|DALLAS - April 29, 1999--Bristol Hotels Resorts (the "Company"
or "Bristol") (NYSE:BH) is pleased to report today that for the first quarter
the Company posted earnings of $1.1 million, or $0.06 per diluted share.
Revenues for the same period totaled $176.2 million. Financial results
are not presented for comparable prior periods as the Company was not conducting
operations in its current format prior to July 28, 1998. Quarterly revpar
(revenue per available room) growth for leased assets not under redevelopment
and excluding assets held for sale was 1.1%. Occupancy, average daily rate
and revpar for the quarter were 65.1%, $81.90 and $53.36, respectively.
Statistics for the same period last year were 67%, $78.72, and $52.76,
"Our first quarter results were influenced by unprecedented construction activity, depressed occupancies in selected markets and by aggressive management of our cost structure," noted J. Peter Kline, Chairman and Chief Executive Officer. "Although same-store revpar growth fell short of our targets, we are very pleased with our overall financial performance this quarter, which exceeded the consensus estimate of $0.04. Our management team stayed focused on cost controls while simultaneously managing over $60 million in redevelopment activity encompassing nearly 6,000 rooms and 19 hotels. This is the most activity we have ever had in one quarter since we started redeveloping hotels in February of 1995."
Mr. Kline further commented that, "the Company's revpar performance continues to be significantly impacted by our ongoing redevelopment program. Same-store statistics exclude some of our most significant assets and strongest markets, and are therefore not representative of our portfolio as a whole. Many of Bristol's most significant hotels were under redevelopment during the first quarter of 1998 or 1999. Revpar growth for those assets under redevelopment during the first quarter of 1998 was 25.1% while those under redevelopment during 1999 showed a 21.2% decline during this period. Approximately 40% of our entire portfolio was under redevelopment in either the first quarter of 1998 or 1999 resulting in a same-store portfolio that was extremely sensitive to individual asset results. For example, were it not for our two Houston Holiday Inn Select hotels, which were adversely affected by oil industry cutbacks in the first quarter, overall same-store revpar improvements would have been 2.2%."
The Company also continued to oversee the renovation and/or rebranding of the assets transferred to FelCor, and for the three months ending March 31, this activity encompassed 19 hotels and 6,015 rooms. Of this total, the following four hotels containing 1,280 rooms were completed and placed fully back in service:
-- The 565-room Holiday Inn-Financial District in San Francisco, CA. Comprehensive renovations, conducted in two phases, resulted in a makeover of most areas of the hotel. Renovations covered public areas, meeting space, and the restaurant. Guest room renovations, completed earlier, consisted of a floor-to-ceiling makeover, and feature the addition of in-room voice mail, two data-port phones, oversized desks, hair dryers, and full-sized irons and ironing boards.
-- The 408-room Holiday Inn in Tampa, FL. Renovations to the 12-acre resort included a total makeover of meeting space, lounge, and restaurant areas. A newly constructed Market Place Cafe with pool-side bar was added to the property's existing food and beverage facilities. Leisure activities include a new outdoor water attraction featuring a pirate ship with slides and water cannons, an exercise facility, and electronic game space. All guest rooms were completely remodeled in colorful tropical themes. Twenty-five guest rooms feature KidsSuites(SM), which are themed fun rooms within guest rooms geared for family travel.
-- The 167-room Holiday Inn in Kansas City, MO. Renovations consisted of a floor-to-ceiling refurbishment of guest rooms, including new furniture, drapes, bedspreads, flooring, and wall coverings. Other renovated areas included the property's lobby, restaurant, lounge, meeting space, and recreational facilities.
-- The 140-room Hampton Inn in Marietta, GA. Guest room renovations included new carpet and furniture, as well as new bathroom tile and vinyl. The lobby and breakfast areas were completely remodeled with new furniture, lighting, and floor and wall coverings. The exterior was also refurbished with new paint, new landscaping, and resurfaced decks and sidewalks.
The Company has overseen in excess of $220 million in renovation and/or rebranding activity encompassing 42 hotels and 13,231 rooms since the current program began in late 1997. By the year 2000, BHR will have overseen the investment of over $400 million in the redevelopment of Crowne Plaza and Holiday Inn hotels.
Bristol is one of the largest independent operators of hotels in North
America and operates the largest number of Bass Hotels Resorts' branded
hotels in the world. The Company's portfolio at March 31, 1999, segregated
by brands was as follows:
No. HOTELS No. ROOMS
Bristol operates principally in the mid-priced to upscale segments of the industry and its hotels are located in 19 of the top 25 lodging markets in the United States. Locations with the greatest concentrations at March 31, 1999, were as follows:
Location No. of Hotels / Rooms
First Quarter, 1999
Same-Store Hotels (2)
$ 82.67 $ 55.68
$ 82.67 $ 55.68
First Quarter, 1998
Managed (4) 71.3% $78.56 $56.04
Occ Rate RevPAR
Managed (4) -3.9% 5.2% -0.6%
Managed (4) -3.9% 5.2% -0.6%
Notes (1) Excludes non-comparable Single-Acquisition and Sale Assets (three assets held for sale containing 647 rooms in total).
(2) Same-Store Hotels exclude hotels renovated during the First Quarter of 1998 or 1999.
(3) Canadian assets have been adjusted to remove the effect of period-to-period exchange rate fluctuations.
(4) Excludes recently terminated contracts and those that are being marketed for sale by the owner (seven assets containing 2,174 rooms in total).
Certain matters discussed in this press release may be construed as forward-looking within the meaning of the Private Litigation Reform Act of 1995 and as such may involve known and unknown risks, uncertainties, and other factors which may cause actual results, performance or achievements of the Company to be different from any future results, performance or achievements expressed or implied by such forward-looking statements. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These risks are detailed from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.
|Also See:||Bristol Hotels Resorts Reports Fourth Quarter Occupancy Decline of 1.6%, ADR up 5.8% / Feb 1999|