NEW YORK (
) -- Hotel stocks were mostly in negative territory Friday as the
( GET) and
Morgans Hotel Group
led the sector lower in terms of share price percentage losses.
7 Days Group Holdings Limited
bucked the trend, gaining share value in morning trading.
Shares of Orient-Express, the owner or part-owner of 50 hotel and travel properties in 24 countries, including deluxe hotels,
last quarter, helping it drastically narrow quarterly losses.
The Bermuda-based hotelier's overall performance was "a solid and better than expected report driven by international markets,"
Orient-Express' performance in the period was far from stellar, but results were a marked improvement from the corresponding period in 2009. RevPAR grew in North America by 16% in local currency. RevPar in South Africa surged 57%, 32% in South America, 12% in Asia Pacific and 1% in Europe.
Quarterly revenue and earnings included insurance income of $2.8 million from PeruRail, which was impacted by the damage to tracks caused by regional floods during the first quarter of 2010.
InterContinental shares tumbled 3.1% in the first hour of trading. The operator of InterContinental, Crowne Plaza and Holiday Inn hotels said earlier this month it had returned to profitability in the second quarter, and the hotelier
InterContinental's global revPAR, or revenue per available room, grew 3.9% in the first half of the year, including a 7.4% jump in the second quarter. Strengthened demand was attributed to a pickup in business travel and growth in China, and the trend is likely to continue. RevPAR in July jumped 8.1% worldwide, led by a 15% increase in its Asia Pacific region, 10% growth in Europe, the Middle East and Africa, and 6.4% growth in the Americas.
Nashville, Tenn.-based Gaylord Entertainment lost 2% in morning trading Friday. The hotelier booked a second-quarter loss after flooding closed its Nashville properties in May. Excluding its closed properties, revPAR grew 5.1% in the quarter. The company forecast full-year revPAR to grow 3% to 4.5% for its three properties excluding the Nashville Opryland, up from its previous forecast for revPAR growth of 2% to 4%.
Earlier this month Gaylord purchased 13 acres of land adjacent to 110 acres it already owns near the Opryland hotel, though the company stated no definitive plans for the property. CEO Colin Reed said the land would not be used for a theme park that operated there until 1997.
Morgans Hotel saw its share price fall 1.8% Friday morning. The developer of boutique hotel properties in U.S. and European gateway cities
earlier this month.
RevPAR surged 13.3%, led by a 23.1% increase in Morgans' New York-based hotels, its flagship market driven by rising occupancies and average daily room rates, which showed positive growth for the first time since 2008. Still, net losses more than doubled what Wall Street analysts had expected.
If Morgans Hotel Group is able to drive revPAR growth of 8% to 10% in 2010, the hotelier expects adjusted earnings of up to $55 million for the year, higher than the $52.4 million analysts expect.
Silverleaf Resorts shares jumped 2% Friday morning, though the gain amounted to only 2 cents. Silverleaf shares traded between $1.73 and 59 cents in the trailing 52 weeks. The Dallas-based timeshare operator's profits fell 29.6% year-over-year to $1.9 million, or 5 cents per share, in the recent quarter. Revenue fell 12.8% to $59.1 million.
American depositary receipts of 7 Days Group Holdings pushed up 0.7%. The Guangzhou-based operator of limited service economy hotels in China said earlier this month it returned to year-over-year profitability with quarterly earnings of RMB30.2 million, or $4.4 million. Revenue surged 24.9% to RMB352.2 million, or $51.9 million.
Results were lifted by the addition of 18 net leased-and-operated hotels and 35 net managed hotels in the second quarter. RevPAR was RMB151.5 ($22.31), compared with year-earlier revPAR of RMB141.8 ($20.88).
-- Reported by Miriam Marcus Reimer from New York.
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