Interstate Hotels Corporation (Nasdaq:IHCO), one of the largest independent hotel management companies in the United States, today announced results for the first quarter ended March 31, 2001.
For the first quarter of 2001, the Company reported a net loss of $0.5 million compared to a net loss of $0.9 million reflecting earnings per share of $(.07) compared to $(.15) for the same period last year. Earnings before interest, income tax expense and depreciation and amortization (EBITDA) were $2.5 million versus $0.2 million in the first quarter of 2000. Total Company revenues decreased by $43.7 million to $11.1 million in the first quarter as a result of the conversion of the Equity Inns leases into management contracts on January 1, 2001. The lodging revenues related to the leased hotels that were recorded in 2000 will not be reflected in the Company’s 2001 financial statements, as the Company will record revenues from management fees only.
During the first quarter, revenue per available room (RevPAR) for comparable U.S. full-service hotels managed by the Company grew 1.2% to $105.00 from $103.75, average daily room rate (ADR) increased 4.0% to $137.36 from $132.07, while occupancy rates were 76.4% compared to 78.6% for the same period in 2000. The Company’s first quarter RevPAR growth was adversely impacted by softness in the economy, particularly in the New York City and San Francisco markets.
Interstate Hotels Corporation operates approximately 140 hotels with more than 27,000 rooms in 37 states in the United States as well as Canada, the Caribbean and Russia. For more information, visit www.interstatehotels.com.