Strategic Hotels Reports RevPar Growth in Q2
Strategic Hotels and Resorts Inc. recently submitted a report which indicates an increase in the company’s RevPar performance to 12.6 percent for the second quarter of 2011.
$39.5 million Net Income
The hotel company netted an income of $39.5 million, which is equivalent to $.22 per fully diluted share. Comparable EBITDA had a 13 percent increase or an equivalent of $42.5 million from $37.6 million during the same period of the previous year. There is also an increase of $.05 compared to last year’s $.04 in comparable funds from operations (FFO) per share.
In addition, North American flagship hotels of Strategic Hotels experienced a 12.6 percent RevPar increase due to occupancy growth of – 4 percent and ADR of 6.5 percent. Total RevPar increase for Q2 2011 is 10.8 percent. EBITDA margins got 390 basis points compared to Q2 in 2010. In sum, the total EBITDA in the US increased to 360 points.
RevPar Top Performers
Top RevPar performers of Strategic Hotels and Resorts are Four Seasons Jackson Hole and Four Seasons Silicon Valley. The growth can be attributed to the impressive performance room and non-room departments Both hotels received an 11.8 percent increase due to the 3.9 percent occupancy rise and 5.9 ADR growth of Total RevPar of both hotels summed up to 11.1 percent. In addition, the Four Seasons Punta Mita has also contributed significantly to the total RevPar growth, receiving 150 basis points for occupancy and ADR.
Laurence Geller, Chief executive officer of Strategic Hotels & Resorts, Inc., credits the hotel company’s positive RevPAR and EBITDA performance to the three factors: “sophistication of the operational and asset management capabilities, the superior condition of our properties and the virtually zero new supply in the markets where we compete.” 
Despite some of the doubts regarding the current economic situation, some travelers still choose to trust Strategic Hotels and Resorts when they book hotels. Thus, this is a good indicator that customers have high confidence towards the company. With its impressive RevPar growth, the company remains positive. “The continued upswing in luxury demand and our resultant performance and are increasing guidance in our key metrics, which are profit growths, returns, asset values and ever strengthening balance sheet,” Geller said.
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