News

Travel Terrors Hit LodgeNet

9/23/2001 8:00 PM Eastern

The expected effect of terrorist attacks in New York and Washington on travel forced Morgan Keegan & Co. Inc. analyst Murray Arenson to lower his rating on LodgeNet Entertainment Inc., the in-room pay TV provider. Arenson cut his rating to "market perform" from "market outperform." In his report, Arenson wrote, "As a result of the tragedies last week, the lodging industry could suffer its worst year ever." Although he couldn't estimate the effect on room occupancy, he wrote that LodgeNet estimated a 3-percent reduction in room occupancy, which translates to a cash-flow decline of 7 percent and a 5-percent drop in revenues.

September