Hotel Winners & Losers: LaSalle Hotel Properties

Updated from 3:32 p.m. ET

Hotel stocks mostly declined with the broader market as the optimism that bolstered Wall Street late last week flagged on Monday and an analyst lowered his expectations for five hotel companies' 2009 and 2010 results.

Raymond James & Associates analyst William A. Crow lowered his forecasts for Marriott International (MAR Quote), Hersha Hospitality Trust(HT Quote), Host Hotels & Resorts(HST Quote), LaSalle Hotel Properties (LHO Quote) and Strategic Hotels & Resorts(BEE Quote). All the companies are hotel real estate investment trusts, except for Marriott International, which is primarily a hotel operator and franchisor.

For all of the companies, Crow said declines in their hotels' revenue per available room are likely to be "far worse" than what is implied by current analysts' estimates. Revenue per available room, or revpar, is a key gauge of a hotelier's performance.

He expressed more optimism, however, about the companies' longer-term performances.

Marriott is scheduled to release its fourth-quarter results on Thursday. "While shares are unlikely to gain much traction during the next couple of quarters given the current macro backdrop, we look to 2011 to 2013, where the outlook becomes more favorable, and expect the stocks to anticipate changing fundamentals late this year," said Crow, who called Marriott's stock among his top picks in the sector.

In afternoon trading, Marriott shares closed down 19 cents to $16.21.

Crow also maintained "Outperform" ratings on Hersha Hospitality, Host Hotels & Resorts and LaSalle Hotel Properties, citing their relatively strong balance sheets and potential to perform well once the economy begins to recover.

He was less optimist about Strategic Hotels & Resorts, maintaining a "Market Perform" rating on the stock.