Finance External Articles - Hospitality Net

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December 10, 2009

Is the recession for hotels ready to end? | djc.com | PKF

Are we there yet? Remember the days when this question referred only to the seasonal trip to the in-laws or the start of the mandatory summer vacation road trip? Today it is primarily in reference to the end of the recession. Are we there yet? By all accounts, nobody really knows and given the long-term time horizons of hotel development and ownership, it really shouldn’t matter. What matters is the direction our industry is headed, recession or not. Unfortunately, the consensus seems to think we are heading into a year that by all measures will be worse than 2009. Is that possible?

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December 10, 2009

REIT eyes IPOs to cash in on hotel woes | businessweek.com

A real estate investor hopes to raise $350 million in an initial public offering this week, eyeing acquisitions in the nation's downtrodden hotel market. Pebblebrook Hotel Trust plans to use cash from its IPO to purchase upscale hotels it believes will be available at deep discounts because of ongoing turmoil in real estate markets and in the hospitality industry. The deal is referred to as a "blank-check" IPOs, which means it doesn't have an operating business and intend to use proceeds from the IPO to make acquisitions.

businessweek.com

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December 10, 2009

Dubai Forced to Check Out of Manhattan W Hotel | nytimes.com

In a sign that Dubai World may struggle to keep its prized assets, the sovereign wealth fund’s investment unit Istithmar lost control of its W Hotel in Manhattan in a foreclosure auction on Tuesday for $2 million, after buying the property for $282 million in 2006.

New York, New York, United States

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December 8, 2009

Dubai’s Debt Problems May Swell, Morgan Stanley Says | bloomberg.com

Debt restructuring by Dubai state-run companies may almost double to $46.7 billion as more of the emirate’s businesses could need help making payments, Morgan Stanley said. Dubai Holding LLC, Dubai Holding Commercial Operations Group LLC, Borse Dubai Ltd. and Dubai Sukuk Center Ltd. may join Dubai World in restructuring debt, Morgan Stanley analysts Mohamed W. Jaber and Paolo Batori wrote in a report. Government- controlled Dubai World said last week that it’s in talks to renegotiate $26 billion of loans.

Dubai, United Arab Emirates

External Article

December 1, 2009

Lenders ready to take over Resorts Atlantic City | pressofatlanticcity.com

Merv Griffin, the celebrity CEO and “Jeopardy” game show creator, couldn’t find the answer. Sol Kerzner, of Sun International Hotels fame, got burned. Tom Barrack, once dubbed “The World’s Greatest Real Estate Investor” by Fortune magazine, faced possible foreclosure. Despite promises to the contrary, all of them failed to turn Resorts Atlantic City into a top casino during their ownership over the years. Now it’s Mr. Lender’s turn to try.

pressofatlanticcity.com

Atlantic City, United States

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December 1, 2009

Dubai World May Have to Sell Trophy Assets | wsj.com

Nearly six months into its corporate restructuring, Dubai World, this city-state's flagship conglomerate, has mostly resisted selling off its trophy case of assets, from ports around the world to luxury hotels and a vintage cruise liner. After last week's announcement from Dubai that it is requesting a delay in Dubai World debt payments, the company may have less room to avoid a sale of some of its portfolio.

Dubai, United Arab Emirates

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December 1, 2009

Dubai World heavily invested in US hotels | associatedpress

Dubai World borrowed billions of dollars to acquire some of the most high-profile commercial developments in the United States in recent years, and it could be forced to sell them at a loss if the Persian Gulf conglomerate can't restructure its debts. Dubai World said last week it would seek a six-month delay in paying creditors on nearly $60 billion it owes. The desert emirate racked up the debt during its own real estate bubble that popped with the global recession.

Associated Press

The next-gen metrics that move hotel P&L

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November 30, 2009

How Dubai's dream sank in a sea of debt | timesonline.co.uk

The emirate’s debt-fuelled spree has been exposed by the recession. Will UK banks and contractors get back their money? As he flew from Dubai to London last Sunday, Sheikh Mohammed bin Rashid al-Maktoum had plenty on his mind.In the four years since he had become ruler of Dubai, Maktoum had grown used to courting world leaders to visit and invest in his desert emirate. They admired the economic growth he had fostered as Dubai, fast running out of oil, turned itself into a tourism and finance hub.

timesonline.co.uk

Dubai, United Arab Emirates

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November 23, 2009

Hotel investors tiptoe back into buying game | bizjournals.com

Want to buy a hotel? 2010 may be just the time. Hopes for an economic turnaround are prompting some hotel investors to get back in the long-dormant acquisition game, laying the groundwork for what could prove to be an active acquisition market next year.

washington.bizjournals.com

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November 19, 2009

Chinese budget hotel chain 7 Days Group Holdings Ltd plans IPO | forbes.com

As China's travel industry heats up, 7 Days Group Holdings Ltd. hopes investors will see the promise in its public offering. The discount lodging chain, which operates more than 280 hotels throughout China, is set to debut later this week on the New York Stock Exchange.

