WICHITA, Kan., April 2, 2003 - Candlewood
Hotel Co. conveyed its strategy for ongoing brand success at the company's
recent "Value Partner" conference for Candlewood Suites and Cambridge Suites
franchisees in Ft. Lauderdale, FL, and recognized those who were top performers.
| Key conference topics for the 2003
Value Partner conference were brand performance and strategic initiatives,
brand services update, marketing update, and technology updates specific
to data analysis techniques. In particular, company officers focused on
growing RevPAR through strategic sales initiatives. The team also welcomed
two additional Cambridge Suites franchisees to the conference -- Cambridge
Suites -- Tulsa, OK and Cambridge Suites -- Little Rock, AR. |
Candlewood Suites Louisville Airport
1367 Gardiner Lane
Louisville, Kentucky |
"Our Value Partners proved the strength of our operating model in a tough
economy," says Jim Roos, Candlewood Hotel Co. COO and president. "The RevPAR
index, related to our small town prototype, demonstrated its power where
the Candlewood product features the best room in town."
Roos and other Candlewood officers, including Jack DeBoer, founder,
CEO and chairman, led discussions on the current economic and political
effects on the travel industry, as well as the company's continued commitment
to quality for both the Candlewood Suites and Cambridge Suites brands.
The 2003 Value Partner conference culminated with the awards presentation.
Value Partner award winners for 2003 included:
"Top 10" Quality Award recipients included:
Louisville Airport --Louisville, KY, Cook Properties;
Raleigh -- Crabtree, Raleigh, NC, The Generation Companies;
Seattle -- Bellevue, Bellevue, WA, Larkspur Hospitality;
Richmond -- West, Richmond, VA, The Generation Companies.
Exceptional Quality of the Year (An award recognizing highest quality
scores system-wide).
Louisville Airport -- Louisville, KY
Greatest RevPAR Index Increase.
Raleigh -- Crabtree, Raleigh, NC
Greatest RevPAR Index.
Petersburg -- Hopewell, Hopewell, VA
Fourth Quarter 2002 Results
Comparing the operating results of the Candlewood hotels owned, leased
and managed by the Company for the fourth quarter of 2002 to the fourth
quarter of 2001, occupancy decreased 1.8 points to 68.9 percent, compared
to 70.7 percent in the fourth quarter of 2001. Average daily rate (ADR)
during the quarter was $55.19, a 0.4 percent increase, compared to $54.95
in the fourth quarter of 2001. Revenue per available room (RevPAR) was
$38.03, a decrease of 2.1 percent from $38.84 in the fourth quarter of
2001.
Revenue from the Company's owned and leased hotels for the three-month
period ended December 31, 2002 was $28.8 million, compared to $29 million
for the same period in 2001. Total hotel operating revenue (including hotel
operations, franchise and management fee income, and loss from joint ventures)
for the three-month period ended December 31, 2002 was $24.8 million, compared
to $29.2 million for the same period in 2001. The decrease in total revenue
over the comparable period was primarily attributable to an impairment
loss of $4.2 million on a joint venture hotel that is located in Chicago.
Income from hotel operations (hotel operating revenues less hotel and
related corporate operating expenses and hotel opening costs) was $3.5
million for the fourth quarter of 2002, compared with $8.3 million for
the comparable period in 2001. Loss before preferred dividends was $9.8
million for the three months ended December 31, 2002, compared with a loss
of $4.8 million for the same time period in 2001. The net loss over the
comparable period during 2001 was primarily attributable to the impairment
loss described above.
During the fourth quarter, one franchise hotel opened, bringing the
total hotels opened during 2002 to four. As of December 31, 2002, there
were six Candlewood franchised hotels under construction.
The Company ended the quarter with $9.3 million of cash and $58.9 million
of debt. Additional information about Candlewood Hotel Company may be found
in the Company's Annual Report on Form 10-K for the year ended December
31, 2002.
Form 10-K Certifications
The Company plans to file its Annual Report on Form 10-K for the year
ended December 31, 2002 on, or prior to, March 31, 2003.
CANDLEWOOD HOTEL COMPANY, INC.
