Delano to expand outside U.S.

Morgans Hotel Group, owner of the famous South Beach boutique lodging pioneer, announced Thursday that it had signed hotel management agreements that will expand the Delano brand to Mexico and Turkey.
The 114-room Delano in Cabo San Lucas, on Mexico’s Baja Peninsula, is under construction and expected to open in early 2013.
In Turkey, the 200-room hotel will be on the Aegean Sea. Also pegged to a 2013 opening, the resort will have several restaurants and bars, a Turkish spa and a focus on water sports.

Read More:

Hotel Workers Protest Outside Hyatt Regency

SAN FRANCISCO -- Hotel workers picketed and held a sit-in Thursday afternoon to protest management at the Hyatt Regency San Francisco near the Embarcadero, a spokeswoman for the workers' union said.

Hundreds of members and supporters of Unite Here Local 2, which represents hospitality workers for the Chicago-based hotel chain, gathered for the protest, which was scheduled to begin at about 4:30 p.m., union spokeswoman Riddhi Mehta-Neugebauer said.

Most of the protesters are picketing in front of the Hyatt Regency, located at 5 Embarcadero Center, while dozens of others are risking arrest by staging a sit-in somewhere on the hotel's property, Mehta-Neugebauer said.

The group is protesting what they say is hotel management's refusal to agree to a fair contract with more than 800 of its workers in San Francisco.

Read More:

Buffalo Wild Wings, Inc. Announces Fourth Quarter Earnings per Share of $0.55 and Annual Net Earnings Growth of Over 25% for 2010

Image via WikipediaBuffalo Wild Wings, Inc. (Hospitality Business News), announced today financial results for the fourth quarter ended December 26, 2010. Highlights for the fourth quarter versus the same period a year ago were:

• Total revenue increased 13.1% to $163.9 million
• Company-owned restaurant sales grew 13.3% to $148.7 million
• Same-store sales decreased 0.3% at company-owned restaurants and 1.1% at franchised restaurants
• Net earnings increased 22.0% to $10.2 million from $8.3 million, and earnings per diluted share increased 19.6% to $0.55 from $0.46

Sally Smith, President and Chief Executive Officer, commented, "The fourth quarter completed another successful year for Buffalo Wild Wings. We increased our brand presence with 80 additional restaurants across the United States, and our system-wide sales topped $1.7 billion! We delivered earnings per diluted share of $0.55 to our shareholders in the fourth quarter and accomplished net earnings growth of over 25% for the year."
Total revenue increased 13.1% to $163.9 million in the fourth quarter compared to $145.0 million in the fourth quarter of 2009. Company-owned restaurant sales for the quarter increased 13.3% over the same period in 2009, to $148.7 million, mainly the result of 27 additional company-owned restaurants at the end of fourth quarter 2010 relative to the same period in 2009. Same-store sales at company-owned locations for the fourth quarter decreased 0.3%. Franchise royalties and fees increased 10.3% to $15.2 million versus $13.8 million in the fourth quarter of 2009. This increase is attributed to 53 additional franchised restaurants at the end of the period versus a year ago, partially offset by a franchised same-store sales decrease of 1.1%.
Average weekly sales for company-owned restaurants were $45,595 for the fourth quarter of 2010 compared to $44,583 for the same quarter last year, a 2.3% increase. Franchised restaurants averaged $49,837 for the period versus $50,115 in the fourth quarter a year ago, a 0.6% decrease.
For the fourth quarter, net earnings increased 22.0% to $10.2 million versus $8.3 million in the fourth quarter of 2009. Earnings per diluted share were $0.55, as compared to fourth quarter 2009 earnings per diluted share of $0.46.
2011 Outlook
Ms. Smith remarked, "We're just coming off the excitement of Super Bowl Sunday, and our same-store sales for the first six weeks of 2011 are strong at 3.8% in company-owned and 1.5% at franchised locations. As sports fans turn their focus to basketball, we'll increase our media presence with attention-getting programming that supports our Home Court Advantage(TM) campaign. In our restaurants, our Team Members are dedicated to delivering an exceptional 'courtside' experience to our Guests."
Ms. Smith concluded, "2011 is another year of growth for Buffalo Wild Wings. We expect to open more than 100 new restaurants, including our first units in Canada, and reach our goal of 13% unit growth for the year. With our strategic emphasis on the core elements that have built our success: wings, beer, and sports, and our proven track record of results, we are confident in our ability to achieve our net earnings goal of over 18% growth for 2011."

Chipotle Workers Fired over Immigration Status Sue for Backpay

Two former employees of Chipotle Mexican Grill restaurants in Minnesota have filed a lawsuit claiming that the chain failed to pay them wages in a timely fashion. 

The workers, who were among hundreds who were fired by the Chipotle chain after an immigration audit raised questions about their immigration status, are seeking class action status.

The lawsuit says that Chipotle did not comply with Minnesota state law when it did not immediately give them their earned compensation upon their dismissal.

The workers are identified in the lawsuit, filed in Hennepin County Court, as Tanya Cortes and Alejandro Juárez, according to the Pioneer Press.

Read More:

Starwood slashes rate in key Mexican destinations

WHITE PLAINS, N.Y., Feb 09, 2011 (BUSINESS WIRE) --
With the worst winter season in decades upon us Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT) is making it easier than ever to book a sun-filled, affordable getaway to the top vacation destinations in Mexico. The global hospitality giant announced today a new promotion offering spectacular, all-inclusive packages at its Westin, Sheraton and Le Meridien resorts in Cancun, Puerto Vallarta and Los Cabos.

