Wyndham International, Inc. (NYSE:WYN - news) today reported improved results for the quarter ended March 31, 2001, which were driven by a 3.2% total improvement in RevPAR (revenue per available room) on its comparable owned and leased hotels, reflecting an increase in both occupancy and average daily rate (ADR).
On an owned, leased and managed basis, performance was led by Wyndham Hotels & Resorts, which achieved comparable RevPAR growth of 6.1%, with occupancy up 1.4 points to 71.6% and ADR up 4% to $159.98. Summerfield Suites by Wyndham posted a comparable RevPAR gain of 4.6% in the quarter, with occupancy up 0.2 points to 78.1% and ADR up 4.4% to $128.48.
On a pro forma basis, which reflects adjustments for asset acquisitions and dispositions, earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, increased slightly to $175.7 million in the first quarter of 2001, up from $175.2 million in the same period a year ago.
On a pro forma basis, the company reported net income of $12.9 million for the quarter, compared to net income of $5.1 million in the first quarter 2000. The company reported a loss of $0.08 per diluted share after effect of the preferred dividends for the quarter, compared to a loss of $0.12 per diluted share for the same quarter last year.
``We are very pleased with our first quarter results, which reflect the growing strength of our proprietary Wyndham brand,`` said Fred J. Kleisner, chairman and chief executive officer. ``Even in a declining economy, we were able to achieve our first quarter expectations. And further demonstrating the momentum behind the brand, Wyndham`s marketshare continues to grow versus the competition.``
The company continues to make progress with its three-year plan to focus on proprietary branded operations. Year-to-date, the company has sold two hotels and one non-EBITDA producing asset for $51 million. The proceeds from these sales were used to reduce debt. In addition, the company has several transactions in various stages of negotiation and remains on track to meet its goal of $500 million in non-strategic asset sales for 2001. In addition, consistent with its strategy to grow through the addition of franchise and management contracts, Wyndham signed two new management agreements for properties in Vancouver and Louisiana.
``We are continually evaluating the way we do business to ensure we are running as efficiently as possible,`` said Kleisner. ``In reviewing our long-term projections in light of increasing economic uncertainty, we believe a more conservative view of our financial targets is now warranted.``
If the economy remains weak for the balance of the year, expected RevPAR growth for the company`s portfolio is estimated to be in the range of 2-3%. Additionally, full-year EBITDA, as adjusted, is expected to be $640 million.
Furthering Wyndham`s Brand Strength::
To help ensure that the Wyndham brand continues to gain market share, the company has implemented several industry-leading programs. Wyndham ByRequest, the company`s guest recognition program, continues to draw praise from travelers and industry experts alike. The program differentiates Wyndham from its competitors by personalizing the guest experience to match the preferences of travelers.
``The response to Wyndham ByRequest has been enormously gratifying,`` said Kleisner. ``Through a consistent delivery of a more personalized stay, we are driving both trial and loyalty for the brand.``