CKE Restaurants, the operator of Carl’s Jr. and Hardee’s restaurants said Tuesday that a rival buyout offer from an unnamed bidder is better than the one it already has from a private equity firm, The Associated Press reported.
While the company didn’t name the mystery bidder, DealBook reported earlier this month that the unnamed suitor was Apollo Management.
The news sent shares of CKE Restaurants up 82 cents, or 6.8 percent, to $12.81 in midday trading.
CKE said the $12.55 per share each stockholder would receive from the bidder is superior to a prior offer from Thomas H. Lee Partners, the buyout shop that was part of a consortium that bought Dunkin’ Brands in 2006.
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Wednesday, April 21, 2010
MGM Mirage seeks to rebrand as MGM Resorts Int'l
LAS VEGAS (AP) -- MGM Mirage is asking shareholders to approve changing its name to MGM Resorts International, as the company looks to emphasize the scope of its brand.
The company, known mostly for its Las Vegas casinos, said Wednesday that the new name better represents its global presence. MGM and its joint venture partner in Macau expect to launch an IPO on the Hong Kong market later this year, and the company is developing Bellagio, MGM Grand and Skylofts hotels in Dubai that are expected to open in 2013.
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The company, known mostly for its Las Vegas casinos, said Wednesday that the new name better represents its global presence. MGM and its joint venture partner in Macau expect to launch an IPO on the Hong Kong market later this year, and the company is developing Bellagio, MGM Grand and Skylofts hotels in Dubai that are expected to open in 2013.
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Greenbrier Resort casino to open in June
CHARLESTON, W.Va. — The picture postcard view of The Greenbrier resort's white hotel facade offset with tulips in spring splendor is gone, replaced by cranes, dust and construction workers in a dash to finish an underground casino beneath what used to be the front lawn.
"It's basically crunch time," said Todd Fishon, the resort's vice president of casino operations.
A harsh winter has pushed back the opening of the 89,000-square-foot Casino Club to June and the exact date will be determined soon, he said.
The casino is being built underground so it won't take away from the ambiance and scenery of the 6,500-acre resort, which has entertained kings and presidents and once housed a secret bomb shelter intended for Congress.
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"It's basically crunch time," said Todd Fishon, the resort's vice president of casino operations.
A harsh winter has pushed back the opening of the 89,000-square-foot Casino Club to June and the exact date will be determined soon, he said.
The casino is being built underground so it won't take away from the ambiance and scenery of the 6,500-acre resort, which has entertained kings and presidents and once housed a secret bomb shelter intended for Congress.
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Food & Beverage - Toughen Up: How to Be Firm with Demanding Customers
As well as customer service training, we need'customer training': firm and friendly guidance so they're less annoying, unreasonable or forgetful. Be too firm and they go elsewhere; be too accommodating and you're running a zoo.
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Denver investors buy Hotel Hana-Maui
A Denver-based real estate investment company is buying the Hotel Hana-Maui for an undisclosed amount and plans to change how the boutique hotel is operated.
AmStar Group LLC said Tuesday that it would purchase the 70-room hotel on 70 oceanfront acres in East Maui from Ohana Hotel Co. in a deal that is expected to close in May.
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AmStar Group LLC said Tuesday that it would purchase the 70-room hotel on 70 oceanfront acres in East Maui from Ohana Hotel Co. in a deal that is expected to close in May.
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Innkeepers USA loan in special servicing
NEW YORK, April 20 (Reuters) - An $825.4 million loan on 45 hotels owned by Innkeepers USA Trust was transferred to the care of a special servicer, Fitch Ratings said on Tuesday, a week after Innkeepers said it had missed debt payments.
The portfolio was transferred to Midland Loan Services for special servicing, Fitch said. Innkeepers could not be reached for comment on Tuesday.
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The portfolio was transferred to Midland Loan Services for special servicing, Fitch said. Innkeepers could not be reached for comment on Tuesday.
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Interstate Hotels & Resorts Forms Strategic Alliance with International Hotel Investments Ltd
ARLINGTON, Va., April 21 /PRNewswire/ -- Interstate Hotels & Resorts, the United States' largest independent hotel management company, today announced that it has formed a strategic alliance with IHI Ltd, an affiliate of Harte Holdings, to operate and selectively invest in hotels in Europe. Interstate already manages six hotels for affiliates of Harte Holdings in the U.S. and Europe, four of which are owned by a joint venture between the two organizations. The new alliance will expand Interstate's third-party hotel management platform throughout the EU.
