In a concerted effort to consolidate its hotel business, Loews
Hotels & Resorts, a wholly owned-subsidiary of
), will open a new hotel in Chicago.
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LOEWS CORP (L): Free Stock Analysis Report
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The Loews Chicago Hotel, which is scheduled to open in Jan 2015,
will have 400 rooms, a restaurant, more than 25,000 square feet
of meeting space, several outdoor terraces, spa/fitness center
and an outdoor rooftop including a pool overlooking the city.
Recently, Loews Hotels & Resorts announced that it has
started the construction of the 1,800-room Cabana Bay Beach
Resort at Universal Orlando, scheduled to open in 2014. This
hotel will be co-owned by Universal Parks & Resorts.
These efforts by Loews Hotels & Resorts are in sync with its
strategies to acquire and develop properties in Boston, Chicago,
San Francisco, Washington, D.C., New York, Dallas, Toronto and
Seattle. The company plans to add assets to its portfolio with
capital at disposal to an expanding customer base. These new
additions support Loews' plans of nearly doubling its hotel count
by the next three to five years. It aims at adding more hotels to
its portfolio in order to take the count from 18 to over 30. The
company also expects a threefold increase in its net income in
the next three years.
As a part of the goal, Loews Hotels & Resorts had also
acquired two hotels - Madison Hotel in Washington, D.C. and
Renaissance Hotel & Spa in Hollywood, California - in 2012.
Among other segments, Loews Hotels posted highest revenue growth
in the third quarter, up 19.5% year over year. We believe that
the addition of this hotel will help the company continue
delivering such robust numbers.
Loews is expected to release its fourth-quarter and full year
2012 results on Feb 11. The Zacks Consensus Estimate for the
fourth quarter is 37 cents, while the same for the full year 2012
is $1.80. These represent a year-over-year decline of 52.6% and
33.5% for the respective periods.
Loews carries a Zacks Rank #3 (Hold) and a long-term Neutral
recommendation. Its peer
CNO Financial Group, Inc.
) carries a Zacks Rank #2 (Buy).