Wyndham Reports Net Loss of $76.9 million for 2nd Qtr compared to Loss of $39.1 million a Year Earlier; RevPAR Falls 9.8% / Aug 2002

Hotel Online Special Report

Wyndham Reports Net Loss of $76.9 million for 2nd Qtr
Compared to Loss of $39.1 million a Year Earlier;
RevPAR Falls 9.8%

DALLAS - Aug. 6, 2002 -- Wyndham International, Inc. (NYSE:WYN) today reported results for the second quarter ended June 30, 2002.

Financial Highlights
Total revenues on a comparable pro forma basis, which reflects adjustments for acquisitions and dispositions, for the second quarter 2002, were $508.7 million, an 8.7 percent decrease from the same period in 2001. On a pro forma basis earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, were $112.1 million for the three months ending June 30, 2002, versus $149.5 million for the same period in 2001.

For the six months ended June 30, 2002, total revenues on a comparable pro forma basis were $1.0 billion down 11.4 percent from the same period in 2001. EBITDA as adjusted on a comparable pro forma basis for the first half of the year was $226.5 million a decline of 29.6 percent versus the first half of 2001.

Total company comparable owned and leased revenue per available room (RevPAR) for the second quarter was $79.11, a decline of 9.8 percent versus the same period in 2001. This decline was comprised of an 8.5 percent decline in average daily rate, created by the slower than expected return of the independent business traveler, and one percentage point decline in occupancy. RevPAR for the company's comparable owned and leased hotels reflect a sequential increase each quarter. RevPAR improved from the fourth quarter 2001 year over year decline of 23.1 percent, to a decline of 16.9 percent in the first quarter 2002, and a decline of 9.8 percent in the second quarter 2002.

"The corporate business traveler has not returned, reflective of the tight controls placed on corporate travel. One business segment that remains remarkably strong is the leisure traveler. While the leisure market contributes occupancy to our properties these consumers pay a lower rate and do not generate the ancillary revenues such as banquet and catering," stated Wyndham International Chairman and Chief Executive Officer Fred J. Kleisner.

Corporate Finance
The company's liquidity remains strong despite the sluggish economy. During the quarter, debt decreased by $33.8 million due primarily to repayments associated with the reduction in cash and the application of net sales proceeds. As of June 30, Wyndham's total debt was $3.318 billion. The breakdown is as follows: the Revolver at $213.5 million; the IRL's at $482.1 million; the Term Loan B's at $1.284 billion; and mortgage and other indebtedness at $1.339 billion.

Wyndham began the year with approximately $280 million of maturities coming due in 2002. Through extensions and refinancings, the maturities have been reduced to approximately $23 million, and the company is in negotiations to refinance the remaining 2002 maturities, expected to close the end of August.

Acquisitions and Dispositions
Wyndham remains committed to its business plan focused on growing its proprietary brand and the disposition of non-strategic assets. Year-to-date, Wyndham sold three hotel properties and an investment in Shula's Steak House for gross proceeds of $47.5 million. Proceeds from the sales were used to pay down debt.

As part of the current 2002 dispositions, Wyndham most recently sold the 385-room Wyndham Myrtle Beach Resort and Arcadian Shores Golf Club, a leasehold interest in the golf course and adjacent land to FelCor Lodging Trust Incorporated for $35.3 million. As part of the same transaction, the company will flag the Wyndham-owned and -managed Hilton Fort Lauderdale Airport to its proprietary brand, following a multi-million dollar renovation, creating an even stronger Wyndham brand presence in the rapidly growing South Florida market.

In addition to the Fort Lauderdale hotel, the following properties will be added to the Wyndham brand before year-end:

Wyndham Condado Plaza Hotel and Casino San Juan, Puerto Rico (conversion)
Wyndham Columbus, Georgia (conversion)
Wyndham Burlington, Vermont (conversion)
Summerfield Suites by Wyndham Pleasant Hill, Calif. (new contract)
Wyndham Little Rock, Arkansas (new contract)

Since 1999, 85 assets have sold for gross proceeds of approximately $943

Condado Plaza
Hotel and Casino
999 Ashford Avenue
San Juan, Puerto Rico

million. There are 51 non-strategic assets remaining to be sold, and the company has stated it will continue to hold these assets until lodging fundamentals return and values increase. Currently, three other properties and one land parcel are under contract accounting for less than 1.0 percent of total company revenue and EBITDA. On June 30, 2002, Wyndham International's system included 218 properties and 56,343 rooms.

