Wyndham Reports 1st Qtr Net Loss of $343.2 million on Revenues of $499.6 million Compared to Revenues of $614.2 million a Year Ago / May 2002

Hotel Online Special Report

Wyndham Reports 1st Qtr Net Loss of $343.2 million on
Revenues of $499.6 million Compared to Revenues
of $614.2 million a Year Ago
Hotel Operating Statistics

DALLAS - May 6, 2002 - Wyndham International, Inc. (NYSE:WYN) today reported results for the first quarter ended Mar. 31, 2002.

Business Performance

On a pro forma basis, which reflects adjustments for acquisitions and dispositions, earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, was $114.3 million for the three months ending Mar. 31, 2002, versus $172.3 million for the same period in 2001 and an increase from the original guidance, $100.0 million to $105.0 million, based on strong operating margins and returning demand.

Total company comparable owned and leased revenue per available room (RevPAR) declined 16.9 percent versus the same period in 2001. This decline was comprised of a 10.4 percent decline in average daily rate, created by the change in market segmentation mix, and a five percentage point decline in occupancy. Wyndham Hotels & Resorts out performed the total company portfolio for the quarter, with a RevPAR decline of 13.9 percent from the prior year composed of a 9.5 percent decline in average daily rate and a three-percentage point drop in occupancy.

Importantly, occupancy grew each month in the first quarter indicating the return in demand. Specifically, Wyndham-branded comparable owned and leased monthly occupancy was 59.5 percent, 69.2 percent and 72.5 percent for January, February and March, respectively. Total occupancy for first quarter 2002 on Wyndham-branded comparable owned and leased properties was 67.0 percent compared to an occupancy of 58.8 percent in fourth quarter 2001 and 70.9 percent for first quarter 2001. A further indication of Wyndham's vitality is the consecutive monthly gain in market share experienced in the first quarter for owned, leased, managed and franchised hotels within their competitive sets. Accordingly, Wyndham's RevPAR penetration index improved 20 basis points from the same period the prior year.

Operating margins improved for the quarter; total company comparable owned and leased properties increased their operating margins by 540 basis points versus the fourth quarter 2001. Further, Wyndham-branded comparable owned and leased properties increased their operating margins by 730 basis points over the fourth quarter 2001. During first quarter 2002, the increase in operating margins led to the two-to-one ratio with respect to the change in EBITDA versus the change in RevPAR.

"We are proud of the first quarter results and especially in our ability to operate efficiently and deliver better than anticipated margins," stated Wyndham International Chairman and Chief Executive Officer Fred J. Kleisner. "We believe that the first quarter results are indicative of a growing demand and return for both the industry and Wyndham."

Business Outlook

The company anticipates the monthly improvement in demand from the first quarter to continue. For the second quarter 2002, RevPAR is expected be a 5.0 to 8.0 percent decline over the same period the prior year. EBITDA projections for the second quarter 2002 are from $122.0 million to $127.0 million. While cautiously optimistic about the future business, given the changing dynamics of the market, Wyndham has not increased guidance for the full year, but will provide revisions to the guidance on a quarterly basis.

As the industry momentum continues, the independent business traveler, who typically pays higher rates for their hotel stays, will drive an increase in average daily rates and RevPAR. As a result, Wyndham will become even more aggressive to capture this premium business. Wyndham ByRequest(SM), the brand's guest recognition program, was created directly from consumer feedback to uniquely deliver the most personalized guest stay. Building upon the program's success, Wyndham will announce a major enhancement to ByRequest that has a relevant and immediate benefit to the business traveler. This will further differentiate Wyndham, with its focus on the guest experience to drive preference, from its competitors with their focus on points to build loyalty.

Strategic Plan

Wyndham remains committed to its business plan focused on growing the Wyndham brand and the disposition of non-strategic assets. Since its implementation in June 1999, 83 assets have sold for gross proceeds of approximately $903 million. There are 56 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. Additionally, Wyndham entered into options to sell four parcels of vacant land adjacent to premier properties to develop high-end residential units. This transaction would allow non-EBITDA producing assets to deliver a long-term income stream through a carried interest in the venture's profits and management of the units.

