Revpar Revs UpIndeed, according to data from industry-tracker Smith Travel Research, hotel companies finished the first quarter on a strong note. Through the week ended April 3, revpar for U.S. hotels grew for the 23rd time in the last 24 weeks, gaining 11.8%. Wall Street brokerages have been boosting estimates as a result. Thomas Weisel Partners Monday raised earnings estimates for Starwood and Marriott, telling investors that revenue growth was ahead of expectations. But unlike the Dow Jones Casino Index, which has jumped more than 25% in 2004 on positive earnings guidance across the board, the Dow Jones Hotel & Lodging Index is up about 4% because companies have been muting their optimism.
|Shining Star |
Since boosting guidance, Starwood has become the hot property of hotels
|Company||Release Date||Q1 EPS*||Upgrades**||Downgrades**|
|Choice Hotels||April 21||0.29||1||0|
|Fairmont Hotels||April 27||0.11||0||1|
|Host Marriott||April 28||-0.07||0||0|
|Prime Hospitality||April 29||-0.05||0||0|
|Four Seasons||May 6||0.15||2||0|
|*Forecast as of April 13. |
**Year to date.
Source: Thomson One Analytics, Bloomberg, TSC research