Stock update: Host, IHG, MGM, Red Lion
 
Stock update: Host, IHG, MGM, Red Lion
19 FEBRUARY 2010 8:53 AM

HotelNewsNow.com recaps the performances of hotel-related stocks as they are announced during each quarter. Following are the updates for Host Hotels & Resorts, InterContinental Hotels Group, MGM Mirage and Red Lion Hotels.

HotelNewsNow.com recaps the performances of hotel-related stocks as they are announced during each quarter. Following are the updates for Host Hotels & Resorts, InterContinental Hotels Group, MGM Mirage and Red Lion Hotels.

Host Hotels & Resorts

Host Hotels & Resorts (NYSE: HST) said it recorded a net loss of US$72 million during the fourth quarter, compared with income of US$111 million during the same period a year earlier. Operating performance during 2009 was affected by non-cash impairment charges during the first half of the year and a fourth quarter accrual for a potential litigation loss. These items caused earnings to fall by US$39 million.

The Bethesda, Maryland-based real estate investment trust said comparable hotel revenue per available room fell by 14.6 percent during the quarter. Funds from operations per diluted share were 18 cents per share, compared with 52 cents a year ago.

The company said that while the economy appears to be recovering, fundamentals of the hotel sector will remain under pressure. Host is anticipating a 2010 net loss of between US$207 million and US$315 million, or between 32 cents and 49 cents per share. The company did, however, say that beginning with the first quarter of 2010, it would pay a one cent per share dividend on its common stock.

InterContinental Hotels Group

InterContinental Hotels Group (NYSE: IHG) said in the Americas region, RevPAR declined 14.9 percent in 2009, with a fourth-quarter decline of 12.5 percent. Revenues declined 20 percent to US$772 million.

Global constant currency RevPAR declined 14.7 percent, with a fourth-quarter decline of 10.9 percent.
Total gross revenue from all hotels in Berkshire, England-based IHG’s system was US$16.8 billion (in 2008 US$19.1 billion).

Read, "Preliminary 2009 IHG results show 14.7-percent RevPAR decline."

MGM Mirage

Las Vegas-based MGM Mirage (NYSE: MGM) said it lost US$433.9 million during its fourth quarter and US$1.1 billion during full-year 2009. Average daily rate during the fourth quarter fell 17.8 percent to US$111 from US$135 and RevPAR was down 16.7 percent to US$95 from US$114.

Aria, the casino resort at the company’s newly opened CityCenter development in Las Vegas, earned operating income of US$7 million in 15 days of operations, but incurred depreciation and amortization of US$9 million. MGM, and its joint venture partner Infinity World, opened CityCenter in December.

For more information, read “MGM Mirage posts US$434-million 4Q loss.”

Red Lion Hotels Corporation

Red Lion Hotels Corporation (NYSE: RLH) said RevPAR fell by 7.2 percent to US$35.96 during the fourth quarter. The company recorded a net loss of US$3.1 million, down 17.7 percent from a loss of US$2.6 million in 2008.

The company said RevPAR declines should begin to “abate” during the second half of 2010. Red Lion said RevPAR for its owned and leased hotels is expected to be flat to down 3 percent during 2010.

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