Starwood Hotels & Resorts Worldwide, Inc (HOT), Marriott International Inc (MAR): Hotel Investments, A Review

I believe Wyndham Worldwide Corporation (NYSE:WYN)’s strategy to shift to a greater fee-for-service business and its solid free cash flow generation will guarantee higher revenue in the future as long as global travel demand continues to grow.

Wyndham Worldwide Corporation (NYSE:WYN)’s European business, however, will suffer from the sluggish economic environment in the region, especially in the U.K., where consumer confidence is being hit by current austerity measures.

Regarding acquisitions, the company acquired The Resort Company in August 2011 and Hoseasons Holding in February to secure a European vacation-rental business.

My conclusion

Hotel renovations are necessary; they form part of the expenses of any company in the industry. As we all know, renovation work affects near-term revenue, but they are expected to boost returns once completed. So the key is to identify which renovations will give the most revenue per dollar spent.

The article Hotel Investments: A Review originally appeared on Fool.com.

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