Starwood resorts offering all-inclusive packages include The Westin Resort & Spa, Los Cabos; The Westin Lagunamar Ocean Resort Villas, Cancun; The Westin Resort & Spa, Puerto Vallarta; The Westin Resort & Spa, Cancun; and Sheraton Hacienda del Mar Golf & Spa Resort, Los Cabos; Sheraton Buganvilias Resort & Convention Center, Puerto Vallarta and the Le Meridien Cancun Resort & Spa.
Fewer Hotel Deals to be had as Rates Continue to Rise but Mexico is the Exception
As hotel occupancies near pre-crisis levels and the economic recovery continues to build, hotels are filling up and rates are on the rise making travel deals harder to come by, but Mexico is a notable exception.
"Due to the recent negative headlines people are thinking twice about vacationing in Mexico, but what many travelers don't realize is that the vast majority of incidents are occurring hundreds of miles away from Mexico's most popular vacation spots. It is like avoiding Florida because of forest fires in California," said Trip Barrett, Vice President, Brand Management, Starwood Hotels Latin America Division. "As a result, Mexico is a great deal right now, and Starwood boasts some of the country's best resorts in idyllic locations that are safe, fun and easily accessible."
Starting today, travelers can book stays through December 15, 2011 by visiting starwoodhotels.com/mexicoallinclusive. Rates for two people start as low as $155 USD per night, based upon availability, for the all-inclusive packages, which include:

• Three meals a day at any of the resorts' restaurants and pool bars
• Free meals for children under 4 and 50% off meals for children ages 5-12
• Open bar with selection of domestic and imported drinks
• Pool-side beverage service
• Minibar including soft drinks, water and beer and free internet

Wyndham Worldwide Reports Strong Fourth Quarter

PARSIPPANY, N.J. 02-09-2011 —(Hospitality Business News) Wyndham Worldwide Corporation (NYSE:WYN) today announced results for the three months and year ended December 31, 2010.

Highlights:

• Fourth quarter adjusted diluted earnings per share (EPS) was $0.46, compared with $0.40 in the fourth quarter of 2009, an increase of 15%. Fourth quarter 2010 reported diluted EPS was $0.43, an increase of 8% from the same period in 2009.
• Free cash flow increased 11% to $603 million for the year ended December 31, 2010, compared with $541 million in 2009. The Company defines free cash flow as net cash provided by operating activities less capital expenditures, equity investments and development advances and excluding a previously announced cash payment related to contingent IRS tax liabilities.
• The Company's Board of Directors authorized an increase of the quarterly cash dividend to $0.15 from $0.12 per share, beginning with the dividend that is expected to be declared in the first quarter of 2011.
• During the quarter, the Company repurchased approximately 1.6 million shares of its common stock at an average price of $29.20. For the full-year 2010, the Company repurchased approximately 9.3 million shares of its common stock at an average price of $25.52.

"We are pleased to report these results, which are further evidence of the strength of our business models and great execution throughout the company," said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. "We delivered strong cash flow and look to continue to deploy free cash flow to create more value for our shareholders in 2011 through acquisitions, share repurchases and dividends."

FOURTH QUARTER 2010 OPERATING RESULTS

Fourth quarter revenues increased 3% from the prior year period to $937 million. Excluding the $47 million of Vacation Ownership revenue associated with the percentage-of-completion (POC) accounting method in the fourth quarter of 2009, fourth quarter 2010 adjusted revenue growth was 8%. The adjusted revenue growth reflects continued sales momentum across the Company's three business units and incremental contributions from acquisitions.
For the fourth quarter of 2010, adjusted net income increased by 15% to $84 million, compared with $73 million for the same period in 2009. The increase primarily reflects higher RevPAR in the Lodging business, strong operational performance by the Vacation Ownership business and a lower effective tax rate. Adjusted net income for the fourth quarter of 2010 excludes a $6 million after-tax restructuring charge, a $2 million after-tax loss incurred for the repurchase of a portion of the Company's 3.50% convertible notes and a $3 million after-tax net benefit related to the adjustment and resolution of certain contingent liabilities and assets.
Reported net income for the fourth quarter of 2010 was $78 million, or $0.43 per diluted share, compared with net income of $73 million, or $0.40 per diluted share, for the fourth quarter of 2009.

FULL YEAR 2010 OPERATING RESULTS

Reported revenues for full year 2010 were $3.9 billion, an increase of 3% over the prior-year period. Excluding the $187 million of Vacation Ownership revenue associated with the POC accounting method for the full year 2009, full year 2010 adjusted revenue growth was 8%. The adjusted revenue growth reflects continued sales momentum across the Company's three business units and incremental contributions from acquisitions.
Adjusted net income for the full year 2010 increased by 13% to $368 million, compared with $327 million for the prior-year period. The increase primarily reflects higher RevPAR in the Lodging business, strong operational performance by the Vacation Ownership business, contributions from acquisitions in the Exchange and Rentals and Lodging businesses and a lower effective tax rate. Adjusted net income for the full year 2010 excludes a $41 million after-tax net benefit principally related to the resolution of the IRS examination of taxable years 2003 through 2006, an $18 million after-tax charge for the early extinguishment of debt, a $6 million after-tax charge for acquisition costs and a $6 million after-tax restructuring charge.
Reported net income for full year 2010 was $379 million, or $2.05 per diluted share, compared with net income of $293 million, or $1.61 per diluted share, for the prior-year period.
Free cash flow increased 11% to $603 million in the twelve-month period ended December 31, 2010 compared with $541 million in the same period in 2009. The growth of free cash flow reflects higher cash earnings and more efficient working capital utilization. For the twelve months ended December 31, 2010, cash provided by operating activities was $635 million, or $780 million excluding the previously announced one-time payment of $145 million related to a contingent IRS tax liability. Cash provided by operating activities was $689 million for the prior-year period.

