Interstate Hotels & Resorts has reported strong operating results for the first quarter ended March 31, 2006. The company exceeded its earnings guidance for the quarter and raised its 2006 full-year guidance.
Highlights for the first quarter include:
? Posted an 11.3 percent improvement in revenue per available room (RevPAR), compared to an average industry gain of 9.7 percent.
? Added 10 management contracts.
? Exceeded forecasted operating income on two wholly-owned hotels by 20 percent, led by the Hilton Concord.
? Achieved strong gains within the company’s corporate housing subsidiary, led by operations in the London market.
? Reduced debt by over $5 million.
Included in the 2006 first quarter results are $3.2 million of proceeds from business interruption insurance related to Hurricane Charley, as well as one-time termination payments of $4.1 million from MeriStar Hospitality related to their recent sale of 10 Florida-based properties. Also included in the results is an $8.5 million impairment of intangible assets primarily related to the termination of 18 management contracts as a result of property dispositions by MeriStar Hospitality.
“Our operating results for both managed and owned hotels continue to exceed the industry average,” said Thomas F. Hewitt, chief executive officer. “We are taking full advantage of the favorable market conditions across all key lodging segments as we focus on aggressive management of room rate, while also holding costs in check.