Shares of major US hotel companies fell on Friday amid concerns about consumer spending as the US economy slows and fuel prices soar.
Stock of Marriott International dropped more than 5% to $27.45, a 52-week low. It is down 43.4% from its 52-week high of $48.50.
Starwood Hotels and Resorts Worldwide fell 3% to $44.44, Wyndham Worldwide Corp declined more than 4% to $18.86 and Host Hotels and Resorts fell 3.8% to $14.53.
"I think it's just more concern about the consumer," said Jeremy Glaser, analyst at Morningstar. "A move of over 5% for Marriott is pretty significant."
Citigroup analyst Joshua Attie said in a note to clients on Friday that Marriott might be affected this summer due to weak leisure travel before possibly stabilising in the fourth quarter and starting to improve in the second half of next year.
"We are on the wrong side of the lodging cycle, see no near-term catalyst for Marriott and think a downward consensus earnings per share revision is likely," wrote Attie.
Reuters
