Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information

Segment Information

6. Segment Information

Historically, the Company had two reportable segments:  Owned and Leased Hotels, and Management Activities.  In recent years the Company has divested of and acquired hotel properties, entered into new management agreements and realigned certain management responsibilities.  In consideration of these changes the Company has revised its segment reporting to report each of the owned and leased hotels as a separate segment as of January 1, 2011.  For our Management Activities segment, additional information is included on revenues, providing a breakdown between revenues from managed hotels, franchised hotels and revenues from other corporate services, which include reservations and purchasing services, amongst others.  The operating losses from management activities are computed after giving effect to management and marketing fees from owned and leased hotels.  The 2010 segment information has been restated to conform to the new presentation.

Segment information for each of the Company's owned and leased hotels and from management activities, for the three-month and six-month periods ending June 30, 2011 and 2010 follows:

Quarter ended June 30, 2011:

	(in thousands)
	Royal Sonesta Boston			Royal Sonesta New Orleans			Sonesta Bayfront Coconut Grove			Management Activities			Consolidated
Revenues	$	9,115		$	10,388		$	2,491		$	511		$	22,505
Other revenues from managed and affiliated properties		-			-			-			136			136
Total revenues		9,115			10,388			2,491			647			22,641
Operating income (loss) before depreciation & amortization expense		2,402			2,135			(65	)		(1,536	)		2,936
Depreciation & amortization		(621	)		(658	)		(145	)		(68	)		(1,492	)
Net interest income (expense)		(527	)		3			(113	)		24			(613	)
Other income		-			-			-			3			3
Segment pre-tax profit (loss)		1,254			1,480			(323	)		(1,577	)		834
Segment assets		29,361			18,772			9,446			23,590			81,169
Segment capital additions		1,456			1,426			88			4			2,974

Quarter ended June 30, 2010:

	(in thousands)
	Royal Sonesta Boston			Royal Sonesta New Orleans			Sonesta Bayfront Coconut Grove		Management Activities			Consolidated
Revenues	$	8,157		$	9,565		$	-	$	1,417		$	19,139
Other revenues from managed and affiliated properties		-			-			-		1,319			1,319
Total revenues		8,157			9,565			-		2,736			20,458
Operating income (loss) before depreciation & amortization expense		2,376			1,058			-		(627	)		2,807
Depreciation & amortization		(598	)		(557	)		-		(67	)		(1,222	)
Net interest income (expense)		(536	)		4			-		59			(473	)
Other deductions		-			(57	)		-		(6	)		(63	)
Segment pre-tax profit (loss)		1,242			448			-		(641	)		1,049
Segment assets		27,022			17,611			-		33,680			78,313
Segment capital additions		553			500			-		50			1,103

Breakdown of Management Activities revenues for the quarters ended June 30, 2011 and 2010:

	(in thousands)
	2011		2010
Management fee revenues	$	- -	$	872
Franchise fee revenues		235		224
Other management revenues		276		321
Subtotal		511		1,417
Other revenues from managed and affiliated properties		136		1,319
Total revenues Managed Activities	$	647	$	2,736

Six-month period ended June 30, 2011:

	(in thousands)
	Royal Sonesta Boston			Royal Sonesta New Orleans			Sonesta Bayfront Coconut Grove			Management Activities			Consolidated
Revenues	$	12,929		$	20,398		$	6,050		$	1,191		$	40,568
Other revenues from managed and affiliated properties		-			-			-			314			314
Total revenues		12,929			20,398			6,050			1,505			40,882
Operating income (loss) before depreciation & amortization expense		1,267			3,881			312			(2,877	)		2,583
Depreciation & amortization		(1,250	)		(1,316	)		(289	)		(135	)		(2,990	)
Net interest income (expense)		(1,052	)		4			(269	)		56			(1,261	)
Other deductions		-			-			-			11			11
Segment pre-tax profit (loss)		(1,035	)		2,569			(246	)		(2,945	)		(1,657	)
Segment assets		29,361			18,772			9,446			23,590			81,169
Segment capital additions		4,648			1,690			163			58			6,559

Six-month period ended June 30, 2010:

	(in thousands)
	Royal Sonesta Boston			Royal Sonesta New Orleans			Sonesta Bayfront Coconut Grove		Management Activities			Consolidated
Revenues	$	11,885		$	19,196		$	-	$	2,820		$	33,901
Other revenues from managed and affiliated properties		-			-			-		2,689			2,689
Total revenues		11,885			19,196			-		5,509			36,590
Operating income (loss) before depreciation & amortization expense		1,567			2.911			-		(1,442	)		3,036
Depreciation & amortization		(1,194	)		(1,274	)		-		(134	)		(2,602	)
Net interest income (expense)		(1,104	)		6			-		118			(980	)
Other deductions		-			(57	)		-		(15	)		(72	)
Segment pre-tax profit (loss)		(731	)		1,586			-		(1,473	)		(618	)
Segment assets		27.022			17,611			-		33,680			78,313
Segment capital additions		777			785			-		126			1,688

Breakdown of Management Activities revenues for the six-month periods ended June 30, 2011 and 2010:

	(in thousands)
	2011		2010
Management fee revenues	$	- -	$	1,627
Franchise fee revenues		588		549
Other management revenues		603		644
Subtotal		1,191		2,820
Other revenues from managed and affiliated properties		314		2,689
Total revenues Managed Activities	$	1,505	$	5,509