Wyndham International, Inc. (NYSE:WYN) today announced that it expects to report earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $152 million in the second quarter ending June 30, 2001, slightly below current analysts` expectations in the range of $155 million to $160 million.
“Lodging demand has turned downward as companies have reduced discretionary travel in an effort to lower overall expenses,” said Fred J. Kleisner, Wyndham`s chairman and CEO. “This slowdown, which began in the first quarter, has been somewhat greater than previously anticipated.”
The Company expects revenue per available room (RevPAR) for comparable owned and leased Wyndham Hotels & Resorts to decline by approximately 5% in the second quarter from the year-ago quarter. The total company portfolio is expected have a RevPAR decrease of slightly less than 6% for the quarter.
“While RevPAR has decreased, we are pleased with our progress in gaining RevPAR penetration against our competitors. Margins actually improved in June as a result of cost saving initiatives implemented earlier in the year. This improvement is expected to continue for the remainder of the year. In light of the challenging economic environment, we remain focused on our operating performance, identifying new ways to generate additional revenue and control costs,” added Kleisner.
Assuming no change in the current environment for the remainder of the year, the Company expects full-year earnings to be impacted by approximately the same 5% decrease as in the second quarter.
Wyndham will release second quarter 2001 financials on August 7, 2001, holding a conference call at 10:00 a.m. CST that day. A live webcast of the call can be accessed at www.wyndham.com, with a replay available on the Web site until August 17, 2001. A replay of the call will also be available by telephone from 1:30 p.m. CST on August 7 until 11:59 p.m. on August 12, 2001, by calling 800/475-6701 in the U.S. or 320/365-3844 internationally, with access code 595330.
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.