ARLINGTON, Va., December 18, 2009-Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation's largest independent hotel management company, today announced that it has signed a definitive merger agreement to be acquired by Hotel Acquisition Company, LLC, a 50/50 joint venture between subsidiaries of Thayer Hotel Investors V-A LP, a private equity fund sponsored by Thayer Lodging Group, and Shanghai Jin Jiang International Hotels (Group) Company Limited ("Jin Jiang Hotels") in a transaction valued at approximately $307 million. Under the agreement, Hotel Acquisition Company, LLC would acquire all of the outstanding common stock and operating partnership units of Interstate for $2.25 per share in an all cash transaction. The price represents a premium of 77 percent over yesterday's closing stock price. Interstate's lenders have approved the transaction subject to certain pay downs at closing on its senior credit facility and on one of its non-recourse mortgage loans. The transaction is not contingent upon obtaining any additional financing.
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Friday, December 18, 2009
Sheraton Orlando Sale Sparks Hope for Uptick in Hotel Transactions
Mixed amid the recent wave of bankruptcies, defaults and foreclosures, there has been a trickle of hotel transactions sparking hope that distressed assets can and will be sold.
On Dec. 8, the W Hotel Union Square in New York was sold at a foreclosure auction, like the Wyndham Orange County in California the week before. Last month the Sheraton Orlando was sold to a joint venture between a private equity firm and an asset manager after first going through bankruptcy court and then a foreclosure auction
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On Dec. 8, the W Hotel Union Square in New York was sold at a foreclosure auction, like the Wyndham Orange County in California the week before. Last month the Sheraton Orlando was sold to a joint venture between a private equity firm and an asset manager after first going through bankruptcy court and then a foreclosure auction
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Darden Restaurants Reports Second Quarter Diluted Net Earnings Per Share of 43 Cents
Second quarter sales from continuing operations were $1.64 billion, compared to $1.67 billion in the prior year, a 1.6% decrease. Blended same-restaurant sales for Olive Garden, Red Lobster and LongHorn Steakhouse were down 4.7% this quarter. Excluding the impact of the Thanksgiving holiday week, which was in the fiscal second quarter this year but the fiscal third quarter last year, blended same-restaurant sales were down 3.9%, which compares to an estimated decline of 5.9% for the Knapp-Track(TM) benchmark of U.S. same-restaurant sales, excluding Darden.
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Tuesday, December 15, 2009
STR reports US pipeline for November 2009
HENDERSONVILLE, Tennessee—The total active U.S. hotel development pipeline includes 3,939 projects comprising 417,412 rooms, according to the November 2009 STR/TWR/Dodge Construction Pipeline Report released this week. This represents a 33.9-percent decrease in the number of rooms in the total active pipeline compared to November 2008. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Pre-Planning stage.
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Dave & Buster's, Inc. Reports Financial Results for its Fiscal 2009 Third Quarter
DALLAS—December 15, 2009—Dave & Buster's, Inc., a leading operator of high volume entertainment/dining complexes, today announced results for its third quarter ended November 1, 2009.
Total revenues decreased 2.1% to $117.2 million in the third quarter of 2009, compared to $119.7 million in the third quarter of 2008. This revenue decline was comprised primarily of a 7.4% decrease in comparable store sales offset by a $5.9 million increase in revenues from non-comparable operations. Total Food and Beverage revenues decreased 5.3%, while revenues from Amusements and Other increased 1.4%.
EBITDA (Modified) for the third quarter of 2009 of $10.2 million was less than prior year EBITDA (Modified) of $10.9 million by 6.9%. Adjusted EBITDA, which excludes Pre-opening costs, expense reimbursements to affiliates and non-recurring charges, decreased 3.6% to $11.3 million versus $11.8 million in the third quarter of fiscal 2008.
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Total revenues decreased 2.1% to $117.2 million in the third quarter of 2009, compared to $119.7 million in the third quarter of 2008. This revenue decline was comprised primarily of a 7.4% decrease in comparable store sales offset by a $5.9 million increase in revenues from non-comparable operations. Total Food and Beverage revenues decreased 5.3%, while revenues from Amusements and Other increased 1.4%.
EBITDA (Modified) for the third quarter of 2009 of $10.2 million was less than prior year EBITDA (Modified) of $10.9 million by 6.9%. Adjusted EBITDA, which excludes Pre-opening costs, expense reimbursements to affiliates and non-recurring charges, decreased 3.6% to $11.3 million versus $11.8 million in the third quarter of fiscal 2008.
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Host Hotels & Resorts to raise $300M
Host Hotels & Resorts Inc. plans to sell at least $300 million in 20-year debentures exchangable into company stock or cash, the company announced Tuesday.
The Bethesda-based hospitality company will use proceeds to pay down debt, including $346 million of notes due in 2012.
The company may offer an additional $60 million in debentures if the investors are interested
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The Bethesda-based hospitality company will use proceeds to pay down debt, including $346 million of notes due in 2012.
