“Extended-stay hotels plan to stick around awhile” plus 3 more |
- Extended-stay hotels plan to stick around awhile
- Access Hotels & Resorts Showcases Distinctive Lodging Innovation with its Latest Premier Resort
- Access Hotels & Resorts Showcases Distinctive Lodging Innovation with its Latest Premier Resort
- Chesapeake Lodging Trust Reports First Quarter Results
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| Extended-stay hotels plan to stick around awhile Posted: 05 May 2010 12:36 PM PDT Hotelier Matthew Newton caters to the domestically displaced. And that has helped him, and other like-minded innkeepers, weather economic upheaval.
Four of the five properties owned by Carrollton-based Magnolia Lodging LLC, where Newton is president, are extended-stay hotels. That's a rapidly growing hotel segment based on the proposition that, even during a recession, kitchen pipes burst and workers start new jobs. In the key measures of hotel occupancy and revenue per available room, local extended-stay hotels fared better than the market as a whole in 2009, according to Smith Travel Research. Cautiously optimistic that the worst of the recession is over, Newton and other operators must now wean recession-weary consumers from the discounted rates they've enjoyed, even as the supply of extended-stay hotels expands. "The rates have dropped to a level where the hotel is not very profitable, and that's across the industry," said Newton, 41. "We're doing OK, but the profits have been dramatically hit." The extended-stay category – featuring apartment-like hotel rooms with kitchens and full-size appliances – has been around since at least 1975, when the first Residence Inn opened in Wichita, Kan. Marriott International Inc. bought the brand in 1987. With more than 600 locations, it remains one of largest chains in the nearly $6 billion extended-stay market. Occupancy rates at extended-stay hotels in Dallas-Fort Worth fell 0.4 percent in 2008 to 69.9 percent, and dropped to 62 percent last year, down 11.4 percent, according to Smith Travel Research. By comparison, D-FW occupancy rates industrywide fell by 3.1 percent to 59.9 percent in 2008 and shed an additional 13.2 percent in 2009 to end the year at 52 percent occupancy. Because extended-stay hotels tend to be smaller than full-service hotels and don't have banquet facilities, revenue is typically less. Last year, 147 full-service hotels in Dallas-Fort Worth averaged more than $5 million in room revenue alone, according to Smith Travel Research. That compared with an average of $1.6 million for 122 extended-stay hotels, which tend to charge less per room than full-service hotels.
First timers
Thanks largely to the sluggish economy, local rates at extended-stay hotels dropped 6.6 percent to $62.51 on average last year, and by 7.4 percent to $86.85 industrywide, according to Smith Travel Research. Larger rooms and smaller prices have drawn more first timers to extended-stay hotels. "Whereas the business traveler might not have been traveling as much ... the leisure travelers were capitalizing on that value," said Jeff Flaherty, spokesman for Marriott, which also operates TownePlace, an extended-stay chain. One recent afternoon, Newton showed off a Homewood Suites by Hilton in Allen that Magnolia built and opened in February. It's the fourth extended-stay hotel opened by Magnolia – a family-owned business launched in 1997 as an offshoot of a hotel management business owned by artist and art collector Jay Shinn. He's chief executive and Newton's uncle. The other investors are Newton's parents, Sarah and Wayne Newton. Sarah Newton is Shinn's sister. Wayne is "great at building hotels," Newton said, but is no singer and no relation to the Las Vegas entertainer. Breakfast daily and dinner Monday through Thursday are included in room rates that can go for $99 a night for a studio to $199 a night for a two-bedroom, two-bath room suite. At least half the guests that fill the Allen hotel's 114 rooms stay more than five nights, Newton said. They come for training, nearby construction jobs or to be near a hospitalized relative. Some, like Colorado resident Cyndy Zemlak, are in transition. Zemlak, her husband, Kyle, and their two daughters are moving from Denver to North Texas, where Kyle has found work in the oil business. She was in town recently to check on the progress of the family's under-construction home in Frisco, which is to be completed in August. "I've been here almost two weeks now," said Zemlak, 45, pausing between bites of steamed vegetables and garlic and herb Tilapia in the hotel dining room of the Allen hotel. With two teenagers to feed and no desire to cook, she said she appreciated the meal service included in the room price. "If the house isn't finished, we'll come here. They have breakfast, dinner and maid service."
