CHICAGO, Jun 25, 2008 (BUSINESS WIRE) -- Zacks.com releases the latest Analyst Interview. Today's interview
is with senior analyst Sean P. Smith, who discusses Carnival Corp.
(NYSE: CCL), Marriott International (NYSE: MAR) and Starwood Hotels &
Resorts (NYSE: HOT).

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free Profit from the Pros newsletter: http://at.zacks.com/?id=2678.

Is there some negative sentiment in the cruise line industry
overall, presently?

Carnival (NYSE: CCL) did exceed the consensus earnings estimate in
the most recent quarter, but the company also lowered its full-year
outlook. Top-line revenue and booking trends have remained resilient,
although the cruise companies are experiencing lower on-board spending
in light of the current economic downturn.

The high cost of fuel, however, is having a significant negative
impact on the bottom lines of the cruise companies. Carnival expects
that fuel expenses in 2008 will be $752 million greater than in 2007,
reducing 2008 earnings by $0.92 per share. With the stock currently
trading at a multiple of roughly 13x expected 2008 EPS, the negative
impact exerted on the share price by the higher fuel expenses is
substantial.

What about the hotel industry? What trends do you see here?

The hotel industry is feeling the impact of the weak U.S. economy.
For example, Marriott (NYSE: MAR) recently lowered its outlook for
second-quarter revenue per available room (RevPAR) growth in North
America to approximately 2%, down from the company's previous
expectation of 3% to 5%. The company also stated that it would be
surprised if the current RevPAR environment in North America improved
in the second half of the year.

With individual consumers feeling pressures from the declining
housing market, high gas prices and an increasing rate of inflation,
hotel companies are limited in their ability to push room rates
higher. The increasing focus on cost-cutting by U.S. corporations
extends this pressure to business travel, which is the most profitable
segment for lodging companies.

Do you have any top Buys for us at this time?

On the lodging side of the industry, we have a Buy rating on
Starwood Hotels & Resorts (NYSE: HOT). We believe that the company's
geographically diverse, high-end portfolio is well positioned for the
long-term.

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