Investors see opportunity in hotel stock

Hopes for 'pent-up rebound' as hotel groups release quarterly results

Investors are piling into hotel stocks much faster than travelers are piling into hotel rooms, according to a report in the Wall Street Journal.
Investors are piling into hotel stocks much faster than travelers are piling into hotel rooms, according to a report in the Wall Street Journal.

Investors are piling into hotel stocks much faster than travelers are piling into hotel rooms, according to a report in the Wall Street Journal.

Marriott International reports third-quarter earnings this morning and despite analysts estimating Marriott earned US $0.13 cents a share in the quarter, down nearly 62% from a year earlier, there is optimism in investors.

A deep recession can create pent-up demand for travel in a recovery and it would appear some investors are expecting this scenario to unfold.

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Marriott id the first hotel group to report its third quarter results this month and it is used as a key indicator for next year’s projections

Hotel-room demand is closely tied to consumer sentiment, according to Collins Stewart analyst Bryan Maher.

“Though improving, sentiment is still near historically low levels, and many customers are only renting rooms at deep discounts,” the report added.

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