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On May 4, 2009,
Morgans Hotel Group
reported that its net loss in Q1 FY09 widened, hurt by lower revenue. Net loss attributable to common stockholders for the quarter stood at $10.59 million, or $0.36 per share, compared to $7.53 million, or $0.23 per share, in the prior year's quarter. The most recent consensus estimate was for a loss of $0.40 per share.
Total revenue plunged 32.8% to $54.28 million from $80.73 million a year ago. Revenue from the rooms dropped 38.0% to $28.60 million from $46.16 million, while revenue from the food & beverage slumped 26.7% to $19.49 million from $26.57 million in Q1 FY08. Moreover, other hotel revenue declined 21.0% to $2.75 million from $3.47 million in the year-ago quarter. Finally, management fees slipped 24.0% to $3.45 million from $4.54 million on a year-over-year basis.
Occupancy rate owned-comparable hotels declined 1,420 basis points to 64.90% from 79.10%. Revenue per available room (RevPAR) fell 39.0% to $154.27 from $252.82, while average daily rate (ADR) decreased 25.6% to $237.71 from $319.62. RevPAR for System-wide comparable hotels decreased 39.2% to $169.85 from $279.33, while ADR shrunk 26.2% to $265.81 from $359.96. The occupancy rate was 63.90%, down from 77.60% in the prior year's quarter.
Recently, Hard Rock opened a new and expanded joint concert hall and added approximately 65,000 square feet of meeting space.
The company expects its FY09 RevPAR were to decline on average 20.0% to 25.0%, adjusted EBITDA to be between $45.00 million to $60.00 million. Furthermore, Boston Ames and Mondrian SoHo are currently targeted to open in Q4 FY09 or early FY10.