Excess Takes Its Toll On Hotel Values

Worldwide—The average hotel in the United States was valued at US$100,000 per key in 2006. By next year, that value will have sunk to US$50,000 per room, according to a forecast by HVS International. To make matters worse for sellers, for the next 18 months, any transaction will most likely be done at a liquidation value because no one who does not have to sell will sell at these fire-sale prices. As a result, HVS Chairman Steve Rushmore suggests that the typical US$100,000 per key hotel in 2006 could very well sell at US$25,000 per key in the months ahead.

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http://www.hotelsmag.com/article/ca6673762.html

MGM Mirage to Cut Vegas Condo Prices to Close Sales

July 31 (Bloomberg) -- MGM Mirage, building the largest development on the Las Vegas Strip, plans to cut the price of condominiums it already sold to appease buyers after housing values collapsed, Chief Executive Officer Jim Murren said.
The casino operator, founded by Kirk Kerkorian, is reappraising the condos and talking to banks to help buyers arrange financing so they can complete purchases at the CityCenter site, Murren said yesterday in an interview. Details will be announced early in the U.S. fall season, he said.

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http://www.bloomberg.com/apps/news?pid=20601205&sid=aP3Jrn9yjYgA

MGM Mirage Overhauling Macau Casino to Boost Share

July 31 (Bloomberg) -- MGM Mirage, with the smallest casino market share in Macau, said it’s overhauling operations and marketing at its venture in the city to boost revenue after an “underwhelming” start.
“Our Macau market share is half what it should be,” Jim Murren, chairman and chief executive officer, said yesterday in an interview in Las Vegas, where the company is based. “The other U.S.-based and other newer casinos have been more aggressive in marketing, more aggressive” in recruiting and junket relationships, he said.

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http://www.bloomberg.com/apps/news?pid=20601206&sid=a6tLJky4VpWI

Hilton Pittsburgh owner seeking investor to help pay debts

The owner of the Hilton Pittsburgh is looking to bring in another investor to help pay off hundreds of thousands in debts and get the Downtown hotel's $25 million renovation rolling again.
After meeting with Mayor Luke Ravenstahl this afternoon, Atul Bisaria, CEO of Shubh Hotels LLC, the Hilton owner, said the firm was "actively negotiating" to bring another investment group in to raise capital to settle debts with contractors and suppliers and to complete a stalled exterior addition at the hotel's entrance.

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http://www.post-gazette.com/pg/09210/987197-100.stm

Westin O'Hare at risk of default

(Crain’s) — The owner of the Westin O’Hare is in danger of defaulting on a $101-million loan because of falling occupancy levels and room rates at the 525-room hotel, according to a recent report.
The hotel is no longer generating enough cash flow to cover its monthly interest payments, and its owner, Dallas-based Ashford Hospitality Trust Inc., “is asking for debt service relief during the downturn,” according to the report by a so-called special servicer overseeing the loan. The loan is in a danger of “imminent default,” the report says.

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http://www.chicagorealestatedaily.com/cgi-bin/news.pl?id=34965

Fast Food Restaurants Have Right Menu for Recession

As the U.S. restaurant industry struggles through the economic downturn, quick-service operators such as McDonald’s (MCD), Burger King (BKC) and Wendy’s (WEN) may enjoy a comparative advantage that helps them navigate the weakness better than their competitors in the casual-dining and higher-end segments, according to Moody’s Investors Service.

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http://seekingalpha.com/article/152544-fast-food-restaurants-have-right-menu-for-recession?source=yahoo

Lenders battling in Station Casinos bankruptcy case

The bankruptcy of Station Casinos Inc. has revealed that the Las Vegas company's banks are fighting amongst themselves as different groups of lenders move to protect their positions in the company's $6.4 billion of debt

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http://www.lasvegassun.com/news/2009/jul/30/lenders-battling-station-casinos-bankruptcy-case/

IHG poster boy no more

When he was picked two years ago to replace Patrick Imbardelli as InterContinental Hotels Group (IHG)'s head in Asia-Pacific, IHG chief Andy Cosslett praised Gowers to the moon.This was what Cosslett told TTG Asia: "Peter is an exceptionally bright man, an Oxford (University) union president who came into IHG (in 1999 as management consultant) and made a big difference...He has the capacity to lead a team...he has been engaged with owners who hugely admire him...He knew our strategy, really understood our brands and systems and is the best man for this fastest-growing part...He'll go very well and very far; it's a big opportunity for him and that's what you need to give people. Give them the opportunity when they are young enough to do it. Age is irrelevant. If you are good enough, you're old enough."

