Starwood Quarter Should Twinkle - Expect another profit at Starwood Hotels & Resorts (HOT:NYSE) in the third quarter, as the cyclical hotel recovery continues apace.
In July, the company reported a sparkling second quarter, with adjusted earnings of 50 cents a share, well in excess of Wall Street's 37-cent-a-share consensus. Net income was $154 million, and Starwood raised earnings guidance for the third quarter in a row.
This time around, Wall Street will be looking closely at the trajectories of the company's revenue and margins, which could provide clues about how mature the lodging recovery is. Early in a cycle, occupancy rises as travel demand increases, bolstering hotel revenue. Later on, as occupancy nears peak levels, revenue growth slows, but hotels are able to jack up rates, and margins swell.
External Source - For the complete article click here
Logos, product and company names mentioned are the property of their respective owners.
