Loews Closes Back Bay Buy - Analyst Blog
February 15 2013 - 10:50AM
Zacks
Loews Hotels & Resorts, a wholly owned-subsidiary of
Loews Corporation (L), closed the purchase of Back
Bay Hotel from The Doyle Collection. Concurrently, the hotel was
re-branded under the Loews Hotels brand.
Loews Hotels also intends to renovate the property, which will cost
nearly $8 million. The refurbishment work is expected to begin in
fall 2013.
Back Bay Hotel comprises 225 guestrooms, a meeting and event space,
two dining options, Cuffs, an Irish Bar and The Stanhope Grille,
and is located at the corner of Berkeley and Stuart Streets.
Apart from nearly doubling its hotel count, the company expects a
threefold increase in its net income in the next three years. As a
part of the goal, Loews Hotels & Resorts acquired two hotels -
Madison Hotel in Washington, D.C. and Renaissance Hotel & Spa
in Hollywood, Calif. - in 2012. It has another two hotels - The
Loews Chicago Hotel, scheduled to open in Jan 2015 and Cabana Bay
Beach Resort at Universal Orlando, scheduled to open in 2014 –
under construction. With this buy, Loews tally reaches 21
hotels.
Loews, in fourth quarter 2012, posted operating net income of 18
cents per share, which lagged the Zacks Consensus Estimate of 29
cents by a significant margin and plummeted 77% year over year.
Lower earnings at Diamond Offshore and CNA Financial along with
lower parent company investment income weighed on the results.
However, in the last reported quarter, Loews Hotels posted the
highest growth in revenue, up 45.3% year over year to $125 million.
However, net loss was $2 million.
Loews presently carries a Zacks Rank #4 (Sell). Other companies
from the same industry like Ageas SA/NV (AGESY)
and Assured Guaranty Ltd. (AGO) carry a Zacks Rank
#1 (Strong Buy), while CNO Financial Group Inc.
(CNO) carries a Zacks Rank #2 (Buy) and appear impressive.
(AGESY): ETF Research Reports
ASSURED GUARNTY (AGO): Free Stock Analysis Report
CNO FINL GRP (CNO): Free Stock Analysis Report
LOEWS CORP (L): Free Stock Analysis Report
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