In a meeting with security analysts this morning, Wyndham International, Inc. (NYSE:WYN) raised its estimate for full-year 2000 earnings before income taxes, depreciation and amortization (EBITDA), as adjusted, to $684.7 million, up from $675.4 million, before adjustments for asset sales.
When adjusted for the impact of asset sales completed to date, EBITDA, as adjusted, is expected to be approximately $660 million in 2000.
Consistent with industry expectations by security analysts, the company expects RevPAR growth between 2.5% and 4% for the year 2001. The company, which is continuing to target a ratio of two times EBITDA growth to RevPAR growth for 2001, expects its 2001 EBITDA growth to be between 5% and 8%.
Fred J. Kleisner, president and chief executive officer, attributed the increase in full-year EBITDA, as adjusted, to solid operating performance in the first six months of 2000, as previously reported. The company previously announced plans to dispose of non-strategic assets, with the proceeds to be used primarily to reduce debt. The company has sold $240 million in assets through June 30, 2000. In a conference call with investors on Tuesday, Aug. 8, 2000, the company reported on its progress against its previously announced goals and objectives, including the sale of non-strategic assets.
A replay of the Aug. 8th conference call is available for investors through Friday, Aug. 11, 2000 by calling 800/475-6701 (for international callers, 320/365-3844). The access code is 530966.