FAIRFIELD, N.J., Oct. 4 /PRNewswire-FirstCall/—Prime Hospitality Corp.
(NYSE: PDQ), a leading hotel owner, operator and franchisor, today announced
that it is reducing its third quarter earnings estimates due to the continued
weakness in business travel, particularly during the first two weeks of
September. The key markets most affected continue to be Atlanta, Chicago,
Dallas and South Florida.
The Company estimates that revenue per available room (“REVPAR”) declined
in the third quarter by approximately 7.0% compared to prior guidance of flat
to negative 2%. Earnings before interest, taxes, depreciation and
amortization (“EBITDA”) for the third quarter is now estimated to be in the
$20 million range. As a result, the revised earnings per share estimate
before asset transactions for the third quarter has been lowered to $.05 to
$.07 from $.09 to $.11.
“While July and August results were down slightly from our forecasts, we
experienced a significant variance to forecast in the first two weeks of
September”, said A. F. Petrocelli, Chairman and CEO of Prime. “The
combination of Labor Day and the first anniversary of the September 11 attacks
caused most businesses to curtail travel during this period.”
The Company`s third quarter earnings release will occur before the opening
of the market on October 24, 2002. A conference call will be held at 9:30AM
on October 24, 2002 to discuss these results.
Prime Hospitality Corp., one of the nation`s premiere lodging companies,
owns, manages, develops and franchises 240 hotels throughout the United
States. The Company owns and operates two proprietary brands that compete in
different segments: AmeriSuites(R) (all-suites) and Wellesley Inn & Suites(R)
(limited-service). Also within its portfolio are owned and/or managed hotels
operated under franchise agreements with national chains including Hilton,
Radisson, Sheraton, Holiday Inn and Ramada. Prime can be accessed over the
Internet at http://www.primehospitality.com .