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Hotel Chains Struggle Under Debt Burden
More than $60 billion of hotel buyouts during the recent real-estate boom saddled several name-brand hotel chains with mountains of debt. Now, many are finding it tough to restructure and reduce those complicated debt burdens with the hotel industry mired in a downturn.
In the latest examples of this, budget-hotel chain Red Roof Inn Inc. and real-estate investment trust Innkeepers USA Trust face losing hotels to their lenders as they scramble to get new terms on past-due debts.
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In the latest examples of this, budget-hotel chain Red Roof Inn Inc. and real-estate investment trust Innkeepers USA Trust face losing hotels to their lenders as they scramble to get new terms on past-due debts.
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Feds selling hotel loans
All eyes in the hotel investment world are on an ongoing auction by the Federal Deposit Insurance Corp. of hotel loans from a failed Georgia bank to see if the results will influence hotel values and pricing.
The FDIC last week accepted sealed bids on a $416 million portfolio of loans on 60 hotels originated by Atlanta's Silverton Bank, which the FDIC closed in May. The loans were made on properties ranging from a W hotel in Atlanta to various Hampton Inns, Courtyards by Marriott and Holiday Inns across the country.
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The FDIC last week accepted sealed bids on a $416 million portfolio of loans on 60 hotels originated by Atlanta's Silverton Bank, which the FDIC closed in May. The loans were made on properties ranging from a W hotel in Atlanta to various Hampton Inns, Courtyards by Marriott and Holiday Inns across the country.
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Foreclosure suit hits trio of Chicago Lakeview hotels
(Crain’s) — A Los Angeles-based investment group is facing foreclosure on a portfolio of three boutique hotels in Lakeview that it bought just two years ago.
Affiliates of Reliance Capital Partners LLC defaulted on a $25-million loan secured by the City Suites Hotel, the Majestic Hotel and the Willows Hotel when they stopped making loan payments last November, according to the foreclosure lawsuit. The story is all too familiar in a recession that has depressed occupancies and room rates at hotels across the Chicago area, leaving many in arrears.
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Affiliates of Reliance Capital Partners LLC defaulted on a $25-million loan secured by the City Suites Hotel, the Majestic Hotel and the Willows Hotel when they stopped making loan payments last November, according to the foreclosure lawsuit. The story is all too familiar in a recession that has depressed occupancies and room rates at hotels across the Chicago area, leaving many in arrears.
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More hotels, restuarants shut down in Bangkok
THAILAND - At least four luxury hotels located near the protest site at the Rajprasong intersection, and Silom area have confirmed they would be shutting operations for a short period even as the number of restaurants downing their shutters is increasing.
The four hotels account for 1,500 rooms and employ 2,000 people.
The general manager of Holiday Inn Bangkok and InterContinental Bangkok, Markus Platzer, expressed concern for the safety and security of hotel guests and employees
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The four hotels account for 1,500 rooms and employ 2,000 people.
The general manager of Holiday Inn Bangkok and InterContinental Bangkok, Markus Platzer, expressed concern for the safety and security of hotel guests and employees
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Woman who impersonated IRS agent at hotel given probation; $55,000 hotel bill still unpaid
A woman who didn't pay for her bill at a hotel for two years while posing as an IRS agent was granted probation Tuesday, the San Francisco Chronicle reports today. A federal judge also ordered the woman to pay $55,000 to the owners of the Inn Marin hotel in Novato, Calif.
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Aviara and Four Seasons cut ties
The acrimonious relationship between the Four Seasons hotel management firm and the owner of Carlsbad’s Aviara Resort has ended in divorce after an arbitration panel decided Tuesday that the two companies should terminate their business agreement.
Broadreach Capital Partners, the owner of Aviara, said Four Seasons would be replaced by Park Hyatt, the upscale, contemporary Hyatt brand, as manager of the swanky 329-room resort by June 21. Four Seasons will continue to manage the Aviara’s 132 time-share villas.
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Broadreach Capital Partners, the owner of Aviara, said Four Seasons would be replaced by Park Hyatt, the upscale, contemporary Hyatt brand, as manager of the swanky 329-room resort by June 21. Four Seasons will continue to manage the Aviara’s 132 time-share villas.
