This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Best Post-Hilton Hotel Plays

Editor's note: 'Bricks and Mortar' is a series of columns written by real estate reporter Nicholas Yulico meant to help TheStreet.com readers generate real estate and gaming-related stock ideas.


The buyout of Hilton Hotels (HLT - Get Report) is a huge score for investors and sent the entire lodging sector surging Thursday.

Unfortunately, the buyout, and subsequent sector run-up, leaves few big stock-buying opportunities left in the hotel space. But there are some plays that could still win big.

Readers of this column know that I've been recommending Hilton since early March. The story was simple: You could buy the stock for a multiple that was cheaper than trying to buy one actual Hilton property in Kansas. Plus, the stock offered a huge international growth platform.

With Hilton on its way out, there are three lodging stocks left that investors should eye: Host Hotels (HST - Get Report), Strategic Hotels (BEE - Get Report) and Starwood (HOT - Get Report).

Today, James Altucher and Jim Cramer decided to throw in their hotel picks, too. (You can read Altucher's take from Stockpickr , and watch Cramer discuss his ideas on TheStreet.com TV .)

Incidentally, both say that Wyndham (WYN - Get Report) is the most likely buyout candidate. I'd caution investors who are buying Wyndham because they believe it is a cheaper version of Hilton. Wyndham has much heavier exposure to timeshares and a different overall business model than Hilton.

There are better picks out there.

The Hilton deal "provides what is likely the most powerful data point yet that the public lodging companies are priced at a material discount to their private market values," said a research report from John Arabia, an analyst with Green Street Advisors, an independent real estate research shop.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BEE $12.01 0.00%
HLT $30.28 0.00%
HST $20.69 0.00%
HOT $83.13 0.00%
WYN $91.33 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs