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Promus Reports 41 Cents For First Quarter, 1998
Performance Statistics
System Size
MEMPHIS, Tenn., April 28, 1998 -  Promus Hotel Corporation (NYSE: PRH), a leading hotel franchise and management company, reported net income of $36.0 million which represented a 30 percent increase over 1997 first quarter net income of $27.7 million before unusual items. Fully-diluted earnings per share were 41 cents compared to 31 cents before unusual items in the year ago comparable period, a gain of 32 percent. Revenues increased 7 percent to $254.5 million from $237.7 million before unusual items.

On December 19, 1997, Promus and Doubletree Corporation merged in a transaction accounted for as a pooling-of-interests. As such, the company's 1997 first quarter financial results have been restated to include the results of both companies. During the first quarter of 1997, the company experienced certain unusual items, including (1) a gain of $10.9 million from a breakup fee received in connection with the terminated Renaissance Hotel Group transaction, (2) gains of $10.8 million on the sale of two joint venture hotels and an unrelated management contract, (3) a gain of $2.1 million on the sale of securities, and (4) $5.5 million of expenses related to
the establishment of long-term compensation plans. These items contributed $11.2 million and 13 cents, respectively, to 1997 first quarter net income and fully-diluted earnings per share.

"We experienced another strong quarter largely due to the strength of our brands and our hotel management capabilities," said Raymond E. Schultz, chairman and chief executive officer. "By providing value-oriented and consistent lodging accommodations for our hotel guests and great returns for our owners, our hotel brands continue to grow and build even greater brand equity. This was affirmed in the 1998 American Customer Satisfaction Index published in Fortune Magazine (February 16, 1998). Promus, for the third year in a row, was listed as the highest ranked hotel company. In addition, Hampton Inn and Homewood Suites were named as the number one hotel brands in their respective segments by Business Travel News."

Richard M. Kelleher, president and chief operating officer, added, "We are very encouraged by the RevPAR growth reported by our hotel brands during the quarter despite the effects of unexpected weather conditions. The overall performance for the quarter indicates these brands are in a great competitive position for 1998. As our newer hotel brands continue to grow and the former Red Lion properties realize the full benefit from their conversion to the Doubletree brand, we are optimistic that our results should continue to strengthen as 1998 progresses. In addition, we have made significant progress in integrating the operations and systems of Promus
and Doubletree. We are ahead of our ambitious schedule and are looking forward to the successful conclusion of this effort."

Brand Performance

Hotels managed under the Doubletree brand (excluding the Red Lion hotels converted to the Doubletree brand during 1997) generated an $80.58 RevPAR, an 8.6% increase over first quarter 1997.   The Red Lion hotels which converted to the Doubletree brand during April (4 hotels) and July (36 hotels) 1997 reported RevPAR of $59.07, a 1.8% increase over first quarter 1997.

Embassy Suites' RevPAR increased 6.7% for the quarter to $89.09. Hampton Inn reported RevPAR of $43.51 for the first quarter of 1998, a 5.1% increase over the first quarter of 1997. Hampton Inn Suites achieved RevPAR of $56.58, a 13.6% increase over the first quarter 1997, and Homewood Suites' RevPAR increased 6.7% in first quarter 1998 to $72.99.

Average daily rate, occupancy and RevPAR discussed in this release and in the attachments are reported for only those comparable hotels in the system as of March 31, 1998 and managed and franchised by Promus or managed by Doubletree since January 1, 1997. Doubletree franchised hotels are not included in the statistical information.

Unit Growth

During the first quarter of 1998, the company added 36 hotels (4,953 rooms) to its system, including two Doubletree branded hotels, three Embassy Suites hotels, 18 hotels in the Hampton Inn brand, three Hampton Inn  Suites hotels, eight hotels in the Homewood Suites brand, and two other hotels.  The company also terminated eight hotels during the quarter totaling 1,415 rooms.

As of March 31, 1998, the company's system included 1,227 hotels comprising 182,340 rooms. This represents a 14% increase in the number of hotels compared to March 31, 1997. In addition, the company had approximately 378 hotels with almost 50,000 rooms either in design, conversion or under construction at the end of the quarter.

Promus Hotel Corporation is one of the world's premier lodging companies, with system-wide annual revenues of over $5 billion. The company owns, operates or franchises hotels throughout the United States and in Canada, Mexico and Latin America. It is the franchisor and operator of the Doubletree Hotels and Guest Suites, Embassy Suites, Homewood Suites, Club Hotels by Doubletree, Hampton Inn, Hampton Inn Suites, Embassy Vacation Resort and Hampton Vacation Resort brands. The company also manages non-Promus branded hotels and 16 facilities in its University Hotel Conference Center division.

