LodgeNet Expands Rooms in Its Suite8/11/2002 8:00 PM Eastern
Morgan Keegan & Co. analyst Murray Arenson restated his "outperform" rating on LodgeNet Entertainment Corp., after the provider of in-room video and entertainment services to hotels expanded its agreement with Hilton Hotels Corp. The deal, which would extend its seven-year agreement with Hilton by six months, would mean an additional $9 million in revenue for LodgeNet. In a report, Arenson wrote that the deal also removes the risk that it could lose the Hilton contract and "provides more visibility to LodgeNet's room growth and financial performance going forward." LodgeNet and Hilton also disbanded their struggling InnMedia joint venture, and InnMedia agreed to drop a $425 million breach-of-contract lawsuit against LodgeNet.