The Zacks Analyst Blog Highlights: Delta Air Lines, Starwood Hotels & Resorts Worldwide, Red Lion Hotels, Morgans Hotel Group and Choice Hotels International

CHICAGO, Nov. 4, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Delta Air Lines Inc. (NYSE:DAL-Free Report), Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT-Free Report), Red Lion Hotels Corporation (NYSE:RLH-Free Report), Morgans Hotel Group Co. (Nasdaq:MHGC-Free Report) and Choice Hotels International Inc. (NYSE:CHH-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Friday's Analyst Blog:

Delta Allows More In-Flight Perks

Leading air carrier, Delta Air Lines Inc. (NYSE:DAL-Free Report) has announced that it will allow more flexibility onboard by introducing the usage of portable electronic devices below 10,000 feet. Delta's all aircraft have undergone the carrier-defined PED tolerance testing to ensure that passengers can safely use their devices in Delta flights. The company is awaiting Federal Aviation Administration's approval for the usage of portable devices such as e-readers, tablets, and smartphones in flight mode during taxi, takeoff and landing in over 570 mainline domestic aircraft.

We believe the company's efforts to enhance the traveling experience would lead to more market traction and add to its market share gains. The company already beefed up one of the largest Wi-Fi enabled fleet with around 800 aircraft.  Other perks such as personal on-demand entertainment at every seat on all long-haul international flights, real-time baggage tracking, real-time customer service through Twitter, sightseeing map applications Fly Delta app, including Glass Bottom Jet and flat-bed seating have also added to the company's growth going forward. 

Delta is progressing well on improving ancillary revenues by adding features to its services as well as introducing products to improve passenger satisfaction and experience, both in air and on ground. In an attempt to enhance its fleet structure, amenities, products and technological base, Delta aims to invest $2.0–$2.5 billion annually, over the next five years. The company has inaugurated Terminal 4 at New York's John F. Kennedy (JFK) International Airport. In the coming months, Delta will continue to upgrade facilities at the JFK hub, along with investment of $229 million to renovate Terminal 5 at Los Angeles International Airport. The company also plans to start the Sky Deck at the Delta Sky Club in Atlanta. 

We expect Delta to remain profitable as it continues to reap benefits from the investments made to improve operating efficiencies and customer experience. This year, the company is expected to generate higher revenues than last year based on better service offering, capacity discipline and customer-focused initiatives.

Starwood Sells Westin & Aloft Assets

As part of its asset-light strategy, leading hotelier Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT-Free Report) recently divested two properties – The Westin San Francisco Airport and Aloft San Francisco Airport – in San Francisco, Calif. to Ultima Hospitality for about $125 million. Post sale, the properties will continue to operate under Starwood's Westin and Aloft brands.

The 397 luxurious rooms of Westin San Francisco Airport hotel will undergo a complete renovation following the sale. Aloft San Francisco Airport was unveiled in late 2012 and underwent extensive makeover prior to its sale. Both the properties are located near the San Francisco International Airport and are close to several Fortune 500 companies.

Asset disposition remains a bright spot for the company. Since late 2010, transition to an 'asset light' business model has gained momentum in the hotels and REIT industry. Many other hoteliers such as Red Lion Hotels Corporation (NYSE:RLH-Free Report) and Morgans Hotel Group Co. (Nasdaq:MHGC-Free Report) have embarked on this strategy.

Asset sale remains a long-term strategy of Starwood for greater financial flexibility, which would help it grow through management and licensing arrangements instead of direct ownership of real estate. The company plans to deploy its capital to transform its owned assets into lucrative acquisition targets. In the last four years ended 2012, it has earned $1 billion in cash through the sale of owned assets and strives to generate around $3 billion in hotel sales by 2016.

In the last two years, Starwood offloaded properties like W New Orleans, St. Regis Aspen, the Westin Gaslamp (San Diego), W City Center (Chicago) and the Boston Park Plaza. Management indicates an increase in buyers' interests, which, coupled with improving lodging industry fundamentals, will lead to future asset sales.

Starwood holds a Zacks Rank #2 (Buy). Another hotelier currently performing well is Choice Hotels International Inc. (NYSE:CHH-Free Report) carrying a Zacks Rank #2.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on DAL - FREE

Get the full Report on HOT - FREE

Get the full Report on RLH - FREE

Get the full Report on MHGC - FREE

Get the full Report on CHH - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

SOURCE Zacks Investment Research, Inc.