HotelNewsNow.com recaps the performances of hotel-related stocks as they are announced during each quarter. Following are the updates for Boyd Gaming Corporation, Home Inns & Hotel Management, LaSalle Hotel Properties, and Mandarin Oriental International.
Boyd Gaming Corporation
“The stabilizing trends we’ve noted previously continued during the fourth quarter, and we were especially encouraged by our Las Vegas Locals business, which showed sequential improvement from the third quarter,” President and CEO Kevin Smith said in a news release. “Visitation to the city continues to grow, reflecting the popularity of Las Vegas as a destination. As the economic recovery accelerates, consumer spending will increase, providing us the opportunity to capitalize on our more efficient business model.”
Net revenue for the quarter was US$384.9 million, down 8.9 percent from revenue of US$422.6 million in the same period a year ago. The company recorded full-year net revenue of US$1.6 billion, down from US$1.8 billion in 2008.
Home Inns & Hotel Management
Shanghai-based Home Inns & Hotels Management (NASDAQ: HMIN) said revenue per available room increased to RMB149 (US$21.82) from RMB141 (US$20.65). The company attributed the increase to higher occupancy, which increased to 92.9 percent from 84.1 percent during the same period a year ago.
Home Inns said its profit for the quarter was RMB68.4 million (US$10 million), down from RMB114.6 million (US$16.8 million) during the fourth quarter of 2008. For 2009, the company earned RMB 256 million (US$37.5 million) compared to RMB101.2 million (US$14.8 million) a year ago.
LaSalle Hotel Properties
LaSalle Hotel Properties (NYSE: LHO) announced its intention to sell about 5.4 million common shares at US$18.50 per share, priced 2 March, in a public offering.
Raymond James and Deutsche Bank Securities are acting as joint book-running managers for the offering. The underwriters have been granted a 30-day option to purchase up to an additional 802,500 common shares to cover overallotments, if any.
The company, based in Bethesda, Maryland, said net proceeds from the offering, expected to be about US$95 million without the overallotment, would be used to reduce amounts outstanding under its senior unsecured credit facility and under the unsecured credit facility of the company's taxable REIT subsidiary, LaSalle Hotel Lessee.
Mandarin Oriental International
Mandarin Oriental International (SIN: M04) said in its 2009 earnings release the down economy led to poor demand and “material reductions in both occupancy levels and room rates” in 2009. The company said RevPAR was down between 5 percent and 36 percent, depending on location.
Hotel revenue dropped by 18 percent to US$838.3 million from US$1 billion in 2008 for the Hamilton, Bermuda-based company.
Mandarin Oriental, however, did report a profit attributable to shareholders of US$83.3 million, up 24 percent from US$67.1 million a year ago. The company said the increase is attributable to the gain on its sale of the company 50-percent interest in the Macau hotel. The sale resulted in a US$81-million gain for Mandarin Oriental.