“Hotels & Lodging Stock Review - June 2010” plus 3 more |
- Hotels & Lodging Stock Review - June 2010
- Chatham Lodging Trust Signs Contract to Acquire Upscale Extended Stay Hotel in Greater Metropolitan New York Area
- FL-based Chatham Lodging to Buy Upscale NY Extended Stay
- Affordable Boutique Hotels in New York City
| Hotels & Lodging Stock Review - June 2010 Posted: 18 Jun 2010 02:08 PM PDT With a gradual recovery of the global economy, the hotels and lodging industry is experiencing an increase in demand. The operating metrics are looking up, and year-over-year comparisons are becoming easier as the operating environment was significantly stressed in the prior year. Though businesses are still cost-conscious, the recovery in the economy has seen a return of business travelers, with leisure demand increasing as well. However, the rate of improvement is still sluggish, in keeping with the slow pace of the economic revival. Since the U.S. market is somewhat saturated, hoteliers are exploring growth opportunities abroad. Hotel companies are seeing higher demand in the international market, as the pace of economic recovery is particularly fast outside the U.S. U.S.-based companies are targeting the fast-growing emerging economies. The Asia-Pacific region specifically promises solid growth, and companies such as Starwood Hotels and Resorts Worldwide Inc. (NYSE: HOT - News) and Marriott International Inc. (NYSE: MAR - News) are increasing their pipeline in this region. Countries that are of specific interest include China and India. In these countries, where a potential increase in gross domestic product (GDP) within the next few years will considerably increase disposable income, the demand for hotels is expected to considerably outpace supply. Additionally, the availability of local capital is another positive factor. Metrics Analysis In evaluating hotel companies, we will be paying close attention to changes in average daily room rates as an indication of how quickly the sector recovers with the improvement in the economy. A key operating metric in the lodging industry is RevPAR (revenue per available room). This metric is derived by multiplying the occupancy percentage of a hotel over a given period by the average daily room rate (ADR) over that same period. Changes in either occupancy or ADR will impact RevPAR, but with different implications for bottom-line profitability. The downturn in the U.S. economy was hard on hotel occupancy rates. In response, some hotel owners initiated price cuts to fill beds. In most cases, this tactic has caused material long-term damage to the business for two primary reasons:
Ultimately, the ability of lodging companies to maintain room rates proved to be critical to their ability to weather the downturn. Cutting rates meaningfully should be an absolute last-ditch effort to survive. By keeping an eye on changes in ADR, investors can gain some insight to the companies that are the best poised to benefit when economic growth rebounds. OPPORTUNITIES We believe that the recovery of the hotel industry has begun. The trend of positive demand growth is expected to continue in 2010 and beyond driven by economic recovery. According to the data from Smith Travel Research, the leading information and data provider for the lodging industry, the U.S. hotel industry reported mostly positive results in all three key performance measurements -- occupancy level, ADR and RevPAR -- in recent weeks. The operating environment in the international market is however better, which in turn is driving hoteliers to increase their share of the pie. Hotels in the Asia/Pacific region experienced increases in all three key performance metrics in recent months, according to data from Smith Travel Research. In April, the Asia-Pacific region's occupancy rose 11.7% to 65.3%, ADR increased 13.1% to $130.06 and RevPAR jumped 26.4% to $84.96. Currently, there are a number of stocks in the hotel industry universe with a Zacks #2 Rank ("Buy). These include Marriott, Starwood, Home Inns & Hotels Management Inc. (NasdaqGS: HMIN - News), Hyatt Hotels Corporation (NYSE: H - News), Intercontinental Hotels Group plc. (NYSE: IHG - News) and Wyndham Worldwide Corporation (NYSE: WYN - News). We believe companies such as Marriott and Starwood are better positioned to benefit from their global pipeline. Also, the availability of local capital frees the U.S. companies from invest much -- or even any -- capital in this region. WEAKNESSES While the occupancy levels are showing positive trends, it is noticeable that the ADR has yet to show meaningful improvements in the U.S. Though the rate of decline in ADR has moderated and is currently flat compared with the prior-year period, there is a lack of any significant positive catalyst in the room rates. Given the lower levels of room revenue, margin gains have remained restricted in recent quarters. However, we expect higher room rates by the end of this year, though the pace of improvement is expected to be slow as the economy is projected to improve only sluggishly. Besides, some sort of volatility is not unusual in the hotel industry performance metrics. However, we expect stability in the upcoming quarters with an improvement in the operating environment. Currently, the high rate of unemployment coupled with an expectation of a protracted labor market recovery is expected to restrict margin improvements as these are pushing room rates down. In addition, companies with weak balance sheets -- or even limited financial flexibility -- will likely have a harder time navigating the challenges created by the recent economic recession. Hence at this moment, it is difficult to become enthusiastic on a number of stocks in our universe, which continue to have a Zacks #3 Rank (Hold). These include Choice Hotels International Inc. (NYSE: CHH - News), The Marcus Corporation (NYSE: MCS - News), Morgans Hotel Group Co. (NasdaqGM: MHGC - News), Orient-Express Hotels Ltd. (NYSE: OEH - News) and Red Lion Hotels Corporation (NYSE: RLH - News). We also remain concerned about the prospects of Great Wolf Resorts Inc. (NasdaqGM: WOLF - News), which currently has Zacks #4 Rank (Sell).
