(Crain’s) — A 412-room Westin hotel in northwest suburban Wheeling is in danger of defaulting on a $86-million loan taken out at the peak of the real estate market.
A senior loan on the three-year-old Westin Chicago North Shore recently was transferred to a so-called special servicer, signaling that the hotel’s owner is likely to miss loan payments. The Westin is just the latest on a growing list of local hotels drowning in debt as occupancies, room rates and property values have plunged over the past 18 months.
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Wednesday, January 20, 2010
Starwood Cap may sell some luxury hotels
PARIS, Jan 20 (Reuters) - Investment group Starwood Capital wants to beef up its budget hotel business and could part with some of its high-end luxury hotels, including its flagship Le Crillon hotel in Paris, its CEO said in a newspaper interview.
Starwood is also interested in finding a partner to boost the growth of French crystal glass maker Baccarat and perfume house Annick Goutal, Barry Sternlicht told Les Echos.
"We are very happy with the performance of our budget hotel business. It is a very stable business. We want to grow that hotel sector."
Asked whether Starwood, which put Le Crillon hotel on the market last year but did not reach a deal with Saudi-backed JJW Hotels & Resorts, was still looking to sell its luxury hotels, he said: "We will probably sell some hotels"
On the Crillon, Sternlicht said: "If an interesting offer is made, we will look at it closely. It's not just a price issue. Let's be clear, there is currently no deal to sell Le Crillon."
Starwood was under no pressure to sell assets, having recently refinanced its debt, he however stressed.
Starwood is also interested in finding a partner to boost the growth of French crystal glass maker Baccarat and perfume house Annick Goutal, Barry Sternlicht told Les Echos.
"We are very happy with the performance of our budget hotel business. It is a very stable business. We want to grow that hotel sector."
Asked whether Starwood, which put Le Crillon hotel on the market last year but did not reach a deal with Saudi-backed JJW Hotels & Resorts, was still looking to sell its luxury hotels, he said: "We will probably sell some hotels"
On the Crillon, Sternlicht said: "If an interesting offer is made, we will look at it closely. It's not just a price issue. Let's be clear, there is currently no deal to sell Le Crillon."
Starwood was under no pressure to sell assets, having recently refinanced its debt, he however stressed.
Business as Usual for Captain D's, Despite 'For Sale' Sign
[2010-01-20] A spokesman for Captain D's Seafood Kitchen says that business is continuing as usual for the brand, which was put up for sale by parent company Sagittarius Brands last week.
Ronald Roberts, Captain D's spokesman, says that the Nashville, Tennessee–based chain of more than 500 stores is going to push on in 2010 with the momentum it had carried in from 2009.
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Ronald Roberts, Captain D's spokesman, says that the Nashville, Tennessee–based chain of more than 500 stores is going to push on in 2010 with the momentum it had carried in from 2009.
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Panera Bread reports very strong trends in comparable bakery-cafe sales and increases Q4 EPS target
HIGHLIGHTS
- Oct. 2009 Company-owned comparable bakery-cafe sales up 6.8% (calendar basis)
- Nov. 2009 Company-owned comparable bakery-cafe sales up 6.1% (calendar basis)
- Dec. 2009 Company-owned comparable bakery-cafe sales up 9.6% (calendar basis)
- Jan. 2010 to date Company-owned comparable bakery-cafe sales up 9.4%
- Q4 2009 EPS target raised to $0.94 to $0.95 (net of $0.05 of expected asset retirement expenses)
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- Oct. 2009 Company-owned comparable bakery-cafe sales up 6.8% (calendar basis)
- Nov. 2009 Company-owned comparable bakery-cafe sales up 6.1% (calendar basis)
- Dec. 2009 Company-owned comparable bakery-cafe sales up 9.6% (calendar basis)
- Jan. 2010 to date Company-owned comparable bakery-cafe sales up 9.4%
- Q4 2009 EPS target raised to $0.94 to $0.95 (net of $0.05 of expected asset retirement expenses)
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Hotel fees that must die — and how to kill them
Resort fees. Mandatory tips. Concierge surcharges.
If you’ve stayed at a hotel in the last few years, you’ve become accustomed — if not anesthetized — to these annoying extras. You expect them. You’re indifferent to them when they appear on your bill.
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If you’ve stayed at a hotel in the last few years, you’ve become accustomed — if not anesthetized — to these annoying extras. You expect them. You’re indifferent to them when they appear on your bill.
