Loews Corp.’s Hotels Are Positioned to Benefit From ‘Leisure-Led Recovery’
Loews’ hotels include its Miami Beach, Fla., property. (iStock/TasfotoNL)
This week, Loews Corp. — which has businesses in the hospitality, energy, insurance and packaging industries — reported a net income of $261 million for the first quarter of 2021. This was in contrast to its net loss of $632 million in the first quarter of 2020 and was driven by its CNA Financial Corp. subsidiary, which had improved net investment income, net investment gains and strong underlying property and casualty underwriting results.
However, its Loews Hotels & Co subsidiary posted a net loss for the first quarter of 2021, due to the impacts of COVID-19 on travel. In the first quarter of last year, its operations were at pre-pandemic levels for the first two months but dropped as March 2020 continued. This year, the majority of Loews Hotels’ properties were operating in the first quarter, but occupancy rates were low pre-pandemic levels.
But all hotel news for Loews Corp. was not grim: Its properties in resort destinations continued showing more improvement than those in city centers. “Loews had a great first quarter, with excellent results from CNA Financial leading the way,” Loews Corp. President and CEO James S. Tisch said.
“CNA’s underlying combined ratio of 91.9% declined nearly two points from the prior-year quarter,” he continued. “Premium growth was strong, driven by continuing rate increases and robust new business,” he said, noting that he felt Loews Hotel & Co is showing signs of progress. “With over two-thirds of its rooms located in resort destinations, we think Loews Hotels is well-positioned to benefit from this leisure-led recovery.”