Wyndham International, Inc. (NYSE:WYN) today reported strong results for the quarter ended September 30, 2000, driven by a 6.5% improvement in RevPAR along with record third quarter occupancy.
On a pro forma basis, which reflects adjustments for asset acquisitions and dispositions, earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, increased 13.9% to $131.9 million in the third quarter of 2000 from $115.8 million in the same period a year ago. Actual EBITDA, as adjusted, was $132.3 million, up 5.0% from actual EBITDA of $126.0 million reported in the third quarter of 1999. These results exceeded analyst expectations.
“This was another outstanding quarter for us and a continuation of the excellent results that we have shown so far this year,” said Fred J. Kleisner, chairman and chief executive officer. “With 65 fewer hotels than a year ago, we were still able to grow both RevPAR and actual EBITDA in the quarter—results that confirm the focused business plan we set for 2000. In our owned and leased Wyndham-branded assets, the EBITDA growth of 13.8% is double our RevPAR growth of
* 6.9%. During the quarter we also continued to sell non-strategic assets, improved revenues and margins, and reduced expenses while adding branded hotels in Baltimore and New Orleans. We are confident that we have the right strategy that will continue to provide a solid platform for future growth.”
On a pro forma basis, the company reported a net loss of $119.5 million for the third quarter, or $0.87 per diluted share, compared with a loss of $49.8 million, or $0.45 per diluted share, in the third quarter 1999. The 2000 results were affected by non-recurring, non-cash charges of $77.8 million, net of tax, largely reflecting a write-down of certain non-strategic assets currently being held for sale as part of Wyndham`s strategy to focus on its core proprietary brands.
Reflecting its focus on becoming a branded hotel operating company, Wyndham sold $30.9 million of non-strategic assets in the quarter. With the completion of the sale of the Malmaison properties last week, Wyndham has sold $406.0 million in assets this year. The company has exceeded its 2000 plan of selling $300 million in non-strategic assets and expects further assets sales to be completed later this year.