starwood has 100,000 rooms in development.lent considering they're growing off a smaller base than hilton. hyatt is a laggard. how about valuation? hilton's going to be very expensive on a price to earnings multiple basis, probably going to fool you, you're going to say i'm not paying that. but, remember, the way to value hotel stock with a bunch of debt, and hilton will have $13 billion worth of debt, is using that enterprise multiplier. hyatt has an enterprise multiple of 14, marriott's 13. that metric makes less sense for them. at the midpoint of the price range, hilton would have a price to earnings multiple of 15, which is not that expensive. that's also why i'm telling you not to pay more than $26 for hilton in the aftermarket, because at that point it stops trading at a deserved premium and simply becomes too overvalued for me. here's the bottom line, call your broker and ask to get a piece of the hilton ipo. if you can't get in on the deal, don't pay more than $26 in the aftermarket. at that point, just take a pass. an

we say at the higher end, more value at starwood. >> are others overvalued compared to starwood?ultiple value 13 of 14 times, pretty high. >> where the want to be positioned? starwood is more levered to gateway cities in china. >> what is a gateway city? >> new york city, los angeles, san francisco, boston. tilton is more like mary. -- hilton is more like mary. >> is it because blackstone is staying put and not selling any shares? >> they want to hold on for the recovery which at last three years and we should get -- >> does it make more of the lien -- appealing for anybody wants to get on the ipo? , is there more value in starwood or hilton? the rising tide lives all boats but there is better value -- >> is it like a search and evaluation and then it goes flat for five years because you have the overhang of 76% blackstone shares and five percent other? .hat is a huge amount >> definitely a big concern for investors. stake forld onto the many years, according to steve schwarzman -- it could be two years -- >> they will not miss the recovery and not the exit. look for them to exit

starwood, marriott, hyatt trading up as they have been strong year today, now is a good time to pricetocks up 30% year to date. >> you are trading into strength and selling into strength. a lot of it is momentum play. you mentioned twitter and surpassing it. that's part of the story. that momentum in the ipo market gives confidence for the capital markets activity. >> food services company aramark priced at $20 per share at the low end of the range. another company owned by private equity return to the public market. you expect tod continue? >> private equity firms, the lifecycle of a transaction, they buy and hold for four to six years. these are two great examples. they sell them through an ipo back to the public, hilton being the largest hotel chain and it is the logical exit strategy. with a try to sell it to someone else down the road. this is a constant trend. the private equity industry is constantly looking at the portfolio to monetize. >> the ipo market has been on fire. data compiled by bloomberg, this has been the busiest since 2004 and by the end of the year, some 200 comp

particularly starwood. hat has been a tremendous investment the last year.eflected in the fact it is still a relatively mis understood area. >> what discrepancy are you and other smart investors able to of?e advantage when you say it is misunderstood, what is being mispriced? there is a need for more leverage. part is this intermediate of the structure that needs to be addressed that as regulations traditional industry gets morphed because of regulatory unable to ey are meet. the preferred equity slice of structure somewhere between first mortgage and an ty has historically been area of tremendous opportunity and some of these mortgage reits to fill that ged gap have done well. talking about blockstone and the -- blockstone part of the estate business is growing. we met at a conference and jonathan gray was there. what do you make of these bigger and bigger countries getting estate?d in real >> well, there's is a nuance the to that question. i think that blackstone has done job.mazing they have gotten everything right for most of the last ecade, which is har

arehis valuation, they beating starwood which is seen as a much more upscale brand but have a look at some of the brands they are getting their hands on. i know it's a franchise company, but errors the waldorf astoria. the bulk of the business is done doubletreeonors and and that is where blackstone is playing the trade. they will keep 76% of the company and they will be committed for many years, they say. 7% unemployment and 60% of the business and help that is done in the united states but it's getting better. >> revenue per available room. you just can't beat him. >> we've tried. that was something of a boom for private equity, wasn't it? deal ofwas a great chastisement. top of the market, you are buying a big cyclical play like hilton but they are connoisseurs of property. $69 billion under management. upscale the growth story and ticket to china going from six hotels franchised in china. they are building 171 and they have boosted the rooms by over 30%. why? this is one hell of a cyclical business. when things get better -- >> they are saying it could last for a few years. this i

