Starwood Hotels: How to Play It

TheStreet's quantitative stock model is cautious on Starwood, rating it "hold." The model prefers Home Inns & Hotel Management(HMIN), a Chinese economy chain rated "buy." Sonesta International Hotels(SNSTA) and Choice Hotels(CHH) are rated "hold", but receive higher overall marks than Starwood does for risk-adjusted performance. Analysts' favorite hotel stock is Full House Resorts(FLL) which receives "buy"-ratings from all four analysts covering the company. A median price target of $4.62 suggests a return of 47%.

Another sell-side favorite is Wyndham Resorts(WYN). Of researchers following Wyndham, eight, or 89%, advise purchasing its shares and one recommends holding. None advocate selling. A median target of $31.83 implies that the stock could rise 23%. To reiterate: Analysts are more positive on both Wyndham and Full House than they are on Starwood and expect greater upside in the aforementioned stocks. Investors looking to mitigate idiosyncratic risk should consider the PowerShares Dynamic Leisure & Entertainment ETF(PEJ).

-- Written by Jake Lynch in Boston.

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