San Clemente-based hotel owner Sunstone Hotel Investors Inc. on Thursday was upgraded by a Wall Street analyst citing an increase in business travelers and better prospects for the industry.
J.P. Morgan Securities analyst Joseph Greff upgraded the company’s stock to “overweight” from “neutral,” according to a Reuters report.
Sunstone shares were up about 6% in midday New York trading on a market value of $1.12 billion.
Greff said he sees more business travelers staying at hotels, which stands to boost revenue per available room, a key measure of hotel performance.
Sunstone looks to benefit from the uptick in travel with many of its hotels geared toward corporate travel.
The analyst also said Sunstone has cash for possible acquisitions.
In October, Sunstone sold $170 million worth of stock, which generated $159 million for the company after expenses. It said it planned to use the proceeds for acquisitions.
Sunstone Chief Executive Art Buser has “delivered expressions of interest for several hotel acquisitions,” on a recent conference call.
The company owns all or part of 29 hotels after handing back 11 in the past year or so to lenders.
