Hotel Sector Down As Marriott Q3 Outlook Comes In Below Views
The company beat the top-line consensus by nearly six percent and offered a third-quarter outlook in line with views. But that didn't prevent its shares from opening sharply lower Wednesday.
Year to date, Marriott shares have gained more than 31 percent, leading Morgan Stanley's Thomas Allen to maintain an Equal-Weight rating.
Allen sees the recent quarter and outlook as generally positive, although he noted the 5.8 percent growth in its key revenue per available room metric was slightly below his estimate.
Marriott traded recently at $64.78, down 1.4 percent.
Other stocks in the sector followed suit.
Hilton Worldwide (NYSE: HLT) is down 1.9 percent to $24.50, InterContinental Hotels (NYSE: IHG) has declined 1.26 percent to $40.89 and Choice Hotels International (NYSE: IHG) dropped 1.3 percent to $47.65.
Starwood Hotels (NYSE: HOT) last week saw its shares plunge when it offered a third-quarter outlook below the consensus, although results for the recent period topped estimates. Starwood was down 0.4 percent Wednesday.
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