Wyndham Brand
Wyndham Hotels & Resorts out-performed the total company portfolio for the quarter, with a RevPAR decline of 6.7 percent from the prior year driven by a decline in the average daily rate, as occupancy was flat to the prior year. For the six months ended June 30, 2002, Wyndham-branded owned, leased, managed and franchised hotels had a RevPAR penetration index of 100.2 within their competitive set, an increase of 20 basis points versus the same period the prior year.

Within the Wyndham-branded properties, occupancy has gained steadily:

December 2001 - 51.6 percent
January 2002 - 59.5 percent
February 2002 - 69.2 percent
March 2002 - 72.5 percent
April 2002 - 75.9 percent
May 2002 - 72.1 percent
June 2002 - 74.9 percent

"While it continues to be an extremely difficult business environment, we are pleased with the vitality of the Wyndham brand and our ability to maintain occupancy at rates that are closer to the prior year than our non-proprietary branded properties," added Kleisner. "As the rebound in business travel is slower than we anticipated, we have put in place very competitive programs that allow us to win a greater share of the business."

In order to have an advantage targeting the premium business travelers, Wyndham launched a powerful enhancement to its Wyndham ByRequest(SM) guest recognition program -free, unlimited, local and long distance phone calls(a), free high-speed Internet access, and free copying and faxing privileges.

The impact of the unique offering has produced the highest traffic to www.wyndham.com in a single month, 25 percent more visitors in June than the previous brand record. Additionally, online reservations have increased 160 percent versus the same time last year. Further, enrollment to ByRequest was up 50 percent during June versus the average month enrollment in 2002, indicating the strong interest and relevance of the free long distance enhancement to ByRequest for travelers. Importantly, virtually all Wyndham ByRequest members are active, and stay within a 12-month period, as there are no passive benefits to the program. ByRequest members have proven to be vital consumers as they spend 25 percent more than non-member guests and stay at 22 percent more Wyndham properties than non-members.

"The feedback from our guests to the Wyndham ByRequest enhancement has been very exciting. They move from a state of disbelief that we actually deliver on the promise of free long distance calls, to a fierce loyalty to a brand that uniquely understands their needs," stated Kleisner.

Capital Renovation Project
In 2002, Wyndham has a $120 million capital plan dedicated to property improvements. Currently $71 million has been committed and $22 million has been spent against this plan.

Previously, Wyndham completed a three-year $730.5 million capital renovation program reaching nearly all Wyndham International properties. The goal of the capital project, as well as future spending, is to ensure consistency particularly within the proprietary Wyndham-branded properties. The improvements include brand standards in Wyndham guest rooms addressing business travelers' need for an environment to help them work efficiently and comfortably. Also included in the initiative was the Wyndham International Reports Second Quarter 2002 Results Page 5 installation of high-speed Internet access. The company is leading the industry with high-speed Internet access available in more than 70 percent of its properties.

Future Guidance
For the third quarter 2002, RevPAR is forecasted to be flat to positive 3 percent over the same period in the prior year. EBITDA projections, as adjusted, for the third quarter 2002 are from $82 million to $87 million. For the full year of 2002, RevPAR is estimated to be negative 2 to negative 4 percent and full year EBITDA, as adjusted, to be $435 million to $445 million.

