Can’t wait till 2011
Posted on November 20, 2009 at 10:08 amNo, really — some hotel owners won’t make it to 2011 for the true market upswing predicted by the folks at Hendersonville-based Smith Travel Research. And that’s not necessarily a bad thing.
“There’s a constant drain on the industry to continue to support marginal properties,” Smith said. “Properties that go bankrupt yet stay open and obsolete properties that should be demolished yet stay open are all drains on good operators of properties. Some way to close those properties would be a reward to all of the operators who perform well year after year.”
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Tower’s alternative
Posted on November 18, 2009 at 4:49 pmThe largest property owner in the footprint of the planned Music City Center has unveiled its plans for integrating a hotel and office space into the $585 million project.
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Hotwire: Nashville hotel prices sliding
Posted on at 9:27 am
The latest Hotwire Hotel Rate Report has Nashville in the top 10 for first time. Not that that’s a good thing: The booking service says local prices are down 20 percent from a year ago, largely because hotel operators held off on repricing their rooms until early this year.
‘The perfect scenario for our dear friends, the vulture funds’
Posted on November 16, 2009 at 9:40 am
Prism Hotels & Resorts CEO Steve Van sees regulators’ extend-and-pretend policies producing only one outcome — “and hotel loans are the lead cow.”
Smart money will wait at the end of the canyon and have a historic feast of cheap hotel asset buys. Most of us will just keep our heads down and try to do the best we can as owners holding on to our hotels or as lenders working out loans.
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Analyst actions: Gaylord, SunTrust
Posted on November 10, 2009 at 10:56 amThe very empirical stock-picking model at TheStreet.com has downgraded shares of Gaylord Entertainment after the hotel company’s third-quarter earnings report. Gaylord (Ticker: GET) has tripled the S&P 500’s year-to-date gain.
At BMO Capital Markets, senior analyst Lana Chan has raised her rating on SunTrust Banks, saying “capital ratios are solid and there were further positive signals on credit quality in the third quarter.” She now rates SunTrust (Ticker: STI) at ‘outperform.’
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The cost of Gaylord’s extinguishment
Posted on November 9, 2009 at 8:27 am
In its newly filed 10-Q, the hotel and convention center operator says it will take a $6 million charge during the fourth quarter on the buyback of $260 million of debt due in 2013. Earlier this year, the company (Ticker: GET) booked a $25 million gain on another buyback.
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Upgrades lift Gaylord
Posted on November 4, 2009 at 10:34 am
Shares of Gaylord Entertainment (Ticker: GET) are up more than 7 percent this morning on the back of upgrades from FBR Capital Markets and Wells Fargo. The move comes after a similarly strong day yesterday, when Gaylord reported better-than-expected Q3 numbers.
FBR researcher Patrick Scholes has lifted his rating on Gaylord to ‘market perform’ from ‘underperform’ and put a price target of $17 on the stock. At Wells, analyst Jeff Donnelly said the main pricing risks to Gaylord’s business are baked into the stock, which should trade between $16 and $18 going forward.
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Go on, book that Vegas trip
Posted on at 8:12 am
That’s almost what the investment community is saying to Gaylord Entertainment CEO Colin Reed, who on Tuesday put Sin City on a short list of cities his company may buy its way into.
A good chunk of the hotel/resort operator’s third-quarter earnings call Tuesday focused on Las Vegas, where a bunch of glitzy properties are struggling — or as Reed put it, “operating way below their pro formas” of six or seven years ago. Several analysts pushed Reed to clarify his recently floated strategic option of buying such a troubled property to add to his portfolio.
Generating an appropriate return is priority No. 1, Reed said, and such a return will have to come primarily from serving one of the company’s core customer groups — associations that rotate their meetings around the country each year. Half of those groups, Reed added, will never go to Vegas. The other half wants to be there regularly — and they could be enough to tip Gaylord’s M&A scales in the coming year or so, when Reed thinks the market will really hit bottom.
“I don’t think we should get into too much detail, but we’ve been consistent in telling people over the years that people rotate out of our system to go to Vegas,” Reed said. “Is it a market that interests us? It is. There are probably as well five, six, seven other markets in the United States that interest us as well.”
Investors seem plenty interested, too. Gaylord shares (Ticker: GET) jumped almost 8 percent Tuesday. Put a good chunk of that down to the company’s solid cost controls and the improving performance of its D.C.-area property, but also consider it a sign that the market is confident Reed and his team will soon find something to their liking in the Nevada desert.
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A little more patience needed for hotel revival
Posted on November 2, 2009 at 10:50 am
The latest version of Smith Travel Research’s index of leading indicators shows the industry has slowed since the summer. The upshot: While the index is generally about five months ahead of the industry as a whole, “it appears that in our current cycle the lead time might be extended.”
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Gaylord mulls the M&A route
Posted on October 29, 2009 at 7:36 amThe recession has Gaylord execs scanning the luxury hotel landscape for properties it could acquire and expand into full-fledged resorts. At an investor conference yesterday, Senior VP of Finance Mark Fioravanti told investors about 50 hotels around the country would fit the bill.
This hotel sector snapshot ain’t pretty
Posted on October 8, 2009 at 11:31 amThe downturn in hotel management is likely to last well into 2011 and has one economist saying up to 20 percent of all hotel loans could default before we’re in the clear.
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Gaylord finds some willing sellers
Posted on at 9:50 amBondholders of the Nashville-based hotel and convention operator have submitted for redemption more than $200 million of debt due in 2013.
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Local hotel venture opens first Wyoming site
Posted on October 7, 2009 at 7:19 amA franchisee of Hendersonville-based Boomerang Hotels has opened the company’s first location in Wyoming. Boomerang, which in 2006 acquired the GuestHouse brand from ShoLodge and rebranded a year ago, runs more than 70 hotels from Georgia to Washington.
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Analyst move doesn’t help Gaylord
Posted on September 30, 2009 at 1:58 pm
Despite a 35 percent price target hike by an analyst at JMP Securities, Gaylord Entertainment shares (Ticker: GET) are clawing their way back from a very weak opening hour this morning, when they fell more than 5 percent. JMP’s Will Marks says the stock, which he rates ‘market outperform,’ is now worth $27, up from his previous target of $20.
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Gaylord up on Goldman target tweak
Posted on September 29, 2009 at 2:45 pmShares of Gaylord Entertainment (Ticker: GET) and a number of other hotel operators had a nice Tuesday after Goldman Sachs analyst Steven Kent lifted his price targets and said the next economic upswing will bring more people and higher prices.
SEE ALSO: Kent’s call earlier this year that excluded Gaylord
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