Sonesta International Hotels (SNSTA) Reports Q3 Earnings; Challenging Economic Conditions

November 16, 2009 2:34 PM EST

Sonesta International Hotels Corporation (Nasdaq: SNSTA) reports Q3 EPS of $7.41 per share compared to $0.76 for the same period last year. During Q3 of 2009 the Company recorded a pre-tax gain of $41,843,000 on the dissolution of a development partnership in which the Company owned a 50% limited partnership interest. The partnership sold its assets, comprising the former Sonesta Beach Resort Key Biscayne, during September 2009.

Operating revenues, excluding other revenues from managed and affiliated properties, were $14,517,000 in the 2009 quarter, compared to $16,398,000 in the 2008 quarter.

Challenging economic conditions continued to have a negative impact on the Company's operating results in the 2009 third quarter. Royal Sonesta Hotel Boston experienced lower demand, in particular from the group and convention market segment. Fee income from management activities also decreased in the 2009 third quarter, due mainly to reductions in revenues and profits at the Company's Sonesta Bayfront Hotel Coconut Grove, in Miami, and the Company's managed properties in Egypt.

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