|SPRINGFIELD, Mo., May 10, 1999 - John Q. Hammons Hotels,
Inc. (NYSE: JQH) today reported total earnings before interest expense,
taxes, depreciation and amortization (EBITDA) of $24.4 million for the
first quarter ended April 2, 1999, compared to 1998 first quarter EBITDA
of $22.2 million. Total revenue for the quarter increased to $83.6 million,
up 5.8 percent from $79.0 million in the 1998 quarter.
The Company's average room rate for the quarter was $95.02, up 5.3 percent compared to the 1998 first quarter average room rate of $90.20. In comparison, average room rate for the hotel industry was $81.88 in the first quarter, up 3.7 percent from the 1998 first quarter. The Company's occupancy for the first quarter was 61.0 percent, down 0.4 percentage points from the 1998 first quarter. Occupancy for the hotel industry was 59.4 percent, down 0.7 percentage points from the 1998 first quarter. The Company's Revenue Per Available Room (RevPAR) was $57.94 in the 1999 first quarter, up 4.6 percent from $55.37 in the 1998 first quarter. RevPAR for the hotel industry was $48.64, up 3.4 percent from the 1998 first quarter.
John Q. Hammons, chairman and chief executive officer, said, "The strong EBITDA results for the first quarter continue to reflect improving performance of our overall hotel portfolio due to the depth of the markets and the strength of locations where we have built hotels."
Basic and diluted earnings per share in the first quarter were a $(0.15) loss in the 1998 first quarter. Included in the first quarter loss were charges of $1.8 million related to unamortized preopening costs which were required to be written off due to a change in the accounting principle prescribed by SOP 98-5, "Reporting on the Cost of Startup Activities." This change in accounting principle had a negative effect on earnings per share of approximately $.08. Further impacting earnings and EBITDA in the First Quarter of 1999, was a charge of $.8 million representing preopening expenses charged to Operations, while in prior years this would have been carried on the balance sheet and amortized over twelve months.
Consistent with authorization by its Board of Directors, the Company has purchased 113,900 shares of Treasury Stock during the first quarter at an approximate average price of $4-3/4.
At the end of the 1999 first quarter, the Company had six new projects under construction -- Hampton Inn & Suites adjacent to the Mesquite Championship Rodeo Arena in Mesquite, Texas (opened April 15, 1999); Radisson Resort Hotel adjacent to the PGA TOUR Tournament Players Club at Heron Bay in Coral Springs, Fla. (opened May 1, 1999); Embassy Suites Outdoor World at DFW International Airport in Grapevine, Texas; a Marriott Renaissance Suites hotel in Charlotte, N.C.; a Marriott Renaissance Oklahoma City Hotel Downtown Oklahoma City; and an Embassy Suites in North Charleston, S.C. The balance of hotel openings are staggered from August 1999 through the first quarter of 2000.
The Company currently owns and manages 49 hotels, including five managed hotels, with 11,853 rooms in 21 states. The new hotels under development will add 1,192 suites and rooms, which represent an increase of 10.1 percent to the Company's portfolio.
Note: Certain matters discussed in this press release are forward-looking statements within the meaning off the Private Securities Litigation Reform Act of 1995. Although John Q. Hammons Hotels 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 uncertainties are more fully described in the company's filings with the Securities and Exchange Commission.
|Also See:||John Q. Hammons Will Begin Building Five Full-Service Upscale Hotels in 1999 / March 1999|
|John Q. Hammons Hotels RevPAR Increases 9.6 Percent for 1998, Occupancy Down 1.3% / Feb 1999|