Wyndham International, Inc. (NYSE:WYN) today reported sharply improved operating results for the fourth quarter and full year ended December 31, 2000.
“We successfully completed year one of our three-year plan with very positive results in the fourth quarter. Our plan to transform Wyndham is working,” said Fred J. Kleisner, chairman and chief executive officer. “With 61 fewer hotels than a year ago, we were still able to grow actual EBITDA based on solid growth in RevPAR and our emphasis on improving operating margins. In 2000, we also assembled an outstanding management team, energized the brand and improved the balance sheet. This provides a strong foundation for 2001.”
In the fourth quarter, earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, increased 15.4% to $144.4 million from $125.1 million in the same period a year ago, on a pro forma basis, which reflects adjustments for asset acquisitions and dispositions. Actual EBITDA, as adjusted, was $153.0 million, up 8.4% from $141.2 million in the fourth quarter in 1999. RevPAR increased 4.4% in the fourth quarter on comparable owned and leased properties from the same period a year ago, exceeding expectations. Wyndham-branded comparable owned and leased hotels set the pace in the fourth quarter with a 5.7% increase in RevPAR.
For the full year 2000, pro forma EBITDA, as adjusted, was $620.5 million, an increase of 10.3% over 1999. Actual EBITDA, as adjusted, for the year was $659.2 million, up 6.0% from $622.1 million in 1999. RevPAR on comparable owned and leased hotels grew 4.1% over the prior year, exceeding expectations.
In the fourth quarter, primarily due to a charge to earnings related to the impairment of assets, Wyndham reported a net loss of $170.4 million, or $1.18 per share (diluted), compared with a loss of $150.7 million, or $1.05 per share (diluted), for the same period last year. The total non-recurring impairment charge was $165.2 million, net of taxes, or $0.99 per share (diluted). Without the charge, the company would have reported a loss of $5.2 million or $0.19 per share (diluted) for the fourth quarter.
The company anticipates that the charge in the fourth quarter will eliminate future impairments on assets currently held for sale. Wyndham is selling certain non-strategic assets as part of its strategy to reduce leverage and to focus on the core Wyndham brand. Wyndham expects the gains associated with the eventual sale of other non-strategic properties will approximately offset the charge.
For the full year, the company reported a net loss of $324.7 million, or $2.56 per share (diluted), compared to a loss of $1.07 billion, or $7.20 per share for 1999. Without impairment charges, the company would have reported a loss of $32.7 million or $0.81 per share (diluted) for the year.
In the fourth quarter, Wyndham sold $140.6 million of non-strategic assets, including the Malmaison properties in the United Kingdom. For the year, Wyndham sold $418.8 million in non-strategic assets, exceeding its 2000 plan to sell $300 million in assets.
Fourth Quarter Performance: The core Wyndham brand paced the fourth quarter`s performance. Ted Teng, president and chief operating officer, said: “We achieved significant revenue growth during the fourth quarter and for the year in our core brand. Brand delivery—room revenue derived directly from national sales, brand programs and reservations systems—rose to more than 50% of room revenue. Our continued investment in brand standards and technology is beginning to bear fruit.”
Wyndham International, Inc. (NYSE:WYN) offers upscale and luxury hotel and resort accommodations through proprietary lodging brands and a management services division. Based in Dallas, Wyndham International owns, leases, manages and franchises hotels and resorts in the United States, Canada, Mexico, the Caribbean and Europe. For more information, visit www.wyndham.com. For reservations, call 800-WYNDHAM.