US-based Morgans Hotel Group (MHG) has reported a net loss of $24.8m in the third quarter (Q3) of 2011 compared with a net loss of $37.1m for the same period of 2010.
The company’s adjusted earnings before interest, taxes, depreciation and amortisation for the quarter decreased by 56.1% to $4.9m compared with Q3 2010.
RevPAR at its system-wide comparable hotels rose by 9.3% compared with Q3 2010, which increased by 6.3%.
MHG posted an 18.6% decline in total hotel revenues during Q3 2011 compared with Q3 2010 as a result of the sale of Mondrian Los Angeles, Royalton and Morgans in May 2011.
RevPAR at the company’s comparable owned hotels, which include Hudson, Delano and Clift, increased by 7.7%.
In August 2011, MHG entered a hotel management and residential licensing agreement to convert a 310-room Mondrian-branded hotel into the lifestyle hotel destination Nassau, The Bahamas.
MHG will spend $10m on projects at Delan and $20m at Hudson.