Adding brands
The growing appeal of extended-stay hotels is attracting new franchised outlets in existing brands and new brands. Homewood has 15 locations in North Texas – its largest market. Three more are slated to open by the end of next year. Hilton plans to open one of its lower-priced Home2 extended-stay hotels in fall 2011.
Starwood Hotels and Resorts Worldwide Inc. launched its Element line in 2008. And Candlewood Suites, an extended-stay chain that's part of InterContinental Hotels Group PLC, will open a hotel in Weatherford in June. Even with the recession's stranglehold on financing, the supply of extended-stay rooms in Dallas-Fort Worth increased by nearly 6 percent in 2008 and 3 percent last year, according to Smith Travel Research. Local growth was slower than the national pace, but the increase was still significant, said Jan Freitag, vice president of Smith Travel. The narrower drop in extended-stay occupancy rates during the recession, compared with the market as a whole, "is certainly a good thing that should allow you to increase your rates faster as the economy comes back," he said. Newton said he thinks rates won't head north until next year, but he said if hotels are to survive, they'll have to edge up.
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| Access Hotels & Resorts Showcases Distinctive Lodging Innovation with its Latest Premier Resort Posted: 05 May 2010 07:54 AM PDT | The Palace at Playa Grande, Dominican Republic Touts Access' Focus on Exemplary Property Branding Irving, TX (PRWEB) May 5, 2010 -- Access Hotels & Resorts expands its distinctive and innovative lodging reputation with the recent opening of its latest premier resort, The Palace at Playa Grande, located on the northern coast of Rio San Juan, Dominican Republic. The Palace truly exemplifies Access' focus on creating independent brand concepts tailored to each property's unique attributes and ownership expectations. As a distinct destination, The Palace embraces noble grandeur, elegance, and refinement. Long considered the "perfect" hideaway for celebrities, the resort has acres of tropical gardens, shimmering ocean and golden sands along a 1000 foot private seasonal beach. Moreover, this unique resort offers guests serene, exclusive and personalized experiences that are unparalleled in luxury and service. Access boasts a diverse portfolio of properties, with a primary focus on luxury and upscale independent assets. Along with The Palace, other Access properties include The Wilshire Hotel, Los Angeles; Woodcliff Hotel and Spa and The Brookwood Inn, Rochester, New York; The Allegria Hotel and Spa, New York; among other noted locations. The company is led by three distinguished industry veterans with more than sixty years of combined experience. The executive team manages its properties with hands-on execution and attention. As Access continues to expand its presence, the company pledges to be disciplined in its growth to ensure the continued provision of senior-management attention to every hotel it serves. "With our corporate backgrounds and experiences with virtually every type of hotel and brand, our goal is to continually help and improve asset value for our hotel property owners," said Tom Baker, managing principal and chief executive officer, Access Hotels & Resorts. "We are dedicated in helping our owners maximize the value of their assets, while delivering a quality experience for our guests." "Our mission is unique, particularly with a one-of-a-kind luxury property such as The Palace," added Baker. ABOUT ACCESS HOTELS & RESORTS # # # Post Comment: Bookmark - Del.icio.us | Furl It | Technorati | Ask | MyWeb | Propeller | Live Bookmarks | Newsvine | TailRank | Reddit | Slashdot | Digg | Stumbleupon | Google Bookmarks | Sphere | Blink It | Spurl | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Access Hotels & Resorts Showcases Distinctive Lodging Innovation with its Latest Premier Resort Posted: 05 May 2010 06:00 AM PDT The Palace at Playa Grande, Dominican Republic Touts Access' Focus on Exemplary Property Branding (PRWEB) May 5, 2010 -- Access Hotels & Resorts expands its distinctive and innovative lodging reputation with the recent opening of its latest premier resort, The Palace at Playa Grande, located on the northern coast of Rio San Juan, Dominican Republic. The Palace truly exemplifies Access' focus on creating independent brand concepts tailored to each property's unique attributes and ownership expectations. As a distinct destination, The Palace embraces noble grandeur, elegance, and refinement. Long considered the "perfect" hideaway for