Wyndham International, Inc. (NYSE:WYN) today reported results for the second quarter ended June 30, 2002.
Total revenues on a comparable pro forma basis, which reflects adjustments for acquisitions and dispositions, for the second quarter 2002, were $508.7 million, an 8.7 percent decrease from the same period in 2001. On a pro forma basis earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, were $112.1 million for the three months ending June 30, 2002, versus $149.5 million for the same period in 2001.
For the six months ended June 30, 2002, total revenues on a comparable pro forma basis were $1.0 billion down 11.4 percent from the same period in 2001. EBITDA as adjusted on a comparable pro forma basis for the first half of the year was $226.5 million a decline of 29.6 percent versus the first half of 2001.
Total company comparable owned and leased revenue per available room (RevPAR) for the second quarter was $79.11, a decline of 9.8 percent versus the same period in 2001. This decline was comprised of an 8.5 percent decline in average daily rate, created by the slower than expected return of the independent business traveler, and one percentage point decline in occupancy. RevPAR for the company`s comparable owned and leased hotels reflect a sequential increase each quarter. RevPAR improved from the fourth quarter 2001 year over year decline of 23.1 percent, to a decline of 16.9 percent in the first quarter 2002, and a decline of 9.8 percent in the second quarter 2002.
“The corporate business traveler has not returned, reflective of the tight controls placed on corporate travel. One business segment that remains remarkably strong is the leisure traveler. While the leisure market contributes occupancy to our properties these consumers pay a lower rate and do not generate the ancillary revenues such as banquet and catering,” stated Wyndham International Chairman and Chief Executive Officer Fred J. Kleisner.
The company`s liquidity remains strong despite the sluggish economy. During the quarter, debt decreased by $33.8 million due primarily to repayments associated with the reduction in cash and the application of net sales proceeds. As of June 30, Wyndham`s total debt was $3.318 billion. The breakdown is as follows: the Revolver at $213.5 million; the IRL`s at $482.1 million; the Term Loan B`s at $1.284 billion; and mortgage and other indebtedness at $1.339 billion.
Wyndham began the year with approximately $280 million of maturities coming due in 2002. Through extensions and refinancings, the maturities have been reduced to approximately $23 million, and the company is in negotiations to refinance the remaining 2002 maturities, expected to close the end of August.
Wyndham remains committed to its business plan focused on growing its proprietary brand and the disposition of non-strategic assets. Year-to-date, Wyndham sold three hotel properties and an investment in Shula`s Steak House for gross proceeds of $47.5 million. Proceeds from the sales were used to pay down debt.
As part of the current 2002 dispositions, Wyndham most recently sold the 385-room Wyndham Myrtle Beach Resort and Arcadian Shores Golf Club, a leasehold interest in the golf course and adjacent land to FelCor Lodging Trust Incorporated for $35.3 million. As part of the same transaction, the company will flag the Wyndham-owned and -managed Hilton Fort Lauderdale Airport to its proprietary brand, following a multi-million dollar renovation, creating an even stronger Wyndham brand presence in the rapidly growing South Florida market.
In addition to the Fort Lauderdale hotel, the following properties will be added to the Wyndham brand before year-end:
— Wyndham Condado Plaza Hotel and Casino San Juan, Puerto Rico
— Wyndham Columbus, Georgia (conversion)
— Wyndham Burlington, Vermont (conversion)
— Summerfield Suites by Wyndham Pleasant Hill, Calif. (new
— Wyndham Little Rock, Arkansas (new contract)
Since 1999, 85 assets have sold for gross proceeds of approximately $943 million. There are 51 non-strategic assets remaining to be sold, and the company has stated it will continue to hold these assets until lodging fundamentals return and values increase. Currently, three other properties and one land parcel are under contract accounting for less than 1.0 percent of total company revenue and EBITDA. On June 30, 2002, Wyndham International`s system included 218 properties and 56,343 rooms.