MeriStar Hotels & Resorts, Inc. (NYSE: MMH), the nation`s largest independent hotel management company, today announced results for the quarter ended June 30, 1999.
Earnings for the 1999 second quarter rose to $5.3 million, or $0.19 per share on a diluted basis, an increase of 27 percent. Revenues for the period increased 26 percent to $345.2 million, and earnings before interest expense, income taxes, depreciation and amortization (EBITDA) for the quarter was $12.6 million. Results were in line with consensus analyst expectations.
Second quarter revenues on a same-store basis advanced substantially over the same period in 1998, led by strong group bookings in many recently renovated hotels. Same-store revenue per available room (RevPAR) for full-service, leased hotels improved 4.0 percent to $79.65, compared to the same period last year. Average daily rate (ADR) increased 0.3 percent to $103.84 and occupancy rose 3.6 percent to 76.7 percent.
For all leased hotels, RevPAR increased 4.0 percent to $75.52. Average daily rate improved 1.1 percent to $98.67 and occupancy increased 2.8 percent to 76.5 percent.
``We`re seeing the benefits of having seasoned operating and sales teams that can manage and sell our hotels effectively in any environment,`` said Paul W. Whetsell, chairman and CEO of MeriStar Hotels & Resorts. ``We foster an entrepreneurial culture in the field, which encourages our general managers to innovate and maximize profits at their property,``
``We continue to see strong external growth as well. During the quarter, we added contracts to manage five full-service hotels, four of which are currently under construction, and four golf courses,`` he said. ``Our joint venture with Oak Hill Capital Partners and MeriStar Hospitality (NYSE:MHX - news) provided an additional management contract for the Marriott Trumbull in May. The partnership has more than $200 million remaining to invest in upscale hotels, which will continue to provide us with management fee growth and earnings on our equity investment.``
``We worked carefully this quarter to get the optimal mix of occupancy and rate improvements in order to maintain our profit margins,`` said David E. McCaslin, president of MeriStar Hotels & Resorts. ``Our sales and marketing professionals are among the best in the industry, as evidenced by our ability to produce strong results in a challenging quarter.``
MeriStar Hotels & Resorts leases or manages 217 hotels with 45,439 rooms in 34 states, the District of Columbia, Canada and the U.S. Virgin Islands.
For more information about MeriStar Hotels & Resorts, Inc. and MeriStar Hospitality Corporation, visit the companies` web site: www.meristar.com.