CORRECTED - CORRECTED-UPDATE 1-RESEARCH ALERT-Goldman cuts Starwood, Gaylord

(Corrects paragraph 4 to show Goldman cut its price target on Starwood's stock to $27 from $40, and not to $18 from $23)

(Changes source; adds details)

July 14 (Reuters) - Goldman Sachs downgraded Starwood Hotels & Resorts Worldwide (HOT.N) and Gaylord Entertainment (GET.N) to "sell" from "neutral," citing weak company fundamentals and negative industry outlook.

The brokerage said it was cautious on the hotels, given the fall in revenue per available room and continuing supply concerns.

Goldman also added Starwood to its conviction sell list, saying it expects fundamentals to start deteriorating in both the higher-end segments of the lodging industry, as well as international markets.

The brokerage cut its price target on Starwood's stock to $27 from $40.

Goldman also cut its price target on Gaylord to $18 from $23 and said the stock was trading at a premium and is exposed to the slowing transient travel trends.

Shares of Starwood closed at $34.16, while those of Gaylord closed at $21.59 Friday on the New York Stock Exchange. (Reporting by Santosh Nadgir in Bangalore; Editing by Amitha Rajan) (santosh.nadgir@thomsonreuters.com; within U.S +1 646 223 8780;Outside U.S +91 080 4135 5800; Reuters messaging: santosh.nadgir.reuters.com@reuters.net)