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Hooters Hotel to Be Sold and Re-Branded
First there was the demise of Hooters Air. Not comes news that the Hooters Hotel & Casino, off the strip in Vegas, will be sold and re-branded. Somehow wings and breasts aren’t enough to leverage restaurants success into other markets.
In fact, the financal performance of the hotel has been dreadful.
Bond analysts during the past few months have questioned the feasibility of the deal if the property kept its Hooters brand.
Under the Hooters Hotel brand, cash flow has been falling at the property.
Cash flow, defined as earnings before interest, taxes, depreciation and amortization, dropped 32 percent to $1.1 million for the third quarter ended Sept. 30. It was $1.7 million in the same period a year earlier.
The property has yet to report its fourth-quarter earnings.
Relative to the capital investment in the property, returns like these don’t even reflect keeping up with inflation. So it’s no surprise that the former Howard Johnson’s and San Remo will be turning over again.
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Posted by March 9th, 2008
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March 11th, 2008 at 8:22 pm
[...] hotel that was more strip mall than Las Vegas Strip will soon shutter, to be remodeled, rebranded, and reopened later this year as a luxury boutique hotel. Alas, we [...]