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Hotel, Casino Stocks Show Signs of Life10 December 2001ILLINOIS—Dec. 10, 2001 –As reported by Reuters: "Shares in U.S. hotel and casino operators marked a milestone of recovery last week by rising to pre-Sept. 11 levels on indications that business and leisure travel are coming back more strongly than expected from the depths of the recent crisis. "…That recovery has been felt in other related industries that suffered in the wake of the attacks, with shares of major airlines, cruise lines and online travel services posting significant gains so far in the fourth quarter. "…Data released by Smith Travel Research last week showed U.S. hotel room revenues were down 14.1 percent in the final week of November. The showing was the third in the last four weeks that revenue per available room, the industry benchmark, was down 15 percent or less compared with last year. "In the four weeks before that, room revenues appeared to be leveling of at 17 percent to 19 percent below year-earlier levels, leading some analysts to say that the recovery for the industry might have plateaued after an initial rebound in early October. "… Credit Lyonnais Securities analyst Bryan Maher said the latest news marks the continuation of a trend of people getting back to work and play. "…The latest encouraging news helped stocks from the hotel and related casino industries rally, with many reaching or surpassing their pre-Sept. 11 levels. "…Among major casino players last week, meanwhile, shares of MGM Mirage approached their Sept. 10 close of $28.31; Mandalay Resort Group topped $23 during the week, versus a Sept. 10 close of $23.90; and Harrah's Entertainment Inc. closed Friday at $33.92, well above its Sept. 10 close of $28.71. "After a meeting with company officials last week, Lehman Brothers analysts raised their rating on MGM Mirage stock. "Our sense is top-line trends are improving gradually and margin progress has been strong," a report said." |