MORGANS HOTEL GROUP REPORTS FOURTH QUARTER AND FULL YEAR 2012 RESULTS
NEW YORK,?Feb. 28, 2013?/PRNewswire/ –?Morgans Hotel Group Co.?(NASDAQ: MHGC) (“MHG” or the “Company”) today reported financial results for the quarter and year ended?December 31, 2012.? The Company will host a conference call to review the results on?Friday, March 1, 2013?at?9:00 am.
- Adjusted EBITDA was?$12.7 million?in the fourth quarter of 2012, a 47.9% increase over the same period in 2011 due primarily to 38.8% and 33.5% increases in EBITDA at Delano South Beach and Hudson, respectively, two of the Company’s wholly-owned hotels.
- Operating margins at the Company’s Owned Hotels, which include Delano South Beach, Hudson and Clift, increased 700 basis points during the fourth quarter of 2012 as compared to the same period in 2011.
- Revenue per available room (“RevPAR”) for System-Wide Comparable Hotels increased by 7.2% in actual dollars, or 6.6% in constant dollars, during the fourth quarter of 2012 from the comparable period in 2011.?? RevPAR for System-Wide Comparable Hotels located in?the United States?increased 8.3% during the fourth quarter of 2012 as compared to the same period in 2011.
- RevPAR at the Company’s three non-comparable?Morgans Hotel Group?hotels, Delano South Beach, Hudson and Mondrian SoHo, increased 17.8%, 5.7%, and 11.3%, respectively, during the fourth quarter of 2012 as compared to the same period in 2011.
- In?November 2012, the Company entered into a new?$180.0 million?nonrecourse mortgage loan secured by Hudson.
Michael Gross, CEO of the Company, said: “In the fourth quarter we began to see increasing benefits from investments in our product and service offerings, leading to significant improvement in year-over-year EBITDA performance.? At Hudson and Delano South Beach, where we completed significant renovations in 2012, results were particularly strong and operating margins were up 700 basis points in the fourth quarter.? We are seeing these positive fourth quarter trends continue into 2013, with January’s System-Wide Comparable Hotels RevPAR up 18% over the prior year.? Our development pipeline continues to be strong and includes eight hotels scheduled to open over the next three years, three of which are scheduled to open in early 2014. We believe these new hotels will allow us to generate increasing EBITDA margins due to a high degree of operating leverage in our model. We are confident about the year ahead and remain focused on increasing returns at our existing properties, growing our management and brand portfolio globally, and increasing shareholder value.”
Fourth Quarter?2012 Operating Results
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