DALLAS - April 29, 1999--Bristol Hotels Resorts (the "Company"
or "Bristol") (NYSE:BH) is pleased to report today that for the first quarter
the Company posted earnings of $1.1 million, or $0.06 per diluted share.
Revenues for the same period totaled $176.2 million. 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. Quarterly revpar
(revenue per available room) growth for leased assets not under redevelopment
and excluding assets held for sale was 1.1%. Occupancy, average daily rate
and revpar for the quarter were 65.1%, $81.90 and $53.36, respectively.
Statistics for the same period last year were 67%, $78.72, and $52.76,
respectively.
"Our first quarter results were influenced by unprecedented construction
activity, depressed occupancies in selected markets and by aggressive management
of our cost structure," noted J. Peter Kline, Chairman and Chief Executive
Officer. "Although same-store revpar growth fell short of our targets,
we are very pleased with our overall financial performance this quarter,
which exceeded the consensus estimate of $0.04. Our management team stayed
focused on cost controls while simultaneously managing over $60 million
in redevelopment activity encompassing nearly 6,000 rooms and 19 hotels.
This is the most activity we have ever had in one quarter since we started
redeveloping hotels in February of 1995."
Mr. Kline further commented that, "the Company's revpar performance
continues to be significantly impacted by our ongoing redevelopment program.
Same-store statistics exclude some of our most significant assets and strongest
markets, and are therefore not representative of our portfolio as a whole.
Many of Bristol's most significant hotels were under redevelopment during
the first quarter of 1998 or 1999. Revpar growth for those assets under
redevelopment during the first quarter of 1998 was 25.1% while those under
redevelopment during 1999 showed a 21.2% decline during this period. Approximately
40% of our entire portfolio was under redevelopment in either the first
quarter of 1998 or 1999 resulting in a same-store portfolio that was extremely
sensitive to individual asset results. For example, were it not for our
two Houston Holiday Inn Select hotels, which were adversely affected by
oil industry cutbacks in the first quarter, overall same-store revpar improvements
would have been 2.2%."
The Company also continued to oversee the renovation and/or rebranding
of the assets transferred to FelCor, and for the three months ending March
31, this activity encompassed 19 hotels and 6,015 rooms. Of this total,
the following four hotels containing 1,280 rooms were completed and placed
fully back in service:
-- The 565-room Holiday Inn-Financial District in San
Francisco, CA. Comprehensive renovations, conducted in two phases,
resulted in a makeover of most areas of the hotel. Renovations covered
public areas, meeting space, and the restaurant. Guest room renovations,
completed earlier, consisted of a floor-to-ceiling makeover, and feature
the addition of in-room voice mail, two data-port phones, oversized desks,
hair dryers, and full-sized irons and ironing boards.
-- The 408-room Holiday Inn in Tampa, FL. Renovations
to the 12-acre resort included a total makeover of meeting space, lounge,
and restaurant areas. A newly constructed Market Place Cafe with pool-side
bar was added to the property's existing food and beverage facilities.
Leisure activities include a new outdoor water attraction featuring a pirate
ship with slides and water cannons, an exercise facility, and electronic
game space. All guest rooms were completely remodeled in colorful tropical
themes. Twenty-five guest rooms feature KidsSuites(SM), which are themed
fun rooms within guest rooms geared for family travel.
-- The 167-room Holiday Inn in Kansas City, MO. Renovations
consisted of a floor-to-ceiling refurbishment of guest rooms, including
new furniture, drapes, bedspreads, flooring, and wall coverings. Other
renovated areas included the property's lobby, restaurant, lounge, meeting
space, and recreational facilities.
-- The 140-room Hampton Inn in Marietta, GA. Guest
room renovations included new carpet and furniture, as well as new bathroom
tile and vinyl. The lobby and breakfast areas were completely remodeled
with new furniture, lighting, and floor and wall coverings. The exterior
was also refurbished with new paint, new landscaping, and resurfaced decks
and sidewalks.
The Company has overseen in excess of $220 million in renovation and/or
rebranding activity encompassing 42 hotels and 13,231 rooms since the current
program began in late 1997. By the year 2000, BHR will have overseen the
investment of over $400 million in the redevelopment of Crowne Plaza and
Holiday Inn hotels.