The company may offer an additional $60 million in debentures if the investors are interested
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Papa John's Announces Earnings Guidance for 2010
•Projected 2010 earnings per share of $1.70 to $1.90, excluding the impact of BIBP, but including potential volatility in the 2010 price of cheese
•Projected domestic system-wide comparable sales in 2010 ranging from positive 1% to negative 1%
•Projected 2010 international system-wide sales increase of 15% to 20%
•Projected 2010 worldwide net new unit openings of 140 to 180 (40 to 60 net openings for domestic and 100 to 120 net openings for international)
•The 2010 guidance includes a planned increase in the domestic royalty rate from 4.50% to 4.75% effective at the beginning of 2010, although the company at its discretion may contribute a portion of this increase back to the system to support marketing or other activities
•2009 EPS guidance is reaffirmed in the range of $1.42 to $1.46, excluding the impact of BIBP
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•Projected domestic system-wide comparable sales in 2010 ranging from positive 1% to negative 1%
•Projected 2010 international system-wide sales increase of 15% to 20%
•Projected 2010 worldwide net new unit openings of 140 to 180 (40 to 60 net openings for domestic and 100 to 120 net openings for international)
•The 2010 guidance includes a planned increase in the domestic royalty rate from 4.50% to 4.75% effective at the beginning of 2010, although the company at its discretion may contribute a portion of this increase back to the system to support marketing or other activities
•2009 EPS guidance is reaffirmed in the range of $1.42 to $1.46, excluding the impact of BIBP
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Hotwire Reveals Hotel Rate Report for December 2009
Hotwire.com®, a leading discount travel site, today announced the results of the December 2009 Hotwire® Hotel Rate Report. This monthly report features the top 10 cities in North America where hotel rates have dropped the most. When combined with Hotwire's already discounted prices, the Hotel Rate Report helps guide customers to the destinations that will maximize their travel dollars. For the third month in a row, Houston tops the list with a year-over-year price drop of 19 percent. As in previous months, this is largely being driven by the high 2008 hotel rates in Houston due to displacements caused by Hurricane Ike.
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Accor To Split Into 2 Companies
Accor SA's board of directors has recommended separating the group's prepaid services and hotels businesses, pending shareholder approval.
Reviews carried out by senior management at the board's request showed that a demerger would enable each division to step up its pace of growth, the company says. The reviews concluded:
There are no real synergies between hotels and prepaid services, which leverage unique skills and expertise and operate in increasingly different business environments
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Reviews carried out by senior management at the board's request showed that a demerger would enable each division to step up its pace of growth, the company says. The reviews concluded:
There are no real synergies between hotels and prepaid services, which leverage unique skills and expertise and operate in increasingly different business environments
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Hilton Signs First Hampton In Germany
Hilton Worldwide announces the signing of its first Hampton by Hilton hotel in the city of Berlin near the Kaiser Wilhem Church. The franchise deal was signed with Curator Hotelbetriebsgesellschaft mbH Berlin and will see a 214-room hotel open in late 2010 under this fresh and exciting brand which represents Hilton Worldwide’s expansion of its award winning economy hotel brand in Germany.
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Default by Sunstone Hotels to affect several properties
Sunstone Hotels Investors Inc., which earlier this year grabbed headlines when it stopped making payments on its loan for the trendy W Hotel in San Diego, has now defaulted on a mortgage covering 11 additional properties, including three in central San Diego.
The decision by Sunstone is a reflection of the dire market conditions facing hotels, which are struggling to bring in revenue at a time when leisure and business travelers are sharply cutting back their spending.
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The decision by Sunstone is a reflection of the dire market conditions facing hotels, which are struggling to bring in revenue at a time when leisure and business travelers are sharply cutting back their spending.
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McDonald's to Offer Free Wireless Internet
McDonald's Corp. will soon start offering free wireless Internet access at its U.S. restaurants as part of the fast-food chain's transformation from its hamburger roots into a hang-out destination.
Starting in mid-January, McDonald's will lift a $2.95 fee that it had charged customers for two hours of wireless Internet access, available at about 11,000 of its 14,000 domestic locations, McDonald's USA Chief Information Officer David Grooms said in an interview.
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Starting in mid-January, McDonald's will lift a $2.95 fee that it had charged customers for two hours of wireless Internet access, available at about 11,000 of its 14,000 domestic locations, McDonald's USA Chief Information Officer David Grooms said in an interview.
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Hotel Perks Losing Luster
Some large hotel chains, including Marriott International Inc. and InterContinental Hotels Group PLC, are finding that more members of their customer-loyalty programs are redeeming points not for overnight stays but for merchandise, like jewelry and electronics, apparently to use as holiday presents.
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THE STEAK N SHAKE COMPANY REPORTS FULL YEAR AND
Net earnings for fiscal year 2009 were $6.0 million, or $0.21 per diluted share, contrasted to a net loss of ($23.0 million),or ($0.81) per diluted share for the same period a year ago. The Company’s fiscal year 2009 included 53 weeks whereas fiscal year 2008 included 52 weeks. Fiscal year 2009 results included $2.6 million of charges ($1.6 million, or $0.06 per diluted share, net of tax) primarily related to the write down of real estate values. In comparison, fiscal year 2008 results included $14.9 million ($9.2 million, or $0.33 per diluted share, net of tax) of non cash impairment charges, store closure costs, and an early lease termination fee. For the full year but excluding the impact of the 53rd week, customer traffic and same-store sales increased 10.1% and 4.1%, respectively, over prior year.
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Brinker International signs franchise deal with Muy Mucho Group LP
Brinker International Inc. has signed a new franchise and development agreement with franchisee Muy Mucho Group LP.
Under terms of the agreement, Dallas-based Muy Mucho has acquired 21 existing Chili's Grill & Bar restaurants in Kansas, Missouri and Nebraska.
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Under terms of the agreement, Dallas-based Muy Mucho has acquired 21 existing Chili's Grill & Bar restaurants in Kansas, Missouri and Nebraska.
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