Hotel Analyst: Check Back In -- After The Bottom
Investors have been checking out of hotel stocks recently. Jake Fuller thinks they'll want to check back in, but not right away.
The hospitality analyst for Thomas Weisel Partners sees long-term gains for Starwood Hotels and Resorts Worldwide and Marriott InternationalThe near term is much more problematic.
"I'm not convinced it's time to buy aggressively yet," he told CNBC. "The market is looking for growth in the 5 to 7 percent range...probably not consistent with the slower economic scenario."
Fuller says both stocks took a hit after being driven sharply higher by merger speculation. He thinks the hits may keep on coming for a while.
"They probably have another leg down in terms of earnings estimates," he said. "I'd rather buy these stocks after that leg down than before it. Valuations are definitely looking more interesting here. I'd just rather see that move first."
Fuller and his family own shares of Marriott.