BUSINESS UNIT RESULTS

Lodging (Wyndham Hotel Group)

Revenues were $163 million in the fourth quarter of 2010, an increase of 9%, compared with the fourth quarter of 2009 reflecting RevPAR improvement of 10% as well as incremental revenue from the recently acquired Tryp hotel brand and higher fees generated from ancillary services provided to franchisees.
EBITDA was $40 million, an increase of 25%, compared with the fourth quarter of 2009 reflecting the RevPAR improvement and the absence of a $6 million impairment charge recorded in 2009, partially offset by higher operating costs.
As of December 31, 2010, the Company's hotel system consisted of approximately 7,210 properties and 612,700 rooms. The development pipeline included over 900 hotels and approximately 103,000 rooms, of which 55% were new construction and 51% were international.

Vacation Exchange and Rentals (Wyndham Exchange & Rentals)

Revenues were $282 million in the fourth quarter of 2010, an increase of 9% compared with the fourth quarter of 2009. In constant currency, revenues increased by 12%.
Exchange revenues were $153 million, relatively flat compared with the fourth quarter of 2009. Exchange revenue per member and the average number of members were flat.
Vacation rental revenues were $114 million, a 16% increase compared with the fourth quarter of 2009. In constant currency, vacation rental revenues increased 24% from the fourth quarter of 2009, primarily reflecting the contribution of incremental revenues from acquired businesses.
Excluding restructuring costs of $9 million and costs related to the acquisition of James Villa Holidays of $1 million, fourth quarter 2010 adjusted EBITDA decreased 13% compared with the prior-year period, reflecting the seasonality of the acquired rental businesses. Excluding the impact of acquisitions, adjusted EBITDA for the fourth quarter of 2010 was flat compared with the fourth quarter of 2009.
Wyndham Exchange & Rentals acquired James Villa Holidays on November 30, 2010, resulting in the addition of approximately 2,300 villas and unique vacation rental properties in over 50 destinations across Mediterranean vacation locations. This acquisition enhances the Company's leading position as the world's largest serviced vacation rentals business, providing access to approximately 97,000 vacation properties worldwide.

Vacation Ownership (Wyndham Vacation Ownership)

Gross Vacation Ownership Interest (VOI) sales were $373 million in the fourth quarter of 2010, up 9% from the fourth quarter of 2009, reflecting a 13% increase in tour flow. Volume per guest was flat compared with the prior year.
Total segment revenues were $497 million in the fourth quarter of 2010, compared with $508 million in the fourth quarter of 2009, which included the recognition of $47 million of previously deferred POC revenues. The absence of these revenues in the fourth quarter of 2010 was partially offset by an increase in gross VOI sales, a lower provision for loan losses and incremental sales under the Wyndham Asset Affiliation Model (WAAM).
EBITDA for the fourth quarter of 2010 was $131 million, compared with EBITDA of $132 million in the fourth quarter of 2009. Excluding an estimated $22 million impact from the POC method of accounting in the fourth quarter of 2009, fourth quarter 2010 adjusted EBITDA growth was 19%. This growth reflected the lower provision for loan losses and the increase in VOI sales.

Other Items

• The Company repurchased approximately 1.6 million shares of its common stock during the fourth quarter of 2010 at an average price of $29.20 and an additional 455,000 shares at an average price of $29.51 through February 8, 2011.
• During the fourth quarter of 2010, the Company repurchased $22 million face value of its 3.50% convertible notes and retired the proportionate share of the call options and warrants associated with these notes.
• Net interest expense in the fourth quarter of 2010 was $34 million, an increase of $1 million from the fourth quarter of 2009, primarily reflecting a $3 million loss incurred for the repurchase of a portion of the Company's 3.50% convertible notes during the fourth quarter of 2010.

Balance Sheet Information as of December 31, 2010:

• Cash and cash equivalents of approximately $155 million, unchanged from December 31, 2009
• Vacation ownership contract receivables, net, of $3.0 billion, compared with $3.1 billion at December 31, 2009
• Vacation ownership and other inventory of approximately $1.2 billion, compared with $1.3 billion at December 31, 2009
• Securitized vacation ownership debt of $1.7 billion, compared with $1.5 billion at December 31, 2009
• Other debt of $2.1 billion, compared with $2.0 billion at December 31, 2009. The remaining borrowing capacity on the revolving credit facility was $788 million, compared with $869 million as of December 31, 2009.

A schedule of debt is included in the financial tables section of this press release.

Outlook

The Company's full-year 2011 guidance is:

• Revenues of approximately $4.0 – $4.2 billion
• Adjusted EBITDA of approximately $925 – $955 million

The guidance reflects assumptions used for internal planning purposes. All guidance excludes legacy items, restructuring costs, debt extinguishment and acquisition costs, if any, which may have a positive or negative impact on reported results. If economic conditions change materially from current levels, these assumptions and our guidance may change materially. It is not practicable to provide a reconciliation of forecasted adjusted EBITDA to the most directly comparable GAAP measure because certain items cannot be reasonably estimated or predicted at this time. Any such items could be significant to our financial results.

Travel companies sue North Carolina over taxes

DURHAM -- Orbitz and five other Web-based travel companies are suing Durham County and the state over a new law that's trying to make them pay sales and occupancy taxes on Internet-arranged hotel stays.

The lawsuit, filed Feb. 4, alleges the governments are violating both the U.S. and North Carolina constitutions, along with a federal law that's supposed to protect e-commerce from multiple or discriminatory taxes.

