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Tuesday, June 12, 2007

Summer Stocks with Yields: Hotels

Summer is here and various industries should participate in the active summer travel business, which includes plane travel, lodging, cruises, amusement parks, and even gasoline for automobile travel. Today I’m going to be covering stocks that participate in summer travel from a hotel and motel lodging standpoint, and which pay a dividend.

The highest yielder on the list is Intercontinental Hotels Group plc (IHG), which is a British based owner and operator of hotels and resorts, including Crowne Plaza, Holiday Inn, Holiday Inn Express, InterContinental, Hotel Indigo, Staybridge Suites, and Candlewood Suites. Their price earnings ratio is 12.5 and a PEG of 2.8. The stock generates a 2% yield.

Choice Hotels International Inc. (CHH) is a Silver Spring, Maryland based company which operates various hotel franchises including Comfort Inn, Comfort Suites, Quality, Clarion, Econo Lodge, Rodeway Inn, MainStay Suites, Sleep Inn, Suburban Extended Stay Hotel, Cambria Suites, and Flag Hotels. Their P/E is 24 and their PEG is 1.8. The stock yields 1.5%.

Marcus Corp. (MCS), based in Milwaukee, Wisconsin, is sort of a hybrid company. They own and operate hotels in Wisconsin, Missouri, Illinois, and Ohio; they also manage hotels in Wisconsin, Minnesota, Texas, and California. In addition to their lodging business, they also own movie theaters with over 500 screens in the Midwest. The stock, which yields 1.4%, carries a P/E of 23 and a PEG of 1.4.

Sonesta International Hotels Corp. (SNSTA) operates hotels in Boston, Massachusetts, where they are based; Key Biscayne, Florida; New Orleans, Louisiana; Coconut Grove, Orlando, and Sunny Isles Beach, Florida; Cairo, Luxor, and other cities in, Egypt; Qatar; Peru; St. Maarten, and Brazil. They also have five Nile River cruise vessels in Egypt. Latest quarterly revenue was down over 28%, but they pay a yield of .8%.

Marriott International Inc. (MAR) operates and franchises hotels in Americas, Europe, Asia, the Middle East, the United Kingdom, and Africa. The P/E is 26 and the PEG is 1.6. The yield is .7%.

Starwood Hotels & Resorts Worldwide Inc. (HOT) has a great stock ticker symbol. They operate luxury and upscale hotels including St. Regis Hotels & Resorts, The Luxury Collection, W Hotels, Westin Hotels & Resorts, Le Meridien, Sheraton Hotels & Resorts, and Four Points by Sheraton. The P/E is 13.2 and PEG and the PEG and 1.8, with a yield of .6%.

Hilton Hotels Corp. (HLT), based in Beverly Hills, owns and operates Doubletree, Embassy Suites, Hilton, Hilton Garden Inn, Homewood Suites by Hilton, Hampton, Waldorf-Astoria, and Conrad. The P/E is 25 and the PEG is 2.2, and pays a yield of .5%.

Orient-Express Hotels Ltd. (OEH) is a Bermuda based company which owns and operates deluxe hotels worldwide. The P/E is 50.5 and the PEG is 1.75. They pay a small .2% yield.

Author does not own any of the above.

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