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Capri Capital Partners Restructures Ownership in W Atlanta Hotel with Barry Real Estate
Apr 20, 2010 – Chicago, IL – Capri Capital Partners, LLC (“Capri”) announced today it has reached agreement with Barry Real Estate Companies, Inc. (“Barry”) on conversion of Capri’s mezzanine loan into an equity interest in the W Atlanta Hotel & Residences, located at 45 Ivan Allen Jr. Boulevard.
Under the new agreement, Capri assumes the primary ownership interest of the 28-story mixed-use hotel and condo property that opened in 2009. Barry will continue to have active involvement in aspects of the project.
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Under the new agreement, Capri assumes the primary ownership interest of the 28-story mixed-use hotel and condo property that opened in 2009. Barry will continue to have active involvement in aspects of the project.
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Landmark Group to Enter Hotel Industry with Citymax Hotels
The Landmark Group, one of the Middle East’s largest retail conglomerates, is entering the hotel industry with a new mid-market brand - Citymax Hotels.
The group plans to open three hotels in the UAE before end of the year; the first Citymax Hotel opens in Al Barsha on 3 May 2010, while the properties in Bur Dubai and Sharjah will follow later in 2010. Each Citymax Hotel will be located with easy access to malls and other prominent locations in Dubai and Sharjah.
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The group plans to open three hotels in the UAE before end of the year; the first Citymax Hotel opens in Al Barsha on 3 May 2010, while the properties in Bur Dubai and Sharjah will follow later in 2010. Each Citymax Hotel will be located with easy access to malls and other prominent locations in Dubai and Sharjah.
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Attackers abduct Mexico hotel guests
An armed gang stormed two hotels in Mexico's northern economic hub of Monterrey and abducted seven people, including an American woman, Mexican media reports said Wednesday.
Around 50 armed attackers were involved in the two raids, according to concordant media reports citing Nuevo Leon state police.
The attackers abducted one guest from the Hotel Mision and four guests, a security guard and a receptionist from the Holiday Inn, the reports said.
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Around 50 armed attackers were involved in the two raids, according to concordant media reports citing Nuevo Leon state police.
The attackers abducted one guest from the Hotel Mision and four guests, a security guard and a receptionist from the Holiday Inn, the reports said.
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Connecticut attorney general challenges competitor contacts
On April 1, 2010, the Connecticut Attorney General's Office announced an agreement with the La Quinta hotel group to cease contacts with competitors that the Connecticut Attorney General, Richard Blumenthal, characterized as "a wake-up call to the entire hotel industry -- signaling that call-arounds to set room prices are illegal and must be stopped." Under the settlement, La Quinta agreed to end "call-arounds," an alleged industry practice by which competing hotels in a particular geographic area exchanged current room rate and occupancy information, which the AG asserted could be used to fix prices.
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Apple Travel App Patent Hints At Ticketless Airlines
Apple has filed a very interesting patent for a travel app called iTravel that books flights, hotels and car reservations. But the most interesting part is how it uses a radio chip to check you in at the airport, whisk you through security and allows you to wireless board your flight.
The iTravel app uses Near Field Communications, a short-range wireless technology that is starting to become widely used in cell phones for mobile ticketing, payment and electronic keys, especially in countries like Japan.
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The iTravel app uses Near Field Communications, a short-range wireless technology that is starting to become widely used in cell phones for mobile ticketing, payment and electronic keys, especially in countries like Japan.
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L.A. Hotel To Turn Into Pot-Friendly Resort?
LOS ANGELES (CBS) ― The Hotel Normandie in Koreatown threw a medical marijuana party on April 20, 2010. The new owners of Hotel Normandie hope to turn it into America's first pot-friendly resort.
The idea? Turn a hotel into a "Pot-tel," but now the owner fears it may have all been a pipe dream.
"It's suppose to start at 11 p.m., which like I said is a little late for most potheads," said John Evangelista, owner of Hotel Normandie.
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The idea? Turn a hotel into a "Pot-tel," but now the owner fears it may have all been a pipe dream.
"It's suppose to start at 11 p.m., which like I said is a little late for most potheads," said John Evangelista, owner of Hotel Normandie.
