HotelNewsNow.com updates the performance of public hotel companies on Friday. Today’s roundup includes: Chesapeake Lodging Trust; Gaylord Entertainment Company; and Wyndham Worldwide Corporation.
Baird/STR Hotel Stock Index
The Baird/STR Hotel Stock Index closed Thursday at 2322.85. It was at 2308 as of 10 a.m. eastern Friday.
Chesapeake Lodging Trust
Annapolis, Maryland-based Chesapeake Lodging Trust (NYSE: CHSP) said fourth-quarter pro forma revenue per available room increased by 8.3% over the same period a year earlier.
“2011 was an exceptional year for Chesapeake on various fronts,” James L. Francis, the company’s president, CEO and trustee, said in a news release. “We more than doubled the size of our high-quality hotel portfolio by capitalizing on attractive acquisition opportunities, added further flexibility to our revolving credit facility and took advantage of the attractive interest rate environment, and delivered strong operating results.”
The real-estate investment trust’s stock closed Thursday at US$17.58 per share and is up 13.71% year to date.
Gaylord Entertainment Company
A decline in advance group roomnights booked during the fourth quarter isn’t necessarily worrying executives at Nashville, Tennessee-based Gaylord Entertainment Company (NYSE: GET). Rather, they see it as evidence the company’s newfound pricing strategy is working.
Gross advance group bookings during the fourth quarter of 2011 for Gaylord Hotels were down 5% to 734,586 roomnights.
Gaylord previously said the company would be more aggressive in pricing rooms around high-demand times. During a conference call with analysts Tuesday, Colin V. Reed, chairman and CEO of Gaylord, said the strategy might have priced out some potential buyers.
That said, the company remains comfortable with the new strategy, Reed said.
“We’ve locked in higher prices,” he said during the call, which also was webcast. “We are booking business in the (future) periods.”
Gaylord’s stock closed at US$29.91 on Thursday. The stock is up 23.9% year to date.
Wyndham Worldwide Corporation
Wyndham Hotel Group (NYSE: WYN) reported fourth quarter hotel revenue gains above forecasts—RevPAR was up 5% over the same timeframe last year—and company executives partly attributed the boost to gains in online demand.
Wyndham nearly has completed a rollout of new brand websites across the board and made concerted efforts in 2011 to drive more direct traffic, said Wyndham Worldwide Chairman and CEO Stephen Holmes on an investor relations call.
“Online bookings are a growing portion of traffic; they provide over one-third of global hotel and lodging industry revenue,” he said. “Travelers are spending an increasing amount of time shopping and comparing options, often visiting eight to 15 websites. Our goal is to capture that traffic and ensure page views become bookings.”
Wyndham Hotel Group’s revenue climbed 15% in the fourth quarter to US$188 million, which was helped by the October opening of the Wyndham Grand Orlando Resort Bonnet Creek in Orlando, Florida, Wyndham’s first owned hotel. A third factor in RevPAR gains was the fact that Wyndham added more upper-tier hotels to its system in 2011 as compared to its economy brands.
Wyndham’s stock price closed Thursday at US$44.27 per share and is up 17% year to date.
Compiled by Shawn A. Turner.