Key Developments For Morgans Hotel Group Co.
Morgans Hotel Group Co. (MHGC.O) (Consolidated Issue listed on NASDAQ Global Market)
Morgans Hotel Group Co. Announces New Management Contract For Hotel Las Palapas In Playa del Carmen, Riviera Maya, Mexico
Morgans Hotel Group Co. announced a management agreement for the Hotel Las Palapas, located in the Playa del Carmen resort area, which is owned by affiliates of Walton Street Capital (Walton). Morgans and Walton are already joint venture partners in the ownership of two other hotels - the Sanderson and St Martins Lane hotels in London. Morgans will assume management of the property as of December 15, 2009. Morgans has a five-year management agreement with one five-year renewal option.
Morgans Hotel Group Co. Posts Bigger Q3 2009 Loss-Reuters
Reuters reported that shares of Morgans Hotel Group Co. fell sharply as the Company reported a bigger quarterly loss, but the rate of decline in the lodging sector has slowed and the boutique-hotel operator is seeing signs that demand in key markets is returning. The Company also said it does not plan to pay dividends until its capital structure issues were resolved totally. For third quarter ended September 30, the Company lost $28.6 million, or $0.94 a share, compared with $8.9 million, or $0.30 a share, in previous year quarter.
Morgans Hotel Group Co. Comments On FY 2009 EBITDA Guidance-Conference Calls
Morgans Hotel Group Co. announced that the Company is not comfortable defining a specific RevPAR target or range for fiscal 2009. However, the Company continue to provide the same framework for adjusted EBITDA given certain RevPAR levels and the Company believe that if, for example, RevPAR for the year were to decline on average between 25% to30%, the Company would expect fiscal 2009 adjusted EBITDA to be between $40 million and $50 million. And this is based on a ratio of comparable hotel EBITDA percentage decline to RevPAR percentage decline 2:1 and the Company has averaged 1.8 thus far in fiscal 2009. According to Reuters Estimates, analysts were expecting the Company to report EBITDA of $46 million for fiscal 2009.
Morgans Hotel Group Co. Appoints Marc Gordon AS President-Form 8-K
Morgans Hotel Group Co. reported in its Form 8-K that on October 15, 2009, Marc Gordon, previously Executive Vice President and Chief Investment Officer, has been promoted to President of the Company.
Morgans Hotel Group Co. Comments On FY 2009 EBITDA Guidance
Morgans Hotel Group Co. announced that given the continuing uncertainty about the depth and duration of the economic crisis, the Company is not comfortable defining a specific RevPAR target or range for fiscal 2009. However, the Company provided a framework for adjusted EBITDA given certain RevPAR declines. For example, if RevPAR for fiscal 2009 were to decline on average 25-30%, the Company would expect fiscal 2009 adjusted EBITDA to be between $40-$50 million. This is based on a ratio of EBITDA percentage decline to RevPAR percentage decline between 1.5 and 2.0 times, which is consistent with the ratio the Company has achieved over the past three quarters. According to Reuters Estimates, analysts were expecting the Company to report EBITDA of $51 million for fiscal 2009.