presentada hace 11 meses acusa de negligencia por lo menos a cuatro empresas, entre ellas la compaÑÍa starwoodho de las bitÁcoras con relaciÓn a este accidente, obviamente, la historia del propietario pues, es algo que estÁ en el medio publicÓ. pÚblico. >> juicio civil entablado por los familiares de los acompaÑantes de rivera, la noche del trÁgico vuelo, se llevarÁ acabo en enero en esta corte de los angeles donde deberÁn responder a las acusaciones en su contra. >> queremos hacer una aclaraciÓn, en nuestra emisión de anoche mostramos de manera equivocada la foto de este seÑor como si fuera el comandante del aviÓn en que muriÓ rivera, en realidad es este hombre que ven en las pantallas. los reclamos los hacen argumentando que los comerciantes latinos violan la ley para discapacitados porque carecen de baÑos para personas especiales, aseguran que ninguno de ellos se vio involucrado en estas irresponsabilidades y todo se trata de un fraude. se difundieron las llamadas de emergencia realizadas durante la matanza en la escuela sandy hook el aÑo pasado,y que dejÓ como muertos a 20 niÑos. la agenci

after graduating from college and spending nine months searching for a job, he just landed at starwood hotels working in human resources. >> the fact that i have a sense of security o in a full-time job and the fact it's in my field, i feel lucky. >> reporter: employers added more than 200,000 jobs for each of the last four months. in november, many were good-paying jobs. 40,000 in education and health care. 27,000 in manufacturing. 17,000 construction jobs. so they're coming in the right places. they're coming slower than people wanted, but don't forget. we came from a very, very dark place. and so the light is starting to shine. >> the unemployment picture is encouraging for a lot of people. for men the rate is 6.7%. for women, 6.2%. but really discouraging for african-americans. 12.5% don't have a job. and look at teenagers. nearly 21% are out of work. nationwide, long-term unemployment is not improving. more than 4 million people have been out of work for six months or longer. still, eye glass designer warby parker is hiring. software engineers and retail employees. >> we're curren

it's a long way from la to denver ♪ ♪ a long time to hang in the sky ♪ ♪ it's a long way home to starwood♪ a sweet rocky mountain paradise ♪ ♪ oh, my sweet rocky mountain paradise ♪

it's a long way from la to denver ♪ ♪ a long time to hang in the sky ♪ ♪ it's a long way home to starwood♪ a sweet rocky mountain paradise ♪ ♪ oh, my sweet rocky mountain paradise ♪

>> it's similar to starwood.e luxury but hilton has larger owned portfolio. that he will really where you're going to get the true free cash flow and growth to the up side. they both have plus and minuses. >> i didn't mean to interrupt you, rachel. jon, when blackstone took hilton private and saddled it with debt, the top of the market, you then had this crashing within the industry. there's a lot of banks attached to the ipo process in order to keep hilton and blackstone going in this process. >> i think to your point this is not going to be smooth sailing going forward. the industry fundamentals helps it a little bit given the supply/demand outlook. it's very cyclical. we're facing a nice up cycle. rates are positive going forward. the lodging industry is a very good inflation hedge as well. i think for investors, this is a solid sector to continue to own. >> okay, we'll have plenty more on this huge ipo going through today and tomorrow. for the moment, thank you both, rachel rothman and jon ohn. >> and unveili

the man who created the w hotel in now runs about 29 billion dollars at starwood capital, a private firmon private real estate and hotel and baccarat is going big with luxury accommodation in the middle of bustling midtown manhattan. >> we have a good mix of domestic and international buyers, about half and half. i think this is a great location if you are coming from offshore. your steps from fifth avenue, steps from moma. sternlight has already sold about half of the 60 residences which range from $3.6 million to $60 million. got me? >>d have you i'm very involved in places with where the outlets are. you don't have to move the and table to plug in your ipad. it's next your pillow. has spared no expense. pre-k's i don't think you could spend more money. it's not possible. don't think you could spend more money. >> h resident has a signature baccarat piece. do something as unique as these residences, they will retain and depreciated value. >> betty liu, bloomberg, new york. , we haveng of a unique the today's mystery meat -- stork. an bird is protected as endangered species so companies

steinberg also entered a plea of not guilty and wanted to prove that these starwood this is who pled guilty to their own crimes are not credible. >> su keenan, thank you very much, joining me from the newsroom with the latest on sac capital. is holding an investment symposium. to askhatzker is there larry fink about regulations. >> there is a possibility we could go to far next year with the volker rule. i will watch and see, i will not be a pessimist, but i am being pragmatic. i do think that i know more about close to markets than most. i am alarmed right now that it may be too far and it may have some unintended issues that could be impactful. also asked larry fink where he thinks the next crisis could come from. >> the next crisis, i believe, will not be coming from banks. i do not know where it will come from. maybe technology. maybe it will be cybersecurity and it will impact a lot of us, but i do not think the big crisis will be in financial services as much as some people worry about. >> he also met with the president of black rock asked about the firm's outlook. >> we think