WYNDHAM INTERNATIONAL, INC.
2002 OPERATING STATISTICS BY QUARTER

                                             Second Quarter
                                        2002      2001     % Change
                                        ----      ----     --------
COMPARABLE WYNDHAM BRANDED HOTELS (a)
Wyndham Hotels & Resorts
Average daily rate                  $118.80    $127.47     -6.8%
Occupancy                             72.5%      72.4%     0.1 ppt
RevPAR                               $86.09     $92.29     -6.7%
Wyndham Luxury Resorts (b)
Average daily rate                  $218.23    $257.18     -15.1%
Occupancy                             57.0%      55.5%     1.5 ppt
RevPAR                              $124.46    $142.74     -12.8%
Summerfield by Wyndham
Average daily rate                  $104.59    $122.95     -14.9%
Occupancy                             81.8%      82.6%     -0.8 ppt
RevPAR                               $85.51    $101.50     -15.8%
Wyndham Garden
Average daily rate                   $79.30     $91.56     -13.4%
Occupancy                             63.9%      66.5%     -2.6 ppt
RevPAR                               $50.69     $60.93     -16.8%

COMPARABLE OWNED & LEASED HOTELS
Proprietary Branded (c)
Average daily rate                  $113.96    $126.09     -9.6%
Occupancy                             74.2%      74.4%     -0.2 ppt
RevPAR                               $84.56     $93.75     -9.8%

Non-Proprietary Branded (d)
Average daily rate                  $104.22    $111.45     -6.5%
Occupancy                             67.3%      69.7%     -2.4 ppt
RevPAR                               $70.09     $77.61     -9.7%

Total Portfolio
Average daily rate                  $110.52    $120.81     -8.5%
Occupancy                             71.6%      72.6%     -1.0 ppt
RevPAR                               $79.11     $87.67     -9.8%

                                     Six Months Ended June 30, 2002
                                     ------------------------------
                                       2002       2001    % Change
                                       ----       ----    --------

COMPARABLE WYNDHAM BRANDED HOTELS (a)
Wyndham Hotels & Resorts
Average daily rate                  $126.80    $138.43     -8.4%
Occupancy                             69.5%      71.1%     -1.6 ppt
RevPAR                               $88.16     $98.43     -10.4%
Wyndham Luxury Resorts (b)
Average daily rate                  $247.83    $289.01     -14.2%
Occupancy                             58.6%      58.3%     0.3 ppt
RevPAR                              $145.13    $168.52     -13.9%
Summerfield by Wyndham
Average daily rate                  $105.03    $125.62     -16.4%
Occupancy                             78.0%      80.3%     -2.3 ppt
RevPAR                               $81.95    $100.95     -18.8%
Wyndham Garden
Average daily rate                   $80.78     $93.17     -13.3%
Occupancy                             59.9%      65.2%     -5.3 ppt
RevPAR                               $48.38     $60.77     -20.4%

COMPARABLE OWNED & LEASED HOTELS
Proprietary Branded (c)
Average daily rate                  $120.33    $135.26     -11.0%
Occupancy                             70.6%      72.6%     -2.0 ppt
RevPAR                               $85.00     $98.19     -13.4%

Non-Proprietary Branded (d)
Average daily rate                  $105.50    $113.77     -7.3%
Occupancy                             63.7%      68.1%     -4.4 ppt
RevPAR                               $67.18     $77.50     -13.3%

Total Portfolio
Average daily rate                  $115.11    $127.49     -9.7%
Occupancy                             68.0%      70.9%     -2.9 ppt
RevPAR                               $78.29     $90.40     -13.4%

NOTE: All hotel statistics exclude assets sold to date.
(a) Brand statistics are based on comparable owned, managed and leased
    hotels for respective periods.
(b) Reflects results of the Boulders, Carmel Valley Ranch, the Lodge
    at Ventana Canyon, and Isla Navidad.
(c) Reflects Wyndham Hotels & Resorts, Wyndham Luxury Resorts,
    Summerfield Suites by Wyndham and Wyndham Garden Hotels that were
    branded as of January 1, 2001.

(d) Non-proprietary brand hotels owned by the Company as of January 1,
2001.

