Login

Stock Update: 7 Days, MGM Resorts

In this week’s roundup of news from the industry’s public hotel companies: 7 Days reports first-quarter results and MGM announces an IPO on the Hong Kong Stock Exchange.
By HNN Newswire
May 20, 2011 | 5:37 P.M.

 

HotelNewsNow.com updates the performance of publicly traded hotel companies each Friday. Included in this week’s update are: 7 Days Group Holdings Limited and MGM Resorts International.

Baird/STR Hotel Stock Index
The Baird/STR Hotel Stock Index closed Thursday at 2294.65. It was at 2290.56 as of 10:35 a.m. (eastern) today.

7 Days Group Holdings Limited
7 Days Group Holdings Limited (NYSE: SVN) reported declines in occupancy and revenue per available room during the first quarter.

The Guangzhou, China-based company said occupancy fell 3.9% to 82.8% and RevPAR dropped 5.6% to RMB134.50 (US$20.66) due to high room supply increases during the quarter.

7 Days’ stock price was down 5.7% year-to-date, closing Thursday at US$19.77 per share.

MGM Resorts International
Las Vegas-based MGM Resorts International (NYSE: MGM), through a joint venture in China, expects to raise up to US$1.5 billion in an initial public stock offering on the Hong Kong Stock Exchange.

MGM China Holdings is marketing 760 million shares for a 20% stake in the Chinese casino operator at a price ranging from US$1.59 to US$1.97, according to a notice to investors. After the IPO, MGM would hold 51% of the Chinese company and its partner Pansy Ho would hold 29%.

MGM’s stock price closed Thursday at US$15.52 per share, down 0.9% year-to-date.

Compiled by Shawn A. Turner