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Martha Stewart rides in to rescue Emeril Lagasse
NEW ORLEANS - Nearly 20 years after Emeril Lagasse begged, borrowed and scrounged every penny he could to open his own restaurant, the celebrity chef worried it was all slipping away.
Lagasse’s 17-year run on the Food Network was over. Hurricane Katrina had caused at least a $1 million loss to his three New Orleans-based restaurants and cut his profits by a third.
But just when things were looking bleakest – bam! – Martha Stewart kicked it up a notch and the 50-year-old Lagasse is back.
“She showed up at a tough time when I thought the whole ship might be going down,” Lagasse said during a recent interview. “Basically, what I have now is a business partner.”
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Lagasse’s 17-year run on the Food Network was over. Hurricane Katrina had caused at least a $1 million loss to his three New Orleans-based restaurants and cut his profits by a third.
But just when things were looking bleakest – bam! – Martha Stewart kicked it up a notch and the 50-year-old Lagasse is back.
“She showed up at a tough time when I thought the whole ship might be going down,” Lagasse said during a recent interview. “Basically, what I have now is a business partner.”
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Brinker International Reports Third Quarter Fiscal 2010 EPS
DALLAS, April 20, 2010 /PRNewswire via COMTEX/ --Brinker International, Inc. (NYSE: EAT) announced third quarter fiscal 2010 earnings per diluted share from continuing operations of $0.37 compared to $0.40 for the third quarter of fiscal 2009, before special items (reconciliation included in Table 2). On a GAAP basis, earnings per diluted share increased to $0.39 from $0.34 for the third quarter in the prior year.
Including On The Border Mexican Grill & Cantina(R), earnings per diluted share before special items was $0.42 for the third quarter fiscal 2010 (reconciliation included in Table 2). The costs associated with implementing the new Chili's menu lowered earnings by approximately $5.0 million before tax, weather negatively impacted comparable restaurant sales by approximately 90 basis points and the resolution of certain tax positions resulted in a positive impact of approximately $3.0 million to tax expense for the quarter.
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Including On The Border Mexican Grill & Cantina(R), earnings per diluted share before special items was $0.42 for the third quarter fiscal 2010 (reconciliation included in Table 2). The costs associated with implementing the new Chili's menu lowered earnings by approximately $5.0 million before tax, weather negatively impacted comparable restaurant sales by approximately 90 basis points and the resolution of certain tax positions resulted in a positive impact of approximately $3.0 million to tax expense for the quarter.
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Lone Star Steakhouses in SoCal file for bankruptcy protection
The owner of California’s five Lone Star Steakhouse restaurants, including two Orange County units, has filed for Chapter 11 bankruptcy protection.
Lake Elsinore-based R Star Restaurants Inc. operates Lone Star restaurants in Tustin, Laguna Hills, Long Beach, Corona and Lake Elsinore. The steakhouse franchisee lists liabilities of $3.4 million, according to bankruptcy documents filed March 8 in Santa Ana.
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Lake Elsinore-based R Star Restaurants Inc. operates Lone Star restaurants in Tustin, Laguna Hills, Long Beach, Corona and Lake Elsinore. The steakhouse franchisee lists liabilities of $3.4 million, according to bankruptcy documents filed March 8 in Santa Ana.
