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Hudson profit jumps in quarter

Hudson Hotels Corp. boosted earnings 108 percent in second-quarter results posted today. At the same time, however, the company’s profit for the first half of the year fell and sales were lackluster.
For the quarter ended June 30, the budget-motel firm racked up earnings of $254,000 on revenues of $2.2 million. The numbers compare to earnings of $122,457 on sales of $2.2 million for the same period in 1995.
Both earnings and sales for the first half of 1996 lagged the prior year, though.
A year ago, Hudson Hotels logged six-month earnings of $921,492 on revenues of $4.89 million; in the current year, it recorded a $458,741 profit on sales of $4.5 million.
First-half 1995 earnings reflected an $834,443 tax benefit from tax-loss carry forwards.
Bruce Sahs, Hudson executive vice president and chief operating officer, attributed lower sales in the first half of 1996 to the shutdown of the Canandaigua Inn on the Lake. The hotel and conference center was closed for major renovations for six months.
Revenues should climb over the rest of 1996 with the re-opening of the hotel on Canandaigua Lake in May, he said.
Royalty income also is growing with 27 Microtels open now compared with 20 at the close of 1995’s first half, Sahs added.
A further revenue boost should come as the deal Hudson cut with U.S. Franchise Systems Inc. picks up steam.
Formerly called Microtel Franchise & Development Corp., Hudson sold Microtel franchising rights to hotel-franchise whiz kid Michael Levin in December 1995.
Levin’s USFS opened its first two Microtels in July and so far has sold franchises for 110 more.
The deal gives Hudson the right to franchise up to 60 Microtels under USFS. Hudson also gets an ongoing stream of royalties from each Microtel USFS franchises–1 percent of gross room rents on the first 100, 0.75 percent on the next 150 and 0.5 percent of rents on everything over 250.
Hudson stock, which trades on the NASDAQ exchange under the symbol HUDS, fluctuated in the $6 range on today’s earnings news.
It closed Friday at $6.75 a share.

Hudson profit jumps in quarter

Hudson Hotels Corp. boosted earnings 108 percent in second-quarter results posted today. At the same time, however, the company’s profit for the first half of the year fell and sales were lackluster.
For the quarter ended June 30, the budget-motel firm racked up earnings of $254,000 on revenues of $2.2 million.

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