Starwood Hotels & Resorts Worldwide, Inc (HOT): Can Hotel Companies Provide You with Stability and Growth?

In choosing among these among these companies, what we want is a hotel whose revenues from its current properties are growing and that has major growth ahead of it. Both Starwood and to a lesser extent Marriot fit this well.  Their Chinese plans are solid and their REVPAR growth is as well.  Their P/E ratios are slightly above the market as a whole, but their growth prospects are better to, and they are not extremely high. This strength has been reflected in gains in their stock price recently as they have gained the most so far this year, and we should see continued growth as time goes forward. IHG is not strong in China and is not doing as well it could in its current properties either. Wyndham Worldwide Corporation (NYSE:WYN), and even more so Hyatt Hotels Corporation (NYSE:H), are doing well in their current businesses, but are not going after China very strongly.  Wyndham is likely the better investment here, because its P/E is reasonable. Hyatt’s is so high, it is downright troubling.

Paul Sangrey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Can Hotel Companies Provide You with Stability and Growth? originally appeared on Fool.com and is written by Paul Sangrey.

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