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Starbucks Reports Record Second Quarter Earnings
Fiscal Second Quarter 2010 Highlights:
Consolidated net revenues increased 9% to $2.5 billion
Comparable store sales increased 7%, driven by a 3% increase in traffic and a 4% increase in average ticket
U.S. comparable store sales increased 7%, driven by a 3% increase in traffic and a 5% increase in average ticket
International comparable store sales increased 7%, driven by a 6% increase in traffic and a 1% increase in average ticket
Consolidated operating margin improved to 13.4%, from 1.8% in Q2 FY09; Non-GAAP operating margin increased 540 basis points to 13.7%
U.S. operating margin significantly improved to 17.7% from 4.2% in Q2 FY09; U.S. Non-GAAP operating margin increased to 17.8% from 10.4% in the prior-year period
International operating margin improved to 7.7%, from 1.4% in Q2 FY09; International Non-GAAP operating margin increased to 8.9% from 4.8% in the prior-year period
EPS increased to $0.28 compared to $0.03 in Q2 FY09; Non-GAAP EPS was $0.29, compared to $0.16 in Q2 FY09
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Consolidated net revenues increased 9% to $2.5 billion
Comparable store sales increased 7%, driven by a 3% increase in traffic and a 4% increase in average ticket
U.S. comparable store sales increased 7%, driven by a 3% increase in traffic and a 5% increase in average ticket
International comparable store sales increased 7%, driven by a 6% increase in traffic and a 1% increase in average ticket
Consolidated operating margin improved to 13.4%, from 1.8% in Q2 FY09; Non-GAAP operating margin increased 540 basis points to 13.7%
U.S. operating margin significantly improved to 17.7% from 4.2% in Q2 FY09; U.S. Non-GAAP operating margin increased to 17.8% from 10.4% in the prior-year period
International operating margin improved to 7.7%, from 1.4% in Q2 FY09; International Non-GAAP operating margin increased to 8.9% from 4.8% in the prior-year period
EPS increased to $0.28 compared to $0.03 in Q2 FY09; Non-GAAP EPS was $0.29, compared to $0.16 in Q2 FY09
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Chipotle Mexican Grill, Inc. Announces First Quarter 2010 Results
Highlights for the first quarter of 2010 as compared to the first quarter of 2009 include:
Revenue increased 15.6% to $409.7 million
Comparable restaurant sales increased 4.3%
Restaurant level operating margin was 26.1%, an increase of 260 basis points
Net income was $37.8 million, an increase of 49.1%
Diluted earnings per share was $1.19, an increase of 52.6%
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Revenue increased 15.6% to $409.7 million
Comparable restaurant sales increased 4.3%
Restaurant level operating margin was 26.1%, an increase of 260 basis points
Net income was $37.8 million, an increase of 49.1%
Diluted earnings per share was $1.19, an increase of 52.6%
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Quiznos Receives Significant Capital Infusion from Shareholders While Gaining Flexibility in Company Debt
DENVER--(BUSINESS WIRE)--Quiznos, one of the nation’s premier quick service restaurant chains, today announced a significant injection of capital from its primary shareholders, including private equity funds affiliated with J.P. Morgan Partners, LLC and managed by CCMP Capital Advisors, LLC and Consumer Capital Partners. The company and its lending group also amended the terms of its existing secured debt to provide additional flexibility to the company.
This infusion of capital, reduction in debt and amendment to the terms of the company’s secured debt agreement provides Quiznos with the resources and flexibility to further its growth objectives, support its franchise owners and maintain the brand’s strong position in the competitive restaurant industry.
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This infusion of capital, reduction in debt and amendment to the terms of the company’s secured debt agreement provides Quiznos with the resources and flexibility to further its growth objectives, support its franchise owners and maintain the brand’s strong position in the competitive restaurant industry.
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McDonald's Announces Strong Sales and Earnings Growth for First Quarter 2010
OAK BROOK, Ill., April 21, 2010 /PRNewswire via COMTEX/ --McDonald's Corporation (NYSE: MCD) today announced strong results for the first quarter driven by all areas of the world.
"McDonald's compelling menu, unmatched convenience and unbeatable value generated another strong quarterly performance," said Chief Executive Officer Jim Skinner. "For the first quarter, we delivered comparable sales and guest count growth in each geographic segment along with global double-digit operating income growth. As we move forward, we will continue to pursue opportunities to extend our relevance, sustain our momentum and create ongoing excitement for our customers."
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"McDonald's compelling menu, unmatched convenience and unbeatable value generated another strong quarterly performance," said Chief Executive Officer Jim Skinner. "For the first quarter, we delivered comparable sales and guest count growth in each geographic segment along with global double-digit operating income growth. As we move forward, we will continue to pursue opportunities to extend our relevance, sustain our momentum and create ongoing excitement for our customers."
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Biden Receives Lifetime Ban From Dave & Buster's
Humor from the Onion.com
DALLAS—Following dozens of complaints from waitstaff and numerous incidents of property damage over the past 10 years, representatives from the Dave & Buster's corporation, a bar-restaurant chain offering a wide variety of arcade games, announced today that Vice President Joe Biden has been permanently banned from all 55 locations nationwide.
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DALLAS—Following dozens of complaints from waitstaff and numerous incidents of property damage over the past 10 years, representatives from the Dave & Buster's corporation, a bar-restaurant chain offering a wide variety of arcade games, announced today that Vice President Joe Biden has been permanently banned from all 55 locations nationwide.
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