Credit Amendment

On May 3, Wyndham International amended its credit facilities to allow for the issuance of debt securities. This underscores, once again, the confidence that the banking syndicate has in the Wyndham International management team, as evidenced earlier in the year with the permanent amendment to the senior credit facilities approved in January 2002.

WYNDHAM INTERNATIONAL, INC.
2002 OPERATING STATISTICS BY QUARTER                                            Quarter Ended March 31,
                                       2002       2001      % Change
                                     --------   --------    --------

COMPARABLE WYNDHAM BRANDED HOTELS (a)
Wyndham Hotels & Resorts
Average daily rate                  $135.59    $149.82      -9.5%
Occupancy                              66.5%      69.9%     -3.4 ppt
RevPAR                               $90.19    $104.69     -13.9%
Wyndham Luxury Resorts (b)
Average daily rate                  $276.24    $318.23     -13.2%
Occupancy                              60.1%      61.1%     -1.0 ppt
RevPAR                              $166.02    $194.57     -14.7%
Summerfield Suites by Wyndham
Average daily rate                  $105.53    $128.49     -17.9%
Occupancy                              74.3%      78.2%     -3.9 ppt
RevPAR                               $78.36    $100.39     -21.9%
Wyndham Garden
Average daily rate                   $82.49     $94.85     -13.0%
Occupancy                              55.8%      63.9%     -8.1 ppt
RevPAR                               $46.05     $60.60     -24.0%

COMPARABLE OWNED & LEASED HOTELS
Proprietary Branded (c)
Average daily rate                  $127.60    $145.02     -12.0%
Occupancy                              67.0%      70.9%     -3.9 ppt
RevPAR                               $85.47    $102.79     -16.8%

Non-Proprietary Branded (d)
Average daily rate                  $107.48    $116.27      -7.6%
Occupancy                              59.9%      66.8%     -6.9 ppt
RevPAR                               $64.36     $77.65     -17.1%

Total Portfolio
Average daily rate                  $120.37    $134.34     -10.4%
Occupancy                              64.2%      69.3%     -5.1 ppt
RevPAR                               $77.33     $93.10     -16.9%

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 Jan. 1, 2001.

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

                      WYNDHAM INTERNATIONAL, INC.
            CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                            (in thousands)
                              (Unaudited)
                                        Three Months Ended
                                            March 31,
                              2002       2001        2002      2001
                            Comparable Comparable
                            Pro Forma Pro Forma    Actual    Actual
                               (1)        (1)
                            --------- ---------- --------- ---------
Revenues:
Hotel revenues              $492,983   $573,066 $ 492,983 $604,757
Management fees and service
fee income                    4,470      4,862      4,470     5,719
Interest and other income      2,105      3,157      2,105     3,679
                            --------- ---------- --------- ---------
Total revenues              499,558    581,085    499,558   614,155
                            --------- ---------- --------- ---------

Expenses:
Hotel expenses               370,612    399,446    370,612   425,606
General and administrative
costs                        15,040      7,738     15,040     7,738
Interest expense              64,417     83,951     64,417    86,256
                            --------- ---------- --------- ---------
Total operating costs and
   expenses                   450,069    491,135    450,069   519,600
                            --------- ---------- --------- ---------

Revenues net of direct
expenses 49,489 89,950 49,489 94,555

Non-recurring charges:
Professional fees and other    1,074      2,499      1,074     2,499
Abandoned transaction costs    1,118        202      1,118       202
Pre-opening and conversion
costs                           752        660        752       660
Gain on derivative
instruments                  (1,334)    (9,914)    (1,334)   (9,914)
Impairment of assets held
for sale                        162         --        162        --
(Gain) loss on sale of
assets                        4,770       (336)     4,770      (336)
Write-off of management,
leasehold costs and
license agreements            1,005         --      1,005        --
                            --------- ---------- --------- ---------
Total non-recurring
   charges                      7,547     (6,889)     7,547    (6,889)
                            --------- ---------- --------- ---------