celebrities, the resort has acres of tropical gardens, shimmering ocean and golden sands along a 1000 foot private seasonal beach. Moreover, this unique resort offers guests serene, exclusive and personalized experiences that are unparalleled in luxury and service. Access boasts a diverse portfolio of properties, with a primary focus on luxury and upscale independent assets. Along with The Palace, other Access properties include The Wilshire Hotel, Los Angeles; Woodcliff Hotel and Spa and The Brookwood Inn, Rochester, New York; The Allegria Hotel and Spa, New York; among other noted locations. The company is led by three distinguished industry veterans with more than sixty years of combined experience. The executive team manages its properties with hands-on execution and attention. As Access continues to expand its presence, the company pledges to be disciplined in its growth to ensure the continued provision of senior-management attention to every hotel it serves. "With our corporate backgrounds and experiences with virtually every type of hotel and brand, our goal is to continually help and improve asset value for our hotel property owners," said Tom Baker, managing principal and chief executive officer, Access Hotels & Resorts. "We are dedicated in helping our owners maximize the value of their assets, while delivering a quality experience for our guests." "Our mission is unique, particularly with a one-of-a-kind luxury property such as The Palace," added Baker. ABOUT ACCESS HOTELS & RESORTS # # # Marketing Symphony
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| Chesapeake Lodging Trust Reports First Quarter Results Posted: 05 May 2010 01:50 PM PDT ANNAPOLIS, Md.--(BUSINESS WIRE)--Chesapeake Lodging Trust ( CONSOLIDATED FINANCIAL RESULTS For the first quarter 2010, the Company reported total revenue of $2.4 million and net loss of $(1.3) million, or $(.14) per diluted share. Funds from operations (FFO) were $(1.1) million, or $(.12) per diluted share, and Adjusted FFO was $(0.4) million, or $(.04) per diluted share. Earnings before interest, income taxes, and depreciation and amortization (EBITDA) were $(1.2) million, or $(.13) per diluted share, and Adjusted EBITDA was $(0.5) million, or $(.05) per diluted share. FFO, Adjusted FFO, EBITDA and Adjusted EBITDA are non-GAAP financial measures within the meaning of the rules of the Securities and Exchange Commission. See the discussion included in this press release for information regarding these non-GAAP financial measures. A reconciliation of these non-GAAP financial measures is included in the accompanying financial tables. ACQUISITION ACTIVITY On March 18, 2010, the Company acquired the 498-room Hyatt Regency Boston located in Boston, Massachusetts for approximately $113.1 million. The effective date of the acquisition was March 1, 2010. The Company's results of operations for the first quarter 2010 include 31 days of operating results for the Hyatt Regency Boston. The Company entered into a long-term agreement with Hyatt to continue to operate the hotel under the Hyatt Regency flag. On April 29, 2010, the Company entered into definitive agreements to acquire the 188-room Hilton Checkers Los Angeles located in Los Angeles, California and the 153-room Courtyard Anaheim at Disneyland Resort located in Anaheim, California, for an aggregate purchase price of $71 million. The Company expects the Hilton Checkers Los Angeles acquisition to close by May 30, 2010 and the Courtyard Anaheim at Disneyland Resort acquisition to close by July 29, 2010. "We are very pleased with our accomplishments over the last three months," said James L. Francis, Chesapeake's President and Chief Executive Officer. "We have invested or committed to invest all of the proceeds from our initial public offering in January. We are beginning to see a meaningful increase in hotel deal flow and we are excited about growing our hotel portfolio." BALANCE SHEET / LIQUIDITY On January 27, 2010, the Company completed its initial public offering (IPO) of 7,500,000 common shares. On February 24, 2010, the Company sold an additional 85,854 common shares as a result of the exercise of the underwriters' over-allotment option. After deducting initial underwriting fees (1% of gross proceeds) and offering expenses, the Company generated net proceeds from the IPO of approximately $148.7 million. In addition to the IPO, the Company completed private placement transactions on January 27, 2010 that raised an additional $28.5 million in cash proceeds. The total net proceeds generated in the first quarter from the IPO, the underwriters' over-allotment