Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, luxury hotel operator Strategic Hotels & Resorts
With that in mind, let's take a closer look at Strategic Hotels' business and see what CAPS investors are saying about the stock right now.
Strategic Hotels facts
|Headquarters (founded)||Chicago (1997)|
|Market Cap||$1.2 billion|
|Trailing-12-Month Revenue||$754.6 million|
|Management||CEO Laurence Geller
CFO Diane Morefield
|Return on Equity (average, past 3 years)||(30.5%)|
|Cash/Debt||$72.0 million / $1.1 billion|
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Host Hotels & Resorts
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 20% of the 204 members who have rated Strategic Hotels believe the stock will underperform the S&P 500 going forward.
Basically, these are all high end luxury hotels. The hotel business by itself is very cyclical and the luxury hotel business even more so. ... I think it's a much more speculative view to have a strong conviction in a robust recovery at this point given the numerous and significant near term challenges ahead, not the least of which is the ratcheting price of oil which travel decisions are closely tied to. I think it's safer to expect a chug along economy or even a downturn at this point and the chug along scenario isn't going to be sufficient to reinstate the common dividend or drive further growth in the share price.
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