HotelNewsNow.com recaps hotel-related financial news each week. Following is the update for: Choice Hotels International, DiamondRock Hospitality, InterContinental Hotels Group, Las Vegas Sands Corporation, Sol Meliá, Wyndham Worldwide Corporation and Wynn Resorts Limited.
The Baird/STR Hotel Stock Index was at 1931.22 as of 10 a.m. this morning. It closed Thursday at 1972.92.
Choice Hotels International
Choice Hotels International (NYSE: CHH) of Silver Spring, Maryland, released positive second quarter results in year-over-year comparisons. Adjusted diluted earnings per share for the second quarter 2010 were US$0.45 compared to US$0.44 for the same period of the prior year. Diluted EPS were US$0.45 for second quarter 2010 compared to US$0.42 for second quarter 2009.
Domestic system-wide revenue per available room increased 0.3% for the second quarter of 2010 compared to the same period of 2009 as occupancy rate increases of 130 basis points were partially offset by a 2.2% decline in average daily rates.
DiamondRock Hospitality
Bethesda, Maryland-based DiamondRock Hospitality (NYSE: DRH) said second-quarter revenue increased by 5.3% to US$151.2 million from US$143.6 million a year ago. Still, net income declined by 68% to US$839,000, largely because of income tax expense of US$3.1 million.
The company expects RevPAR growth of 2% to 4%.
Intercontinental Hotels Group
The Barclay brothers have sold their 10% stake in InterContinental Hotels Group (NYSE: IHG) for approximately £335 million (US$520 million), according to Bloomberg. Barclays Capital, controlled by David and Frederick Barclay, sold 30 million shares of United Kingdom-based IHG.
In an e-mail to HotelNewsNow.com, Simon French, a leisure research analyst at Panmure Gordon & Company in London, said: “The Barclay brothers selling their stake does remove some long-standing takeover speculation that has surrounded the stock but will likely have brought additional institutional shareholders on to the share register; demand for hotel stocks continues to be strong, particularly those with US exposure given improving occupancies and stabilising room rates.”
IHG’s stock closed Thursday at US$17.41 per share, up 3.6% during the preceding five days.
Las Vegas Sands Corporation
Las Vegas Sands Corporation (NYSE: LVS) said second-quarter net revenue increased by 50.6% to US$1.6 billion. Adjusted net income jumped to US$129.3 million, from US$8.8 million a year ago.
"We are pleased to report that we delivered record revenues and adjusted property EBITDA during the second quarter of 2010,” chairman and CEO Sheldon G. Anderson said in a news release. “Strong revenue growth, increases in operational efficiency and robust operating margins at Marina Bay Sands in Singapore all contributed to substantial margin expansion and a record financial performance overall.”
Sol Meliá
Sol Meliá (MCE: SOL) said it earned a profit of €13.5 million (US$17.6 million) during the first half compared to €1.2 million (US$1.6 million) a year ago. Revenue increased to €581 million (US$756.1 million), a 6.6% increase.
The Spanish company reported RevPAR growth of 11.9% during the second quarter. In issuing guidance, the company said it expects occupancy and RevPAR to continue to climb during the summer months.
Wyndham Worldwide Corporation
Parsippany, New Jersey-based Wyndham Worldwide Corporation (NYSE: WYN) beat previous second-quarter earnings estimates, according to results for the three months ended 30 June 2010.
Second quarter 2010 diluted earnings per share was US$0.51, compared with company-issued guidance of US$0.38 to US$0.42 and US$0.39 in the second quarter of 2009.
In constant currency, second quarter 2010 system-wide RevPAR decreased 1.2%. Including the impact of foreign currency, system-wide RevPAR remained flat in the second quarter of 2010. Second quarter 2010 adjusted EBITDA was US$50 million, consistent with 2009.