FOURTH QUARTER OPERATING RESULTS
(Unaudited) (In thousands, except share and per
share data)
For the
three-months ended For the year ended
December 31, December 31,
2002 2001 2002
2001
Revenues:
Hotel operations
$28,760 $29,046 $123,626 $127,092
Franchise and management
fee income 1,538 915
4,456 4,126
(Loss) from joint
ventures
(5,493) (726) (6,290) (1,095)
Total
hotel operating revenues 24,805
29,235 121,792 130,123
Proceeds from sales
of hotels, net
of deferred
gain of $0 and $0,
respectively
- - 145,000
28,850
Deferred gain recognition
on sales
of hotels
406 231 1,450
1,280
Total
revenues
25,211 29,466 268,242 160,253
Operating costs and
expenses:
Hotel operating
expenses
19,823 18,691 79,791 74,451
Corporate operating
expenses 1,531
2,278 5,978 7,162
Rent expense on
leased hotels 11,418
7,055 41,008 26,523
Hotel opening costs
- -
- 230
Depreciation and
amortization 1,189
2,808 6,123 11,641
Impairment loss
- -
8,604 -
Loss on extinguishment
of debt -
- 2,115
-
Total
operating costs and
expenses
33,961 30,832 143,619 120,007
Costs of hotels
sold
- - 145,000
29,064
(8,750) (1,366) (20,377) 11,182
Interest income
81 161
339 761
Interest expense
(1,158) (3,614) (7,285) (17,081)
(Loss)
before preferred stock
dividends
(9,827) (4,819) (27,323) (5,138)
Preferred stock dividends
(2,399) (2,023) (8,401) (8,025)
Net
(loss) available to common
stockholders
$(12,226) $(6,842) $(35,724) $(13,163)
Per share data:
Net
(loss) per share of common
stock - basic and diluted
$(1.36) $(0.76) $(3.96) $(1.46)
Average
weighted shares of common
stock outstanding - basic and
diluted
9,025 9,025 9,025
9,025
CANDLEWOOD HOTEL COMPANY, INC.
For the
three-months ended For the year ended
December 31, December 31,
2002 2001 2002
2001
Hotel statistics
(Candlewood owned,
leased or
managed)
# of Hotels
79 77
79 77
Average occupancy %
68.9% 70.7% 74.7%
72.9%
Average daily rate
$55.19 $54.95 $55.43 $59.41
Revenue per available room
$38.03 $38.84 $41.41 $43.32
Growth
-2.1%
-4.4%
Hotel statistics
- comparable hotels
(owned, leased
or managed open as
of beginning
of period)
# of Hotels
77 77
73 73
Average occupancy %
69.2% 70.7% 74.7%
73.3%
Average daily rate
$55.28 $54.95 $53.71 $58.21
Revenue per available room
$38.24 $38.84 $40.11 $42.66
Growth
-1.5%
-6.0%
As of December 31,
2002
2001
Open Hotels
Owned
11
31
Leased
57
36
Managed (1)
2
2
Joint Venture
9
9
Franchised
30
27
Total Open
109
105
Under Construction
Owned
-
-
Leased
-
-
Managed
-
-
Joint Venture
-
-
Franchised
6
3
Total Under Construction
6
3
Total Hotels
115
108
Open Rooms
Owned
1,300
3,783
Leased
6,888
4,294
Managed (1)
203
191
Joint Venture
1,159
1,159
Franchised
3,018
2,759
Total Open
12,568
12,186
Under Construction
Rooms
Owned
-
-
Leased
-
-
Managed
-
-
Joint Venture
-
-
Franchised
563
270
Total Under Construction
563
270
Total Rooms
13,131
12,456
Signed Franchise
Agreements
22
26
(1) Includes
two managed hotels not under the Candlewood brand. |
Candlewood Hotel Company, headquartered in Wichita, Kansas, owns, operates
and franchises Candlewood Suites and Cambridge Suites -- hotel properties
that offer high-quality accommodations for all guests, while catering to
mid-market and upscale business and personal travelers seeking multiple
night stays. Jack DeBoer, Chairman and CEO and founder of Residence Inn,
started Candlewood Hotel Company in late 1995.
The financial results may not be indicative of results for future periods.
The matters in this press release include "forward looking statements"
within the meaning of the safe harbor provisions of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934 and are qualified by cautionary statements contained herein and in
Candlewood Hotel Corporation filings with the Securities and Exchange Commission. |
