Interstate Hotels Corporation (Nasdaq:IHCO), one of the largest independent hotel management companies in the United States, today announced results for the second quarter ended June 30, 2001.
For the second quarter of 2001, the Company reported a net loss of $0.1 million compared to a net loss of $0.4 million reflecting earnings per share of $(.01) compared to $(.07) for the same period last year. Earnings before interest, income tax expense and depreciation and amortization (EBITDA) were $3.6 million versus $0.9 million in the second quarter of 2000. Total Company revenues decreased by $53.4 million to $12.3 million in the second 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.
Revenue per available room (RevPAR) for comparable U.S. full-service hotels managed by the Company decreased 9.2% for the quarter to $97.25 from $107.06 for the same period in 2000. Average daily room rate (ADR) increased slightly to $132.47 from $131.33, while occupancy rates declined by approximately eight percentage points from 81.5% to 73.4% in the second quarter from a year ago. The Company’s second quarter RevPAR growth was again adversely impacted by softness in the economy, particularly in the New York and California markets.
In addition, Interstate closed on August 2, 2001 a $40 million senior secured revolving credit facility co-arranged by Lehman Brothers Holdings Inc. and Credit Lyonnais. The Company expects to draw upon the facility to pursue its growth strategy.
Interstate Hotels Corporation operates approximately 135 hotels with more than 27,000 rooms in 36 states in the United States as well as Canada, the Caribbean and Russia. For more information, visit www.interstatehotels.com.