Last week, Loews Hotels & Resorts, a wholly owned subsidiary
), entered into a definitive agreement with CIM Group with the
objective of purchasing Renaissance Hotel & Spa in Hollywood,
The acquisition is scheduled for completion on June 16.
Following which, the 632-room asset will be renamed Loews Hollywood
The company expects expenditures for the hotel renovation to be
approximately $26 million with completion scheduled for 2013
summer. The renovation will be completed in stages so that the
services for the guests are not hampered.
Loews aims to add more hotels to its portfolio in order to take
the count from 18 to more than 30 in the next three to five years,
besides increasing net income by threefold by 2012. This
acquisition is the first in Loews's plans to nearly double its
The hotel features Hollywood & Highland Center, a
460,000-square-foot, five-story construction having more than 80
specialty retail outlets. The complex has 26 restaurants and
eateries, two nightclubs, seven movie screens, eight bars and 12
The hotel also features 65,000 square feet of meeting space and
25,000-square-feet of ballroom space.
In a separate development, Loews has also planned the renovation
of Loews Regency Hotel, New York. This 354-room property in
Manhattan would require $70 million for renovation. The renovation
is slated to be completed in phases to avoid disruption in
providing services to guests and is scheduled for completion in
Management stated that with capital at disposal to acquire and
develop property, they will seek like opportunities in Boston,
Chicago, San Francisco, Washington, D.C., New York, Dallas, Toronto
and Seattle to add assets to its portfolio and hence cater to more
Loews Hotels' net income in the first quarter doubled to $4
million from the year-ago level. We believe the addition of this
hotel to its portfolio will help the company to continue to deliver
such robust numbers. Also, these steps will boost the company's
The quantitative Zacks #1 Rank (short term Strong Buy rating)
for the company indicates boost on the stock over the near
Headquartered in New York, Loews Corporation is a diversified
holding company. The company's principal subsidiaries are
CNA Financial Corporation
Diamond Offshore Drilling Inc.
), Boardwalk Pipeline Partners LP, Loews Hotels Holding Corporation
and HighMount Exploration & Production LLC.
CNA FINL CORP (CNA): Free Stock Analysis Report
DIAMOND OFFSHOR (DO): Free Stock Analysis
LOEWS CORP (L): Free Stock Analysis Report
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