Certain matters discussed in this press release may constitute forward- looking statements within the meaning of the federal securities laws. Such statements are based on management's beliefs, assumptions and expectations, which in turn are based on information currently available to management. Actual performance and results could differ from those expressed in or contemplated by the forward-looking statements due to a number of risks, uncertainties and other factors, some of which are beyond Promus' ability to predict or control, including changes in the general economy, customer demand, interest rates and competition. For further information on factors which could impact Promus and the statements contained herein, we refer you to the filings made by Promus with the Securities and Exchange Commission, including current reports on Form 8-K, quarterly reports on Form 10-Q and annual reports on Form 10K.

Performance Statistics (a)
Quarter Ended
March 31, 1998
Change vs. 
Quarter Ended March 31, 1997
Doubletree Hotels
Occupancy 70.8% 0.6 pts
ADR $113.89 7.8%
RevPAR $80.58 8.6%
Red Lion Hotels converted to Doubletree Hotels (b)
Occupancy 64.4% (0.5) pts
ADR $91.71 2.6%
RevPAR $59.07 1.8%
Embassy Suites
Occupancy 73.0% 0.2 pts
ADR $121.98 6.3%
RevPAR $89.09 6.7%
Hampton Inn
Occupancy 66.3% (0.1) pts
ADR $65.63 5.2%
RevPAR $43.51 5.1%
Hampton Inn Suites
Occupancy 69.3% 4.1 pts
ADR $81.60 6.8%
RevPAR $56.58 13.6%
Homewood Suites
Occupancy 74.8% 1.5 pts
ADR $97.56 4.6%
RevPAR $72.99 6.7%
Other Hotels (c)
Occupancy 67.3% 0.1 pts
ADR $83.79 6.2%
RevPAR $56.36 6.3%

(a) Revenue statistics are for comparable hotels, and include information only for those hotels in the system as of
March 31, 1998 and managed or franchised by Promus or managed by Doubletree since January 1, 1997.
Doubletree franchised hotels are not included in the statistical information.
(b) Includes results for the 4 Red Lion hotels converted to the Doubletree brand on April 1, 1997 and the 36 Red
Lion hotels converted to the Doubletree brand on July 1, 1997.
(c) Includes results for the 16 Red Lion hotels that have not been converted to the Doubletree brand as well as
the results for comparable hotels managed under other franchisors' brands or as independent hotels.

System Size
Number of Hotels 
Number of Rooms

Q1 1998 Change Since
December 31, 1997
Q1 1998 Change Since
December 31, 1997
Doubletree Hotels  
Company owned  16 -- 4,749 --
Joint ventures (a) 3 -- 812 --
Management contracts 85 2 23,998 532
Franchised 49 -- 10,935 (45)
171 2 45,299 487
Embassy Suites
Company owned  6 -- 1,299 --
Joint ventures (a) 19 -- 4,446 --
Management contracts 53 -- 13,087 67
Franchised 65 2 14,959 133
143 2 34,291 200
Hampton Inn
Company owned  11 -- 1,506 --
Leased 19 -- 2,359 --
Management contracts 7 -- 929 --
Franchised 707 18 74,808 2,015
744 18 79,602 2,015
Hampton Inn Suites
Management contracts 2 -- 287 --
Franchised 32 3 3,647 480
34 3 3,934 480
Homewood Suites
Company owned 14 3 1,584 382
Management contracts 4 -- 471 --
Franchised 40 4 4,007 417
58 7 6,062 799
Other Hotels
Company owned 9 -- 1,320 --
Leased 45 (4) 6,848 (396)
Management contracts 23 -- 4,984 (47)
77 (4) 13,152 (443)
Total System
Company owned 56 3 10,458 382
Leased 82 (4) 14,012 (396)
Joint venture (a) 22 -- 5,758 --
Management contracts 174 2 43,756 552
Franchised 893 27 108,356 3,000
1,227 28 182,340 3,538

(a) For statistical purposes only, Promus classifies unconsolidated joint ventures in which it holds less than a
20% interest as management contracts and consolidated joint ventures in which it owns more than a 50% interest
as Promus owned.


Bill Perocchi
Executive Vice President/Chief Financial Officer, 
Gregg Swearingen,
Director of Investor Relations, 901-374-5468
Promus Hotel Corporation

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