WYNDHAM INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)                                        Six Months Ended
                                           June 30,
                           2002        2001       2002        2001
                        Comparable   Comparable
                            Pro         Pro      Actual      Actual
                         Forma (1)   Forma (1)
                         --------- ---------- --------- ----------
Revenues:
Hotel revenues           $995,241 $1,124,003   $995,241 $1,185,837
Management fees and
service fee income         9,043       8,258      9,043      10,382
Interest and other
income                     3,975       5,486      3,975       5,461
                         --------- ---------- --------- ----------
Total revenues         1,008,259   1,137,747 1,008,259   1,201,680
                         --------- ---------- --------- ----------

Expenses:
Hotel expenses           $752,444    $793,054   $752,687    $845,286
General and
administrative costs      30,191      22,417     30,191      22,556
Interest expense          125,462     162,351    125,462     166,199
                         --------- ---------- --------- ----------
Total operating costs
   and expenses            908,097     977,822    908,340   1,034,041
                         --------- ---------- --------- ----------

Revenues net of direct
expenses 100,162 159,925 99,919 167,639

Non-recurring charges:
Professional fees and
   other                     2,845       8,505      2,845       8,505
Bond offering costs        4,504          --      4,504          --
Abandoned transaction
   costs                     1,524         582      1,524         582
Pre-opening and
   conversion costs          1,030       8,090      1,030       8,109
Loss (gain) on
   derivative instruments   33,044     (13,188)    33,044     (13,188)
Impairment of assets
   held for sale               162          --        162          --
Loss on sale of assets     5,867      12,923      5,867      12,923
Write-off of management,
   leasehold costs and
   license agreements          673         765        992         765
                         --------- ---------- --------- ----------
Total non-recurring
   charges                  49,649      17,677     49,968      17,696
                         --------- ---------- --------- ----------

Depreciation and
amortization              145,772     110,680    145,772     117,072
Equity in earnings from
unconsolidated
subsidiaries                 (898)     (1,245)      (898)     (1,597)
Minority interest in
consolidated
subsidiaries                  938       3,648        939       6,952
                         --------- ---------- --------- ----------
                           145,812     113,083    145,813     122,427
                         --------- ---------- --------- ----------

(Loss) income before
income taxes              (95,299)     29,165    (95,862)     27,516
Provision (benefit) for
income taxes              (35,194)     14,111    (35,419)     16,221
Extraordinary item, net
of applicable taxes           --          --         --         719
Accounting change, net
of applicable taxes      324,102     346,412    324,102      10,364
                         --------- ---------- --------- ----------

Net (loss) income $(384,207) $(331,358) $(384,545) $212
========= ========== ========= ==========

EBITDA, as adjusted $226,522 $321,778 $226,280 $329,596
========= ========== ========= ==========

(1) The Comparable Pro Forma financial statements have been adjusted
    to remove the operations of hotels sold and related interest
    expense from corresponding retired debt and management contract
    revenue from terminated management contracts.

                      WYNDHAM INTERNATIONAL, INC.
                         EBITDA Reconciliation
                 (in thousands, except per share data)
                              (Unaudited)
                                          Six Months Ended
                                              June 30,
                              2002       2001        2002      2001
                           Comparable Comparable
                           Pro Forma   Pro Forma    Actual    Actual
                           ---------   --------- --------- --------
EBITDA Reconciliation
Net (loss) income          $(384,207) $(331,358) $(384,545)     $212

Interest expense            125,462    162,351    125,462   166,199
Depreciation and
   amortization               145,772    110,680    145,772   117,072
Provision (benefit) for
   income taxes               (35,194)    14,111    (35,419)   16,221
Extraordinary item, net of
   applicable taxes                --         --         --       719
Cumulative effect of
   accounting change          324,102    346,412    324,102    10,364
                            --------- --------- --------- --------
EBITDA                       175,935    302,196    175,372   310,787
Interest, depreciation and
   amortization from equity
   interest in
   unconsolidated
   subsidiaries                 2,261      2,917      2,261     2,788
Interest, depreciation and
   amortization attributable to minority interests       (3,125)    (2,131)    (3,123)   (2,793)
Professional fees and
   other                        2,845      8,505      2,845     8,505
Bond offering costs           4,504       --        4,504      --
Abandoned transaction
   costs                        1,524        582      1,524       582
Pre-opening and conversion
   costs                        1,030      8,090      1,030     8,109
Amortization of unearned
   compensation                 1,802        776      1,802       775
Loss (gain) on derivative
   instruments                 33,044    (13,188)    33,044   (13,188)
Impairment of assets held
   for sale                       162        --         162        --
Non-recurring fees
   included in G&A                 --        343         --       343
Loss on sale of assets        5,867     12,923      5,867    12,923
Write-off of management,
   leasehold costs and
   license agreements             673        765        992       765
                            --------- --------- --------- --------

