Blackstone Agrees to $4.8 Billion LaSalle Hotel Deal - Bloomberg.com
Blackstone's checking out of Hilton and into LaSalle.
External Articles
70 Million To Develop Quebec Tourism | tourism-review.com
Quebec has announced a 70-million-dollar tourism investment to be used over a three year period in order to “diversify, enrich, and develop” Quebec tourism offer. This news pleased especially the owners of ski resorts in Quebec. For most of them, the modernization of facilities and equipment is at the top of their priority list.
The money will be invested in the form of subsidies, “to support and help to materialize Quebec tourism projects, for a total of 300 million dollars”, Julie Boutlet, the Minister responsible for the project indicated, during a press conference.
Successful Hilton Worldwide IPO would be a Blackstone landmark - ft.com
In one of the largest buyouts of all time, Blackstone Group acquired Hilton Hotels in the heady days of 2007 for $26bn including debt. It sought to give the hotel company a new lease of life, and part of the private equity group’s task was to restore the Waldorf Astoria’s original grandeur. Now after six years under Blackstone ownership, the company – renamed Hilton Worldwide – is set to go public within weeks. Seeking at least $1.25bn, the offering would be the highest amount raised for a US hotel company and would move the buyout firm closer to realising the profits from its biggest single investment.
Lenders Checking In? Hoteliers Say Construction Lending Is Reviving | wsj.com
With the U.S. hotel industry nearly fully recovered from the recession, are lenders finally ready to revive the long-dormant construction industry for hotels? Some hoteliers speaking at an industry conference this week in Los Angeles said that construction lending has come back, and a wave of new hotel openings will result in the coming years. Others, however, cautioned that underwriting standards remain stricter than during the boom, and lenders mostly are focusing their attention on the best projects, markets and developers.
Hotel giant Blackstone plots a future for Hilton — with billions in backup | skift.com
In 2009, when Blackstone relocated Hilton Worldwide’s headquarters from Beverly Hills to McLean, Virginia, on the outskirts of Washington, D.C., it was much more than a change of scenery and address. Acquired by Blackstone for nearly $27 billion a couple of years earlier, Hilton had been languishing, falling behind better-positioned chains such as Marriott and InterContinental, and was in dire need of a dramatic change in management culture from a laid-back California style to a more professional and analytic approach.
Marriott sees soft demand in North America | businessweek.com
Marriott's Chief Financial Officer Carl Berquist says business is picking up overseas but that demand in North America is less than expected and the hotel operator believes revenue per available room will come in at the low end of its guidance. Marriott's stock fell 5 percent Monday, or $1.82, to $35.84 in early trading.
Starwood Hotels moves to 3Q loss | AP
Starwood Hotels & Resorts Worldwide Inc. lost money in its third quarter, dragged down by a hefty charge tied to a hotel sale. Adjusted results topped Wall Street's expectations as occupancy improved. The owner of Sheraton, Westin and other brands also raised its 2010 earnings outlook Thursday. Starwood reported a net loss of $6 million, or 3 cents per share, compared with net income of $40 million, or 22 cents per share, a year ago.
Choice Hotels 2Q Profit Climbs 5.9%, Raises Low End Of Yr View | wsj.com
Choice Hotels International Inc.'s (CHH) second-quarter profit jumped 5.9% as the hotel-chain operator's revenue increased more than expected. Corporate travel and overseas demand have helped strengthen the hotel industry as a whole, but Choice Hotels--whose strongest presence is in the U.S.--had been lagging as domestic recovery has been slower than abroad.
Innkeepers USA Prepares Bankruptcy Filing | wsj.com
Innkeepers USA Trust, a real-estate investment trust that owns more than 70 midmarket hotels, is preparing to file for Chapter 11 bankruptcy protection in the coming days, said people familiar with the matter. Innkeepers could file for bankruptcy as soon as Monday, two of these people said, though the exact timing remained in flux. The hotel company, laboring under more than $1 billion in debt, holds interests in 73 extended-stay hotels and other properties operated under brands such as Hampton Inns, Courtyard by Marriott and Embassy Suites. The hotels are spread across 19 states and Washington, D.C.
Consortium in $4bn deal for Extended Stay | ft.com
A Centerbridge-led consortium, which includes Blackstone and funds controlled by John Paulson, has agreed to pay $3.93bn for the bankrupt hotel chain Extended Stay Hotels, following a heated auction that ended early yesterday morning. Blackstone, the private equity firm, has owned the group before. It bought Extended Stay in 2004 for $2bn and $1bn in debt. It then sold the chain for $8bn to Lightstone Group at the peak of the market in April, 2007.