Five Filters featured article: Headshot - Propaganda, State Religion and the Attack On the Gaza Peace Flotilla. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. |
| Posted: 18 Jun 2010 05:58 AM PDT PALM BEACH, Fla., June 18 /PRNewswire-FirstCall/ -- Chatham Lodging Trust (NYSE:CLDT - News), a hotel real estate investment trust (REIT) focused on upscale extended-stay hotels and premium branded select-service hotels, today announced that it has signed a contract to acquire an upscale extended stay hotel in Greater Metropolitan New York area in an all-cash transaction for $21.3 million. The new hotel represents the 11th hotel acquired or under contract to purchase by Chatham since its April 21, 2010 initial public offering. "This is a very well-located property with superb visibility and accessibility," said Jeffrey H. Fisher, Chatham's chief executive officer. "It is in a market with one of the highest barriers to new competition in the country. "We have an aggressive appetite for properties and continue to work our extensive contacts and relationships to source transactions both on and off the market," Fisher said. "This acquisition continues our focus on acquiring upscale extended-stay hotels and premium-branded select-service properties, either as multi-property portfolios or individual hotels, located in major markets with high barriers to entry near strong demand generators." Completion of the new hotel acquisition is subject to satisfactory completion of due diligence and customary closing conditions. About Chatham Lodging Trust Chatham Lodging Trust is a self-advised real estate investment trust that was organized to invest in upscale extended-stay hotels and premium-branded select service hotels. The company currently owns six hotels with an aggregate of 813 rooms/suites and with the addition of this contract has a total of five other hotels under contract to purchase. Additional information about Chatham may be found at www.chathamlodgingtrust.com. This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 about Chatham Lodging Trust, including those statements regarding acquisitions, capital expenditures, future operating results and the timing and composition of revenues, among others, and statements containing words such as "expects," "believes" or "will," which indicate that those statements are forward-looking. Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results or performance to differ materially from those discussed in such statements. Additional risks are discussed in the company's filings with the Securities and Exchange Commission. Five Filters featured article: Headshot - Propaganda, State Religion and the Attack On the Gaza Peace Flotilla. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. |
| FL-based Chatham Lodging to Buy Upscale NY Extended Stay Posted: 18 Jun 2010 02:12 PM PDT REIT Chatham Lodging Trust has signed a contract to acquire an upscale extended stay hotel in the Greater Metropolitan New York area in an all-cash transaction for $21.3 million. The new hotel represents the 11th hotel acquired or under contract to purchase by Chatham since its April 21, 2010 initial public offering. "This is a very well-located property with superb visibility and accessibility," said Jeffrey H. Fisher, Chatham's chief executive officer. "It is in a market with one of the highest barriers to new competition in the country. Chatham Lodging Trust owns six hotels with an aggregate of 813 rooms/suites and with the addition of this contract has a total of five other hotels under contract to purchase. 
