HotelNewsNow.com recaps the performances of hotel-related stocks as they are announced during each quarter. Following is the update for Sol Meliá and Sonesta International Hotels Corporation.

Sol Meliá

Sol Meliá, S.A. (MCE: SOL) announced an offering for up to €200 million (US$297 million) of senior unsecured convertible notes due in 2014. The base offering is for €150 million (US$223 million), but additional options could add €50 million (US$74 million) more to the transaction.
 
Proceeds from the offering will go toward general corporate purposes, extend the debt maturity profile of the company, diversify funding sources, and take advantage of the current market conditions for convertible bonds, the company said.

The Madrid-based company, which said the deal increases financial flexibility, intends to list the notes on the Luxembourg Stock Exchange’s MTF market.

Sonesta International Hotels Corporation

Boston, Massachusetts-based Sonesta International Hotels Corporation (NASDAQ: SNSTA) reported that its operating revenues, excluding revenues from managed and affiliated properties, dropped 11.6 percent during the third quarter to US$14.5 million from US$16.4 million a year earlier. Operating income declined to US$100,000 from US$4.4 million.

Sonesta said a “challenging” economy affected results for the quarter, and the Royal Sonesta Hotel Boston in particular saw lower demand, especially from the group and convention market segment. Fee income declined, mainly because of reductions in revenues and profits at the Sonesta Bayfront Hotel Coconut Grove in Miami, Florida, and the company’s managed properties in Egypt.

During the quarter, the company recorded a pretax gain of US$41.8 million on the dissolution of a development partnership in which the company owned a 50-percent limited-partnership interest. The partnership sold its assets, comprising the former Sonesta Beach Resort Key Biscayne in Florida during September 2009.