Barron's: It's Time to Check Out of Hotel Stocks | barrons.com
Hotel chains like Starwood and Host Hotels will book more business as the economy revives. But their stocks reflect a bit too much optimism. Hotel profits are highly sensitive to modest changes in occupancy levels and room rates. As they say in the industry, room rates change overnight, allowing hotel operators to benefit quickly from an economic upturn, like the one that's apparently under way in the U.S. Hotel stocks, however, look overpriced because the industry is only starting to come out of one of its deepest slumps in decades. ...
W Hotel Boston developer says it is bankrupt | boston.com
Just months after opening a 28-story tower in downtown Boston, the owner of the upscale W Boston Hotel and Residences filed for bankruptcy protection yesterday, a stunning financial breakdown for a developer that labored for more than a decade, only to open as the hotel market plummeted and condo sales still had not picked up.
Starwood Hotels 1Q Profit Soars On 2009 Charges; View Raised | wsj.com
Starwood Hotels & Resorts Worldwide Inc.'s (HOT) first-quarter earnings soared on prior-year charges as the lodging company saw demand continue to strengthen, though timeshare revenue declined. The results smashed analysts' expectations and the company forecast second-quarter earnings of 21 cents to 25 cents a share. Analysts polled by Thomson Reuters projected 19 cents. The year's target was raised by 25 cents to 88 cents a share as the growth forecast for revenue per available room was increased to 5% to 8% from February's boosted estimate of flat to up 5%.
Wyndham 1Q Profit Up 11% On Fewer Charges; Outlook Upbeat | wsj.com
Wyndham Worldwide Corp.'s (WYN) first-quarter earnings rose 11% on fewer charges as the lodging company reported stronger timeshare revenue and got a boost from favorable exchange rates. Results topped expectations and the company projected second-quarter earnings of 38 cents to 42 cents a share, while analysts polled by Thomson Reuters recently expected 37 cents. In addition, it raised its 2010 adjusted earnings projection to $1.56 to $1.71 a share from $1.48 to $1.69 while raising the low end of its revenue view.
Hotel REITs: Hot Deal or Suckers' Bet? | time.com
Lodging real estate investment trusts (REITs) have been on a tear, generating total returns, including dividends, of about 25% so far this year. But the group's high-speed run may soon hit a road bump — or even a blowout — as money managers increasingly believe the rally is premature and that a significant rebound in the hotel business is still more than a year away.
Extended Stay creditors may block buyout | reuters.com
Creditors of bankrupt hotel chain Extended Stay America ESAIN.UL may block a buyout proposal submitted by private equity firm Starwood Capital Group, the New York Post said, citing a source close to the situation.
Starwood Capital Acquires Extended Stay For US$905m | wsj.com
Barry Sternlicht, best known for founding boutique W Hotels, has persuaded Extended Stay Inc. to back his bid to take the midpriced hotel chain out of bankruptcy-court protection. Earlier this month, Extended Stay had accepted a reorganization plan proposed by two investment firms, Centerbridge Partners LP and Paulson & Co. But the chain's board has switched support to the plan of a group led by Mr. Sternlicht's Starwood Capital Group. Mr. Sternlicht's effort is far from a done deal. He could still be outbid, and he will need the bankruptcy-court judge's approval. But a victory would end the largest hotel-bankruptcy case ever and one of the most dramatic commercial-real-estate collapses of the recession.
No friends of Blackstone | cnn.com
Once again The Blackstone Group is at the center of a headline-grabbing controversy. After the tragic death of SeaWorld trainer Dawn Brancheau last week, Hollywood's animal rights advocates grabbed the moment to criticize the attraction's new owner. Private-equity giant Blackstone bought SeaWorld and nine other theme parks from Anheuser-Busch InBev for $2.3 billion last October.
Hyatt's Loss Narrows | wsj.com
Hyatt Hotels Corp.'s fourth-quarter loss narrowed sharply because of bigger write-downs a year earlier, as the upscale hotelier's core operations nearly swung to a profit. Fresh off its November initial public offering, Hyatt said it was starting to see year-over-year increases in occupancy in a number of markets globally, but warned about mixed signs of economic recovery in the U.S. Chief Executive Mark S. Hoplamazian said Hyatt's full-service hotels continue to face rate pressure.
Gaylord posts Q4 loss, sees better 2010 | reuters.com
Hotel operator Gaylord Entertainment Co (GET.N) posted a fourth-quarter loss, weighed down by charges, but the company said revenue per available room could break into positive territory in 2010. For the full year it expects revenue per available room, or revPAR, to range from a decline of 2 percent to an increase of 1 percent, while total revPAR is expected to range from a 1 percent decline to a 2 percent rise. Total revPAR includes outside-the-room offerings.