The filing put Durham in the front lines of a major nationwide fight between the online travel industry and states that feel they're being cheated out of tax revenue. It has produced similar litigation in places like New York City.

Read More:

Summit Hotel Properties to launch IPO

Hotel investment company Summit Hotel Properties Inc. is expected to go public this week in an initial public offering of about 23 million shares priced between $10.50 and $12.50 each.

The Sioux Falls, S.D. company was recently organized to continue the hotel investment business of Summit Hotel Properties LLC. The company plans to operate as a real estate investment trust, focusing on acquiring and owning midscale and upscale hotels without food and beverage segments.

Following completion of the offering, the company will have a portfolio of 65 hotels in 19 states.

Read More:

Woman Dies After Receiving Butt Injections at Hotel

PHILADELPHIA (KTLA) -- Police in Philadelphia say a young woman after receiving silicone butt injections at a Hampton Inn Hotel.

The woman was in her 20s and was from England, according to police. She died 12 hours after receiving the injections.

Paramedics were called to the hotel because she was having trouble breathing, according to Lt. John Walker of the Philadelphia police. The woman was taken to Fitzgerald Murphy Hospital, where she died.

Read More:

Upgrade to Hospitality Business News

We are currently in the process of updating our web site. You may find that during this period the links may not all be there.

We apologise for any inconvenience. We are sure that you will like to new site. A lot of effort has gone into this new design.

Why more Americans don't travel abroad

That's just too low for such an affluent country, said Bruce Bommarito, executive vice president and chief operating officer for the U.S. Travel Association.

"Americans are comfortable in their own environment," Bommarito said.

There were 61.5 million trips outside the United States in 2009, down 3% from 2008, according to the Office of Travel and Tourism Industries. About 50% of those trips were to either Mexico or Canada, destinations that didn't require a passport until 2007.

Read More:

Hotel project gone wrong, Russian billionaire flees to the U.S.

A wealthy Russian businessman has fled to the U.S. after receiving death threats when he launched a lawsuit against a close friend of Prime Minister Vladimir Putin.

Ashot Egiazaryan, 45, said he was considering seeking asylum after accusing some of Russia's most influential people of swindling him in a real estate deal in Moscow.

He claims he was subjected to groundless police raids, personal smears and anonymous death threats for two years as he struggled to hold on to his $2billion stake in the Moskva hotel project.

Read More:

Kenya govt plans to dispose of 11 hotels

Investors in East Africa are keen on a fresh opportunity to invest millions of dollars in the privatisation of some of Kenya’s finest hotels in the coming months, as the country seeks to reduce its ballooning domestic debt.

Kenya plans to sell its stake in 11 hotels, among them the Intercontinental and Hilton Hotels — some of Kenya’s most profitable hotels and part of Nairobi’s architectural landmarks — through strategic partnerships or share issues.

The plan is also hoped to help the country spruce up its tourism sector, one of its leading hard currency earner.

Most of the government hotels managed by the Kenya Tourist Development Corporation (KTDC) have been run down over the years and continue to struggle financially, prompting the government to restructure them through sale to investors. 

Read More:

Chipotle targeted for immigration audits

All Chipotle Mexican Grill restaurants in Virginia and Washington, D.C., will be audited by federal immigration officials as part of a wider government crackdown on companies that hire undocumented workers.

The Denver-based burrito chain received “notices of inspections” from the U.S. Customs and Immigration Enforcement at about 60 restaurants, Chipotle spokesman Chris Arnold said. That follows a similar probe at all Chipotle locations in Minnesota last year that forced the company to fire some illegal workers. California, which has dozens of Chipotle locations, has not been affected by the probe, Arnold said.  

Arnold warned that more employee dismissals may come.

“If they cannot provide legal documentation, then we cannot legally employ them,” Arnold said, declining to specify how many have already been fired.

Read More:

Related articles

• Chipotle fires hundreds, draws protest (hospitalitybusinessnews.com)

Tim Hortons to expand in Middle East

Image via WikipediaOAKVILLE, ON, Feb 04, 2011 (Hospitality Business News) -- Tim Hortons (TSX: THI, NYSE: THI) today announced the next steps in its international development and has signed a Master License Agreement (MLA) with Apparel Group based in Dubai for up to 120 multi-format restaurants in markets in the Gulf Cooperation Council (GCC).

This announcement follows a comprehensive assessment and due diligence process. Based on success in our initial market entry in the GCC region, our international growth strategy is designed to then evaluate potential additional regional market entries following the first few years of international development.

"Our top strategic priority is continuing to grow our Canadian and U.S. businesses which are the primary drivers of shareholder value. We also believe there is an opportunity over the long-term to explore international opportunities and seed the Tim Hortons brand in various markets outside of North America.

Our approach is prudent, targeted and will minimize capital requirements while still allowing us to pursue identified international growth opportunities," said Don Schroeder, president and CEO, Tim Hortons.
The MLA with Apparel Group for up to 120 restaurants includes both standard and non-traditional units.

Locations will be developed and operated by Apparel in the GCC markets of United Arab Emirates, Qatar, Bahrain, Kuwait and Oman. In 2011, Apparel Group is committed to developing and operating five restaurants. The agreement with Apparel is typical of international MLA models, based primarily on a royalty model, and Apparel will leverage their deep local market knowledge and real estate capability to build and operate the new locations.

"The GCC is an attractive market that provides significant opportunity. Our due diligence has identified the GCC as an international development opportunity for the Tim Hortons brand based on our Always Fresh premium coffee and baked goods offering, value positioning and friendly, efficient in-store experience," said Schroeder. "Our partners at Apparel have considerable knowledge of the local markets and consumer expectations and have introduced world-leading brands to the GCC."

