Boykin Lodging Company (NYSE: BOY), a hotel real estate investment trust, today reported financial results for the third quarter and nine-month period ending September 30, 2000.
For the three months that ended September 30, 2000, funds from operations (FFO) were $14.2 million versus $14.9 million reported for the same period last year. The third-quarter FFO per diluted share was $0.76 for 2000 and $0.81 for 1999.
Total revenue for the third quarter of 2000 was $26.6 million, as compared with $24.8 million for the third quarter of 1999.
On a same-unit basis, room revenue per available room (REVPAR) increased 2.6 percent to $69.89 from $68.12 last year. Occupancy during the third quarter of 2000 was down two percent to 74.1 percent from 75.6 percent, while the average daily rate increased 4.6 percent to $94.35 from $90.16.
Net income for the 2000 third quarter was $5.5 million, or $0.32 per diluted share, compared to $7.2 million, or $0.42 per share, for the same period in 1999. Net income for the 2000 third quarter included a $0.04 per share extraordinary loss on early extinguishment of debt associated with the company`s refinancing in July.
“We currently expect FFO for the year to be within a range of $2.44 to $2.46 per share,” said Robert W. Boykin, chairman, president and chief executive officer, ” and though we have not finished our budget for next year, FFO for the first quarter of 2001 should be between 50 and 55 cents.”
“In the third quarter we refinanced our previous $175 million line of credit with a new $108 million term loan and a new $100 million line of credit,” Mr. Boykin said. “We also invested $6.3 million to expand our ownership stake in the Executive Plaza Hotel in downtown Chicago. Through better rate management, we have already increased this property`s cash flow.”
“Also during the quarter, we exchanged ownership of certain hotels with Hilton in a way that mutually enhances both companies` portfolios,” Mr. Boykin added. “We transferred ownership of our Cleveland Marriott East in Beachwood, Ohio, to Hilton, which immediately converted the hotel to the Hilton brand. In exchange, we obtained two hotels in the first-rate commercial markets of San Antonio, Texas, at the airport, and Southfield, Michigan, as well as the flexibility to potentially sell or rebrand our Doubletree hotels in the State of Washington without contractual penalty.”
Through the first nine months of 2000, FFO was $38.5 million, or $2.07 per diluted share, as compared with $39.0 million, or $2.13 per diluted share. Total revenues for the nine-month period were $73.7 million for 2000 and $68.3 million for 1999.
On a same-unit basis for the first nine months of 2000, REVPAR increased 2.1 percent to $65.88 compared with $64.52 for the same period last year. Occupancy through the nine-month period was 69.5 percent for 2000, compared with 70.3 percent for 1999. Average daily rate increased to $94.76 from $91.77.
Nine-month net income was $14.4 million, or $0.83 per diluted share, for 2000 and $16.6 million, or $0.97 per share, for 1999. Net income for the 2000 period included the above-mentioned $0.04 per share loss on early extinguishment of debt.
The company will hold a conference call with financial analysts to discuss the third-quarter results at 2:00 p.m. eastern time today, November 2, 2000. A live webcast of the call can be heard by visiting the company`s website at www.boykinlodging.com and clicking on the investor relations page.
Boykin Lodging Company is a real estate investment trust that focuses on the ownership of full-service, upscale commercial and resort hotels. The company currently owns 33 hotels containing a total of 9,236 rooms located in nineteen states, and operating under such internationally known brands as Doubletree, Marriott, Hilton and Radisson, among others. For more information about Boykin Lodging Company, visit the company`s web site at www.boykinlodging.com.