It just might be time to check into some hotel stocks, according to Jon Najarian co-founder of Optionmonster.com.
He's seen at lot of activity in the options of big names in the hotel industry. The buzz started last week with Starwood Hotels, but then spilled over to Wyndham Worldwide and Marriott International.
Some of the activity is being fueled by takeover chatter, but with Marriott and several other hotel operators speaking at a Goldman Sachs Lodging, Gaming, Restaurant and Leisure conference this week, there could be other catalysts for future moves in the stocks, he says.
"(It was) just a feeding frenzy in Marriott," Najarian said. Marriott shares on Monday gained more than 6% and there was some "very unusual call activity," he said.
Najarian, who thinks Starwood could also be a takeover candidate, suspects hedge funds have been scaling up their investments in the hotel sector.
Najarian also mentioned Rackable Systems, a leading provider of data server and storage products, as another potential takeover target.
Najarian owns shares of the hotel stocks as well as those of Rackable Systems.