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http://ehotelier.com/hospitality-news/item.php?id=P16786

Another Cautionary Casino Tale

Less than 48 hours before Las Vegas Sands (NYSE: LVS) -- a casino operator with a battered balance sheet -- was due to reveal second-quarter results, Station Casinos, which has a shakier balance sheet, filed for bankruptcy reorganization. The company filed for Chapter 11 on Tuesday, saying its casino operations won't be affected.

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http://www.msnbc.msn.com/id/32218494/ns/business-motley_fool/

Vegas casinos cut costs, slash room prices in 2Q

Declines in convention business and tourism took their toll on Las Vegas casino operators in the second quarter, as Wynn Resorts Ltd. and Las Vegas Sands Corp. each reported worse results Thursday than they did a year earlier.

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http://www.lasvegassun.com/news/2009/jul/30/vegas-casinos-cut-costs-slash-room-prices-in-2q/

Las Vegas Sands Corp. Reports Second Quarter 2009 Results

Net revenue for the second quarter of 2009 was $1.06 billion, a decrease of 4.8% compared to $1.11 billion in the second quarter of 2008. Consolidated adjusted property EBITDAR in the second quarter of 2009 decreased 14.0% to $247.6 million, compared to $287.9 million in the year-ago quarter.

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http://phx.corporate-ir.net/phoenix.zhtml?c=185629&p=irol-newsArticle&ID=1314517&highlight=

Euro Disney S.C.A. Reports Revenues for the Nine Months Ended June 30, 2009

MARNE-LA-VALLEE, France, July 30 /PRNewswire-FirstCall/ --
- Nine-Month Year-To-Date Revenues Decreased 7% to EUR 867 Million, Reflecting a Decline in Guest Spending, in Real Estate Revenues and in Hotel Occupancy
- Third Quarter Revenues Decreased 7% to EUR 308 Million, Reflecting Declines in Guest Spending and Hotel Occupancy

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http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/07-30-2009/0005068714&EDATE=

Chuck E. Cheese Reports Financial Results for the Second Quarter of Fiscal 2009

IRVING, Texas--(BUSINESS WIRE)--Jul. 30, 2009-- CEC Entertainment, Inc. (NYSE: CEC) today reported net earnings of $9.0 million for the second quarter ended June 28, 2009, compared to net earnings of $11.3 million in the second quarter of 2008. Diluted earnings per share decreased to $0.39 for the second quarter of 2009, compared to $0.47 in the second quarter of 2008. The decrease in diluted earnings per share between the two quarters was impacted by our repurchase of approximately 3.4 million shares of our common stock since the beginning of the second quarter of 2008. Total quarterly revenues decreased 4.0% to $184.8 million during the second quarter of 2009 from total quarterly revenues of $192.5 million in the second quarter of 2008. Comparable store sales for the second quarter of 2009 declined 5.4%.

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http://phx.corporate-ir.net/phoenix.zhtml?c=72589&p=irol-newsArticle&ID=1314566&highlight=

Wynn Resorts, Limited Reports Second Quarter Results

LAS VEGAS--(BUSINESS WIRE)--Jul. 30, 2009-- Wynn Resorts, Limited (Nasdaq: WYNN) today reported financial results for the quarter ended June 30, 2009.
Net revenues for the second quarter of 2009 were $723.3 million, compared to $825.2 million in the second quarter of 2008.
Consolidated adjusted property EBITDA (1) decreased 18.7% to $192.7 million for the second quarter of 2009, compared to $237.0 million in the second quarter of 2008.

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http://phx.corporate-ir.net/phoenix.zhtml?c=132059&p=irol-newsArticle&ID=1314279&highlight=

Starwood Hotels Completes Sale of the W San Francisco to Keck Seng for $90 million

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) announced today that it has completed the sale of the W San Francisco to Keck Seng Investments (Hong Kong) Limited for $90 million. The sales price represents a multiple of over 14X anticipated 2009 EBITDA. Starwood also entered a long-term management agreement to continue operating the hotel as a W