MeriStar Hotels & Resorts (NYSE: MMH), the nation`s largest independent hotel management company, today announced results for the second quarter ended June 30, 2000.
Net income increased to $6.9 million for the 2000 second quarter, or $0.21 per diluted share, which was in line with consensus analyst expectations. Second quarter revenues rose 8.0 percent to $372.7 million. Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) for the second quarter improved 24.7 percent to $15.7 million.
Same-store average daily rate (ADR) for full-service, leased hotels increased 7.0 percent to $109.87, and occupancy remained unchanged at 76.7 percent. RevPAR for these hotels increased 7.0 percent to $84.26.
For all leased hotels, RevPAR increased 6.1 percent to $79.32, ADR advanced 6.1 percent to $103.77 and occupancy was steady at 76.4 percent.
``Second quarter operating results were particularly good due to a strong economy and aggressive marketing programs, both at the property and regional levels,`` said Paul W. Whetsell, chairman and chief executive officer. ``We also benefitted from the acquisition of BridgeStreet Accommodations, Inc., late in the second quarter, which had a small, but positive impact on second quarter earnings.
``The addition of BridgeStreet broadens our hospitality management base and complements our hotel, golf course and vacation ownership management segments,`` Whetsell said. He noted that the company also gained five new hotel management contracts during the quarter, including two Embassy Suites hotels acquired by MeriStar Investment Partners. In addition, MeriStar`s Doral Golf unit added two contracts, the Nordic Hills Golf Club in suburban Chicago and the Elkhorn Golf Club in Sun Valley, Idaho, bringing to 12 the number of golf courses managed by the company.
``The integration of BridgeStreet into our corporate structure has gone quite smoothly,`` said David E. McCaslin, MeriStar Hotels & Resorts president. ``We already are beginning to see the benefits of synergies and cross-marketing opportunities.``
MeriStar Hotels & Resorts operates 224 hotels, resorts, and conference centers with more than 48,000 rooms in 34 states, the District of Columbia, Canada, Puerto Rico and the U.S. Virgin Islands. MeriStar develops and operates timeshare resorts and condominiums through its Doral Vacation Ownership division. Through its Doral Golf brand, MeriStar manages 12 golf courses. BridgeStreet Accommodations, a MeriStar subsidiary, is one of the world`s largest corporate housing providers, offering upscale, fully furnished corporate housing throughout the U.S., Canada, the United Kingdom and 28 additional destinations worldwide. For more information about MeriStar Hotels & Resorts, visit the company`s web site: www.meristar.com
This press release contains forward-looking statements about MeriStar Hotels & Resorts, Inc., including those statements regarding future operating results and the timing and composition of revenues, among others. Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results to differ materially, including the following: the ability of the company to successfully implement its acquisition strategy and operating strategy; the company`s ability to manage rapid expansion; changes in economic cycles; competition from other hospitality companies; and changes in the laws and government regulations applicable to the company.