As the summer travel season heats up, so is investor interest in the hotel stocks.
Some options players are betting on strong summer demand – but more importantly – some mergers ahead. To help get behind what’s going on in the sector, Wyndham Worldwide (WYN) CEO Stephen Holmes joins the Fast Money Five on set.
Despite strong options activity and rumors about consolidation in the sector, Holmes won’t comment on takeover reports. He says: “We’re ready to go it alone. We don’t have a ‘For Sale’ sign out in front of the company.”
Wyndham, which owns the Ramada and Super 8 brands, was only spun-off last year but it has the leading market share in the timeshare space. Holmes says he expects continued upside in that $10 billion industry.
So with Wyndham seemingly running on all cylinders, why does it trade at such a low multiple?
Holmes says the company is still new and only receives light analyst coverage. “Give it a Marriott (MAR) multiple and it’s a $51 stock,” Guy Adami says.
Even though Holmes won’t comment on M&A speculation, Eric Bolling thinks the whole sector is ripe for consolidation.
Pete Najarian likes both Starwood (HOT) and Wyndham.
Stacey Briere Gilbert likes the sector as a whole and Wyndham in particular. She says it’s cheap and an interesting story.
Sector Trade - Hotels
DISCLOSURE:
Stacey Briere Gilbert Is Chief Options Strategist For Susquehanna Financial Group, LLLP
Gilbert Is Head Of Market Intelligence Research For Susquehanna Financial Group, LLLP
Gilbert Does Not Cover Individual Securities But Does Recommend Trading Strategies; An Affiliate Of Susquehanna Financial Group, LLLP Is An Options Specialist In Certain Of The Stocks Discussed By Gilbert; An Affiliate Of Susquehanna Financial Group, LLLP Is A Market Maker In Certain Of The Stocks Discussed By Gilbert; Gilbert Owns (TIE); Susquehanna Financial Group, LLLP And Affiliates Own More Than 1% Of The Shares In (CAL); Bolling Owns Gold, (ICE), (NMX); Najarian Owns (STX), (MS), Is Short (AMR) and (CAL); GE Is The Parent Company Of CNBC
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