LOS ANGELES (Reuters) – Hotel companies and real estate firms are optimistic that deal transactions will pick up this year despite concerns about Europe’s economy and challenges in obtaining debt financing.

While a business-led economic recovery has helped lift U.S. hotel occupancy rates, development is still a soft spot as tight credit conditions have limited new-hotel builds. Still, there is a growing sense that the hotel sector has momentum and performance will continue to improve.

By Karen Jacobs and Andrea Shalal-Esa

(Reuters) – Defense contractors Lockheed Martin Corp and Raytheon Co topped estimates for fourth quarter profit, but said sales would be flat this year as they cope with cuts in defense spending.

The Pentagon, the world’s largest weapons buyer, is looking to cut defense expenditures by nearly $500 billion over the next decade. On Thursday, it disclosed a budget plan that would cut nearly 100,000 ground forces in 2013 in a bid to reach that goal.

LOS ANGELES, Jan 25 (Reuters) – Best Western, the
mid-scale hotel chain that operates in more than 100 countries,
is planning to open an upscale hotel in Haiti to cater to
business travelers.

The hotel, slated to open this summer in the Port-au-Prince
suburb of Petion-Ville, will carry the Premier label, one of two
new brands launched last year as Best Western courts higher-end
customers and looks to remake its image.

By Karen Jacobs

(Reuters) – Southwest Airlines Co (LUV.N: Quote, Profile, Research, Stock Buzz) reported a quarterly profit that topped estimates as strong passenger revenue helped blunt higher fuel costs, sending its shares up about 2 percent in Thursday morning trading.

Service cuts, fare increases and the retirement of less fuel-efficient planes have aided airline profits even as high oil costs and economic uncertainty threaten demand for flying.

By Karen Jacobs and Kyle Peterson

(Reuters) – Most U.S. airlines are poised to report profitable fourth quarters, a trend set to continue in 2012 as cost-cutting and fare hikes help the industry weather rising fuel costs and global economic uncertainty that could hamper travel demand.

Some experts are calling for 2012 margins to improve over last year as airlines focus on lowering non-fuel expenses, continue to retire less-efficient planes and keep a lid on the number of seats they sell.

By Karen Jacobs

(Reuters) – Defense contractors ITT Exelis Inc (XLS.N: Quote, Profile, Research, Stock Buzz), Harris Corp (HRS.N: Quote, Profile, Research, Stock Buzz) and Lockheed Martin Corp (LMT.N: Quote, Profile, Research, Stock Buzz) are vying for a contract expected to be awarded in June to build a data communications system for the Federal Aviation Administration’s NextGen program.

The system to be built and operated under the contract is meant to replace voice with digital data for many of the communications that take place between pilots and air traffic controllers.

By Tim Hepher and Karen Jacobs

(Reuters) – Boeing Co lost the 2011 order race by a wide margin and lagged its archrival Airbus on deliveries for the ninth year in a row, figures showed on Thursday, but it pledged to fight back in 2012 with big sales of a revamped narrowbody.

At Boeing, a 3 percent rise in total deliveries from 2010 showed the resilience of overall aircraft production, in contrast with many other sectors of the economy, but also confirmed difficulties in getting up to speed on the latest aircraft models, including the revolutionary carbon-composite 787 Dreamliner.

By Karen Jacobs

(Reuters) – Hotel deals will approach $30 billion worldwide this year, about on par with 2011, as uncertain economic conditions and fragile debt markets make buyers cautious and selective, hotel investment services firm Jones Lang LaSalle Hotels.

Banks looking to rebuild their balance sheets will be a key driver forcing sales of hotel assets this year, and mega-deals of $1 billion or more are likely to be few.

By Karen Jacobs

(Reuters) – Flying to Europe is about to get more expensive.

The continent’s highest court upheld a European Union law on Wednesday that will charge airlines for carbon emissions on flights to and from Europe, beginning January 1. .

Carriers are certain to want to pass that cost on to consumers and some industry watchers forecast airfares between the United States and Europe could rise $50 to $90.

By Karen Jacobs

(Reuters) – Flying between Europe and America is about to get more expensive.

The continent’s highest court upheld a European Union law on Wednesday that will charge airlines for carbon emissions on flights to and from Europe, beginning January 1.