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TheStreet Open House

These Hotel Stocks Have Staying Power

Stocks in this article: HLTIHGMAR

NEW YORK (TheStreet) -- Two weeks ago, my wife and I were on the road again, driving north from Tampa Bay, Fla., to New Jersey. On the first day, we tracked 660 miles to the Holiday Inn in Rocky Mount, N.C.

On the second day, our destination is another 440 miles to the Courtyard by Marriott, right off Exit 8A on the New Jersey Turnpike.

Going back south, the 660-mile first-day trek takes us to Santee, S.C., where we stay at the Hampton Inn.

The reason for staying at these hotels is my need for wired Internet service in addition to Wi-Fi. When I travel, I must have a room with a desk that can handle two laptops and a printer. My primary computer needs the security protection of a wired Internet connection.

The second laptop replicates my desktop computer in my office at home, including the graphics I use and my proprietary analytics.

At Rocky Mount going north and at Santee going south, there are many hotels to choose from, but there is no single brand that offers wired high-speed Internet access at all locations. Even with Courtyard, not all locations have wired Internet capability.

Here are the companies that own the hotels I use:

InterContinental (IHG) ($37.62) includes the popular Holiday Inn brand, Crowne Plaza and Staybridge Suites. The price for our stay has been stable for the past couple of years at the senior citizen rate of $114 a night.

The stock set an all-time intraday high at $37.94 on May 8 and is expected to report quarterly earnings today. Our Events Calendar does not show analysts' earnings per share estimate or time of this release. The stock is well above its 21-day, 50-day and 200-day simple moving averages at $36.43, $33.96 and $31.62, respectively.

The weekly chart is positive but overbought with its five-week modified moving average at $35.26 and 200-week SMA at $24.61. Quarterly and semiannual value levels are $35.34 and $34.59, respectively, with a weekly pivot at $37.97, so a new high is possible on a positive reaction to earnings. Investors should consider booking some profits on this stock, given the profile.

Marriott (MAR) ($59.26) includes the Courtyard brand, the Ritz-Carlton, Residence Inn, Fairfield Inn, Springhill Suites and Ramada.

The Courtyard daily rates vary day by day, given demand for advanced bookings. A month before the trip, we shifted our stay of four nights forward by a day. The rates were lower, which is a sign that bookings were not as strong as expected. We arrived on a Friday, and the hotel was just 75% full.

It's a business-oriented hotel, and the bookings were stronger for the other three days. The Monday rate was much higher, at $149.00 for that night vs. $109 for the first three nights. I used my Marriott rewards points to get that last night free.

Marriott stock set an all-time intraday high at $59.54 on May 12 and is well above its 21-day, 50-day and 200-day SMAs at $58.27, $56.79 and $48.93, respectively.

The weekly chart is positive but overbought, with its five-week MMA at $57.23 and its 200-week SMA at $38.69 in a parabolic bubble pattern. Quarterly and semiannual value levels are $51.40 and $50.90, respectively, with weekly and monthly risky levels at $59.83 and $61.99, respectively. Investors should consider booking some profits on this stock given this profile.

Hilton Worldwide Holdings (HLT) ($22.05) includes the Hampton Inn, the Waldorf Astoria, Conrad Hotels, DoubleTree, Embassy Suites and Homewood Suites. Hilton became a publicly traded company again on Dec. 12, 2013, in an initial public offering by Blackstone Group. There is not enough historical data to give a full profile for the company, other than saying that its 2014 trading range has been between $20.55 on Feb. 5 and $23.55 on May 12.

At the time of publication the author held no positions in any of the stocks mentioned.

Follow @Suttmeier

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff

Richard Suttmeier is the chief market strategist at ValuEngine.com. He has been a professional in the U.S. Capital Markets since 1972, transferring his engineering skills to the trading and investment world.

Suttmeier has an engineering degree from Georgia Tech and a Master of Science degree from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. He became the first long bond trader for Bache in 1978, and formed the Government Bond Department at LF Rothschild in 1981, helping establish that firm as a primary dealer in 1986. This experience gives him the insights to be an expert on monetary policy, which he features in his newsletters, and market commentary.

Suttmeier's industry licenses include, Series 7 and Registered Principal (Series 24). He has been the Chief Market Strategist for ValuEngine.com since 2008 and often appears on financial TV.

Click here for details on Suttmeier's "Buy and Trade" investment strategy.

Richard Suttmeier can be reached at RSuttmeier@Gmail.com

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