HotelNewsNow.com updates the performance of publicly traded hotel companies each Friday. Included in this week’s update are: Ashford Hospitality Trust; Chatham Lodging Trust; China Lodging Group Limited; Hospitality Properties Trust; InnSuites Hospitality Trust; InterContinental Hotels Group; Sol Melia; and Supertel Hospitality.
Baird/STR Hotel Stock Index
The Baird/STR Hotel Stock Index closed Thursday at 2293.05. It was at 2276.39 as of 10:30 a.m. (eastern) this morning.
Also, the index ended April up 2.7% to 2,356. Year-to-date, the index is down 0.3%.
“The Hotel Stock Index was back in positive territory in April after a decrease in March, and that’s a good sign for the industry as summer approaches,” Randy Smith, chairman and cofounder of STR, said in a news release. “It appears as though investors are happy with where the industry fundamentals stand. We project for a solid summer season ahead for the U.S. hotel market, which should be good news for those investors who are bullish on the sector.”
• Read “Baird/STR Hotel Stock Index up 2.7% in April.”
Ashford Hospitality Trust
Ashford Hospitality Trust (NYSE: AHT) of Irving, Texas, provided some additional color around its recent investment in the portfolio of hotels that was previously owned by Highland Hospitality.
During the company’s earnings call, CEO Monty Bennett said the portfolio posted revenue-per-available-room growth of 5% during the quarter, less than the real-estate investment trust’s core portfolio. In its first-quarter earnings report, Ashford said revenue per available room for all hotels included in continuing operations increased by 7.56% to US$92.20. Ashford has a portfolio of 97 hotels and more than 26,000 rooms.
The REIT’s stock is up 34.61% year to date, closing Thursday at US$12.99 per share.
• Read “Ashford talks Highland investment.”
Chatham Lodging Trust
Palm Beach, Florida-based Chatham Lodging Trust had an acquisition of its own to discuss, too, during its earnings call this week. The REIT said the pickup of 69 hotels formerly under the umbrella of Innkeepers USA Trust are primed for growth.
“We are very, very positive about where these hotels ought to trend as we move forward,” Chatham’s president and CEO Jeffrey H. Fisher said. He added, “I think the deal is truly transforming for our company.”
Fisher was unable to give performance numbers for the hotels.
Chatham’s stock closed Thursday at US$17 per share, down 1.45% year to date.
China Lodging Group Limited
Shanghai-based China Lodging Group (Nasdaq: HTHT) reported a 1.3% gain in ADR during the first quarter. Occupancy, however, declined to 82% from 93%, and RevPAR for hotels open at least 18 months dropped 2.4%.
The company’s stock price closed Thursday at US$20.81 per share, down 4.45% for the year.
• Read “China Lodging Group reports Q1 financial results.”
Hospitality Properties Trust
Newton, Massachusetts-based Hospitality Properties Trust (NYSE: HPT) said ADR, occupancy and RevPAR were all up during the first quarter.
ADR increased by 2.1% to US$93.55, occupancy was up 5.3% to 67.6%, and RevPAR increased by 7.5% to US$63.24.
Year to date, the company’s stock price is up 6.12% to US$24.45 per share.
InnSuites Hospitality Trust
In reporting full-year 2011 results, InnSuites Hospitality Trust (NYSE AMEX: IHT) said its net loss widened to US$2 million, from US$1.06 million in 2010. Revenues also fell by 7.1% to US$15.7 million.
The company’s stock price closed Thursday at US$1.58 per share, up 3.4% year to date.
InterContinental Hotels Group
United Kingdom-based InterContinental Hotels Group (NYSE: IHG) said year-over-year revenue increased 9% under constant exchange rates to US$396 million during the first quarter.
“We delivered a strong set of results in the first quarter. Global (RevPAR) grew 6.9%, with 18.8% growth in Greater China and 8.4% in the U.S., the highest growth in the U.S. since the second quarter 2006. Underlying revenue growth of 6% was converted to 23% operating profit growth, reflecting good use of our scale and the efficiency of our business model,” CEO Andrew Cosslett said in a news release.
He added, “Our strategy to free up capital to drive growth for our brands is on track. Post quarter end we sold two hotels in the U.S., with proceeds substantially above book value. We have recently committed to enter into a joint venture with Duet Hotels to take Holiday Inn Express into India, developing 19 new hotels by 2016.”
IHG’s (www.ihgplc.com) stock price closed Thursday at US$21.42 per share, up 8.57% year to date.
• Read “IHG reports 6.9% global RevPAR growth in Q1.”
Palma, Spain-based Sol Meliá said first-quarter RevPAR was up 11.5%. It attributed the increase to its Latin America hotels. Average rate increased by 4.1%.
Also, the company said its development plans continue, with new rooms to be added now representing 11% of the portfolio.
Supertel Hospitality (Nasdaq: SPPR) reported slight increases in the key metrics of RevPAR, ADR and occupancy during the first quarter.
The Norfolk, Nebraska-based REIT said same store RevPAR increased to US$25.95 from US$25.39, ADR was up to US$46.58 from US$45.65, and occupancy ticked upward to 55.7% from 55.6%.
The company’s stock price closed Thursday at US$1.36 per share, down 13.92% year to date.