EBITDA, as adjusted $226,522 $321,778 $226,280 $329,596
========= ========= ========= ========

Per Share Calculations:
Net (loss) income before
   accounting change and
   extraordinary item        $(60,105)   $15,054   $(60,443) $11,295
Adjustment for preferred
   stock                      (70,580)   (54,531)   (70,580) (54,531)
                            --------- --------- --------- --------
   Net loss attributable to
    common shareholders     $(130,685) $(39,477) $(131,023) $(43,236)
                            ========= ========= ========= ========

Basic and diluted loss per
common share:
   Net loss before
    accounting change and
    extraordinary item         $(0.78)     (0.24)    $(0.78)   $(0.26)
   Cumulative effect of
    change in accounting
    principle, net of
    applicable taxes            (1.93)     (2.07)     (1.93)    (0.06)
   Extraordinary Item, net
    of applicable taxes            --         --         --        --
                            --------- --------- --------- --------
    Net loss per common
     share                     $(2.71)    $(2.31)    $(2.71)   $(0.32)
                            ========= ========= ========= ========

Basic and diluted weighted
average common shares and
share equivalents 167,898 167,559 167,898 167,559

                      WYNDHAM INTERNATIONAL, INC.
            CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                            (in thousands)
                              (Unaudited)
                                         Quarter Ended
                                             June 30,
                                2002       2001      2002      2001
                             Comparable Comparable
                                 Pro       Pro      Actual    Actual
                              Forma (1) Forma (1)
                               -------- -------- -------- --------
Revenues:
Hotel revenues               $502,258 $551,575 $502,259 $581,080
Management fees and service
   fee income                     4,573     3,396     4,574     4,663
Interest and other income       1,870     2,328     1,870     1,782
                               -------- -------- -------- --------
     Total revenues             508,701   557,299   508,703   587,525
                               -------- -------- -------- --------

Expenses:
Hotel expenses                381,923   394,240   382,075   419,680
General and administrative
   costs                         15,151    14,679    15,151    14,818
Interest expense               61,045    78,400    61,045    79,942
                               -------- -------- -------- --------
     Total operating costs and
      expenses                  458,119   487,319   458,271   514,440
                               -------- -------- -------- --------

Revenues net of direct expenses 50,582 69,980 50,432 73,085

Non-recurring charges:
Professional fees and other     1,771     6,005     1,772     6,005
Bond offering costs             4,504        --     4,504        --
Abandoned transaction costs       406       380       405       380
Pre-opening and conversion
   costs                            278     7,430       278     7,449
Loss (gain) on derivative
   instruments                   34,378    (3,274)   34,378    (3,273)
Loss on sale of assets          1,097    13,259     1,097    13,259
Write-off of management,
   leasehold costs and license
   agreements                       (13)      765       (13)      765
                               -------- -------- -------- --------
    Total non-recurring charges 42,421    24,565    42,421    24,585
                               -------- -------- -------- --------

Depreciation and amortization    73,339    58,885    73,338    62,230
Equity in earnings from
unconsolidated subsidiaries       (177)   (1,024)      (54)   (1,216)
Minority interest in
consolidated subsidiaries          226     1,824       239     2,106
                               -------- -------- -------- --------
                                 73,388    59,685    73,523    63,120
                               -------- -------- -------- --------

Loss before income taxes        (65,227) (14,270) (65,512) (14,620)
Benefit for income taxes        (24,086)   (4,068) (24,147)   (3,035)
Extraordinary item, net of
   applicable taxes                  --        --        --       719
                               -------- -------- -------- --------

Net loss $(41,141) $(10,202) $(41,365) $(12,304)
======== ======== ======== ========

EBITDA, as adjusted $112,111 $149,506 $111,961 $151,849
======== ======== ======== ========

(1)   The Comparable Pro Forma financial statements have been
        adjusted to remove the operations of hotels sold and related
        interest expense from corresponding retired debt and
        management contract revenue from terminated management
        contracts.