Depreciation and
amortization                  72,433     51,795     72,433    54,842
Equity in earnings from
unconsolidated subsidiaries     (844)      (381)      (844)     (381)
Minority interest in
consolidated subsidiaries        700      1,953        700     4,846
                            ---------- ---------- ---------- ---------
                               72,289     53,367     72,289    59,307
                            ---------- ---------- ---------- ---------

(Loss) income before income
taxes                       (30,347)    43,472    (30,347)   42,137
Provision (benefit) for
income taxes                 (11,272)    18,182    (11,272)   19,256
Accounting change, net of
applicable taxes             324,102    346,412    324,102    10,365
                            ---------- ---------- ---------- ---------

Net (loss) income $(343,177) $(321,122) $(343,177) $12,516
========== ========== ========== =========

EBITDA, as adjusted $114,321 $172,277 $114,321 $177,746
========== ========== ========== =========

(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)
                                      Three Months Ended
                                           March 31,
                              2002       2001        2002      2001
                           Comparable Comparable
                            Pro Forma Pro Forma    Actual    Actual
                            --------- --------- --------- --------
EBITDA Reconciliation
Net (loss) income          $(343,177) $(321,122) $(343,177) $12,516

Interest expense             64,417     83,951     64,417    86,256
Depreciation and
   amortization                72,433     51,795     72,433    54,842
Provision (benefit) for
   income taxes               (11,272)    18,182    (11,272)   19,256
Cumulative effect of
   accounting change          324,102    346,412    324,102    10,365
                            --------- --------- --------- --------
EBITDA                       106,503    179,218    106,503   183,235
Interest, depreciation and
   amortization from equity
   interest in unconsolidated
   subsidiaries                   813        751        813       900
Interest, depreciation and
   amortization attributable
   to minority interests       (1,429)      (866)    (1,429)      437
Professional fees and
   other                        1,074      2,499      1,074     2,499
Abandoned transaction
   costs                        1,118        202      1,118       202
Pre-opening and conversion
   costs                          752        660        752       660
Amortization of unearned
   compensation                   887         63        887        63
Loss on derivative
   instruments                 (1,334)    (9,914)    (1,334)   (9,914)
Impairment of assets held
   for sale                       162         --        162        --
(Gain) loss on sale of
   assets                       4,770       (336)     4,770      (336)
Write-off of management,
   leasehold costs and
   license agreements           1,005         --      1,005        --
                            --------- --------- --------- --------

EBITDA, as adjusted $114,321 $172,277 $114,321 $177,746
========= ========= ========= ========

Per Share Calculations:
Net (loss) income         $(343,177) $(321,122) $(343,177) $12,516
Adjustment for preferred
   stock                      (35,080)   (27,025)   (35,080) (27,025)
                            --------- --------- --------- --------
   Net loss attributable to
    common shareholders     $(378,257) $(348,147) $(378,257) $(14,509)
                            ========= ========= ========= ========

Basic and diluted loss per
common share:
Net loss before accounting
   change                      $(0.32)    $(0.01)    $(0.32)   $(0.03)
Cumulative effect of
   change in accounting principle, net of taxes      (1.93)     (2.07)     (1.93)    (0.06)
                            --------- --------- --------- --------
   Net loss per common share   $(2.25)    $(2.08)    $(2.25)   $(0.09)
                            ========= ========= ========= ========

Basic weighted average
   common shares and share
   equivalents                167,853    167,419    167,853   167,419
Diluted weighted average
   common shares and share
   equivalents                167,853    167,419    167,853   167,419

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.

###

Contact
Wyndham International, Inc.
Elizabeth Williams
214/863-1389
[email protected]
http://www.wyndham.com

Also See	Wyndham International Lenders Agree to Senior Credit Facilities Amendments; Hotel Operations Continue to Generate Positive Cash Flow / Jan 2002
	Wyndham Reports 2001 Net Loss of $266.9 million; Presents Business Plan to NYSE to Avoid De-listing / Hotel Operating Statistics / Feb 2002

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