Revenue, earnings and diluted earnings per share for the partial period from July 28 through December 31 were $294.8 million, $2.8 million and $0.15, respectively. This partial period reflects the Company's operations beginning on the date the Company was spun off to the shareholders of Bristol Hotel Company ("BHC"), predecessor to Bristol (NYSE:BH). Financial results are not presented for comparable prior periods as the Company was not conducting operations in its current format prior to July 28, 1998.

As previously reported, quarterly revpar (revenue per available room) growth for assets not under redevelopment and excluding assets held for sale was 4.2%. Occupancy, average daily rate and revpar for the quarter were 61.6%, $79.88 and $49.20, respectively. Statistics for the same period last year were 62.6%, $75.50 and $47.24, respectively. Same-store revpar growth for the year was 6.7%.

"The past year was pivotal for Bristol shareholders," said J. Peter Kline, Chairman and Chief Executive Officer. "The real estate assets of our predecessor entity, Bristol Hotel Company, were acquired in a stock transaction by FelCor Lodging Trust, Incorporated (FelCor), an entity that is better suited to the long-term ownership of real estate assets. This allows the Company to focus its efforts on its core competency of operating hotels.

"I am also pleased to report that the FelCor relationship is very strong and has evolved as a result of the mutual respect we have for each other's experience and overall knowledge about the industry," Kline added.

"Our redevelopment program is now over 50% complete and, although it is not reflected in our reported statistics, revpar growth for assets under redevelopment and/or rebranded during the fourth quarter of 1997 was 14.5%, resulting from a 16.4% increase in average room rates," Kline said. "We are confident in our ability to meet our objective of materially completing the redevelopment program by the first quarter of 2000 and believe we are poised to begin recognizing  the benefits of the redeveloped/rebranded assets later this year."

Kline also elaborated on the Company's efforts in identifying new management/tenant opportunities.

"We are delighted with our new business accomplishments from several perspectives," Kline said. "First, since July of last year we have entered into agreements that will ultimately add 10 hotels and 1,500 rooms to our portfolio. This is nearly a 5% increase in our year-end number of rooms under management.

"Second, our pipeline consists of 30 hotels and 5,800 rooms that will allow Bristol's earnings to grow at a rate that is more consistent and reliable than we have historically experienced," Kline said. "These new opportunities have arisen from a variety of sources as we've capitalized on our extensive industry relationships and the excellent reputation we've developed over the last 18 years.

"Lastly, we established relationships with new owners/franchisors such as Winston Hotels, Hilton Hotels Corp., Lone Star Opportunity Fund, and the Landmark Group. We believe that our successful development efforts will help us achieve an aggressive earnings growth rate commensurate with that of a successful small cap company," Kline added.

The Company also continued to oversee the renovation and/or re-branding of the assets transferred to FelCor and, for the three months ending December 31, this activity encompassed 15 hotels and 4,732 rooms. Of this total, the following four hotels containing 1,152 rooms were completed and placed back in service:

• The 350-room Crowne Plaza in Hartford, Connecticut. Renovations included lobby, guest rooms, meeting space and ballrooms. Each guest room has new tile, carpet, fixtures, bedding, drapes, and window coverings. The lobby and bar were redecorated, and the restaurant was converted into a Bristol Bar Grill.
• The 304-room Crowne Plaza near the airport in Miami, Florida. Renovations included extensive improvements to the hotel's interior, including the lobby, guest rooms, banquet and meeting rooms, restaurant and lounge.
• The 213-room Holiday Inn in Montgomery, Alabama. Renovations included a total makeover to its exterior, as well as extensive upgrades and added amenities in the lobby, lounge, guest rooms, banquet and meeting rooms, and recreation facility. Each guest room has new carpet, furniture, drapes, bedspreads, and two phones with easy-access data ports. Remodeling included the addition of two meeting rooms and "e-space," a state-of-the-art electronic entertainment area with interactive video games, to the Holidome indoor recreation facility.
• The former 285-room Harvey Suites Medical Center in Houston, Texas, was converted to a Holiday Inn Suites upon completion of renovations in October. Renovations included upgrades and added amenities in the lobby, guest suites, fitness and recreation facility. Guest suites received new carpet, wall coverings, furniture, drapes and bedspreads.

Bristol also announced the date for the 1998 Annual Shareholders' Meeting. The meeting will occur on Tuesday, May 11, 1999, for shareholders of record on April 14, 1999. The meeting will be held at Crowne Plaza North Dallas/Addison at 14315 Midway Road, in Dallas, Texas, and will begin at 9:30 a.m. (CST).

Bristol is one of the largest independent operators of hotels in North America and operates the largest number of Bass Hotels Resorts' branded hotels in the world. The Company's portfolio at December 31, 1998, segregated by brand, was as follows:
 

Bristol hotels operate principally in the mid-priced to upscale segments of the industry and are located in 19 of the top 25 lodging markets in the United States. Locations with the greatest concentrations at December 31, 1998, were as follows:

       Location                                                No. of Hotels  /  Rooms

• Dallas, Texas                                                   11       3,143
• San Francisco/Bay Area, California              6       2,495
• Atlanta, Georgia                                               9       2,357
• Houston, Texas                                                9       2,264
• Orlando, Florida                                               3       1,469
• Ontario, Canada                                               6       1,440
• Los Angeles/Santa Barbara, California        4       1,083
• Omaha, Nebraska                                             6       1,046
• San Antonio, Texas                                         3       1,025
• Jackson, Mississippi                                       4         986
• San Diego/Orange County, California          2         934
• Quad Cities, Illinois/Iowa                               5         884
• Philadelphia, Pennsylvania                            2         809
• Nashville, Tennessee                                      2         684
• New Orleans, Louisiana                                  2         447