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Stock update: Earnings, REIT news & more
December 17 2010

Included in this roundup of public hotel company news: InnSuites and The Marcus Corporation report earnings.

  • The Marcus Corporation reported total revenue increased by 4% during the second fiscal quarter.
  • The Vanguard Group's stake in DiamondRock and Host eclipsed 10% at both companies.
  • Home Inns and Hotel Management prices senior notes.
By Shawn A. Turner
HNN contributor updates the performance of publicly traded hotel companies each Friday. Included in this week’s update are: Ameristar Casinos, Ashford Hospitality Trust, Chatham Lodging Trust, Chesapeake Lodging Trust, DiamondRock Hospitality Company, Home Inns & Hotel Management, Host Hotels & Resorts, InnSuites Hospitality Trust, The Marcus Corporation, Pebblebrook Hotel Trust, Wynn Resorts Limited.

Baird/STR Hotel Stock Index

The Baird/STR Hotel Stock Index was at 2288.28 as of approximately 11 a.m. this morning. It closed Thursday at 2286.21.

Ameristar Casinos

Las Vegas-based Ameristar Casinos (NASDAQ: ASCA) said it is no longer considering a sale of the company. The company’s Transactions Committee, however, will continue to explore ways to increase shareholder value, Ameristar said in a statement.

Ameristar’s  stock closed Thursday at US$16.64 per share and is up 9.3% year-to-date.

Ashford Hospitality Trust

Ashford Hospitality Trust (NYSE: AHT) of Dallas has priced 7.5 million shares of stock at a price of US$9.65 per share. Proceeds will go toward repaying a portion of debt under its senior credit facility and financing future hotel investments, capital expenditures, working capital, and paying down debt.

The real estate investment trust’s stock closed Thursday at US$9.56 per share. It is up 106% year-to-date.

• Read “Ashford prices 7.5m shares.”

Chatham Lodging Trust

Palm Beach, Florida-based Chatham Lodging Trust (NYSE: CLDT) said pro forma revenue per available room at the company’s 13 hotels was up 5% for the fourth quarter through November had the company owned all the hotels for the entire period.

“We are encouraged about the industry's prospects for 2011 and beyond, due to forecasts for continued economic growth and limited new supply on the horizon,” CEO Jeffrey H. Fisher said in a statement. “Our pipeline remains strong and at pricing that is consistent with our expectations.”

The blind-pool REIT’s stock closed Thursday at US$17.18 per share and is down 16.2% year-to-date.

Chesapeake Lodging Trust

Wells Fargo has initiated coverage of Chesapeake Lodging Trust (NYSE: CHSP) at “outperform” with a valuation range of US$22-24, according to

The Annapolis, Maryland-based blind-pool REIT’s stock price closed Thursday at US$19.01 per share, up 0.1% year-to-date.

Home Inns & Hotel Management

China-based Home Inns & Hotel Management (NASDAQ: HMIN) priced US$160 million of 2% convertible senior notes due 2015. Initial purchases were granted a 30-day option to purchase up to an additional US$24 million of the notes to cover any over-allotments.

The notes will be convertible into American depositary shares. The initial conversion rate is 20.256 ADS per US$1,000 principal amount of notes, or US$49.37 per ADS. The company said the conversion rate is subject to change.

Expected net proceeds of US$154.6 million will be used to fund new business development, investments in complementary businesses and assets, acquisitions and general corporate purposes.

The company’s stock closed Thursday at US$41.71 per share and is up 18% year-to-date.

InnSuites Hospitality Trust

InnSuites Hospitality Trust reported a net loss attributable to controlling interest of US674,822 million during the third quarter, down from a loss of US$522,200.

Also, Phoenix-based InnSuites (NYSE Amex: IHT) said its plan to boost stockholders’ equity was accepted by NYSE Amex LLC and the company has until 30 March 2012 to regain compliance with listing standards.

On 30 September 2010, the company received a letter from NYSE Amex stating InnSuites was not compliant with Section 1003(a)(ii) of the NYSE Amex Company Guide because of InnSuites having stockholders’ equity of less than US$4 million.

InnSuites’ stock closed Thursday at US$1.55 per share and is up 43.5% year-to-date.

The Marcus Corporation

The Marcus Corporation (NYSE: MCS) of Milwaukee said total revenue increased by 4% during the fiscal second quarter to US$86.7 million. Net earnings were US$2.1 million, or 7 cents per share, up from a loss of US$323,000, or 1 cent per share, a year ago.

“The positive momentum in the industry and for Marcus Hotels is encouraging. However, we are not yet back to where we were prior to the recession, especially in our average daily rate,” company president Bill Otto said in a statement.

The company’s stock price closed Thursday at US$14.07 per share and is up 9.8% year-to-date.

Pebblebrook Hotel Trust

Pebblebrook Hotel Trust (NYSE: PEB) established its first quarterly dividend at 12 cents per share. The fourth quarter dividend is payable 14 January 2011 to common shareholders of record as of the close of business on 31 December 2010.

The Bethesda-based blind-pool REIT’s stock price closed Thursday at US$19.49 per share and is down 11.5% year-to-date.

Wynn Resorts Limited

JPMorgan increased the rating of Las Vegas-based Wynn Resorts Limited (NASDAQ: WYNN) to “overweight” from “neutral” and raised the 2011 price target to US$118 from US$115, according to

The company’s shares closed at US$105.59 per share Thursday, up 81.3% year-to-date.

Vanguard increases stakes

The Vanguard Group has increased its stake in hospitality companies Diamond Rock Hospitality Company (NYSE: DRH) and Host Hotels & Resorts (NYSE: HST) to more than 10%, according to Securities and Exchange Commission filings.

In Bethesda, Maryland-based DiamondRock, Vanguard’s ownership amounts to 15.5 million shares, or a 10% stake. DiamondRock’s shares closed Thursday at US$11.07 per share and are up 30.7% year-to-date.

In Bethesda-based Host, DiamondRock now owns a 10.4% stake representing 69.1 million shares. Host’s stock closed Thursday at US$16.93 per share and is up/down 45.1% year-to-date.

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