Marriott 's (NYSE: MAR) empty rooms are
enough to make shareholders so lonesome they could cry.
Hotels, casinos, resorts, and essentially all industries
with vacation elements have really struggled through this
economic downturn.
Walt Disney (NYSE: DIS) has proven to be a
somewhat recession-resistant anomaly, managing to scrape by
without too much bottom-line damage, even in its resort
segment. But others, like
Las Vegas Sands (NYSE: LVS) and
MGM Mirage (NYSE: MGM), have really felt the
sting to their financials. In its third quarter, Marriott
would have gotten away with decent results, had it not been
for some meddling impairment and restructuring charges.
Marriott's revenue slipped 16.6% -- with declines in every
category -- to $2.47 billion. From there, a $614 million
timeshare strategy impairment charge helped send the quarter
spiraling into the red, landing at a $466 million loss, or
about $1.31 per diluted share. Excluding the charges,
adjusted net income was $15 million, or $0.15 per share, but
revenue per available room on comparable properties worldwide
fell about 20% from last year.
Bizarro market
Weirdly enough, despite the terrible economy and
relatively poor performances by many in the industry, the
market is eating up hotel stocks as if they were the best
continental breakfast investors have ever tasted:
Company
Closing Price as of 10/9
52-Week Low
Rise From Low
Wyndham Worldwide (NYSE: WYN)
17.92
2.55
603%
Host Hotels (NYSE: HST)
11.43
3.08
271%
Starwood Hotels (NYSE: HOT)
33.26
8.99
270%
Marriott
26.80
11.88 Continued... |