option, and private placements were approximately $177.2 million. As of March 31, 2010, the Company had $64.9 million of cash and cash equivalents. Total assets were $179.7 million, including $76.1 million of investment in hotel properties and $36.1 million of an intangible asset related to air rights, and shareholders' equity was $168.5 million. During the first quarter 2010, the Company generated $1.2 million of cash flows from operations, used $113.3 million in net investing activities, including $113.1 million to acquire the Hyatt Regency Boston, and obtained $176.9 million from net financing activities, including $177.2 million from the Company's IPO and the concurrent private placements. In May 2010, within five business days following the filing of the Company's Form 10-Q, the Company intends to pay as required an additional $7.6 million in underwriting fees (5% of gross proceeds) as a result of satisfying the capital deployment hurdle set forth in its agreement with the underwriters of the IPO. NON-GAAP FINANCIAL MEASURES The Company reports the following four non-GAAP financial measures that it believes are useful to investors as key measures of its operating performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, and (4) Adjusted EBITDA. FFO – The Company calculates FFO in accordance with standards established by the Adjusted FFO – The Company further adjusts FFO for certain additional recurring and non-recurring items that are not in NAREIT's definition of FFO. Specifically, the Company adjusts for hotel property acquisition costs and non-cash amortization of intangible assets. The Company believes that Adjusted FFO provides investors with another financial measure of its operating performance that is more comparable between periods. EBITDA – EBITDA is defined as earnings before interest, income taxes, and depreciation and amortization. The Company believes that EBITDA provides investors a useful financial measure to evaluate the Company's operating performance, excluding the impact of the Company's capital structure (primarily interest expense) and the Company's asset base (primarily depreciation and amortization). Adjusted EBITDA – The Company further adjusts EBITDA for certain additional recurring and non-recurring items. Specifically, the Company adjusts for hotel property acquisition costs and non-cash amortization of intangible assets. The Company believes that Adjusted EBITDA provides investors with another financial measure of its operating performance that is more comparable between periods. CONFERENCE CALL The Company will host a conference call on Thursday, May 6, 2010, at 9:00 a.m. Eastern Time to discuss its financial results. Interested individuals are invited to listen to the call by dialing (877) 683-0303 (U.S./Canadian callers) or (706) 643-5037 (International callers). The conference call ID is 70886462. A simultaneous webcast of the call will be available on the Company's website at www.chesapeakelodgingtrust.com. It is recommended that participants call or log on 10 minutes ahead of the scheduled start time to ensure proper connection. A replay of the conference call will be available two hours after the live call until midnight on May 13, 2010. To access the replay, dial (800) 642-1687 (U.S./Canadian callers) or (706) 645-9291 (International callers). The conference call ID is 70886462. A webcast replay of the conference call will be archived and available on the Company's website for 12 months. ABOUT CHESAPEAKE LODGING TRUST Chesapeake Lodging Trust is a self-advised lodging real estate investment trust (REIT) focused on investments primarily in upper-upscale hotels in major business, airport and convention markets and, on a selective basis, premium select-service hotels in urban settings or unique locations in the United States. Additional information can be found on the Company's website at www.chesapeakelodgingtrust.com. Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "plan," "predict," "project," "will," "continue" and other similar terms and phrases, including references to assumption and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: our ability to complete acquisitions; our ability to continue to satisfy complex rules in order for us to remain a REIT for federal income tax purposes; and other risks and uncertainties associated with our business described in the Company's filings with the SEC. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of May 5, 2010, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations, except as required by law.
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