Morgans Hotel Group Co. (MHGC) Posts Q2 Loss of 40c/Share

Morgans Hotel Group Co. (NASDAQ: MHGC) reported Q2 EPS of ($0.40), $0.14 worse than the analyst estimate of ($0.26). Revenue for the quarter came in at $61.45 million versus the consensus estimate of $62.6 million.

Highlights

• Adjusted EBITDA was $14.8 million in the second quarter of 2014. Excluding termination fees in 2013, Adjusted EBITDA increased 26.7% over the same period in 2013 primarily driven by strong operating performance at the Company's Owned Hotels, including a 36.8% increase in EBITDA at Delano South Beach.
• Revenue per available room ("RevPAR") for System-Wide Comparable Hotels increased by 6.4% on a year-over-year basis during the second quarter of 2014.
• Operating margins at the Company's Owned Hotels and leased food and beverage operations increased approximately 320 basis points during the second quarter of 2014 as compared to the same period in 2013, primarily as a result of cost saving initiatives implemented in the second quarter.
• Corporate expenses, excluding stock compensation expense, decreased by $1.8 million, or 25.7%, during the second quarter of 2014 as compared to the same period in 2013, primarily due to the corporate workforce reduction in March 2014.

For earnings history and earnings-related data on Morgans Hotel Group Co. (MHGC) click here.

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