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Leadership Changes for Johnny Rockets and TGI Friday’s
Leadership Changes for Johnny Rockets and TGI Friday’s
-- Foodservice Equipment & Supplies, 1/20/2010 7:35:00 AM
Johnny Rockets appointed John Fuller as president and chief executive officer of the 23-year old international restaurant chain. Fuller, who joined the company in 2008 as chief financial officer, replaces Lee Sanders, who left Johnny Rockets to become president of franchising for T.G.I. Friday's USA and a member of the Carlson Restaurants Worldwide executive team.
Fuller's previous restaurant experience includes time with companies such as Rubio's, Del Taco and CKE Restaurants.
Sanders will assume his new position on Jan. 21 and his previous experience includes time with Buffalo Wild Wings, Dunkin Brands and General Mills
-- Foodservice Equipment & Supplies, 1/20/2010 7:35:00 AM
Johnny Rockets appointed John Fuller as president and chief executive officer of the 23-year old international restaurant chain. Fuller, who joined the company in 2008 as chief financial officer, replaces Lee Sanders, who left Johnny Rockets to become president of franchising for T.G.I. Friday's USA and a member of the Carlson Restaurants Worldwide executive team.
Fuller's previous restaurant experience includes time with companies such as Rubio's, Del Taco and CKE Restaurants.
Sanders will assume his new position on Jan. 21 and his previous experience includes time with Buffalo Wild Wings, Dunkin Brands and General Mills
Olympic ski venue up for auction
The Vancouver Winter Olympics may have become part of a high-stakes game of chicken after a trustee for lenders announced plans to auction off the indirect ownership in the financially troubled owner of the Whistler ski resort.
The trust says the auction would be set for Feb. 19, right in the middle of the games that are to be partly hosted at Whistler.
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The trust says the auction would be set for Feb. 19, right in the middle of the games that are to be partly hosted at Whistler.
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Uno Files for Bankruptcy
Slumping industry sales have taken their toll on Uno Restaurant Holdings Corp, which filed for bankruptcy on Wednesday. The Massachusetts-based company is the owner of the Uno Chicago Grill restaurant and pizzeria chain.
The filing comes after a tough year for the casual dining sector. As several companies slashed prices to draw in customers, a corresponding sales slump dampened profits. DineEquity's ( din - news - people )Applebee’s stores saw a 4.3% drop in sales last year as it competed to give consumers the best deals and meals for their money.
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The filing comes after a tough year for the casual dining sector. As several companies slashed prices to draw in customers, a corresponding sales slump dampened profits. DineEquity's ( din - news - people )Applebee’s stores saw a 4.3% drop in sales last year as it competed to give consumers the best deals and meals for their money.
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Starbucks Q1 FY10 Comparable Store Sales Grow 4 Percent EPS of $0.32 vs. $0.09 in Q1 FY09 Company Raises Outlook
SEATTLE, Jan 20, 2010 (BUSINESS WIRE) -- Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its fiscal first quarter ended December 27, 2009 and updated FY10 targets.
Fiscal First Quarter 2010 Highlights:
- Consolidated net revenues increased 4% to $2.7 billion
- Comparable store sales increased 4% driven by 1% increase in traffic and a 4% increase in average ticket
- Consolidated operating margin improved 850 basis points to 13.0%; Non-GAAP operating margin expanded 620 basis points to 13.6%
- U.S. operating margin significantly improved to 17.3% from 5.8% in Q1 FY09; U.S. Non-GAAP operating margin increased to 17.7% from 8.6% in the prior-year period
- International operating margin expanded to 7.4% from 2.6% in Q1 FY09; International Non- - GAAP operating margin increased to 9.1% from 3.0% in the prior-year period
- EPS increased to $0.32 compared to $0.09 in Q1 FY09; Non-GAAP EPS was $0.33 compared to $0.15 in Q1 FY09
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Fiscal First Quarter 2010 Highlights:
- Consolidated net revenues increased 4% to $2.7 billion
- Comparable store sales increased 4% driven by 1% increase in traffic and a 4% increase in average ticket
- Consolidated operating margin improved 850 basis points to 13.0%; Non-GAAP operating margin expanded 620 basis points to 13.6%
- U.S. operating margin significantly improved to 17.3% from 5.8% in Q1 FY09; U.S. Non-GAAP operating margin increased to 17.7% from 8.6% in the prior-year period
- International operating margin expanded to 7.4% from 2.6% in Q1 FY09; International Non- - GAAP operating margin increased to 9.1% from 3.0% in the prior-year period
- EPS increased to $0.32 compared to $0.09 in Q1 FY09; Non-GAAP EPS was $0.33 compared to $0.15 in Q1 FY09
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Icahn set to win Fontainebleau Las Vegas as rivals disqualified
Carl Icahn is poised to take over the bankrupt and unfinished Fontainebleau Las Vegas casino resort after two competing bidders were ruled unqualified.
