HotelNewsNow.com updates the performance of publicly traded hotel companies each Friday. Included in this week’s update are: Boyd Gaming Corporation; China Lodging Group Limited; FelCor Lodging Trust; Home Inns & Hotel Management; Hospitality Properties Trust; Hyatt Hotels Corporation; LaSalle Hotel Properties; Strategic Hotels & Resorts; Vail Resorts; and Wyndham Worldwide Corporation.
Baird/STR Hotel Stock Index
The Baird/STR Hotel Stock Index closed Thursday at 2295.12. It was at 2277.11 as of 10 a.m. (eastern time) today.
R.W. Baird has issued ratings updates on two hotel companies:
- upgraded to “Outperform” the stock of Hospitality Properties Trust (NYSE: HPT). “Disposing of lower-quality assets and reworking lease agreements appear to provide upside potential to our estimates,” analyst David Loeb said in a research note.
- upgraded to “Outperform” the stock of Hyatt Hotels Corporation (NYSE: H). “While shares have been under pressure lately, we believe added liquidity is likely to benefit shareholders over the long run,” Loeb said.
Newton, Massachusetts-based Hospitality Properties’ stock closed Thursday at US$22.73 per share and is down 1.4% year-to-date. And Chicago-based Hyatt’s stock closed Thursday at US$44.74 per share, down 2.2% year-to-date.
Boyd Gaming Corporation
Goldman Sachs downgraded the stock of Las Vegas-based Boyd Gaming Corporation (NYSE: BYD) to “sell” from “neutral,” according to MBPE Capital.
The company’s stock closed Thursday at US$9.50 per share and is down 10.4% year-to-date.
China Lodging Group Limited
China Lodging Group Limited (NASDAQ: HTHT) said fourth-quarter net revenues grew by 38% to US$68.5 million. Net income attributable to the company was US$5.3 million, up 76%.
The company’s stock price closed Thursday at US$19.45, down 10.7% year-to-date.
FelCor Lodging Trust
Irving, Texas-based FelCor Lodging Trust (NYSE: FCH) said it has established a US$225-million secured line of credit with a group of seven banks. The lead arrangers are JP Morgan and Bank of America Merrill Lynch.
The credit line bears interest at LIBOR (no floor) plus 450 basis points and matures in August 2014 (the company has a one-year option to extend to 2015, subject to certain conditions).
Also, at closing, FelCor announced it used funds from the new line of credit and cash on hand to repay two secured loans totaling US$198.3 million and US$29 million.
The company’s stock closed Thursday at US$6.77 per share, down 3.8% year-to-date.
Home Inns & Hotel Management
Shanghai-based Home Inns & Hotel Management (NASDAQ: HMIN) said fourth-quarter revenue increased by 14.2% year-over-year to RMB797.9 million (US$120.9 million), which was at the low end of the company’s guidance of RMB795 million to RMB815 million (US$120.9 million to US$123.9 million).
Net income was RMB34.5 million (US$5.2 million), down from RMB70 million (US$10.6 million) a year ago.
Home Inns’ stock price closed Thursday at US$40.17 per share and is down 1.9% year-to-date.
LaSalle Hotel Properties
Bethesda, Maryland-based LaSalle Hotel Properties (NYSE: LHO) is planning a common share offering worth up to US$250 million.
LaSalle said it intends to use the net proceeds to reduce secured and unsecured debt, including amounts outstanding under its US$450-million senior unsecured credit facility and under the US$25-million unsecured credit facility of its taxable REIT subsidiary, LaSalle Hotel Lessee, for future acquisitions, for development activities, to repurchase preferred shares and for working capital and other general corporate purposes.
The REIT’s stock closed Thursday at US$26 per share, down 1.5% year-to-date.
Strategic Hotels & Resorts
Bank of America Merrill Lynch has initiated coverage of Strategic Hotels & Resorts (NYSE: BEE) at “buy,” according to a report from American Banking & Market News.
Also, Wells Fargo analysts upgraded the stock to “outperform” from “market perform.”
Chicago-based Strategic’s stock closed trading on Thursday at US$5.98. Year-to-date, it is up 13%.
Vail Resorts (NYSE: MTN) of Broomfield, Colorado, said fiscal second net income attributable to the company was US$54.6 million, up 34.1%.
"We are pleased with our performance in the second quarter of fiscal 2011, which was enhanced by an improving economy, better snow conditions, including more terrain open earlier in the season, as well as price increases supported by outstanding guest service across all of our resorts, also benefiting from many of the strategic initiatives and investments that the Company has made over the past few years,” CEO Robert Katz said in a statement.
The company’s stock price closed Thursday at US$48.61, an increase of 6.6% year-to-date.
Wyndham Worldwide Corporation
Wyndham Worldwide Corporation (NYSE: WYN) said US$91,215,000 in aggregate principal amount of its 3.50% Convertible Notes due 2012 were tendered as part of the company’s cash tender offer. The amount represents 78.8% of the aggregate principal amount outstanding of Convertible Notes.