Hotel Winners & Losers: Gaylord Entertainment

Updated from 4:18 p.m. ET

A UBS Investment Research analyst downgraded four hotel REITs and lowered his revenue forecast for the industry on Friday, citing the expected slowdown in U.S. business activity.

Analyst William Truelove said he now expects revenue per available room to drop 12.5% in 2009, worse than his previous forecast for an 8.9% decline. Revenue per available room, or revpar, is a key gauge of a hotelier's performance. He forecast a steep 20% revpar drop for the first quarter.

The analyst said the year ahead will represent an "unprecedented decline" for the industry, except for the period right after the Sept. 11 terrorist attacks.

Truelove cut his ratings on Strategic Hotels & Resorts (BEE Quote) and Sunstone Hotel Investors (SHO Quote) to "Sell" from "Neutral" and lowered FelCor Lodging Trust (FCH Quote) and Gaylord Entertainment (GET Quote) to "Neutral" from "Buy."

Strategic Hotels, Sunstone Hotel and FelCor Lodging are hotel real estate investment trusts, which have been hit hardest by the credit crunch and by job losses, which have curbed business and vacation travel. Gaylord Entertainment owns and operates a chain of resorts targeted to meetings and conventions. Truelove said he expects group meeting attendance to drop dramatically.

In afternoon trading, shares of most hotel companies rose with the broader market as investors looked to President Obama's proposed economic stimulus package, a part of which is expected to be announced Monday, to revive the economy. Gaylord Entertainment shares gained 59 cents, or 5.3%, to $11.73. FelCor Lodging shares jumped 18 cents, or 14.2%, to $1.45.

Strategic Hotels shares were flat at $1.45, while Sunstone Hotel shares lost 12 cents, or 2.8%, to $4.45.