Icahn Nevada Gaming Acquisition LLC made the only qualified bid, an attorney for the bankruptcy examiner said in court papers in Miami. Thursday's auction was canceled, according to the papers. A hearing on the sale is set for Jan. 27.
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Icahn Nevada Gaming Acquisition LLC made the only qualified bid, an attorney for the bankruptcy examiner said in court papers in Miami. Thursday's auction was canceled, according to the papers. A hearing on the sale is set for Jan. 27.
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Brinker International Reports Second Quarter Fiscal 2010 EPS
DALLAS, Jan 20, 2010 /PRNewswire via COMTEX/ -- Brinker International, Inc. (NYSE: EAT) announced second quarter fiscal 2010 earnings per diluted share of $0.29 compared to $0.27 for the second quarter of fiscal 2009, before special items and excluding Romano's Macaroni Grill(R) (reconciliation included in Table 2). On a GAAP basis, earnings per diluted share increased to $0.18 from a loss per diluted share of $0.21 for the second quarter in the prior year.
In the second quarter of fiscal 2009, the company completed the sale of Macaroni Grill while retaining a minority ownership interest.
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In the second quarter of fiscal 2009, the company completed the sale of Macaroni Grill while retaining a minority ownership interest.
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Pizza Inn, Amegy Bank Announce New Financing Agreement
THE COLONY, Texas, Jan. 19, 2010 (GLOBE NEWSWIRE) -- Pizza Inn (Nasdaq:PZZI - News), an international pizza chain with more than 310 restaurants in 10 countries, announced today a new financing agreement with Amegy Bank of Texas. The agreement provides Pizza Inn with improved financial flexibility to execute its long-term strategic plan to develop new Company-owned restaurants.
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Chesapeake Lodging cuts size of IPO by 40 pct
NEW YORK, Jan 19 (Reuters) - High end hotel company Chesapeake Lodging Trust Corp said on Tuesday it cut the size of its initial public offering by 40 percent after postponing the deal in December.
The New Jersey-based real estate investment trust plans to sell 7.5 million shares for $20 a share, raising about $150 million. It had originally planned to sell 12.5 million shares but postponed the offering due to difficult market conditions.
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The New Jersey-based real estate investment trust plans to sell 7.5 million shares for $20 a share, raising about $150 million. It had originally planned to sell 12.5 million shares but postponed the offering due to difficult market conditions.
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Accor 2009 Revenue Down 7.9% Like-for-Like
Hotels revenue declined by 10.1% over the year and 8.3% in the fourth quarter, which
showed a slight improvement compared with previous quarters, mainly due to the
first signs of stabilization in occupancy rates in December in Europe
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showed a slight improvement compared with previous quarters, mainly due to the
first signs of stabilization in occupancy rates in December in Europe
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‘Tranche Warfare’ Erupts as Property Owners Slide Into Default
Jan. 20 (Bloomberg) -- When Lightstone Group bought Extended Stay Hotels Inc. in June 2007, it relied on more than $7 billion in debt financing to complete the $8 billion deal just weeks before the leveraged-buyout market imploded.
Today, Extended Stay’s creditors are battling each other after the company filed the largest bankruptcy case by a U.S. hotel owner. A company reorganization plan, which includes financing from Centerbridge Partners LP and Paulson & Co., may be challenged by a proposal from Starwood Capital Group LLC that is backed by some so-called mezzanine lenders
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Today, Extended Stay’s creditors are battling each other after the company filed the largest bankruptcy case by a U.S. hotel owner. A company reorganization plan, which includes financing from Centerbridge Partners LP and Paulson & Co., may be challenged by a proposal from Starwood Capital Group LLC that is backed by some so-called mezzanine lenders
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