Interstate Hotels Corporation (Nasdaq:IHCO), one of the largest independent hotel management companies in the United States, today announced results for the fourth quarter ended December 31, 2001.
For the fourth quarter of 2001, the Company reported a net loss of $3.1 million compared to a net loss of $3.6 million for the same period last year reflecting earnings per share of $(.55) compared to $(.54), respectively. Earnings before interest, income tax expense and depreciation and amortization (EBITDA) were $2.6 million versus $(3.2) million in the fourth quarter of 2000. Total Company revenues decreased by $49.2 million to $10.6 million in the fourth quarter of 2001 from $59.8 million for the same period in 2000 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 are not reflected in the Company’s 2001 financial statements, as the Company records revenues from management fees only.
Revenue per available room (RevPAR) for comparable U.S. full-service hotels managed by the Company decreased 31.4% for the quarter to $69.65 from $101.52 for the same period in 2000. Average daily room rate (ADR) decreased to $121.79 from $139.51, while occupancy rates declined from 72.8% to 57.2% in the fourth quarter from a year ago. The Company’s fourth quarter RevPAR continued to be adversely impacted by the weakened economic conditions and the aftermath of the September 11th events which led to the decline in lodging demand, particularly in the New York and California markets.
According to Thomas F. Hewitt, Chairman and Chief Executive Officer of Interstate Hotels, “Despite the obvious challenges facing the hotel industry as a result of the tragic events of September 11th, we have seen positive results due to our proactive approach to cost containment and sourcing new sales opportunities.”
Interstate Hotels Corporation operates approximately 135 hotels with more than 28,000 rooms in 37 states in the United States as well as Canada and Russia. For more information, visit www.interstatehotels.com.