White Plains, New York-based
Starwood Hotels & Resorts Worldwide Inc. (
recently announced the opening of a hotel - Sheraton Silver Spring
Hotel - under its iconic Sheraton Hotels & Resorts brand. This
marks the debut of Starwood in Silver Spring, Maryland.
STARWOOD HOTELS (HOT): Free Stock Analysis
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Located in the business and entertainment district of Maryland,
Sheraton Silver Spring Hotel was previously known as Crowne Plaza
hotel. The hotel is located in the northern part of downtown
Washington, D.C. and is in close proximity to major tourist
attractions. After going through extensive renovation and brand
conversion activity, costing over $5 million, the hotel was
reopened under the Sheraton brand. The hotel now features 229
renovated guest rooms along with numerous other modern amenities at
par with the standards of the brand. The hotel is owned and managed
by Integrated Capital and Crescent Hotels & Resorts.
Silver Spring, the fourth most populous district of Maryland, is
well known for hosting several entertainment, musical, and ethnic
festivals. The place is among the major tourist destinations of
Washington D.C, offering a vivacious blend of arts and
entertainment. Starwood's major competitors - such as
Marriott International Inc. (
Wyndham Worldwide Corporation (
- already have a strong presence in Silver Spring.
Since the last couple of quarters, Sheraton is spearheading
Starwood's market share growth. The brand covers almost 36% of the
company's current total global pipeline. Recently, Sheraton
announced the opening of its second hotel in Greater Hartford,
Sheraton Hartford South Hotel. In the recently completed second
quarter of 2012, Sheraton recorded a 6.3% increase in worldwide
RevPar for system wide same-store hotels.
In addition to this, Sheraton recently completed a $6 billion
brand-wide revitalization program, including $400 million in
signature brand initiatives. As of June 30, 2012, Starwood's
Sheraton brand operates more than 400 hotels across 70 countries
worldwide, the highest among all the company's brands. The brand is
on an expansion spree to achieve its target of $6 billion global
expansion over the next three years.
Starwood reported second quarter 2012 adjusted earnings from
continuing operations of 70 cents, beating the Zacks Consensus
Estimate by 8 cents. The company increased its adjusted earnings
guidance to the range of $2.49-$2.56 per share, from its earlier
guidance range of $2.35-$2.46.
Currently, the Zacks Consensus Estimate for 2012 and 2013 adjusted
earnings are pegged at $2.54 and $2.72 per share, respectively. We
presently have a long-term 'Neutral' recommendation on the stock.
However, the company carries a Zacks #2 Rank, which translates into
a short-term 'Buy' rating.