MORGANS HOTEL GROUP CO. (MHGC, Financial) filed Quarterly Report for the period ended 2009-06-30.
MORGANS HOTEL GROUP CO. operates and owns or has an ownership interest in Morgans Royalton and Hudson in New York Delano and The Shore Club in Miami Mondrian in Los Angeles and Scottsdale Clift in San Francisco and Sanderson and St Martins Lane in London. MHG and an equity partner also own the Hard Rock Hotel & Casino in Las Vegas and related assets. MHG has other property transactions in various stages of completion including projects in Miami Beach Florida; Chicago Illinois; SoHo New York; Las Vegas Nevada; and Palm Springs California. MORGANS HOTEL GROUP CO. has a market cap of $152.87 million; its shares were traded at around $5.16 with and P/S ratio of 0.49.
RevPAR from our comparable Owned Hotels decreased 40.0% to $159 for the three months ended June 30, 2009 compared to $266 for the three months ended June 30, 2008.
Food and beverage revenue decreased 27.0% to $19.4 million for the three months ended June 30, 2009 compared to $26.6 million for the three months ended June 30, 2008. The overall decrease was primarily attributable to the significant adverse impact on lodging demand, which negatively impacts the ancillary venues at our hotels, such as the bar and restaurant revenue, as a result of the global economic downturn. All of our comparable Owned Hotels experienced a decline in food and beverage revenue in excess of 20% during the three months ended June 30, 2009 as compared to the same period in 2008.
Other hotel revenue decreased 32.6% to $2.3 million for the three months ended June 30, 2009 compared to $3.4 million for the three months ended June 30, 2009. The overall decrease was primarily attributable to the significant adverse impact on lodging demand, which negatively impacts the ancillary revenues at our hotels, as a result of the global economic downturn.
Management Fee Related Parties and Other Income decreased by 15.1% to $3.9 million for the three months ended June 30, 2009 compared to $4.6 million for the three months ended June 30, 2008. This decrease is primarily attributable to the significant adverse impact on lodging demand as a result of the global economic downturn, especially at our London joint venture hotels and Shore Club. Slightly offsetting these decreases are management fees earned at Mondrian South Beach, which opened in December 2008.
Rooms expense decreased 13.2% to $10.3 million for the three months ended June 30, 2009 compared to $11.9 million for the three months ended June 30, 2008. This decrease is a direct result of the decrease in rooms revenue. While we have implemented cost cutting initiatives at our hotels in 2008 and early 2009, our occupancy did not decrease as significantly as our ADR. The
Read the The complete ReportMHGC is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
MORGANS HOTEL GROUP CO. operates and owns or has an ownership interest in Morgans Royalton and Hudson in New York Delano and The Shore Club in Miami Mondrian in Los Angeles and Scottsdale Clift in San Francisco and Sanderson and St Martins Lane in London. MHG and an equity partner also own the Hard Rock Hotel & Casino in Las Vegas and related assets. MHG has other property transactions in various stages of completion including projects in Miami Beach Florida; Chicago Illinois; SoHo New York; Las Vegas Nevada; and Palm Springs California. MORGANS HOTEL GROUP CO. has a market cap of $152.87 million; its shares were traded at around $5.16 with and P/S ratio of 0.49.
Highlight of Business Operations:
Total Hotel Revenues. Total hotel revenues decreased 31.6% to $52.5 million for the three months ended June 30, 2009 compared to $76.8 million for the three months ended June 30, 2008. The components of RevPAR from our comparable Owned Hotels for the three months ended June 30, 2009 and 2008, which includes Hudson, Delano, Clift, Mondrian Scottsdale, and Royalton, and excludes Mondrian Los Angeles and Morgans, which were under renovation during 2008, are summarized as follows:RevPAR from our comparable Owned Hotels decreased 40.0% to $159 for the three months ended June 30, 2009 compared to $266 for the three months ended June 30, 2008.
Food and beverage revenue decreased 27.0% to $19.4 million for the three months ended June 30, 2009 compared to $26.6 million for the three months ended June 30, 2008. The overall decrease was primarily attributable to the significant adverse impact on lodging demand, which negatively impacts the ancillary venues at our hotels, such as the bar and restaurant revenue, as a result of the global economic downturn. All of our comparable Owned Hotels experienced a decline in food and beverage revenue in excess of 20% during the three months ended June 30, 2009 as compared to the same period in 2008.
Other hotel revenue decreased 32.6% to $2.3 million for the three months ended June 30, 2009 compared to $3.4 million for the three months ended June 30, 2009. The overall decrease was primarily attributable to the significant adverse impact on lodging demand, which negatively impacts the ancillary revenues at our hotels, as a result of the global economic downturn.
Management Fee Related Parties and Other Income decreased by 15.1% to $3.9 million for the three months ended June 30, 2009 compared to $4.6 million for the three months ended June 30, 2008. This decrease is primarily attributable to the significant adverse impact on lodging demand as a result of the global economic downturn, especially at our London joint venture hotels and Shore Club. Slightly offsetting these decreases are management fees earned at Mondrian South Beach, which opened in December 2008.
Rooms expense decreased 13.2% to $10.3 million for the three months ended June 30, 2009 compared to $11.9 million for the three months ended June 30, 2008. This decrease is a direct result of the decrease in rooms revenue. While we have implemented cost cutting initiatives at our hotels in 2008 and early 2009, our occupancy did not decrease as significantly as our ADR. The
Read the The complete ReportMHGC is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
