Zacks Analyst Interview Highlights: Starwood Hotels, Hilton Hotels and Winston Hotels

Business Wire, Sept 26, 2006

CHICAGO -- Zacks.com releases the latest Analyst Interview. Today's interview is with senior analyst Sean P. Smith, who discusses Starwood Hotels and Resorts (NYSE:HOT), Hilton Hotels Corporation (NYSE:HLT) and Winston Hotels, Inc. (NYSE:WXH).

A synopsis of today's Analyst Interview is presented below. The full article can be read at http://at.zacks.com/?id=2678.

Which stocks do you consider your top Buy recommendations at the present time?

We currently have Buy ratings on Starwood Hotels and Resorts (NYSE:HOT) and Hilton Hotels Corporation (NYSE:HLT). Starwood owns a very attractive stable of upscale and luxury brands including Sheraton, Westin, and the W. This sector of the hotel industry is performing very well in the current operating environment.

Hilton is the world's largest hotel company, with a portfolio including strong brands in the full-service (Hilton, DoubleTree), limited-service (Hampton Inn, Hilton Garden Inn), all-suite (Embassy Suites), and extended-stay (Homewood Suites) segments of the market. This portfolio gives the company broad and diverse exposure to the hotel industry.

We also have a Buy rating on Winston Hotels, Inc. (NYSE:WXH), a hotel real estate investment trust (REIT). Winston currently owns 44 hotels operating under flags such as Hampton Inn, Hilton Garden Inn, and Courtyard by Marriott. The company is growing via both acquisition and development, and also operates a division that provides financing to the hotel industry.

How would you advise investors looking to increase their exposure to travel and leisure going forward?

It is important to realize that the risk profile of stocks in this group is higher than many other sectors. While many companies in other industries or property sectors have the benefit of steady, predictable cash flow streams, hotels must work to fill rooms every night of the year.

In addition, the sector is susceptible to demand shocks caused by unpredictable events such as geopolitical turmoil or nature disasters. The stocks are cyclical in nature, but at the moment the operating environment is proving to be beneficial. With a forecast for steady demand and strong booking trends, the outlook for the sector remains positive.

Read the full interview at http://at.zacks.com/?id=2647.

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