Apparel Group operates over 50 leading international brands and runs more than 600 stores in 14 countries. Apparel Group-operated brands include Tommy Hilfiger, Kenneth Cole, Aldo, Aeropostale, Ninewest, and Cold Stone Creamery.

.Goldman Nears Deal for Applebee's Franchisee

Goldman Sachs Group Inc.'s private-equity arm is near a deal to buy closely held Apple American Group LLC, the largest franchisee of Applebee's Neighborhood Grill and Bar restaurants in the U.S., people familiar with the matter said.

GS Capital Partners is buying Apple American—which it once controlled—from Weston Presidio, which manages more than $3 billion and invests in late-stage-growth companies.

The exact terms of the proposed deal couldn't be learned, but people familiar with the matter said it was worth several hundred millions of dollars.

Read More:

2011 NEWH Leadership conference held in January

Orlando, Florida (Hospitality Business News)—Roughly 200 hospitality professionals attended the recent bi-annual NEWH Leadership

Conference in January at the Loews Royal Pacific Resort Hotel & Conference Center at Universal Orlando.

Dubbed “Catch the Wave,” the three-day event featured a tradeshow showcasing the best products in the

industry, a conference filled with veteran and leadership-inspiring speakers, and fun-filled networking events.

Highlights include the opening keynote speech by Raul Leal, who discussed the revolutionary vision

of the newly formed Virgin Hotels; an in-depth look at the branding and creation of the award-winning Iron

Horse Hotel in Milwaukee by owner Tim Dixon and Brigette Breitnebach;

magazine’s Owners Roundtable, where attendees speed-networked with 18 key senior hotel design and

purchasing executives from around the U.S.; “America’s small talk expert” Don Gabor’s amusing speech on

real-life networking techniques and skills; a special behind-the-scenes presentation by Universal’s Theirry

Coup on the creation and construction of the entire Wizarding World of Harry Potter theme area at

Universal; and a closing presentation by Adrienne Pumphrey on the new groundbreaking green-from-theground-up Adobo Eco Hotel & Suites concept. Other breakout sessions covered social media, personal

branding, sustainable purchasing and design, the sustainable impact on ecology, specification writing, and

running a volunteer organization like NEWH. “Thank you for putting together such a great program and

allowing me to be part of it,” says Ken Koneck, public affairs manager, Valley Forge Fabrics.

On Saturday night, attendees had the chance to tour and ride Universal’s Harry Potter Experience

and attend an awards dinner banquet at Rising Star at Universal’s CityWalk where Lynda Sullivan of JLF and David Mahood of Olive Designs were honored with the NEWH Award of Excellence for their dedication and service to the organization. Six of NEWH’s recent college scholarship recipients also shared how NEWH and its grants to students have changed both their student and professional lives.

The next NEWH Leadership Conference will take place in San Francisco in January of 2013.Hospitality Design (HD)

Bendigo publican jailed for $4.5m theft

The former publican of a Victorian hotel has been jailed for manipulating nearly $4.5 million from the TAB which he used as an "overdraft".

David John Keogh, 43, was the publican of the One Tree Hill Hotel in Spring Gully, near Bendigo, when the pub struck financial troubles.

In 2008, Keogh, a pub TAB licensee, issued more than 1000 TAB vouchers, each with amounts averaging about $5000, but did not pay for them, the Victorian County Court heard on Monday.

Read More:

Marriott, Hilton against Disney, Universal in Expedia tax battle

Some of the biggest players within Florida’s $60 billion-a-year tourism industry are at odds in a battle over how online-travel companies such as Expedia Inc. and Orbitz Worldwide Inc. should be taxed.
One on side are hotel heavyweights such as Marriott International and Hilton Hotels & Resorts, which are out to eliminate what they contend is a competitive advantage the online companies have in selling hotel rooms.

Aligned with the Internet companies are theme-park giants Walt Disney World and Universal Orlando, motivated at least in part by concerns that requiring Expedia, Orbitz and others to absorb higher taxes could jeopardize a tax advantage the resorts themselves now have when selling vacation packages.

Read More:

Related articles

• Florida Dispute over hotel taxes escalates (hospitalitybusinessnews.com)

Deal for Historic San Diego Hotel Adds Blackstone, Cashes Out KKR.

Image via WikipediaBlackstone Group LP is in and Kohlberg Kravis Roberts & Co. is out as part of a recapitalization of the Hotel Del Coronado that establishes the historic beachfront hotel’s value at 20% less than it was during the boom.

The complex deal, which we first reported Jan. 28 and the owners formally outlined Monday, resolves the Del Coronado’s pressing matter of $630 million in debt that was to come due next week. As part of the deal, Blackstone has gained a 60% stake in the 787-room California property by contributing $100 million and converting into equity a small slice of the hotel’s mezzanine debt that it recently bought at a discount.

Read More:

Barclay brothers buy debt in Maybourne hotels

Sir David and Sir Frederick Barclay, the owners of the Telegraph newspaper group, have bought debt held by Bank of Scotland in the Maybourne Hotel Group in the latest move to take full control of its prestigious London hotels.

The Barclay brothers have bought a stake in the hotel group’s debt to support their bid to control its equity.

Read More:

Related articles

• Barclay Brothers Said to Gain Control of Maybourne Hotels' Owner (hospitalitybusinessnews.com)
• Chinese bid for big stake in the Maybourne Hotel Group (hospitalitybusinessnews.com)

Hard Rock foreclosure sale rescheduled

The proposed foreclosure sale of the Hard Rock hotel-casino in Las Vegas has been rescheduled from Monday to Tuesday — assuming a New York state judge in Manhattan allows the foreclosure to proceed.
Attorneys are waiting for Bernard Fried, a New York State Supreme Court justice, to rule on the Las Vegas Hard Rock's motion that the foreclosure be blocked. In New York, the Supreme Court is a trial court similar to Clark County District Court in Las Vegas. The highest court in New York is the state Court of Appeals.
If Fried allows the foreclosure to proceed, it's now set for 4 p.m. Tuesday, New York time, on the New York City courthouse steps.

