Sector Snap: Hotels Mixed After Hotel Default

NEW YORK (AP) — Hotel stocks traded mixed Monday afternoon after Sunstone Hotel Investors Inc. said it will turn the keys to a W Hotel in San Diego over to its lenders, and analysts predicted that more hotels may follow.

On Sunday, a real estate investment trust, announced it will default on its June mortgage payment for the 258-room W Hotel in San Diego after failing to lower its interest payments.

In a note to investors, Stifel Nicolaus & Co. analyst Rod Petrik said other repossessions may be on tap. "We would not be surprised to see more companies throw back keys to lenders on other secured hotel loans," he wrote. ...