Loews Hotels & Resorts, a wholly owned-subsidiary of
), closed the purchase of Back Bay Hotel from The Doyle
Collection. Concurrently, the hotel was re-branded under the
Loews Hotels brand.
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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
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
Assured Guaranty Ltd.
) carry a Zacks Rank #1 (Strong Buy), while
CNO Financial Group Inc.
) carries a Zacks Rank #2 (Buy) and appear impressive.