Goldman analyst cuts Interstate Hotels price target

A Goldman Sachs analyst cut his price target for hotel management company Interstate Hotels & Resorts Inc. Tuesday on industrywide softness related to economic conditions and increased supply.

The lodging sector, along with many other industries, has been pressured as consumers curb their spending because of the ongoing housing downturn, diminishing credit, escalating food and fuel costs and recession worries.

"We continue to remain concerned about the lodging sector broadly as demand slows while supply continues to accelerate," analyst Steven Kent wrote in a note to clients.

On Monday shares of hotel operators slipped after Marriott International Inc. said it expected second-quarter North American revenue-per-available-room growth below its prior forecast.

Revenue per available room, also known as revpar, is a key gauge of a lodging company's performance.

Kent trimmed his price target for Interstate to $3.45 from $4 and reduced his 2008 earnings forecast to 27 cents per share from 28 cents per share.

Shares of Interstate Hotels & Resorts shed 5 cents to $3.51 in morning trading.