Boykin Lodging Reports Second-Quarter Financial Results

Boykin Lodging Company (NYSE: BOY), a hotel real estate investment trust, today reported financial results for the second quarter of 2001.

For the three months that ended June 30, 2001, funds from operations (FFO) were $12.9 million, or $0.70 per share, versus $14.1 million, or $0.76 per share, reported for the same period the year before.


Total revenues for the second quarter of 2001 were $18.6 million, as compared with $19.2 million for the second quarter of 2000.


On a same-unit basis, second-quarter room revenue per available room (REVPAR) decreased 3.4 percent to $66.63 from $68.95 for 2000. Occupancy during the second quarter of 2001 decreased to 68.5 percent from 71.2 percent, while the average daily rate increased to $97.29 from $96.82.


Net income for the 2001 second quarter was $1.2 million, or $0.07 per diluted share, compared to $0.2 million, or $0.01 per diluted share, for the same period in 2000.

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“Our FFO of 70 cents for the quarter was in the range we expected,” said Robert W. Boykin, chairman and chief executive officer. “Current booking trends reflect continued softening demand from the slowing economy and show no signs that an upturn is likely before the second quarter of 2002. Our outlook is now for REVPAR to decline three to four percent for the year. With this assumption, FFO would range between $2.19 and $2.25 per share for 2001. Third-quarter FFO is expected to be between 61 and 63 cents and fourth quarter FFO to be between 34 and 38 cents per share.”


Through the first six months of 2001, FFO was $23.0 million, or $1.24 per diluted share, versus $24.3 million, or $1.31 per diluted share, for the same period the year before. Percentage lease revenues for the six-month period were $32.6 million for 2001 and $33.4 million for 2000.


On a same-unit basis, REVPAR for the first half of 2001 was $63.27 compared with $63.84 for the first half of last year. Occupancy through the six-month period was 65.4 percent for 2001, compared with 66.9 percent for 2000. Average daily rate increased to $96.80 from $95.39.


The first-half net income for 2001 was $0.7 million, or $0.04 per diluted share, versus a net loss of $0.5 million, or $0.03 per share, last year.


The company will hold a conference call with financial analysts to discuss the second-quarter results at 2:00 p.m. eastern time today, August 2, 2001. A live webcast of the call can be heard on the Internet by visiting the company’s website at www.boykinlodging.com and clicking on the investor relations page or by visiting other websites that provide links to corporate webcasts.


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 32 hotels containing a total of 9,030 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.


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