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Cramer: HOT Stock - Literally

If you believe the economy is coming back, then you probably want to get this name onto your radar.

The stock is Cramer favorite - Starwood (TICKER:HOT)

"You may not have heard of Starwood, but you've definitely heard of their brands: St. Regis, Luxury Collection, W Hotel, Westin, Sheraton, Le Meridien and others—they have 1134 properties in nearly a hundred countries," Cramer explained.

Encouraged by a pick up demand, Starwood just raised the lower end of its 2013 forecast for revPAR, or revenue per available room - a key metric for the hotel industry. It now expects revPAR to grow 5 to 7 percent this year, compared with its initial estimate 4 to 7 percent.

"We are poised to benefit from higher rates in North America and Europe, where demand is growing but supply is already short," Starwood Chief Executive Frits van Paasschen told Mad Money.

The stock, however, is trading roughly at the same levels as 2007.

"Our stock is roughly where it was before the crisis, yet we have 20% more hotels. We have more fees generating our revenues. Our balance sheet is in great shape. This is a transformation. I think we have upside," said van Paasschen.

John Wilkes | Photographer's Choice | Getty Images

Cramer seems to agree.

"I think this is one of the best managed hotel names in the travel and leisure sector," he said.

By the numbers, Starwood forecast first-quarter earnings of 51 cents to 54 cents per share, topping analysts' expectations of 48 cents per share, according to Thomson Reuters I/B/E/S.

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For the fourth quarter ended Dec. 31, net income from continuing operations fell to $65 million, or 33 cents per share, from $158 million, or 80 cents per share, a year earlier.

"Of the companies that have disparity between what they're worth and what they're selling for, this may be the largest," Cramer added. "They ticker symbol may be HOT but I think the stock is hotter."

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