Thursday, July 5, 2007

Hotel Companies' Bond Risk Rises on Speculation Others Could Follow Hilton

(Bloomberg) -- The perceived risk of owning hotel
company bonds rose as a proposed $20 billion leveraged buyout of
Hilton Hotels Corp. stoked speculation that other chains could be
next, according to credit-default swap traders.

Credit-default swaps based on $10 million of Starwood Hotels
and Resorts Worldwide Inc. bonds jumped $12,800 to $152,300, and
earlier touched $157,500, more than a two-year high, according to
CMA Datavision in London. Contracts based on the bonds of
Bethesda, Maryland-based Marriott International Inc., the world's
biggest hotel operator, rose $5,000 to $45,500 and earlier rose
to $47,500, the highest since October, CMA prices show.


Read more at Bloomberg Bonds News

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