Read More:

Related articles

• Hard Rock files lawsuit to stop foreclosure (hospitalitybusinessnews.com)
• Lenders file foreclosure notice against Hard Rock Hotel (hospitalitybusinessnews.com)

Owner of shuttered Pizza Hut franchises files suit against the pizza chain

Image via WikipediaLarry Lundy, a well-known New Orleans businessman and Pizza Hut magnate who owned dozens of the franchises in southeast Louisiana that abruptly closed last month, filed a counterclaim Monday against the pizza chain, claiming it hampered his company's profitability as it attempted to squeeze him out of the market.

Read More:

Related articles

• Pizza Huts around La. closed over lawsuit (seattletimes.nwsource.com)

Hardee's restaurants looted, closed in Egypt

Image via Wikipedia

A Hardee's franchise in Cairo, Egypt, has closed its 32 locations there after some restaurants were damaged and looted in the political protests.

One of the closed restaurants is in Tahrir Square or “Freedom Square.”

"We have no insight as to whether they were targeted because of their western affiliation," said Jenna Petroff, a spokeswoman for St. Louis-based Hardee's. "There has been damage and looting in a number of locations, but at this point, the damage is believed to be associated with general looting."

Read More:

Starwood Hotels CFO: Middle East Turmoil 'Hurting Our Business'

NEW YORK (Dow Jones)--Escalating political turmoil and violence in the Middle East is blemishing a robust lodging recovery in global markets for Starwood Hotels & Resorts Worldwide Inc. (HOT).
The company, which swung to a profit in the fourth quarter, said the Middle East and Africa were the only regions that haven't fully recovered from one of the worst brutal downturns in the hotel industry.

"The political turmoil in North Africa, especially Egypt, is of course hurting our business," said Vasant Prabhu, vice chairman and chief financial officer of the hotelier during a post-earnings conference call Thursday. He noted Starwood has 16 hotels across North Africa that generated between $10 million to $12 million in fees last year.

"We expect that our fees will be hit in North Africa," he added. "It is too early to tell how we will be impacted, but this is clearly a risk that needs to be closely monitored."

Starwood's revenue per available room, a key profit metric for hotels, was up more than 10% in the fourth quarter of 2010 over the same time period in 2009, the company reported. It was up 9.4% for the year, following a decline of 20.7% in 2009.

Read More:

STARWOOD REPORTS FOURTH QUARTER 2010 RESULTS

WHITE PLAINS, NY, February 3, 2011

(NYSE: HOT) today reported fourth quarter 2010 financial results.

– Starwood Hotels & Resorts Worldwide, Inc.

Fourth Quarter 2010 Highlights

􀂃

special items, EPS from continuing operations was $1.08.

Excluding special items, EPS from continuing operations was $0.52. Including

􀂃

Adjusted EBITDA was $269 million.

􀂃

Including special items, income from continuing operations was $206 million.

Excluding special items, income from continuing operations was $99 million.

􀂃

in constant dollars) compared to 2009. System-wide REVPAR for Same-Store

Hotels in North America increased 10.2% (9.7% in constant dollars).

Worldwide System-wide REVPAR for Same-Store Hotels increased 10.1% (10.3%

􀂃

2009.

Management fees, franchise fees and other income increased 13.0% compared to

􀂃

approximately 100 basis points compared to 2009.

Worldwide Same-Store company-operated gross operating profit margins increased

􀂃

10.1% (10.9% in constant dollars) compared to 2009. REVPAR for Starwood

branded Same-Store Owned Hotels in North America increased 9.1% (8.1% in

constant dollars).

Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased

􀂃

basis points compared to 2009. Adjusted for a non-recurring item recorded in 2009,

margins increased approximately 170 basis points.

Margins at Starwood branded Same-Store Owned Hotels Worldwide increased 30

􀂃

compared to 2009.

Operating income from vacation ownership and residential increased $13 million

􀂃

contracts representing approximately 8,000 rooms and opened 23 hotels and

resorts with approximately 5,700 rooms.

Read More:During the quarter, the Company signed 37 hotel management and franchise 

Debt Due-Date Looms for Kerzner

Kerzner International Resorts Inc., owner of several high-end vacation spots, including the sprawling Atlantis resort in the Bahamas, has tapped a cadre of restructuring advisers to help rework nearly $3 billion in debt ahead of a looming repayment deadline later this year.

Kerzner recently enlisted advisers at law firm Kirkland & Ellis LLP, Goldman Sachs Group Inc. and Blackstone Group LP to determine how to restructure the debt, according to people familiar with the matter. About $2.6 billion of the debt, in the form of a senior mortgage, comes due in September.

Read More:

Hilton's Revival Boosts Blackstone

A year ago, Blackstone Group LP's real-estate group was peeling egg off its face.

Real-estate chief Jonathan Gray, once toasted as a member of Vanity Fair's "New Establishment," also seemed to have established the firm's most embarrassing deal. Blackstone's record $6 billion investment in the buyout of hotel chain Hilton Worldwide had lost 70% of its value.

How things have changed.

Read More:

Florida Dispute over hotel taxes escalates

As South Florida counties sue Expedia, Priceline and other travel sites for uncollected hotel taxes, state lawmakers are pushing bills to scuttle the litigation.

