Humphrey Hospitality Trust, Inc. (NASDAQ: HUMP), a real estate investment trust (REIT) with 92 limited service hotel properties, today announced results for the second quarter and six months ended June 30, 2001.
Funds from operations (FFO) were $4.1 million, or $.33 per share, for the second quarter of 2001, versus $4.7 million, or $.39 per share, for the same quarter in 2000. Total revenue declined to $8.2 million, down 4% from $8.5 million for the second quarter of 2000. Net earnings for the second quarter were $.7 million, or $.07 per share, compared to $2.1 million, or $.19 per share, for the second quarter of 2000.
Revenue per available room (REVPAR) was $34.97 for the second quarter of 2001, down 2.2%, from $35.75 for the same period in 2000. The reduction in REVPAR was attributed to a decline in the overall occupancy rate, from 69.8% to 68.2%, partially offset by a slight increase in the average daily rate (ADR), which climbed $.05 to $51.26 for the second quarter 2001, as compared to the same period in 2000.
“The effects of increased competition and a weaker economy have continued to negatively influence our operating results”, said Paul J. Schulte, Chairman and CEO of Humphrey Hospitality Trust, Inc. “However, non-recurring professional services fees incurred as a result of our initiatives to review strategic alternatives for the Company have also adversely impacted FFO” continued Schulte. “In reporting net earnings, we recorded a $1.2 million impairment provision related to four of the hotels classified as held for sale. This provision represented a reduction in net earnings per share of approximately $.10”, said Schulte.
Humphrey Hospitality Trust, Inc. is a real estate investment trust specializing in limited-service lodging. The company owns 92 hotels in 19 mid-western and eastern states. More information on Humphrey Hospitality can be found at www.humphreyhospitality.com.
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These risks are discussed in the Company`s filings with the Securities and Exchange Commission.