HOT

Starwood Hotels & Resorts Worldwide Inc

Consumer, Event Driven/Special Sit


Presented:03/20/2015
Price:$84.39
Cap:$14.50B
Current Price:$77.05
Cap:$13.06B

Presented

Date03/20/2015
Price$84.39
Market Cap$14.50B
Ent Value$16.50B
P/E Ratio24.4x
Book Value$8.83
Div Yield1.78%
Shares O/S171.69M
Ave Daily Vol2,760,000
Short Int1.05%

Current

Price$77.05
Market Cap$13.06B
Starwood Hotels & Resorts Worldwide, Inc., together with its subsidiaries, operates as a hotel and leisure company worldwide. The company owns, operates, and franchises luxury and upscale full-service hotels, resorts, residences, retreats, select-service hotels, and extended stay hotels under the St. Regis, The Luxury Collection, W, Westin, Le Méridien, Sheraton, Four Points, Aloft, and Element brand names. It also develops, owns, and operates vacation ownership resorts; and markets and sells vacation ownership interests in the resorts, as well as provides financing to customers who purchase such interests. In addition, the company develops, markets, and sells residential units at mixed use hotel projects. As of March 13, 2015, it operated approximately 1,200 properties in 100 countries. The company was founded in 1969 and is headquartered in Stamford, Connecticut.

Publicly traded companies mentioned herein: Starwood Hotels & Resorts Worldwide, Inc (HOT), InterContinental Hotels (IHG LN), Marriott (MAR), Hilton (HLT) and Armstrong World Industries (AWI).

Highlights

Starwood is a branded hotel manager, with prominent brands including St. Regis, W Hotels, Westin and Sheraton. The company is a midsized manager relative to its main peers - InterContinental Hotels (IHG LN), Marriott (MAR) and Hilton (HLT) - but it has a solid global profile. Starwood has generally underperformed over the past several years, in part as a result of its geographic mix. The company previously made the decision to aggressively invest in Asia - likely a strategically sound play over a ten-year time frame, but one that over the past couple of years has underperformed relative to US hotels. Additionally, management hasn’t exactly helped its cause in recent years by missing on its own unit growth and asset sales targets .

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