Morgans Hotel Group Reports Second Quarter 2011 Results (United States)
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Morgans Hotel Group Reports Second Quarter 2011 Results (United States)
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Category: North America & West Indies / Carribean islands - United States - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2011-08-04
Morgans Hotel Group Co. (NASDAQ: MHGC) ("MHG" or the "Company") today reported financial results for the quarter ended June 30, 2011.
Adjusted EBITDA was $11.8 million in the second quarter of 2011. Excluding the impact of asset sales and Hard Rock, Adjusted EBITDA increased by $3.7 million from the comparable period in 2010.
Revenue per available room ("RevPAR") for System-Wide Comparable Hotels increased by 16.1%, or 14.4% in constant dollars, in the second quarter of 2011 from the comparable period in 2010, driven primarily by an 11.1% increase in average daily rate ("ADR") (9.4% in constant dollars).
EBITDA from Owned Comparable Hotels increased by 26% in the second quarter of 2011 as compared to the same period in 2010, driven by a 13.5% RevPAR increase. Operating margins at Owned Comparable Hotels increased by 340 basis points.
In May 2011, the Company completed the sales of three hotels and utilized a portion of the net proceeds to retire $140 million of debt. The Company continues to operate these hotels under long-term management agreements.
In June 2011, the Company acquired from affiliates of China Grill Management ("CGM") the 50% interests CGM owned in MHG's food and beverage joint ventures with CGM for approximately $20 million thereby giving the Company operational control over its food and beverage operations.
In July 2011, the Company entered into a new $100 million senior secured revolving credit facility.
In August 2011, the Company entered into a hotel management and residential licensing agreement for a 310-room Mondrian-branded hotel, to be the lifestyle hotel destination in the 1,000 acre destination resort metropolis, Baha Mar Resort, in Nassau, The Bahamas
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