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Morgans Hotel Group reports Q2 loss

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Morgans Hotel Group reports Q2 loss

Boutique hotel chain Morgans Hotel Group has posted a second-quarter loss. The loss was much steeper than analysts had earlier predicted.

The company said it lost $23.2 million in the three-month period ending June 30. In the year-ago period, the company had lost $10.1 million.

Revenue rose 10.3% to $60.2 million.

Revenue per available room, a key gauge of lodging company’s performance, rose 13.3%.

That was due to a 9.2% jump in occupancy and a 3.8% rise in average daily rate, meaning more rooms were filled and the company charged more money.

The weak economy has limited hotel operators’ ability to charge more money.