Legislation filed by two Republicans would exempt the travel giants from paying hotel taxes on the rates they charge customers. Meanwhile, local governments -- including Broward and Miami-Dade -- are taking the sites to court for not collecting those taxes, claiming Expedia and the rest owe millions of dollars.

The dispute has been building judicial momentum for years, as tax collectors try to expand their authority from brick-and-mortar hotels to virtual booking systems. Miami-Dade was part of one class-action suit Florida counties filed in Monroe, only to settle for under $7 million.

But both Broward and Miami-Dade are pursuing separate court cases

Read More:

New Year Fireworks causes fire at Shenyang Sheraton

The blaze in Shenyang, the capital of China's Liaoning Province, is believed to have started in an apartment complex before spreading to the hotel.

Chinese state media said a fireworks display was the cause of the fire.

The 20-storey Sheraton Shenyang Lido Hotel is the the tallest building in the city.

It meant firefighters had trouble extinguishing the blaze, as they were unable to reach the highest parts of the building.

Around 50 guests were evacuated from their rooms but there were no reports of injuries.

Hilton Paid Starwood $75 Million in Espionage Settlement

Hilton Worldwide Inc. paid $75 million last year to Starwood Hotels & Resorts Worldwide as part of a settlement agreement in a corporate-espionage lawsuit, according to a person familiar with the matter.

In its earnings statement Thursday, Starwood said it received the money in a corporate settlement in December but didn't identify Hilton. Still, the legal settlement with Hilton was the only one Starwood reached that month.

Read More:

InterContinental Hotels to invest $500 mn in Mexico

Mexico City( Hospitality Business News)  –  InterContinental Hotels Group will invest $500 million in Mexico over the next three years, the office of Mexican President Felipe Calderon said.

Calderon met Sunday with IHG's president for the Americas, Jim Abrahamson, who informed him of the decision taken to make this new investment.

The new investment "will translate into a projected 47 hotels with a total of 5,000 rooms," according to information released by the Mexican government.

At the meeting between Calderon and Abrahamson, "they exchanged points of view on the tourism industry and Mexico's great potential to figure among the world's top five tourist destinations, while also discussing the tourism industry's impact on creating jobs and growing the nation's economy."

The Calderon administration has declared 2011 to be the Year of Tourism in Mexico.

During last month's FITUR tourism fair in Madrid, Mexican Tourism Secretary Gloria Guevara said that, despite the violence spread by organized crime, visits to Mexico have increased and "investments have as well."

Citing preliminary figures, she said that more than 22 million people visited Mexico last year, matching the record set in 2008.

Kuwait blogger sued over bad restaurant review

blogger in Kuwait is facing court action after posting a bad review of a local restaurant, in a case that could set a precedent for defamation laws in the Gulf state.

Mark Makhoul, a Lebanese blogger in court, is being sued by Las Palmas Company – which owns the newly-owned Benihana franchise – for KD5,001 (about 17,878), after the firm claimed he damaged the reputation of the restaurant with a series of “offensive” claims made on his blog.

Makhoul had said that when he and his wife had eaten at the Asian outlet, their food had been undercooked.
Makhoul’s crimes, it specified, were “the damages caused… [by] encouraging large numbers of customers not to try the restaurant by insulting and doubting the quality of food served.”

Read More:

Daytona Beach hotel owner arrested in child porn sting

Daytona Beach police have confirmed to News 13 that a hotel owner has been arrested in a child porn bust.
In a joint investigation with the FBI, the police raided the Desert Inn hotel Wednesday morning.

The hotel was locked down due to the investigation, with at least 40 guests inside.

According to News 13 reporter Saul Saenz, around 70 police and FBI officials raided the hotel at about 10 a.m. Investigators said they are serving search warrants to look into reports of child porn, child sexual abuse and child exploitation. The proclaimed owner, who has not been identified, was charged with three counts of sex acts on a 13-year-old, one count of lewd and lascivious and voyeurism.

Police Chief Mike Chitwood told News 13 the raid is the culmination of a month-long investigation between the FBI and Daytona Beach police.

The FBI said it received solid information about a month ago about illegal activities occurring inside the Atlantic Avenue hotel. Chitwood said a series of sealed search warrants were executed.

Russian Police Raid Deutsche Bank in Hotel Probe

Russian police raided the Moscow offices of Deutsche Bank AG, Germany’s biggest lender, today as part of a criminal investigation into fraud in the reconstruction of the Hotel Moskva, investigators said.

Officials believe $87.5 million was stolen from a company controlled by the city government, the Investigative Committee in Moscow said on its website today, without detailing Deutsche Bank’s connection to the case.

The probe was to do with “a criminal case on alleged embezzlement during the reconstruction of the Moscow Hotel” that relates to an unnamed client and not to the bank itself, Deutsche Bank said in an e-mailed statement today. “Deutsche Bank continues to operate as normal,” it said.

Read More:

Claremont files for bankruptcy

The Claremont Hotel & Spa, a fixture in the Berkeley hills since 1915, was part of a luxury hotel group that filed for bankruptcy yesterday. The Claremont and seven other resorts were part of a $6.6 billion acquisition by Morgan Stanley in 2007. When debt of $1.5 billion came due yesterday, lenders foreclosed on five of the properties (three other properties with longer-term debt did not file for Chapter 11 protection).

The lenders, led by hedge fund Paulson & Co, stated in a press release that they intend to work down the debt and position the hotels to benefit as the economy improves. The last few years have been particularly bruising for the luxury end of the travel industry, and the Claremont has suffered from poor occupancy rates.

