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Roy Manning III
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Roy Manning is an investor who attended college at SUNY(studied Pre-med) and then University of Wisconsin (studied banking, development planning and real-estate accounting). I am currently focusing on screening stocks and analyzing their charts and fundamentals. I wish everyone success in investing.
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  • Starwood Hotels & Resorts Worldwide, Inc. Rallies To New Highs

    Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) is making new highs and this is getting some attention. Starwood Hotels' share price is passing previous highs of $81 per share. In January Starwood Hotels sold off with the general market, but since February the stock has rallied to new highs. Both Starwood Hotels and Marriott International, Inc. (NASDAQ:MAR) have low P/E ratios compared to the industry and this seems to be causing them to rally.

    Starwood Hotels & Resorts Worldwide, Inc. Chart

    (click to enlarge)

    Profile

    Starwood Hotels & Resorts Worldwide, Inc. operates as a hotel and leisure company worldwide. The company operates luxury and upscale full-service hotels, resorts, residences, retreats, select-service hotels, and extended stay hotels under various brands including Sheraton Hotels and many others. As of February 21,2014, it owned and managed approximately 1,200 properties in 100 countries. The company employs 181,400 full time employees. Profile

    Growing Rapidly

    Expanding internationally is Starwood Hotels & Resorts Worldwide, Inc. main goal. According to the company's website, Starwood Hotels is going to open 350 new hotels in the next two years. List of hotels It is set to unveil six new properties in Australia and Pacific islands in 2014. These properties will be under the Sheraton name - its most popular upscale brand. Article

    Starwood Hotels is doing great and has announced a special dividend from the sale of its recently completed St. Regis Bal Harbour residential project and sale of the hotel in the form of a special dividend to shareholders paid out quarterly over the next four quarters. This quarterly dividend will be 65 cents per share. The total cash amount will be $500 million rewarded back to the shareholders. (Source Scottrade)

    Earnings

    Starwood Hotels & Resorts Worldwide, Inc. had excellent earnings in its last two quarters. It earned 71 cents per share in the third quarter of 2013 and 73 cents per share in the fourth quarter of 2013. Its projected earnings are 56 cents per share in the first quarter of 2014 and 76 cents per share in the second quarter of 2014. Its projection are weak for the first quarter but then get back on track afterward. These earnings lead to a P/E (price/earning per share) of 27.9. The forward P/E is 28.9. These P/E ratios are quite low considering that hotel operator's average P/E is 39.5. Marriott International Inc. has a P/E of 25.8 and a forward P/E of 22.7. Both Starwood Hotels and Marriott International are rallying rapidly. Remember that Starwood Hotels is completing construction on 350 new hotels in the next two years - so its growing rapidly and should see higher earnings a few years from now.

    Conclusions

    Both Starwood Hotels and Resorts Worldwide, Inc. and Marriott International are rallying rapidly. Starwood Hotels is expanding rapidly with 350 new hotels in the next two years. Starwood Hotels is giving a generous cash dividend back to its shareholders and is very profitable. Starwood Hotels earning are very strong and it will continue to do well once it gets through its weak winter quarter.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

    Tags: MAR, HOT, long-ideas
    Feb 25 3:32 PM | Link | Comment!
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