LOS ANGELES-An influential Wall Street analyst has downgraded the outlook for locally based Hilton Hotels Corp. and eight other publicly traded lodging companies, saying per-room revenue growth will likely slow and expressing concern that some major corporations are cutting back on travel.
GlobeSt.com reported Jan. 24 that Hilton officials themselves were warning of a slowdown in expected revenue growth as the economy cooled, and that the company would scale back the number of hotels it originally expected to open in 2001. “I would say we're taking our best estimate of things,” Hilton CFO Matt Hart said at the time. “It's trying to be a little conservative.”
Keith Mills, an analyst at UBS Warburg in New York, downgraded Hilton and the other eight stocks to a “hold.” Each of them previously had a “buy” or “strong buy” recommendation.
In addition to Hilton, the other eight stocks affected by the action are Host Marriott; Starwood Hotels, Marriott International, Four Seasons Hotels, Choice Hotels, MeriStar Hospitality, MeriStar Hotels and Innskeepers USA.
Mills says he's maintaining his recommendation on three other hotel companies that he had previously rated a “hold.” Those three companies are Wyndham International, Extended Stay America and FelCor Lodging.
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