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Morgans Hotel Group's South Beach Florida Properties Felt 4% to 9%
Rate Decline Despite Uptick in Occupancy
 
Overall Morgans Reported Second Quarter Losses of  $23.2 million
Compared to $10 million in Same Period Last Year

By Hannah Sampson, The Miami HeraldMcClatchy-Tribune Regional News

Aug. 06, 2010--Some of South Beach's trendiest hotels saw their rates fall in the second quarter of the year compared to 2009 -- though they would hardly qualify as bargains.

The Delano, Shore Club and Mondrian South Beach averaged daily rates between 4 percent and 9 percent lower than the same time last year. That's according to a second-quarter earnings report from Morgans Hotel Group, which manages all three properties.

Average daily rates for the Delano dropped to $437, a decrease of 4 percent from the previous year. Compared to the first quarter, rates plunged 33 percent, from $653 during the busy tourist season.

At Shore Club, rates fell 9 percent to $255, while the Mondrian saw a drop of 8.5 percent to $201.

Both those hotels, however, saw an uptick in occupancy. Bookings increased 6.5 percent to 57.5 percent at the Shore Club and jumped nearly 33 percent at Mondrian to 54.5 percent. Revenue per room increased nearly 22 percent at the Mondrian to about $110, but dropped 3 percent at the Shore Club to about $147.

The Delano, despite the lower prices, had a 3 percent drop in occupancy, to just over 62 percent. Per-room revenue dipped 7 percent to about $273.

Overall, New York-based Morgans reported its losses more than doubled for the quarter ended June 30. The net loss was $23.2 million, or 78 cents per share, compared to a loss of $10 million, or 34 cents per share, in the same period of 2009.

Revenue grew 10.3 percent to $60.2 million.

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Copyright (c) 2010, The Miami Herald

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