Read More:

Hard Rock files lawsuit to stop foreclosure

The Hard Rock Hotel in Las Vegas claims a company trying to foreclose on the struggling hotel has no right to do so and is trying to gain an advantage over other investors, according to a lawsuit filed in New York Supreme Court.
In the 825-page lawsuit filed on Tuesday against an entity created by NorthStar Realty Finance Corp. of New York, the Hard Rock said it was bringing "this action ... to prevent NorthStar from foreclosing on a major Las Vegas hotel casino and destroying plaintiffs' equity value as a consequence."

Read More:

Saudi prince sells Swisshotel in China for US$61 million

According to the Strait Times billionaire Prince Alwaleed bin Talal's investment group, Kingdom Hotel Investments (KHI), on Monday announced the sale of its Swissotel in Kunshan, China, to Malaysia's TA Global for US$61 million (S$78 million).

The sale is to be finalised in March 2011, the investment group said.
'We are delighted to realise the value of this investment amid a buoyant transactions environment in growth markets,' Prince Alwaleed said.

Sarmad Zok, a KHI chairman, added: 'This divestiture unlocks significant capital and we will continue to consider the sale of other assets as part of our capital allocation strategy.'

Prince Alwaleed's group has sold its share in several luxury hotels over the past two years as part of what it terms a rationalisation of its activities.

Trustee named to oversee Pittsburgh Hilton-Wyndham-Shubh Hotel's operations

A fed-up U.S, bankruptcy judge will appoint a trustee to oversee operations at the former Hilton Pittsburgh, the latest twist in the saga involving the troubled hotel.

Judge Jeffery A. Deller, clearly exasperated over the bickering between the two sides competing to take control over the Downtown landmark, announced his decision from the bench Monday.

He said the hotel owner, Shubh Hotels Pittsburgh LLC, now controlled by Tampa, Fla., cardiologist Kiran C. Patel, and New York lender BlackRock Financial Management Inc. "have found ways to fight over everything -- everything."

"I'm putting an end to it," he said. "We'll get someone in here totally neutral, not beholden to anyone."

Read More:

Sheraton to operate Montreal airport hotel

Starwood’s Sheraton brand will open its third property in Montreal this April, a 476-room rebranded hotel close to the entrance to Trudeau International Airport.

The property was previously branded as a Hilton hotel, before becoming a Wyndham property for a short period and then an independent brand, and it is currently “undergoing a comprehensive multi-million dollar renovation to all guest rooms and public spaces prior to opening as a Sheraton property”.

Facilities include 19,000 square feet of meeting space, open air gardens, indoor and outdoor swimming pools, as well as a whirlpool, steam room, sauna and fitness centre.

The rebranded hotel is scheduled to reopen in April, and will join other Starwood properties in the city including Le Meridien Versaille, Le Centre Sheraton Montreal Hotel, the W Montréal, Le Westin Montreal, the Aloft Montreal Airport, and the Sheraton Laval Hotel.

Woman stabbed in elevator at Pittsburgh Hyatt Regency

tAccording to an article in the Post Gazette, Allegheny County police are investigating the stabbing of a woman Monday night at the Hyatt Regency Pittsburgh International Airport.

Lt. Jeffrey Korczyk said the woman, whose identity he did not release, was stabbed in a hotel elevator just after 8 p.m., but he provided few other details about the case, saying the investigation is ongoing.

The woman was treated and released from Sewickley Hospital, the lieutenant said, though he declined to comment on the extent of her injuries or the weapon used.

Radisson Hotel in Nashua, NH suddenly shuts down

NASHUA, N.H.—The manager of the Radisson Hotel in Nashua, N.H., says the business is shutting down indefinitely for plumbing repairs due to frozen pipes and financial pressures, leaving customers and event organizers scrambling.
Read More:

MGM Resorts to develop hotel sites in New Delhi

The nongaming hotel division of MGM Resorts International announced an agreement Tuesday to participate in multiple hotel developments in the capital of India.
The casino operator said its MGM Hospitality subsidiary will break ground in March on the MGM Grand and Skylofts New Delhi. The project will mark the company's first venture into India.
The hotel is one of multiple hotel sites that will be built in several markets in India, including the cities of Gurgaon and South Delhi, a diplomatic region, New Delhi's central business district, and a new commercial and hospitality district near the New Delhi International Airport.

Read More:

Roof collapses at Hard Rock Hotel and Casino in Catoosa

CATOOSA, Okla. - Cherokee officials confirm that a portion of the roof at Hard Rock Casino Tulsa has been damaged by the winter storm.

There were no injuries to guests or staff.

Casino officials closed the damaged portion of the facility.

CEO of Cherokee Nation Businesses David Stewart has released the following statement:
“The safety of our guests is a top priority for us, and we’re so glad that no one was hurt.”
Monte Haddox was in the casino at the time of the collapse.

He says he noticed water on the floor and started to take a picture when he noticed the ceiling had come down.

Haddox says he was told he was in an "unsafe area" and was quickly ushered out of the room, but not before he was able to snap this picture.

He says he was told by a casino employee that the weight of the snow caused the ceiling to give out.

Lenders file foreclosure notice against Hard Rock Hotel

A group of lenders has filed a notice of foreclosure against the financially struggling Hard Rock Hotel, which would give the lenders the right to take control of the hotel-casino in a public auction scheduled for Feb. 7.

The lending group, NRFC HRH Holdings LLC, controls a piece of the $1.36 billion loan used to acquire, renovate and expand the Hard Rock. A joint venture including Morgans Hotel Group and investment banking firm DLJ Merchant Banking Partners bought the Hard Rock in 2007 with the goal of revamping the property and boosting profit by catering to well-heeled guests.

Read More: