Analyst predicts lodging industry revpar declines

NEW YORK (AP) - A Wachovia Capital Markets analyst cut his ratings for five lodging companies on Thursday, predicting that revenue per available room will drop 3 percent in 2009 across the top 25 markets. Revenue per available room, or revpar, is considered a key gauge of a hospitality company's performance. Wachovia analyst Jeffrey Donnelly downgraded his ratings for Strategic Hotels & Resorts Inc. and Ashford Hospitality Trust Inc. to "Underperform" and lowered his ratings on Host Hotels & Resorts Inc., FelCor Lodging Trust Inc. and Diamondrock Hospitality Co. to "Market Perform." At the same time, Donnelly raised his rating for Starwood Hotels & Resorts Worldwide Inc. to "Outperform," arguing that the company's shares already reflect most of the risk to estimates. He also cited Starwood's high international exposure.... [read full story]