now hot is starwood.tz is just a great manager. >> and it's a bit of a lower multiple than marriott. the thought is you'll get people who will get ahold of it and hold it, it's not going to be home for flippers. >> i agree. both are vintage buyouts. i think aramark was started in '06 and hilton was a bit after that. right before the end, right at the top of the bubble of the lbo craziness, if you will --oned hilton, too. hilton stayed alive when there was a lot of low hanging fruit to grab ahold of, now it's going to be a big win for blackstone. aramark, we'll see. >> hilton is going to raise 2.3 billion. twitter, which got an enormous amount of attention a few weeks ago raised just over 2. we'll see if it gets the requisite amount of attention. >> hilton's an institutional name. twitter is an individual name. the institutions don't own twitter. they took the profits. but individuals kiem in at that 40, 42 level while institutions were shorting it betting they were going to break it. they couldn't break i

china's a very big market for starwood.market everybody wants to grow only because that is the only market in the world where they can get footprint growth. ashley: where does the stock go do you think, this time next year. >> we're neutral on the stock here at 21.22. ashley: okay. >> we would be waiting for pullback. we would be a buyer at 20. ashley: thanks very much, ian. thanks for being here. >> appreciate it. tracy: we were talking about this earlier, sec voting in moments whether to move forward and allow cell phone calls on planes. we'll have full coverage. i know, i'm kind of against it too, i'm not sure. tweet us, what do you think? would you pay more to sit in a quiet section on a plane? tweets and fcc's vote coming up. ashley: i love you tracy but don't want you to speak on phone. tracy: i get that. >> i would be in the screaming baby section. >>> word that more mutual funds will have to buy the stock. we'll tell you why. tracy: instagram moving into the disappearing message business. is there big enough market

and the next pick is starwood hotels and it's an upscale, leisure, hotel company, strong pricing powerreat management team. my last pick is citigroup. >> citibank? citibank had a great year. [ bell ] >> twice. i'm not having to say my ideas -- >> isn't that cute that both steven and stephanie have citi as one of the top trades? >> stephanie link has been paying a lot of attention to what i'm doing, er go, she's tweeting what she likes. >> so let's talk about this pick, eaton. a great year. up 30%. why? do you like it? >> i think it's got a lot more. 2013 was all about auto and aerospace, which i still like those themes very much, right? but 2014 is going to be about nonresidential construction improvement, and i think that's 60% of the company's total revenues. they got that from the acquisition with cooper industries. cooper hasn't even begun to be synergistic just yet, so cost synergies, and revenue, and similar comparisons. >> murph, what do you think on eaton? >> when i saw it, i thought it was a safe pick. in the last quarter, they missed on revenue, and i think what you're bankin

. >> caller: my question is that with the recent hilton ipo and starwood's stock up in the 70s and -- want to know where you see hilton going? >> to 26. i had the opportunity to buy it at such a good price. i hope everyone got in it. i did my best to be able to say it's going to be a good buy. i think there's another four points, and i do believe that hilton it's not too late. this is one i would like very much. 26 would be valued the same as hot. until then, stay long or do some buying. lights, camera, profit! i think the upcoming amc entertainment ipo could be a blockbuster. i bless 23. thank you from jim cramer@jim cramer twitter for the helpful constructive comments about amc as opposed to the attacks i have been enduring all day. stay with cramer. >>> monday, kick off the trading day with squawk on the street. live from post nine at the nyse. >> i mean, come on, people, it doesn't go up every day. it just doesn't work like that. thank you. >> it all starts at 9:00 a.m. eastern. >>> it is time for the lightning round. are you ready? steve daddy, time for the lightning round. start

and i also like also in consumer, starwood hotels.u want to plan employment, will have increasing spend both from leisure travelers but also from more companies spending on corporate travel. so i like that name as well. >> and i see you're watching the financials, bill, for next year. bill? >> yeah, i think it will be interesting to see what the financials do in the upcoming year. i think with this run, you've had a couple of groups that have really outperformed, media stocks. the financials have been kind of in the middle of the pack. you look at citibank, bank of america, they're nowhere near previous highs. i think there's still more room to run. >> i think bill was taking notes on nicole's stock picks. what kid does not have a vf jacket, a north face jacket, a down coat? if you live in this part of the country, i'll guarantee you there's a north face item in your closet. you, nicole, had on that list e eaton. >> yeah, if you believe in global growth, which i do, you want exposure to industrials. eaton, in particular, is well posit