Five Filters featured article: Headshot - Propaganda, State Religion and the Attack On the Gaza Peace Flotilla. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. |
| Affordable Boutique Hotels in New York City Posted: 18 Jun 2010 11:14 PM PDT FINDING a decent place to sleep in New York City has never been easy. Traditionally, you either had to spend a ton of money (the Ty Warner Penthouse at the Four Seasons for $35,000 a night, anyone?) or scrimp and hope for the best (warning: a recent search for "bed bugs" on TripAdvisor found 877 mentions for city hotels). What is a budget- and style-conscious traveler to do? Go for the new middle. In a city that still boasts one of the nation's highest room rates ($238 on average in Manhattan, according to Smith Travel, which tracks the industry), hotels aiming for the midrange are reaching new heights. The trend began about three years ago, with a trickle of boutiquey places like the Pod, the Ace and the Jane -- which offered a patina of style without the premium prices. It has accelerated in recent months, with a raft of new hotels promising cool design, nods to local flavor and wallet-friendly rates of about $200 to $250. Call them budget boutiques. But instead of coming from daring young hoteliers, many are being rolled out by chains like InterContinental and Wyndham in a bid to attract a hipper clientele. "There's a huge wave of consumer demand, especially with the younger Gen Y or millennials, for properties that have some level of style to them," said Sean Hennessey, founder of Lodging Advisors, a hospitality consultant firm. In May, I slept in six of these new hotels. Despite their novelty, some were already victims of their own clichés. Rooftop bars, rainfall showers and iPhone docks were everywhere. Still, rooms were large by the city's pint-size standards, service was sharp, and for the moment, they offer some of the best values around. DISTRIKT HOTEL WHY BOOK? On an exhaust-choked block next to the Port Authority bus station, three new cookie-cutter hotels are stacked together like cereal boxes in a configuration that hotel bloggers have started calling a "tri-pack." Distrikt, next door, is different: it has a simulacrum of soul. This is impressive, not only because of its unseemly location -- within shouting distance of a homeless shelter and a parole office -- but also a kitschy design conceit: every floor takes its cue from a New York City neighborhood. ROOM My standard room was on the 28th floor: Central Park. Don't expect a wax statue of Frederick Law Olmsted. The only nods to the famous park were photo collages that hung in the room and hallways. Needless to say, the actual park wasn't visible from the window, though tantalizing glimpses of the Hudson River were. The room itself was a beige rectangle furnished with the type of inoffensive contemporary furniture one might find in a West Elm catalog. The glass shower was spacious, and the matted gray carpeting was fun to dig your toes into -- like newly mowed grass. VIBE Blame the sketchy neighbors, but parts of the hotel feel as though they're under lockdown. Key cards are needed to operate the elevators, and the marble-and-steel lobby is a tad cold, despite a 12-foot vertical garden. An adjacent lounge, called Collage, looks like a modern airport bistro. It serves breakfast by day (a continental spread of sweaty pastries), and drinks and bar food by night. On a recent Friday evening, it was empty. "This is New York City," said the young bartender. "Who wants to stay inside their hotel?" MINTS An organic fudge brownie awaits you in the room, along with a personalized welcome letter -- nice touches for a hotel of this class. There's no fitness center, but free passes are available to the nearby Mid City Gym. You can check your e-mail on one of three large Mac screens in the lobby, but be prepared to wait. 342 West 40th Street, between Eighth and Ninth Avenues; (888) 444-5610; distrikthotel.com; free Wi-Fi; breakfast for $14.95; 155 rooms from $209. EVENTI WHY BOOK? Straddling the higher end is the Eventi, a 292-room hotel that opened last month in northern Chelsea. Operated by Kimpton -- a San Francisco-based chain that helped pioneer the budget boutique niche -- it offers doses of luxury that are unusual at this price range. There's clever design, 24-hour room service, a large terrace, a sunny gym, a spa that offers something called spirulina body wraps, and even dog and cat massages. ROOM The standard queen was sleek and handsome, with custom-made furnishings (dark woods, cloud-gray upholstery, heavy drapes) that felt rich. It had a risqué