A Star Is Born
In August 1996, CapStar Hotel Company completed its initial public offering and acquired its 12th first-class, full-service hotel. By August 1997, the Company had tripled its portfolio of owned hotels to 43. The company had also increased the number of managed hotels to 30. Today, CapStar's hotel portfolio comprises 52 owned hotels with 13,510 rooms and 68 leased or managed hotels with 10,459 rooms, for a total of 120 properties with 23,969 rooms.
Growth Avenues
CapStar's growth strategy includes a number of different avenues for growth:
Acquisitions -- CapStar has a disciplined strategy to acquire hotels in the U.S. and Canada. The company seeks underperforming hotels in major markets and destination resorts that can benefit from targeted renovation programs, repositioning and the company's proprietary marketing and management programs.
Same Store Growth -- CapStar has shown consistent growth in revenue per available room (RevPAR), an industry operating performance benchmark. The company posted a 12.3 percent increase in RevPAR in 1996 and 11.1 percent in the first half of 1997.
Hotel Management Contracts -- CapStar aggressively seeks out management contracts with hotel owners looking to maximize their short- and long-term investments. The company has added many management contracts since its initial public offering and currently leases or manages some 68 hotels for other owners. CapStar often further aligns its interests with its owners by investing in hotels that it manages.
Strategic Alliances -- CapStar has established strategic alliances with a number of ownership groups, including hotel real estate investment trusts (REITs) and privately held companies. The company currently has alliances with Boykin Lodging Company, Massachusetts Mutual and Highgate Hotels, Inc.
Since its initial public offering, CapStar's stock price has risen from $18 per share to more than $35 per share.
Click here for historic stock performance chart.
It its first nine months as a public company, CapStar has posted impressive gains, meeting or exceeding analysts' estimates for each quarter.
Click here for
quarterly results.
Click here for financial data.
Currently, seven sell-side analysts publish research reports on CapStar. By listing these individuals and their firm names, CapStar is in no way accepting responsibility for or endorsing any analyst reports or opinions expressed by the firms and individuals listened below. This information is supplied for your own convenience only. Customarily, you must be a client of these firms to receive their research. Links to these brokers' websites are provided below as a convenience for those clients.
The following analysts follow CapStar:
| FIRM | ANALYST | SECTOR | PHONE |
|---|---|---|---|
| Montgomery Securities | Michael Mueller | Lodging | 415/627-2232 |
| Lehman Brothers | Joyce Minor | Lodging | 212/526-5061 |
| Merrill Lynch & Co. | Peter Oakes, CFA, CPA | Lodging | 212/449-1184 |
| Smith Barney | Michael J. Rietbrock | Lodging | 212/816-0215 |
| Goldman Sachs | Sandy Liu | Lodging/Gaming | 212/902-8150 |
| Oppenheimer | David Wolfe | Lodging/Gaming | 212/667-7026 |
| Bankers Trust | Mark Mutkoski | Lodging | 212/250-9694 |
Shareholder Information
The company's common stock trades on the NYSE (New York Stock Exchange), under the symbol CHO.
Shareholder Inquiries
Shareholders having questions about CapStar Hotel Company, Inc. please contact:
John Emery, Chief Financial Officer
(202) 965-4455 ext. 266
E-mail john_emery@capstar.com