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 March 31, 1999, segregated
by brands was as follows:
BRAND
No. HOTELS No. ROOMS
--------------------------------------------------------------
Bass Hotels Resorts
Crowne Plaza
15
5,098
Holiday Inn Select
12
4,038
Holiday Inn
56
16,240
Holiday Inn Express
6
707
---------------------------------
89
26,083
---------------------------------
Marriott International
Courtyard by Marriott
2
420
Fairfield Inn
5
931
---------------------------------
7
1,351
---------------------------------
Promus Hotels
Hampton Inn
11
1,521
Homewood Suites
1
108
---------------------------------
12
1,629
---------------------------------
Other Brands
Harvey/Bristol
5
1,389
Independent
4
908
Four Points Hotel
1
187
---------------------------------
10
2,484
---------------------------------
TOTAL PORTFOLIO
118
31,547
=================================
Bristol operates principally in the mid-priced to upscale segments of
the industry and its hotels are located in 19 of the top 25 lodging markets
in the United States. Locations with the greatest concentrations at March
31, 1999, were as follows:
Location No. of Hotels / Rooms
-------- -------------------
Dallas, Texas 11 3,143
San Francisco/Bay Area, California 6 2,497
Atlanta, Georgia 9 2,357
Houston, Texas 9 2,262
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 4 984
San Diego/Orange County, California 2 935
Quad Cities, Illinois/Iowa 5 884
Philadelphia, Pennsylvania 2 809
Nashville, Tennessee 2 682
New Orleans, Louisiana 2 447
Bristol Hotels Resorts
First Quarter 1999 vs 1998 (1)
First Quarter, 1999
Available -------------------------------
Hotel Rooms Occ
Rate RevPAR
Same-Store Hotels (2)
Leased (3)
15,404 65.1%
$ 81.90 $ 53.36
Managed (4)
1,147 67.4%
$ 82.67 $ 55.68
1998 Redevelopment
Leased (3)
5,127
69.7% $101.48 $ 70.72
1999 Redevelopment
Leased (3) 6,026 49.0% $ 84.95 $ 41.66
Total
Leased (3) 26,557 62.4% $ 86.67 $ 54.05
Managed (4)
1,147 67.4%
$ 82.67 $ 55.68
First Quarter, 1998
-----------------------------
Occ Rate
RevPAR
---- ----
------
Same-Store Hotels (2)
Leased (3)
67.0% $78.72
$52.76
Managed (4)
71.3% $78.56
$56.04
1998 Redevelopment
Leased (3)
63.0% $89.70
$56.53
1999 Redevelopment
Leased (3)
68.8% $76.81
$52.87
Total
Leased (3)
66.6% $80.29
$53.51
Managed (4)
71.3% $78.56
$56.04
Occ Rate RevPAR
Chg (ppt) % Chg %
Chg
-------- ----- -----
Same-Store Hotels (2)
Leased (3)
-1.9% 4.0% 1.1%
Managed (4)
-3.9% 5.2%
-0.6%
1998 Redevelopment
Leased (3)
6.7% 13.1%
25.1%
1999 Redevelopment
Leased (3)
-19.8% 10.6%
-21.2%
Total
Leased (3)
-4.2% 7.9%
1.0%
Managed (4)
-3.9% 5.2%
-0.6%
Notes (1) Excludes non-comparable Single-Acquisition and Sale Assets
(three assets held for sale containing 647 rooms in total).
(2) Same-Store Hotels exclude hotels renovated during the First Quarter
of 1998 or 1999.
(3) Canadian assets have been adjusted to remove the effect of period-to-period
exchange rate fluctuations.
(4) Excludes recently terminated contracts and those that are being
marketed for sale by the owner (seven assets containing 2,174 rooms in
total).
Certain matters discussed in this press release may be
construed as forward-looking within the meaning of the Private Litigation
Reform Act of 1995 and as such may involve known and unknown risks, uncertainties,
and other factors which may cause actual results, performance or achievements
of the Company to be different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Although
the Company believes the expectations reflected in such forward-looking
statements are based on reasonable assumptions, it can give no assurance
that its expectations will be attained. These risks are detailed from time
to time in the Company's filings with the Securities and Exchange Commission.
The Company undertakes no obligation to publicly release the results of
any revisions to these forward-looking statements that may be made to reflect
any future events or circumstances. |