. >> caller: my question is that with the recent hilton ipo and starwood's stock up in the 70s and --ant to know where you see hilton going? >> to 26. i had the opportunity to buy it at such a good price. i hope everyone got in it. i did my best to be able to say it's going to be a good buy. i think there's another four points, and i do believe that hilton it's not too late. this is one i would like very much. 26 would be valued the same as hot. until then stay long or do many buying. lights, camera, profit! i think the upcoming amc entertainment ipo could be a blockbuster. thank you from jim cramer@jim cramer twitter for the helpful constructive comments about amc as opposed to the attacks i have been enduring all day. stay with cramer. [ male announcer ] here's a question for you: if every u.s. home replaced one light bulb with a compact fluorescent bulb, the energy saved could light how many homes? 1 million? 2 million? 3 million? the answer is... 3 million homes. by 2030, investments in energy efficiency could help americans save $300 billion each year. take the energy quiz. energ

starwood red hot, trading at levels not seen since may of 8 198.resorts higher, trading at another all-time high since its ipo in october of 2002. hot has been hot. >> final stock of the day is tiffany hold from sell. >> hardly a boost of confidence call but the reason i put this in there, a lot of things, it's a capitulation call. the analysts downgraded to tiffany to sell in march, all kinds of commentary not right on the name. throwing in the towel, admitting he was wrong about gross margins up 56% over the past year tiffany's year has been. saying hey, we were wrong on the margins and not a big boost but a capitulation. hit the fundamental and technical story of the day, blackberry. getting an upgrade today, though the target price of the analyst below the current price of the stock so take it for what it's worth. still let's welcome in ryan of shaffer's investment research on the charts, andy bush on the fundamentals. andy to you, the analyst says assets are worth between 6 and $13 billion. the current market cap of blackberry is 3 billion. im

you have more fixed assets than other big competitors, starwood and marriott.investors want to know will asset-sue a similarly light strategy? >> at the moment, 37% of the business is in the ownership that youthe 156 assets talk about. we have some iconic assets, dominated by the top 8, like the waldorf astoria. we love where we are in the cycle overall in lodging, and particularly in lodging ownership. while we are not growing that business from a new unit point assets, not buying new but we think there is a huge opportunity to continue to grow those assets of and to optimize value enhancement opportunities in some of the biggest assets. for the moment, we are very committed, because we think they're is huge growth in those acid -- there is huge growth in those assets. >> when you say value enhancement, what do you mean? >> there is an opportunity to think about the assets differently. that means potential for -- utilizings heart for timeshare opportunities, residential opportunities, and other things. >> timeshare at the waldorf? >> not necessarily. [laughter

hyatt hotels is opening to resorts, and starwood plans to up its luxury portfolio there by 50%, but onp side there is the mexico played by drug violence and crime. there are 24 murders for every 100,000 people in mexico. compare that to just 4.7 in the united states. that has toryism advocates in mexico fighting -- toryism advocates in mexico fighting to get the truth out, including the ceo of yucatÁn holidays. erica, thank you for joining us. do you feel there is a disproportionate amount of attention paid to drug violence in mexico, and is that hurting your business? >> yes. i feel that happened in the past because the previous federal government and the president had an agenda that had to do with reelected, party talking about crime every day. that got the media attention. however, the truth is that right now there is no particular warning from the u.s. government toward any areas of mexico, and the only warning that they have is near the border. is theree impression is a travel warning issued by the state department, generally speaking in mexico, but you are saying that is not true

it comes out of this pricing level, it will be more expensive than some of its big rivals, like starwood or marriott. i spoke to i.s.i., and they say this is a management premium. the c.e.o. is really a star of the industry. cory? >> all right, interesting stuff indeed. >> thank you. coming up -- shopping with bit coin, how exact zl it work? we've got a step-by-step explanation of how the digital currency is used to buy everything from plane tickets to pizza. and philanthropist howard buffett joining us with rwanda's president. we're going to talk about the challenges facing growth in africa and businesses, how to attract businesses to rwanda. plus while some debate whether the chip is 20%, i know very generous in restaurants -- >> yes. >> one person is tipping more than 1,000%. whoa. we're just getting started on this wednesday. >> you're watching "in the loop" live. this is bloomberg television streaming on your tv and your phone. i'm cory johnson. there's been a lot of hype about bit coin. with all the attention given to the virtual currency, we are celebrating the 12 davis bit coin h