side: a huge mirror faced the bed, Frette robes were trimmed with zebra prints, the honor bar was stocked with an Intimacy Kit ($6). Other high-end perks await in the marble-tiled bathroom. There was an elongated tub, a magnifying makeup mirror and bottles of musk-scented Italian hair products. VIBE It's a work in progress. Planned for October are a Basque restaurant by Jeffery Chodorow, a plaza with a movie screen and whiskey bar. Meanwhile, the lobby -- with cave-red marble and quirky seating nooks -- fills up during the free wine hour that begins at 5 p.m. For breathing room, take your glass to the wraparound terrace on the fifth floor, furnished with terra-cotta planters and oversize wicker love seats. MINTS No Pringles here. The minibar was stocked with goodies like blueberry acai Gummy Pandas ($4), Late July organic crackers ($3), and Alba Botanica shave cream ($5). There's even a 375-milliliter bottle of Absolut vodka, big enough for an impromptu party. Service was polished. A free toothbrush and hair straightener were delivered in under five minutes. 851 Avenue of the Americas, between 29th and 30th Streets; (212) 564-4567; eventihotel.com; Wi-Fi is $10 per day (free for Kimpton rewards members); a breakfast buffet is $22; 292 rooms starting at $249 (at $399 once introductory rates finish in fall). FASHION 26 WHY BOOK? A quick step from the Fashion Institute of Technology, this shiny new hotel by Wyndham tries hard to live up to its name. There's a Best Dressed Guest contest held occasionally (winners get room upgrades), the Mondrian-like mural above the front desk is made from thread spools, and the concierge keeps tabs on sample sales. No, you won't see a gaggle of models during check-in, but the hotel does have fun playing dress-up. ROOM A standard room was maybe a size medium, with plenty of nods to fashion: buttons on the door numbers, a merino herringbone throw on the bed and mint-green polka dots on the walls. Housekeeping staff members wear custom dresses that hint, naughtily, at French maid. A big window offered postcard views of the Empire State Building, as well as peeks inside garment showrooms across the street. VIBE Despite all the sartorial trappings, guests dressed like any in your typical off-the-rack hotel. On a recent Monday, there were F.I.T. parents in the slate-gray lobby, and suits trading airport stories in the elevator. There's a chatty cocktail scene at the lobby bar, but Rare, the fiery orange dining room, was desolate. Maybe the ho-hum menu -- part burger joint, part formal steakhouse -- was to blame. A rooftop bar is expected to open this month. MINTS Service was elegant and unobtrusive. Arriving two hours before check-in was no problem; the attendant had a room ready. Come back from dinner and the bed is turned down: the pillows stacked upright, the comforter removed, a note left on the sheets with tomorrow's weather, and a mint. There's also a decent gym in the basement and a single-cup Keurig coffee maker in the room. 152 West 26th Street, between Avenue of the Americas and Seventh Avenues; (212) 858-5888; f26nyc.com; free Wi-Fi and a $15 cold and $19.70 hotbreakfast buffet, along with à la carte; 280 rooms from $229. HOTEL INDIGO WHY BOOK? Hotel Indigo may be the prototype of this new hotel class. Started by the InterContinental Hotels Group, which owns Holiday Inn and other chains, the Indigo brand aims to be affordable yet stylish, though its first property in New York City doesn't quite hit the mark. It opened last October in the heart of the flower district, so it is hemmed on all sides with orchids and pussy willow. There are flowers inside the hotel, too, though mostly of the printed variety. Hallway carpets with comically giant indigos and carrot-orange walls conspire to create a visual jungle. Too bad the floral theme didn't extend to the scent. The lobby smelled more like cleaning fluid than roses. ROOM The oversaturated color scheme continued inside the room, with a headboard stitched together from swatches of reds, oranges and yellows. Still, the room was bright and airy, with hardwood floors, a small desk and a floor-to-ceiling print of sewing needles. The view was quintessentially New York: fire escapes and the back of old factory buildings. As in many of these budget boutiques, the bathroom was sleekly appointed. In this case, however, the shower lacked water pressure, and a puddle from the previous night was still on the shower floor in the morning. VIBE An oddball mix. Foreign tourists in I ♥ New York T-shirts sat in the lobby. Office workers crowded the smoky rooftop Glass Bar. And at Blu, its street-level Italian restaurant, there was, well, no one. The soupy risotto I was served one night may have something to do with it. MINTS Service was unexpectedly attentive; the front desk called shortly after check-in to make sure everything was in order. In the basement, there's a basic business center (two desktop computers) and a well-equipped, if petite, fitness studio with free weights and treadmills. 127 West 28th Street, between Avenue of the Americas and Seventh Avenue; (212) 973-9000; indigochelsea.com; 122 rooms from $269; $15.99 breakfast buffet, and à la carte brunch served on weekends. THE MAVE WHY BOOK? The MAve looks great on the outside. Opened last July, it is housed in a beautiful, mansard-topped building from 1902, with a ghost-white lobby that looks like a cosmetics boutique off the Boulevard St.-Germain. The spirit of Stanford White lingers approvingly over the neighborhood's magnificent limestone buildings. And Madison Square Park, a block away, is a serene place to take your coffee and Danish (provided free) in the morning. ROOM I snagged a $159 rate for what the MAve charitably calls an "urban" room. At 165 square feet, it conveyed that special feeling of living in New York City: claustrophobia. There was a modern bathroom, a flat-screen television and an iPhone docking station, but no room left for a desk or even a chair. (You have to book a larger room for those perks.) The window air-conditioner obscured an already narrow view of 27th Street. An in-room massage ($100 an hour) sounded nice, but a massage table couldn't possibly fit. VIBE The MAve (a contraction of "Madison Avenue" ) bills itself as "a relaxed urban retreat," but utilitarian might be more accurate. There's a barracks feel in the hallways, with an open staircase covered in that heavy-duty metal you sometimes see on truck beds. On a recent Sunday night, the hotel lobby felt empty, even eerie, which may have been why the few guests milling around -- middle-aged Europeans in well-worn Pumas -- felt compelled to whisper. MINTS Secreted into a top-floor garret is a hilariously tiny fitness center. Room service is supplied by the nearby Park Avenue Bistro, with a $3.50 surcharge for each plate, plus a 25 percent gratuity. But with such spartan rooms, and no bar or common spaces to speak of, the MAve doesn't lend itself to dining in. 62 Madison Avenue, at 27th Street; (212) 532-7373; themavehotel.com; free Wi-Fi and basic breakfast; 72 rooms from $159. THE STRAND WHY BOOK? Or maybe a better question is: Why is there ice in the lobby men's room urinals? Whatever the reason, it's among the many flourishes -- some endearing, some not so much -- that lend the Strand, which opened last October on an anonymous block on East 37th Street, its accidental charm. Another bonus: the rooftop bar, which offers King Kong views of the Empire State Building, was recently featured in New York magazine's "Best of New York" issue, alerting the natives. ROOM My $260 queen room, on the 10th floor, felt brand new and not necessarily in a good way: dinky lampshades and chairs swathed in bold, contempo prints. Still, the room was cozy, and the view of water towers and prewar brick buildings felt distinctively Gotham. Fashion blow-ups from vintage issues of Vogue gave the walls some pop. Until the seafood tapas restaurant opens, as early as next month, there's no room service. The bathroom was airy but sterile, with beige marble and a large mirror, though only half of the spacious shower stall was walled in glass, which made for a chilly wake-up. VIBE The lobby, with its white limestone floor, brushed metal and vaguely Art Deco furniture, felt a little cold, too. The vibe is warmer at the rooftop bar, Top of the Strand, thanks partly to a retractable roof that keeps the party rolling in bad weather. The Hamptons-patio look is by Lydia Marks, who did the sets for the "Sex and the City" movies. MINTS The Strand doesn't skimp on its free breakfast: piles of cold cuts, cheeses, hardboiled eggs, fruit, rolls stuffed with meat. It was surprisingly tasty. There's a 24-hour gym that seems to be underused. Service was casual, even chatty, including a bellhop who over-shared. 33 West 37 Street, between Fifth Avenue and the Avenue of the Americas; (212) 448-1024; thestrandnyc.com; free Wi-Fi and breakfast buffet; 177 rooms from $259 (until June 30) and $239 (from July 1 to Sept. 6). Five Filters featured article: Headshot - Propaganda, State Religion and the Attack On the Gaza Peace Flotilla. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. |
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