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November 11, 2009

Spain's Sol Melia sees Q4 city bookings uptick | reuters.com

Spanish hotel chain Sol Melia (SOL.MC) forecast an improvement in fourth-quarter hotel bookings in Spanish cities, but said prices would still suffer as business and leisure travellers remain strapped for cash. "Throughout the fourth quarter, a better performance of occupancy rates is expected for Spanish cities according to current bookings, although no recovery in prices is foreseen in the coming months," Sol Melia said with nine-month results.

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November 10, 2009

InterContinental Hotels suffers as business clients don't check in | guardian.co.uk

High spending business clients have yet to return to InterContinental Hotels in any great numbers, and the shortfall is not being made up by leisure customers, judging by its latest update. The group, the world's biggest hotelier whose brands include Crowne Plaza and Holiday Inn, said third quarter revenues and operating profits had both fallen by 19%. Revenues per available room (RevPar) - a key industry measure - dropped by 15.2% in the third quarter although the decline narrowed to 13.5% in October.

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November 5, 2009

Hyatt Hotels Hopes Investors Find IPO Inviting | seekingalpha.com

Hyatt Hotels (H), a global upscale hotel operator and developer owned by the Pritzker family, is expected to go public this week. Family squabbles and corporate governance issues cloud an eagerly anticipated IPO.

seekingalpha.com

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November 3, 2009

Hotels' distress in FL could lure buyers | miamiherald.com

A year ago, the average Shore Club room took in nearly $200 a night during the slow summer travel season. This summer, the hotel barely generated $100 per room. Add in revenue from the bar and restaurants -- favorite stops for celebrities on the South Beach party circuit -- and the numbers get worse: Profits plunged 113 percent at the Shore Club this summer, a rough stretch that saw the 309-room hotel fall behind on its mortgage.

miamiherald.com

Florida, United States

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November 3, 2009

Hyatt Hotels to Test the IPO Waters | wsj.com

This week's IPO of Hyatt Hotels Corp. will be a big test for the offerings market. After investors warmed to new issues this past summer, they lately have gotten much more picky, pushing issuing prices down, as well as the prices of companies that debuted in recent months. Hyatt, the world's 10th-biggest hotel chain by number of rooms, hopes to raise as much as $988 million and will take the single-letter H ticker symbol when it debuts on the New York Stock Exchange. But the initial public offering will expose the chain's own struggles at a time when rising volatility in the stock market has made IPOs less attractive.

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October 30, 2009

Expedia Profit Rises 23% | wsj.com

Expedia Inc.'s third-quarter earnings rose 23% amid higher bookings and increases in hotel and car rental revenue. A prolonged travel slump has hurt online travel-booking companies like Expedia. The industry has been dropping booking fees to capture more business from airlines' Web sites, though the move eliminates a valuable revenue source. Major online travel agencies also have provided some price guarantees and have been offering more flight-and-hotel packages, boosting their market share, though it is unclear whether they can maintain their momentum once the economy improves.

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October 29, 2009

Hilton Debt Load Weighs on Blackstone | wsj.com

Blackstone Group LP has begun talks with lenders to cut up to $5 billion from the $20 billion debt load carried by Hilton Worldwide, as the private-equity firm seeks to protect its single biggest investment, according to people familiar with the matter.

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October 29, 2009

Checking in again: IHCL in talks with Orient Express Hotels | indiatimes.com

The Indian Hotels Company (IHCL), twice snubbed by Orient Express Hotels, is still in talks with the NYSE-listed international luxury hotel chain and plans to take its Ginger and Gateway hotel chains abroad as it continues to ramp up international presence. “We have had some very good meetings with Orient Express executives in the past. But it all depends on the right kind of business environment,” said Raymond N Bickson, MD and CEO of Indian Hotels Company, the Tata group firm that owns the Taj Hotels, Resorts & Palaces.

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October 29, 2009

Wyndham 3Q Profit Down 27%, Sees 4Q Earnings Above Views | wsj.com

Wyndham Worldwide Corp.'s (WYN) third-quarter profit decreased 27% as the company's hotel and timeshare businesses continued to suffer amid broad industry weakness. The company also expects fourth-quarter earnings of 35 cents to 38 cents a share. Analysts polled by Thomson Reuters expected 32 cents. It also reaffirmed its 2009 earnings forecast. Shares were up 1.9% to $17 in premarket trading as the third-quarter results edged forecasts. The stock has more than doubled this year.

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October 26, 2009

Morgans Hotel posts wider-than-expected Q3 loss | reuters.com

Boutique-hotel operator Morgans Hotel Group Co (MHGC.O) reported a wider-than-expected quarterly loss as cost cuts failed to offset weak revenue per available room (RevPAR). Hurt by the worldwide economic slowdown, the company also said it would not give RevPAR outlook for the year.