of 18 filers at the end of 3Q, putting it in third place.  This global hotel company is relatively flat year to date and pays no dividend. Hyatt trades at the largest P/E of our five hotel stocks at 50x and is down over 5% year to date. We believe that hedge funds are encouraged by Hyatt’s growth prospects with international operations; EPS is expected to grow 15% annually over the next five years. Hyatt also does not currently pay a dividend, whereas its top peers do. Hyatt has accumulated nearly $1 billion of cash on hand and has been steadily growing cash flow from operations. Billionaire investor and founder of Citadel Investment Group Ken Griffin was one of the firms loving Hyatt, having upped his stake over 75% in 3Q (see all of Ken Griffin’s newest picks).

Page 1 of 2

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!