This Day On The Street
Continue to site
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

Bankruptcy Watch: 9 Risky Hotel Stocks

Starwood Hotels & Resorts Worldwide (HOT - Get Report)

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Altman Z-Score, Trailing 12 Months: 1.84

Altman Z-Score, Last Fiscal Year: 1.84

Starwood Hotels & Resorts Worldwide (HOT - Get Report)

Starwood Hotels' Z-Score remained flat at a reading of 1.84 in the trailing 12 months, staying just inside the gray area and out of any real threat of bankruptcy.

The hotel and vacation ownership company operates hotels under the St. Regis, W, Westin, Le Meridien, Sheraton, and Four Points brands, among others.

Starwood is due to report its second-quarter financial results on July 28. Analysts on average expect it post a profit of $89.6 million, or 46 cents per share, on revenue of $1.41 billion. That would compare with year-earlier earnings of $114 million, or 61 cents per diluted share on revenue of $1.29 billion.

In April, Starwood said its first-quarter net income fell 7.1% year-over-year as charges related to a Japanese hotel investment pressured results. It earned $28 million, or 14 cents per share, though its profit excluding the charge would have been 30 cents per share, beating expectations by a nickel. Quarterly revenue rose 9.2% to $1.3 billion, also topping forecasts, as luxury travel picked up momentum.

In the first quarter, despite what CEO Frits van Paasschen called "turmoil in North Africa and the Middle East and the devastating earthquake in Japan," worldwide revPAR -- or revenue per available room, a key metric in the hotel industry that multiplies a property's room rate by its occupancy rate -- jumped 10.4%. The metric was up 11.1% in North America. RevPar had suffered in recent years as cash-strapped travelers were unwilling to pay for high-priced hotel rooms, even at luxury level establishments.

Starwood also offered an improved full-year profit guidance, or $1.60 to $1.70 per share, in line with analysts' expectations. "The outlook for the rest of the year looks promising as we view the events of the past few months as not having derailed the overall global economic recovery," van Paasschen said at the time.

3 of 11

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
OEH $10.88 0.65%
HOT $82.29 0.00%
MLP $6.19 0.00%
RLH $8.24 0.00%
WYN $70.95 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs