In recent weeks, the Tropicana Casino and Resort was sold for $200 million of deeply discounted debt. This week, Donald Trump, his daughter Ivanka and Dallas-based Beal Bank reached a deal to pay $100 million for all three casinos owned by Trump Entertainment Resorts, subject to bankruptcy court approval.
The sales are yet another symptom of the woes facing the casino industry nationwide.
Atlantic City and Las Vegas have been hard hit by the economic downturn, which has led gamblers to keep a tight rein on their wallets.
Read more:
http://finance.yahoo.com/news/Distressed-NJ-casinos-selling-apf-927501296.html?x=0&.v=1
Tuesday, August 11, 2009
Disney Hotel Workers Overwhelmingly Vote to Reject Disney’s Latest Contract Proposal
A majority of Disney hotel workers voted to reject Disney's most recent contract proposal that would have made health insurance largely unaffordable for many of the workers employed at the three Disney owned hotels. The final count in yesterday's vote was 1,076 votes to reject Disney's latest contract proposal to 86 votes in favor of the contract proposal. 2,100 Disney hotel workers employed as restaurant servers, dishwashers, housekeepers, front desk agents, and bellmen at the three Disneyland Hotels, Paradise Pier Hotel, Disneyland Hotel, and Grand California Hotel, have been working without a union contract since February 2008. In their latest contract offer Disney proposed to increasingly shift the cost of health insurance to its employees and create a new "casual regular" status for employees who average less than 30 hours a week. "Casual regular" workers would be ineligible for health insurance benefits.
Read more:
http://ehotelier.com/hospitality-news/item.php?id=P16852
Read more:
http://ehotelier.com/hospitality-news/item.php?id=P16852
European Hotel Valuation Index - 2009
-2008 has proven to be the precursor of a new world order that seems to be emerging from the ongoing financial turmoil.
-The year started with hotel sector performance holding up, it continued with more subdued growth rates and finished with storm clouds gathering apace.
-During the last quarter, the European hotel industry experienced growing signs of weakening trading performance, due to a downsizing in business travel and customer spending. Serious operational cost cutting and deferment of refurbishment plans also started in earnest
Read more:
http://ehotelier.com/downloads/pdf/european_hotel_valuation_index_2009.pdf
-The year started with hotel sector performance holding up, it continued with more subdued growth rates and finished with storm clouds gathering apace.
-During the last quarter, the European hotel industry experienced growing signs of weakening trading performance, due to a downsizing in business travel and customer spending. Serious operational cost cutting and deferment of refurbishment plans also started in earnest
Read more:
http://ehotelier.com/downloads/pdf/european_hotel_valuation_index_2009.pdf
Largest hotel chain: 'We can't see any sign of recovery'
LONDON (Reuters) -- InterContinental Hotels, the world's biggest hotelier, said a recovery for the industry might be two years away after reporting first-half profit that fell but beat forecasts.
Read more:
http://money.cnn.com/2009/08/11/news/companies/intercontinental_recovery.reut/index.htm?postversion=2009081106
Read more:
http://money.cnn.com/2009/08/11/news/companies/intercontinental_recovery.reut/index.htm?postversion=2009081106
InterContinental Hotels issues half year trading report
Business headlines
- Global constant currency first half RevPAR decline of 16.2%, with a second quarter decline of 18.6%. IHG’s brands outperformed the industry in each of its three regions.
- 9,849 net rooms (117 hotels) added in the first half, taking system size to 629,700 rooms (4,303 hotels), up 5% year on year.
- 26,956 rooms (229 hotels) added to the system, 17,107 rooms (112 hotels) removed in line with our quality growth strategy.
- 22,754 rooms (159 hotels) signed, taking the pipeline to 226,248 rooms (1,599 hotels).
- On track to exceed 2009 targeted cost reductions with first half reported regional and central costs $51m below 2008 levels.
- Net debt of $1.3bn held broadly flat on the position at 31 December 2008.
- Interim dividend maintained at 12.2¢, equivalent to 7.3p at the closing exchange rate on 7 August 2009.
- Exceptional operating charges of $201m include $162m of non-cash asset impairment charges.
Read more:
Noble Roman's Announces Second Quarter 2009 Earnings
INDIANAPOLIS, Aug. 10 /PRNewswire-FirstCall/ -- Noble Roman's, Inc. (OTC Bulletin Board: NROM), the Indianapolis based franchisor of Noble Roman's Pizza and Tuscano's Italian Style Subs, today announced results for the quarterly period ended June 30, 2009. Net income was $415,234 or $.02 per share basic and diluted, on weighted average number of common shares outstanding of 19.4 million and diluted weighted average shares of 19.9 million. This was a 5.0% increase in net income over the quarterly period ended June 30, 2008 of $395,307, or $.02 per share basic and diluted, on weighted average number of common shares outstanding of 19.2 million, and diluted weighted average shares of 20.3 million. Total revenues for the quarterly period ended June 30, 2009 were $1.9 million compared to total revenues of $2.4 million for the comparable period in 2008.
Read more:
http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/08-10-2009/0005075117&EDATE=
Read more:
http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/08-10-2009/0005075117&EDATE=
McDonald's Reports Global Comparable Sales up 4.3% in July
OAK BROOK, Ill., Aug. 10 /PRNewswire-FirstCall/ -- McDonald's Corporation announced today that global comparable sales rose 4.3% in July and by segment increased as follows:
- U.S. up 2.6%
- Europe up 7.2%
- Asia/Pacific, Middle East and Africa up 2.1%
"We remain aligned behind our customer-focused Plan to Win, which continues to drive positive global comparable sales as we satisfy customers' demands for menu variety, value and convenience," said Chief Executive Officer Jim Skinner.
Read more:
http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/08-10-2009/0005074581&EDATE=
- U.S. up 2.6%
- Europe up 7.2%
- Asia/Pacific, Middle East and Africa up 2.1%
"We remain aligned behind our customer-focused Plan to Win, which continues to drive positive global comparable sales as we satisfy customers' demands for menu variety, value and convenience," said Chief Executive Officer Jim Skinner.
Read more:
http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/08-10-2009/0005074581&EDATE=
The Steak n Shake Company Reports Fiscal Third Quarter 2009 Results
INDIANAPOLIS, Aug. 10 /PRNewswire-FirstCall/ --The Steak n Shake Company (NYSE: SNS) announces its results for its third fiscal quarter 2009, which ended July 1, 2009. Net earnings for the third quarter of fiscal year 2009 were $3.8 million, or $0.13 per diluted share, contrasted to a net loss of ($9.8 million), or ($0.35) per diluted share in the third quarter of fiscal year 2008. Last year's third quarter loss included $8.7 million, or $0.31 per diluted share, net of tax impairment charges related to underperforming restaurants.
Read more:
http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/08-10-2009/0005075207&EDATE=
Read more:
http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/08-10-2009/0005075207&EDATE=
Caribbean Hotel Profits Hit Hard by Economic Recession
ATLANTA, Aug. 10 /PRNewswire/ -- PKF Hospitality Research (PKF-HR), an affiliate of PKF Consulting, announced today that, according to its newly released 2009 edition of Caribbean Trends(R) in the Hotel Industry, the average Caribbean hotel saw bottom-line profits decline 16.0 percent in 2008. The report concludes that the global economic recession was the primary driver of the double-digit profit decline. Given the poor market conditions observed this year, further profit deterioration is expected in 2009.
Read more:
http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/08-10-2009/0005074710&EDATE=
Read more:
http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/08-10-2009/0005074710&EDATE=
Morgans Hotel Group Reports Second Quarter 2009 Results
NEW YORK--(BUSINESS WIRE)--Aug. 10, 2009-- Morgans Hotel Group Co. (NASDAQ: MHGC) (“MHG”) today reported financial results for the second quarter ended June 30, 2009.
Revenue per available room (“RevPAR”) for System-Wide Comparable Hotels decreased 36.8% in constant dollars in the second quarter from the comparable period in 2008. Adjusted EBITDA for the second quarter was $11.3 million, a decrease of 59% from the comparable period in 2008.
-On August 5th, MHG announced the successful amendment of its revolving credit facility. This includes, among other things, the elimination of the leverage test, a reduction of the debt service coverage ratio to 0.90x from 1.75x, and an adjustment to the borrowing base test that is expected to allow MHG to access substantial liquidity for the life of the credit facility.
-As a result of the cost reduction plans, EBITDA at System-Wide Comparable Hotels during the second quarter declined at a rate of 1.8 times the related RevPAR percentage change, beating industry norms.
-MHG achieved a 19.8% reduction in operating expenses at System-Wide Comparable Hotels and a 37% reduction in corporate expenses in the second quarter of 2009 from the comparable period in 2008. Through our multi-phase contingency plans implemented beginning in early 2008, we estimate that we have reduced hotel operating expenses and corporate expenses by approximately $20 million and $10 million, respectively, on an annualized basis.
-With the completion of the redesigned Mondrian Los Angeles and Morgans properties in September 2008, MHG has no significant deferred capital expenditure requirements at its owned hotels.
-In April, Hard Rock opened a new and expanded Joint Music Venue and added approximately 65,000 square feet of meeting and convention space. The new north tower, consisting of 490 rooms, opened in July and the casino expansion and south tower, consisting of 374 rooms, are projected to open in late 2009 or early 2010.
-Boston Ames and Mondrian SoHo are currently targeted to open in the fourth quarter of 2009 and the middle of 2010, respectively.
Read more:
http://phx.corporate-ir.net/phoenix.zhtml?c=194863&p=irol-newsArticle&ID=1319264&highlight=
Revenue per available room (“RevPAR”) for System-Wide Comparable Hotels decreased 36.8% in constant dollars in the second quarter from the comparable period in 2008. Adjusted EBITDA for the second quarter was $11.3 million, a decrease of 59% from the comparable period in 2008.
-On August 5th, MHG announced the successful amendment of its revolving credit facility. This includes, among other things, the elimination of the leverage test, a reduction of the debt service coverage ratio to 0.90x from 1.75x, and an adjustment to the borrowing base test that is expected to allow MHG to access substantial liquidity for the life of the credit facility.
-As a result of the cost reduction plans, EBITDA at System-Wide Comparable Hotels during the second quarter declined at a rate of 1.8 times the related RevPAR percentage change, beating industry norms.
-MHG achieved a 19.8% reduction in operating expenses at System-Wide Comparable Hotels and a 37% reduction in corporate expenses in the second quarter of 2009 from the comparable period in 2008. Through our multi-phase contingency plans implemented beginning in early 2008, we estimate that we have reduced hotel operating expenses and corporate expenses by approximately $20 million and $10 million, respectively, on an annualized basis.
-With the completion of the redesigned Mondrian Los Angeles and Morgans properties in September 2008, MHG has no significant deferred capital expenditure requirements at its owned hotels.
-In April, Hard Rock opened a new and expanded Joint Music Venue and added approximately 65,000 square feet of meeting and convention space. The new north tower, consisting of 490 rooms, opened in July and the casino expansion and south tower, consisting of 374 rooms, are projected to open in late 2009 or early 2010.
-Boston Ames and Mondrian SoHo are currently targeted to open in the fourth quarter of 2009 and the middle of 2010, respectively.
Read more:
http://phx.corporate-ir.net/phoenix.zhtml?c=194863&p=irol-newsArticle&ID=1319264&highlight=
Mexican Restaurants, Inc. Announces 2009 Second Quarter Operating Results
Houston, Texas (August 10, 2009) For the 2009 second quarter of Mexican Restaurants, Inc. (the “Company”) ended June 28, 2009, the Company reported a net loss of $207,937 or $0.06 per diluted share, compared with a net income of $359,059 or $0.11 per diluted share for the second quarter of fiscal year 2008. For the 26-week period ended June 28, 2009, the Company reported a net loss of $28,083 or $0.01 per diluted share, compared with net income of $434,576 or $0.13 per diluted share for the 26-week period of fiscal year 2008.
Read more:
http://www.mexicanrestaurantsinc.com/node/357
Read more:
http://www.mexicanrestaurantsinc.com/node/357
Friedman Fleischer & Lowe Acquires Church’s Chicken®
ATLANTA--(BUSINESS WIRE)--Church’s Chicken, one of the largest quick-service chicken concepts in the world, is pleased to announce the completion of its sale to San Francisco-based private equity firm, Friedman Fleischer & Lowe LLC (FFL). Church’s Chicken was formerly owned by Arcapita Bank B.S.C. ©, a leading international investment firm headquartered in Bahrain. FFL and Arcapita announced the signing of a definitive agreement to sell Church’s in June.
Read more:
http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20090810005776&newsLang=en
Read more:
http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20090810005776&newsLang=en
Granite City Food & Brewery Ltd. releases results for Second Quarter 2009
MINNEAPOLIS--(BUSINESS WIRE)--Granite City Food & Brewery Ltd. (Nasdaq:GCFB), a Modern American upscale casual restaurant chain, today reported results for the second quarter ended June 30, 2009.
Highlights for the second quarter of 2009 were as follows:
-Restaurant-level EBITDA improves to 16.4% from 12.1% in prior year second quarter
-Restaurant-level EBITDA for comp stores increases to 18.5% from 14.5% in prior year second quarter
-Prime cost (food, beverage, labor) decreases 5.1 percentage points from 67.3% in prior year quarter to 62.2% in second quarter 2009
-Same-store-sales down 13.2% from prior year second quarter
-Adjusted company-wide EBITDA improves $1.5 million from $0.3 million in second quarter 2008 to $1.8 million in second quarter 2009.
-Corporate charges decrease $0.4 million in second quarter 2009 compared to second quarter 2008
Read more:
http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20090810006282&newsLang=en
Highlights for the second quarter of 2009 were as follows:
-Restaurant-level EBITDA improves to 16.4% from 12.1% in prior year second quarter
-Restaurant-level EBITDA for comp stores increases to 18.5% from 14.5% in prior year second quarter
-Prime cost (food, beverage, labor) decreases 5.1 percentage points from 67.3% in prior year quarter to 62.2% in second quarter 2009
-Same-store-sales down 13.2% from prior year second quarter
-Adjusted company-wide EBITDA improves $1.5 million from $0.3 million in second quarter 2008 to $1.8 million in second quarter 2009.
-Corporate charges decrease $0.4 million in second quarter 2009 compared to second quarter 2008
Read more:
http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20090810006282&newsLang=en
