Every Friday, HotelNewsNow.com updates the performance of public hotel companies. Today’s update includes: Host Hotels & Resorts LP and Supertel Hospitality.
Baird/STR Hotel Stock Index
The Baird/STR Hotel Stock Index closed Thursday at 1897.01. It was at 1896.97 as of 10:30 a.m. EST Friday.
Host Hotels & Resorts LP
Bethesda, Maryland-based Host Hotels & Resorts (NYSE: HST) announced it priced US$300 million of its 6% senior notes due 2021. The offering is expected to close 18 November 2011.
Net proceeds are expected to be approximately US$295 million.
The company’s stock price closed Thursday at US$13.54. It is down 24.23% year to date.
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Supertel Hospitality
Real-estate investment trust Supertel Hospitality (Nasdaq: SPPR) of Norfolk, Nebraska, reported mixed results in the three key operating performance metrics during the third quarter.
The company said occupancy of the hotels in its continuing operations portfolio declined by 4.2% to 68%; average daily rate increased by 3.9% to US$53.30; and revenue per available room declined slightly by 0.5% to US$36.22.
Also, an affiliate of Argentina-based IRSA Inversiones y Representaciones Sociedad Anónima has bought a US$20-million stake in Supertel.
If the deal closes, Supertel would issue and sell 2 million shares of a newly created series of preferred stock to the IRSA affiliate, Real Estate Strategies LP.
“Our investment is a vote of confidence in the direction that Supertel has been pursuing in terms of repositioning its portfolio, improving property level management, and strengthening the company's balance sheet,” Eduardo S. Elsztain, IRSA’s chairman, said in a news release. “We expect that with this investment, Supertel will have made significant progress in its ongoing effort to optimize its capital structure to ultimately resume growth and regain the financial flexibility needed to reach its full potential.”
Supertel’s stock closed Thursday at 77 cents per share and is down 51.27% year to date.
Compiled by Shawn A. Turner.
