An Unexplainable Twist in the Timeshare and Hotel Market

I never give advice on the stock market or investing and I am not changing that position now, but I do want to share some interesting information about stock trends in the hotel and timeshare industry.

Despite most hotels seeing the bad economy drive room bookings down while most timeshare companies are feeling the credit squeeze clamp down on both new timeshare buyers and on the growth and expansion of resorts and properties, hotel and timeshare company stocks are taking a very interesting twist.

As The Money Times, which refers to stock trends by the hotel and timeshare industry as a ‘Bizarro Market,’ says:

“Weirdly enough, despite the terrible economy and relatively poor performances by many in the industry, the market is eating up hotel stocks as if they were the best continental breakfast investors have ever tasted… At a time when much of the market is feeling worse than it did during the Great Depression, all but one of these major hospitality stocks has doubled from their yearly lows. And while not all of them have posted actual losses, none of them has accomplished what you’d expect to see when a stock jumps as much as these have (which is) solid revenue and earnings growth.”

I offer no explanation, and leave you to draw your own interpretations.

Company Closing Price as of 10/09 52-Week Low Rise From Low
Wyndham Worldwide 17.92 2.55 603%
Host Hotels 11.43 3.08 271%
Starwood Hotels 33.26 8.99 270%
Marriott 26.80 11.88 126%

Source: Yahoo! Finance

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