Prime Hospitality Corp.
(NYSE: PDQ), a leading hotel owner, operator and franchisor, reported its
results for the fourth quarter and full year ended December 31, 2000.
Net income for the fourth quarter of 2000 was $12.0 million, or $.26 per
share, compared to net income of $11.0 million, or $.22 per share, for the
fourth quarter last year. Earnings per share before asset transactions and
special charges grew by 8.3% to $.26 per share for the fourth quarter of 2000
versus $.24 per share in the prior year`s quarter.
“We are pleased that we achieved the goals we outlined at the beginning of
the year,” said A.F. Petrocelli, Chairman and Chief Executive Officer of
Prime. “First, we continued to improve our operating results. Our comparable
REVPAR grew by 5.5% in the fourth quarter and 4.9% for the full year. Second,
we made significant progress in growing our AmeriSuites and Wellesley Inn &
Suites brands. During the year, we added 36 new AmeriSuites including the
conversion of 27 Sumner Suites in the fourth quarter. With our Wellesley
brand, we added our first franchisee-constructed Wellesley Inn and
demonstrated that our 1999 conversion of 38 hotels was a success by generating
REVPAR growth of 20%.
“Our third goal was to strengthen our balance sheet through the
divestiture of real estate. During the year, we sold $214 million of assets,
reduced our debt by $203 million and repurchased approximately four million
shares. With growing brands and one of the strongest balance sheets in the
industry, we are optimistic about our future.”
For the year ended December 31, 2000, net income was $62.5 million, or
$1.34 per share, as compared to $34.9 million, or $.67 per share, in 1999.
Income before property transactions and special charges was $1.17 per share
for 2000 versus $1.05 per share in 1999. Non-recurring charges for 2000 were
comprised of gains on asset sales of $.17 per share. For 1999, non-recurring
items were comprised of a loss of $.36 per share related to valuation
reserves, a loss of $.10 per share due to a change in accounting principle
related to the write-off of start-up costs and net gains on asset sales of
$.08 per share.