Milwaukee-based movie theater and hotel company
The Marcus Corp. today reported record third quarter revenues and earnings.
The company’s net earnings of $23.3 million, or 73 cents per share, for the quarter was up 90.6% from a year ago.
It reported total revenues of $232.7 million for the quarter, up 11.4% from a year ago.
Marcus chief executive officer
Greg Marcus said that both the company’s movie theater and hotel divisions had record revenue and earnings and outperformed their industries.
The
Republican National Convention, held from July 15-18 in Milwaukee, provided a major boost to the Marcus Hotels & Resorts division, Marcus said. Hotels in downtown Milwaukee, including Marcus’ Pfister Hotel, Hilton Milwaukee City Center hotel and Saint Kate -The Arts Hotel, were booked solid during the RNC with demand for rooms so high that hotels were able to greatly increase their room rates during the convention.
According to a report from CoStar, a provider of real estate data, occupancy for hotels in downtown Milwaukee for the week of the RNC was 86.4%, compared to 67.5% the same week last year. Downtown Milwaukee saw a nearly 200% increase in average daily room rates during the week of the RNC compared to the year before, with hotel rooms going for an average of $510 per night.
The impact of the RNC was also felt on hotels well outside of downtown Milwaukee. The convention attracted so many attendees that some visitors stayed at hotels outside of the Milwaukee area including Marcus’ Grand Geneva Resort & Spa in Lake Geneva.
Marcus Hotels & Resorts reposed total revenues before cost reimbursements of $79 million during the third quarter, up 9.6% from a year ago. Revenue per available room was up 9.8%, the company said.
Group hotel room booking for the remainder of fiscal 2024 is running ahead of the same period in fiscal 2023, the company said. Fiscal 2025 booking pace is running significantly ahead compared to the same period last year, excluding bookings related to the RNC, with banquet and catering booking pace running similarly ahead, the company said.
Meanwhile, the Marcus Theatres division benefited from what Greg Marcus called “a markedly improved film slate that played particularly well with audiences in our markets” during the third quarter.
Marcus Theatres reported total revenues of $143.8 million, up 13.6% from a year ago. Its attendance grew 7.1% at same store theaters during the quarter.
“A larger number of exciting blockbuster films performed particularly well in our Midwestern markets during the quarter,” said
Mark Gramz, president of Marcus Theatres. Marcus Theatres’ top five highest-performing films in the third quarter of fiscal 2024 were Deadpool & Wolverine, Despicable Me 4, Twisters, Inside Out 2 and Beetlejuice Beetlejuice.
Wall Street responded favorably to the company’s earnings report today, as Marcus Corp. stock rose 10% to $18.89 a share by early afternoon.
Greg Marcus expressed confidence for the remainder of the year.
“We are encouraged by trends within both businesses, including an impressive array of high-quality films headed for the big screen this holiday season and into 2025 and continued improvements in group bookings in our hotel division,” he said.
