On a pro forma basis, which reflects adjustments for acquisitions and dispositions, earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, was $76.8 million for the fourth quarter versus $141.1 million for the same period in 2000.

For the year, pro forma EBITDA was $468.2 million versus $601.5 million for 2000. The decline in EBITDA for both the quarter and the year reflects the impact of both the sluggish economy and the events of September 11.

Total company comparable owned and leased RevPAR declined by 23.1% during the fourth quarter. This decline was comprised of a 9.8% decline in rate, and 10-percentage point decline in occupancy. The comparable owned, leased and managed Wyndham hotels and resorts faired slightly better, experiencing a decline of 22.5% in RevPAR. For the full year 2001, total company comparable owned and leased RevPAR declined by 10.6%, and comparable owned, leased and managed Wyndham hotels and resorts experienced a decline of 8.4%. Wyndham's RevPAR penetration grew versus its competitive set based on Smith Travel statistics of the upper-upscale brands, which declined 12.3% for the year. Wyndham's RevPAR penetration index continued to improve in its markets for the full year 2001. Wyndham reported a pro forma net loss of $56.0 million for the fourth quarter. After the effect of the preferred dividend, this resulted in a net loss of $0.57 per share on a fully diluted basis. For the full year 2001, the net loss and fully diluted loss per share was $266.9 million and $1.59 per share respectively.

As of Dec. 31, 2001, cash and equivalents stood at $251.6 million, inclusive of $85.9 million of restricted cash. During the quarter, debt increased by approximately $52.0 million due primarily to the finalization of the 2001 capital plan.

For the full year 2001 comparative owned and leased hotels' operating margins decreased 230 basis points, while comparable owned, leased and managed Wyndham hotels and resorts decreased 100 basis points. Despite the drop in demand the strong operating margins for the Wyndham brand are a direct result of cost containment programs initiated early in the year.

"Although this year presented challenges that none of us anticipated we are pleased that Wyndham continued to generate positive cash flow from operations. In addition, we were fortunate to have begun cost containment programs at the initial signs of a
sluggish economy, which enabled us to maintain strong operating margins," stated Fred J. Kleisner, chairman and chief executive officer of Wyndham International, Inc.
    
Credit Facility

As announced on Jan. 25, 2002, Wyndham completed a successful amendment to its senior credit facilities providing a permanent solution to issues created by the events of September 11.
    
The primary terms of the amendment are as follows:

• The Total Leverage Ratio and the Senior Secured Leverage Ratio have been eliminated from the facility. 

• The Interest Coverage Ratio will be 1.05 to 1.00, from 1.75 to 1.00 in the original facility, until Dec. 31, 2003, at which time, it will step up to 1.25 to 1.00. 

• Wyndham has granted mortgages on certain properties that were previously unencumbered. 

• The interest rate on the Term B loans was raised from Libor + 425 to Libor + 475, and on the revolver from Libor + 300 to Libor + 375. 

• Seventy-five percent of asset sale proceeds and any excess proceeds from mortgage debt refinancing will be used to pay down bank debt on a pro rata basis. 

• One hundred percent of the proceeds from any new debt issues will be used to pay down bank debt on a pro rata basis. 

• Capital and Development spending is limited to an annual amount of $125 million, with $25 million available for emergencies. 

Strategic Plan

Throughout 2001, Wyndham remained focused on its business plan; to that end, Wyndham closed on $212 million in non-strategic asset sales during 2001. Additionally, Wyndham signed eight new management and three franchises agreements for the brand. Additionally, the newly opened Golden Door(R) Spa at The Boulders -- A Wyndham Luxury Resort, continues to have strong demand. The newly opened Wyndham Newark Airport strengthened the brand presence in another key market.
    
2002 Business Outlook

Based on the company's current understanding of the economic and political situation, Wyndham expects its business to rebound in the second half of the year; actual results may vary materially. The January 2002 booking trends through Wyndham's central reservations office are positive, with the highest call volume since September 11. The growth is fueled by demand for Wyndham Resorts, with weekly calls up 30% versus the prior year, reflective of the current marketing campaign. Additionally, online bookings for January 2002 were up over 100% versus January 2001. Assuming the economy takes the expected positive turn, Wyndham International forecasts full year EBITDA to be $470 million and RevPAR to be flat to slightly negative versus the prior year. For the first quarter 2002, EBITDA is expected to be between $100 and $105 million and RevPAR down 15-18% versus 2001.
    
NYSE Notification

Prior to the completion of the bank amendment, the company received notification from the New York Stock Exchange (NYSE) that it was not in compliance with the continued listing standard, as it relates to the average closing price of the stock being below $1.00 for a consecutive thirty-day trading period. The company has met and presented its business plan to the NYSE and will continue to work very closely with the exchange during the six-month cure period, which is subject to certain conditions. The company is also evaluating its alternatives with regard to complying with this standard. 
 

                       
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.