                      WYNDHAM INTERNATIONAL, INC.
                         EBITDA Reconciliation
                 (in thousands, except per share data)
                              (Unaudited)
                                          Quarter Ended
                                            June 30,
                                2002      2001      2002      2001
                             Comparable Comparable
                              Pro Forma Pro Forma Actual    Actual
                              -------- -------- -------- --------
EBITDA Reconciliation
Net loss                      $(41,141) $(10,202) $(41,365) $(12,304)

Interest expense               61,045    78,400    61,045    79,942
Depreciation and amortization 73,339    58,885    73,338    62,230
Benefit for income taxes      (24,086)   (4,068) (24,147)   (3,035)
Extraordinary item, net of
   applicable taxes                  --        --        --       719
                               -------- -------- -------- --------
EBITDA                          69,157   123,015    68,871   127,552
Interest, depreciation and
   amortization from equity
   interest in unconsolidated
   subsidiaries                   1,325     2,006     1,448     1,887
Interest, depreciation and
   amortization attributable
   to minority interests         (1,707)   (1,136)   (1,694)   (3,230)
Professional fees and other     1,771     6,005     1,772     6,005
Bond offering costs              4,504        --     4,504        --
Abandoned transaction costs       406       380       405       380
Pre-opening and conversion
   costs                            278     7,430       278     7,449
Amortization of unearned
   compensation                     915       713       915       712
Loss (gain) on derivative
   instruments                   34,378    (3,274)   34,378    (3,273)
Non-recurring fees included
   in G&A                            --       343        --       343
Loss on sale of assets          1,097    13,259     1,097    13,259
Write-off of management,
   leasehold costs and license
   agreements                       (13)      765       (13)      765
                               -------- -------- -------- --------

EBITDA, as adjusted $112,111 $149,506 $111,961 $151,849
======== ======== ======== ========

Per Share Calculations:
Net loss before extraordinary
item                         $(41,141) $(10,202) $(41,365) $(11,585)
Adjustment for preferred stock (35,500) (27,506) (35,500) (27,506)
                               -------- -------- -------- --------
Net loss attributable to
   common shareholders         $(76,641) $(37,708) $(76,865) $(39,091)
                               ======== ======== ======== ========

Basic and diluted loss per
common share:
Net loss before extraordinary
   item                          $(0.46)   $(0.22)   $(0.46)   $(0.24)
Extraordinary Item, net of
   applicable taxes                  --        --        --        --
                               -------- -------- -------- --------
Net loss per common share      $(0.46)   $(0.22)   $(0.46)   $(0.24)
                               ======== ======== ======== ========

Basic and diluted weighted
average common shares and
share equivalents 167,942 167,698 167,942 167,698

Wyndham International, Inc. offers upscale and luxury hotel and resort accommodations through proprietary lodging brands and a management services division. Based in Dallas, Wyndham owns, leases, manages and franchises hotels and resorts in the United States, Canada, Mexico, the Caribbean and Europe.

This press release contains certain forward-looking statements within the meaning of Sections 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including projections about future operating results. The Company's results could differ materially from those set forth in the forward-looking statements.

(a) Free in-room domestic long distance calling is limited to ordinary personal and business requirements. This benefit is not available for purposes of telemarketing, political solicitation, or other improper uses--as determined by Wyndham at its sole discretion. Wyndham reserves the right to suspend or terminate membership on some or all Wyndham ByRequest benefits at any time without notice. Free local and long distance calls, faxes and copies in the 48 contiguous states; does not include charges to Alaska or Hawaii. Not applicable to offshore properties or international calls. Not applicable to groups or conventions. No auto-dial.

Contact:
Wyndham International Inc.
Dallas
Andrew Jordan, 214/863-1360
[email protected]

Also See:	Wyndham Reports 2001 Net Loss of $266.9 million; Presents Business Plan to NYSE to Avoid De-listing / Hotel Operating Statistics / Feb 2002
	Puerto Rico Tourism Company Updates Hotel Projects On the Island / November 2001

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