| WICHITA, Kan., May 15, 2003 - Candlewood Hotel Company, Inc. (OTC Bulletin
Board: CNDL), a leading owner, manager, and franchisor of high-quality,
value oriented, business-travel hotels, today announced results for its
first quarter ended March 31, 2003.
First Quarter 2003 Results
During the first quarter of 2003, occupancy rates for Candlewood hotels
owned, leased and managed by the Company decreased 4.7 points to 67.9 percent,
compared to 72.6 percent for the same period in 2002. Average daily
rate (ADR) for the quarter was $56.47, a 0.7 percent increase compared
to $56.06 in the first quarter of 2002. Revenue per available room
(RevPAR) was $38.34 for the quarter ended March 31, 2003, a decrease of
5.8 percent, from $40.69 in the first quarter of 2002. Excluding
the results of the two Salt Lake City properties, which were positively
impacted in the first quarter of 2002 by the 2002 Winter Olympics, RevPAR
decreased 3.9 percent in the first quarter in comparison to the first quarter
of 2002.
Revenue from the Company's owned and leased hotels for the quarter
ended March 31, 2003 was $28.5 million, compared to $30.0 million for the
same period in 2002. Total hotel operating revenue (including hotel
operations, franchise and management fee income, and loss from joint ventures)
for the quarter ended March 31, 2003 was $28.5 million, compared to $30.4
million for the same period in 2002. The decrease in total revenue
over the comparable period was primarily attributable to the decrease in
RevPAR at the Company's hotels, including a decrease of $0.8 million directly
associated with the two hotels in Salt Lake City.
Income from hotel operations (hotel operating revenues less hotel and
related corporate operating expenses and hotel opening costs) was $8.5
million for the first quarter of 2003, compared with $9.8 million for the
comparable period in 2002. Loss before preferred dividends was $4.9
million for the quarter ended March 31, 2003, compared with a loss of $11.7
million for the same time period in 2002. The positive change in
net loss over the comparable period during 2002 was primarily attributable
to an impairment loss recorded by the Company, which was associated with
the sale and leaseback of 21 of the Company's hotels in 2002.
During the first quarter, two franchised hotels were placed under construction.
As of March 31, 2003, there were eight Candlewood franchised hotels under
construction.
The Company began the quarter with $9.3 million of cash and $58.9 million
of debt and ended the quarter with $6.9 million of cash and $58.9 million
of debt. Additional information about Candlewood Hotel Company may
be found in the Company's Quarterly Report on Form 10-Q for the quarter
ended March 31, 2003.
CANDLEWOOD HOTEL COMPANY, INC.
FIRST QUARTER OPERATING RESULTS
(Unaudited) (In thousands, except share and per share
data)
For the three-months ended
March 31,
2003
2002
Revenues:
Hotel operations
$28,546 $29,976
Franchise and management fee income
1,053 931
Loss from joint ventures
(1,094) (475)
Total hotel operating
revenues
28,505 30,432
Deferred gain recognition on sales
of hotels
405 283
Total revenues
28,910 30,715
Operating costs and expenses:
Hotel operating expenses
18,591 19,202
Corporate operating expenses
1,387 1,442
Rent expense on leased hotels
11,482 7,174
Depreciation and amortization
1,252 2,669
Impairment loss
- 8,604
Total operating
costs and expenses
32,712 39,091
(3,802) (8,376)
Interest income
36 93
Interest expense
(1,147) (3,428)
Loss before preferred
stock dividends
(4,913) (11,711)
Preferred stock dividends
(2,332) (1,979)
Net loss available
to common stockholders $(7,245)
$13,690
Per share data:
Net loss per share
of common stock - basic and diluted $(0.80)
$(1.52)
Average weighted shares
of common stock
outstanding - basic
and diluted
9,025 9,025
CANDLEWOOD
HOTEL COMPANY, INC.
For the three-months ended
March 31,
2003
2002
Hotel statistics (Candlewood owned, leased or managed)
# of Hotels
79
77
Average occupancy %
67.9%
72.6%
Average daily rate
$56.47
$56.06
Revenue per available
room
$38.34
$40.69
Growth
-5.8%
Hotel statistics - comparable hotels
(owned,
leased or managed open as of
beginning of
period)
# of Hotels
77
77
Average occupancy %
67.8%
72.6%
Average daily rate
$56.48
$56.06
Revenue per available
room
$38.32
$40.69
Growth
-5.8%
As of March 31,
2003
2002
Open Hotels
Owned
11
32
Leased
57
36
Managed (1)
2
2
Joint Venture
9
9
Franchised
30
27
Total Open
109
106
Under Construction
Owned
-
-
Leased
-
-
Managed
-
-
Joint Venture
-
-
Franchised
8
4
Total Under Construction
8
4
Total Hotels
117
110
Open Rooms
Owned
1,300
3,896
Leased
6,888
4,292
Managed (1)
203
203
Joint Venture
1,159
1,159
Franchised
3,018
2,749
Total Open
12,568
12,299
Under Construction Rooms
Owned
-
-
Leased
-
-
Managed
-
-
Joint Venture
-
-
Franchised
788
365
Total Under Construction
788
365
Total Rooms
13,356
12,664
Signed Franchise Agreements
18
22
(1) Includes two managed
hotels not under the Candlewood brand. |
About the Company
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 forward-looking statements made in this release reflect the opinion
of management as of the date of the release. Please be advised that
subsequent developments are likely to cause these statements to become
outdated with the
passage of time. We do not intend, however, to update this press
release or
any statement made herein prior to our next quarterly earnings release.
|
