John Q. Hammons Hotels, Inc. (AMEX: JQH) today
reported on its first quarter 2002 results.
First Quarter Results:
Basic and diluted earnings per share for the three months ended March 29, 2002 were $0.05, equal to
the first quarter of 2001. Total revenues for the 2002 first quarter were $107.4 million, a decrease of
$7.9 million, or 6.9% compared to the 2001 first quarter. Although the remaining economic
slowdown adversely affected our performance, we continued to surpass the Revenue Per Available
Room (RevPAR) performance of the hotel industry. Our RevPAR was $61.86 for the 2002 first
quarter, down 6.4% from $66.07 in the 2001 first quarter. These results are more than 31% higher
than the hotel industry and nearly 19% higher than the RevPAR in the upscale hotel sector.
Basic and diluted earnings per share for the three months ended March 29, 2002 were $0.05, equal to
the first quarter of 2001. Total revenues for the 2002 first quarter were $107.4 million, a decrease of
$7.9 million, or 6.9% compared to the 2001 first quarter. Although the remaining economic
slowdown adversely affected our performance, we continued to surpass the Revenue Per Available
Room (RevPAR) performance of the hotel industry. Our RevPAR was $61.86 for the 2002 first
quarter, down 6.4% from $66.07 in the 2001 first quarter. These results are more than 31% higher
than the hotel industry and nearly 19% higher than the RevPAR in the upscale hotel sector.
Operations:
During the first quarter of 2002, we continued to see decreased demand in most of our markets
compared to the same period in 2001. This decrease can be attributed to the lingering effects of
September 11 th , and the residual weakness in the industry. Regardless of this weakness, efforts have
been made to increase EBITDA margins, as shown in our results over the last six months. We
believe the continued concentration of these efforts will prove beneficial to operations, should
RevPAR remain depressed. However, we believe that our RevPAR will continue to trend upward,
remaining slightly below prior years’ levels, until the economy completely recovers. We anticipate
further recovery in the industry, which we expect to be reflected in stronger sales in the second half
of 2002 and first half of 2003.
Chairman Comments:
John Q. Hammons, Chairman and Chief Executive Officer, stated, “Our consistent margin
performance in spite of a tough lodging environment, is proof of the stability in the markets where
we operate. We are increasingly encouraged by our year over year comparisons, which consistently
outperform the hotel industry. We plan to stay the course and continue our operational excellence.”
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