Lodging Leisure companies are at a crucial juncture, with investors focused on evaluating and trying to differentiate which business models will succeed.

Maher discusses the outlook for Lodging Leisure stocks, evaluating companies and offering his current stock recommendations.

One of the major changes that will affect the lodging industry, according to Maher, is the weather: �It hasn�t been a good couple of years for snow, and it�s just now that the Northeast is starting to see some. We received very little snow in the Northeast last year and an unimpressive amount the year before that.� 

Among ski villages, Maher mentions �Vail (NYSE: MTN), which I would consider to be an excellent operator of high quality ski resorts. Their emphasis has not been on developing villages themselves, rather, some of their resorts, such as Vail and Breckenridge, have long histories and are already well-established villages.� 

Maher also cites a company called Intrawest (NYSE: IDR) that �seeks out underperforming mountain resorts with significant expansion potential and will develop a master plan that sets out to create an energetic village full of shopping venues, dining and other amenities that appeal to a broad range of visitors.� Maher claims: �I currently rate American Skiing (NYSE: SKI) as a HOLD and believe only risk-tolerant investors should own the stock at this time. It is potentially a high risk/high reward proposition.�

Maher continues, �Specifically, we like Starwood Hotels Resorts (NYSE: HOT), which has accomplished a lot since acquiring ITT nearly two years ago. And in 1999 the company acquired Vistana, one of the best timeshare companies in the US, in our view, in order to leverage the undeveloped real estate at its owned resort hotels and to essentially mimic Marriott�s (NYSE: HMT) very successful Marriott Vacation Club.�

According to Maher, �Host Marriott Corporation has a terrific portfolio of hotels, such as the Ritz-Carlton in Naples and the Marriott Marquis in New York, that are probably better insulated from new supply concerns than any other owned hotel portfolio.�

In terms of smaller hotels, Maher likes LaSalle Hotel Properties (NYSE: LHO). �Although it�s small, management treats this company very much from a shareholder-friendly view and will only make investments that make sense on a total return basis, rather than simply grow the company or acquire a trophy property.�

Maher states that �on a high-risk/high-reward basis, we like Wyndham International (NYSE: WYN), which we currently rate a BUY. We think that investors with a two- or three-year time horizon could profit significantly as this company turns around.�

The Wall Street Transcript does not endorse the views of any interviewee nor does it make stock recommendations.