Stock Research and Analysis

by Adam Fleck, CFA

Bulls Say

Starwood has the broadest portfolio of distinctive, upscale brands in the industry, enabling the company to open multiple, complementary properties in new geographic markets.
Starwood has a strong new hotel pipeline, with more than 80% of the hotels in its pipeline in international markets.
After an investment of more than $6 billion to revitalize the Sheraton brand, and the forced exit of more than 50 hotels that didn't meet quality standards, Sheraton is outperforming competitors in the upscale segment. Read more 

Bears Say

After a more than fivefold increase in Starwood's stock price since early 2009, a lodging recovery is fully priced into the stock, and shares are moderately overvalued.
Starwood's time-share division is an unattractive business relative to its managed and franchised hotel operations. Starwood shareholders would benefit from a sale or spin-off of the division.
The hospitality industry is highly cyclical. Starwood's owned properties and time-share division, in particular, would experience a steep decline in revenue and cash flow in the event of a recession. Read more 

Management

Frits van Paasschen was appointed CEO in September 2007. Van Paasschen previously ran European, African, and Middle Eastern operations for Nike NKE and also was an executive for Walt Disney DIS. Van Paasschen owns less than 0.5% of the stock, and all   Read more 

Profile

Starwood is the world's largest operator of luxury and upscale hotels. The company has a strong brand portfolio of high-end luxury and upscale hotels. Its luxury hotels   Read more 

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