we own and operate hotels while lot of global flags with grant partners like marriott, hyatt, starwoodindependent hotels like the rittenhouse hotel, depending on the market and the location of the assets, depending on the market position, that it can occupy, we look to various brands and independent executions to most squarely provide what the guest is looking for. the global brands provide great distribution networks from around the world but a smaller property like the rittenhouse steps away from rittenhouse square and already has a legendary brand and reputation. cheryl: you are doing a textiles and wellness spa center? named lead. thank you. dennis: natural gas taking near 5%. its biggest weekly drop ever. let's live to the trading pits of the cme, phil flynn. phil: this wasn't supposed to happen. the united states producing record amounts of natural gas. cold temperatures from coast to coast really put a dent in those expectations. the markets reacted, it is still stunned, the highest prices since may. normally after a bullish report, the temperatures are going to warm up a bit we

we're seeing starwood which has 20 to 40% off 3 or 400 different hotels in hawaii, at their propertyin kawai. 179. at westin in san francisco they're at 169. there is the westin in panama, outside panama city in central america. those are up to 75% off. jenna: david, do you have to arrive on a tuesday and leave like on saturday? do you have some crazy deals sometimes it is impossible to make them work. >> of course there will be fine print. you have to look, when you're doing the reservation and make sure that the availability dates are the dates that really work for you. again a lot of these promotions are, most of the city promotions tend to be available in the immediate short term through say february or march. many of the resorts, especially smaller resorts, especially independent resorts are offering special all the way until the end of next year. just, there's a resort in riviera maya, exclusive five-star luxury resort. they're offering 50% off through next year. it is important to look at seasonality issues. traveling to south america and south of the equator, there are opposi

. >> marriott starwood hotels, less shipping, less recycling, less carbon porridge.active technology. the notion of all these things helping me pick a great wine. >> the new frontier is personalization technology. it is not enough to just understand references. there has to be a low a i involved in this. so not only knows where you are with your preferences but it grows with you and with this, i have been -- i see the broader applications for this and come together with a company called wine ring and what this does is it is a platform, a technology platform. tracy: the coolest thing in the world but we have to go. it will help me pick out the best wine that suits my needs. >> absolutely. what it does, you have not only are you able to get recommendations but you are able to take your mobile device and reverse in beta form right now. tracy: when do we expected to be live? >> 2014. tracy: all part of the trend of 2014, jennifer simonetti brian. $30, not cheap. ashley: love the gadget. it is a quarter till. time for stocks as we do every 15 minutes. let's go to the stoc

in the most recent quarter starwood reported, this is how we measure rooted -- room occupancy, rose byrldwide, 5.8% in north america. do you see the trend going?% >> look at occupancy which is the first driver, industry in north america in 2007 numbers, luxury brands, tracking them 1/4 before that, the highest levels ever. occupancy in luxury brands are up over the time last year so that drives -- that is going to give us the opportunnty to see continued strength in this market and we have seen this in switzerland. that has opened full, we opened on a first of december and we run occupancy through the month of december and through the new year's end that brings energy, excitement and it brings more people wanting to build demographics. lori: more competitors wanted peace of the tie. hilton has made plans, announcing plans for the boutique business. star would and hilton head dustup, starr would suit and settles with you all, stolen confidential documents was the allegations on now this time period has expired so we can go ahead. how do you feel about a competitor coming in? >> a smart

. >> can i mention starwood, having a good day. a call on the lodging stocks today.ke 25% to 30% over the next 12 to 18 months. not able to comment yet on hilton but hilton also when i last looked having a good day. >> finally you can't talk about the market without talking about exxon. all-time high, going back to our data, back to 1951. hard to get a move on a name this large. market cap 416 billion. but that is -- that's a tear on xom. see you later on. if you're just joining us, what you missed earlier this morning. >> welcome to "squawk on the street." here's what's happened so far. >> there's a balance capacity of the fed and they're running up against that. they don't want a huge balance sheet. they want the balance sheet to return to normal and they do not plan to sell assets. this is why they need to taper and why they should have done it earlier. >> what you actually accomplished here was an ipo and a merger all at once and you get the accounting treatment so that we can write assets down once the market, which is very important. >> if they do not signify a

spli slight discount to marriott and starwood. not that big a discount. the business that's finished up this year in the next couple of weeks. in terms of, again, big capital markets year. and the continued push there for the likes of hilton from blackstone. blackstone with a lot of successful launches this year in terms of public offerings. >> been a great stock. >> blackstone is also they have been behind whether it's -- there's been a lot of public offerings of blackstone that have been coming back to the public markets and performed quite well with the stock for the company itself in this case being blackstone. >> the group has been good. cesars, you know, gaming obviously, initially a bust and then came back. they can refinance. i mean, it's been a house time for ipos. just another area that's worked although a lot of ipos, going over them this weekend, going to focus on them on the show tonight and a lot came back down and wasn't always a great thing. a period to own them and sell them. a lot of them to sell. >> all right. with that, let's get to bo