Starwood Shines as Next Hot Hotel Play
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.
So today, I'm adding Starwood to the Bricks and Mortar mock portfolio as a company worth buying.
Starwood owns some of the best brands in the hotel industry -- including Sheraton, Westin and W Hotels -- that will provide a strong international growth platform for years to come. Meanwhile, the spinoff of many of its hotel assets last year has left the company with a business model weighted toward a high-margin management and franchise fee business, along with time-share sales.In addition, Starwood's operations produce a ton of free cash flow, while the balance sheet has low debt levels. That combination makes the hotelier an attractive buyout candidate for private-equity firms, which continues to eye hotel assets because they're cheap relative to other real estate sectors. My last hotel pick, Hilton,
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV