SPRINGFIELD, Mo., May 10, 1999 - John Q. Hammons Hotels,
Inc. (NYSE: JQH) today reported total earnings before interest expense,
taxes, depreciation and amortization (EBITDA) of $24.4 million for the
first quarter ended April 2, 1999, compared to 1998 first quarter EBITDA
of $22.2 million. Total revenue for the quarter increased to $83.6 million,
up 5.8 percent from $79.0 million in the 1998 quarter.
The Company's average room rate for the quarter was $95.02, up 5.3
percent compared to the 1998 first quarter average room rate of $90.20.
In comparison, average room rate for the hotel industry was $81.88 in the
first quarter, up 3.7 percent from the 1998 first quarter. The Company's
occupancy for the first quarter was 61.0 percent, down 0.4 percentage points
from the 1998 first quarter. Occupancy for the hotel industry was
59.4 percent, down 0.7 percentage points from the 1998 first quarter.
The Company's Revenue Per Available Room (RevPAR) was $57.94 in the 1999
first quarter, up 4.6 percent from $55.37 in the 1998 first quarter.
RevPAR for the hotel industry was $48.64, up 3.4 percent from the 1998
first quarter.
John Q. Hammons, chairman and chief executive officer, said, "The strong
EBITDA results for the first quarter continue to reflect improving performance
of our overall hotel portfolio due to the depth of the markets and the
strength of locations where we have built hotels."
Basic and diluted earnings per share in the first quarter were a $(0.15)
loss in the 1998 first quarter. Included in the first quarter loss
were charges of $1.8 million related to unamortized preopening costs which
were required to be written off due to a change in the accounting principle
prescribed by SOP 98-5, "Reporting on the Cost of Startup Activities."
This change in accounting principle had a negative effect on earnings per
share of approximately $.08. Further impacting earnings and EBITDA
in the First Quarter of 1999, was a charge of $.8 million representing
preopening expenses charged to Operations, while in prior years this would
have been carried on the balance sheet and amortized over twelve months.
Consistent with authorization by its Board of Directors, the Company
has purchased 113,900 shares of Treasury Stock during the first quarter
at an approximate average price of $4-3/4.
At the end of the 1999 first quarter, the Company had six new projects
under construction -- Hampton Inn & Suites adjacent to the Mesquite
Championship Rodeo Arena in Mesquite, Texas (opened April 15, 1999); Radisson
Resort Hotel adjacent to the PGA TOUR Tournament Players Club at Heron
Bay in Coral Springs, Fla. (opened May 1, 1999); Embassy Suites Outdoor
World at DFW International Airport in Grapevine, Texas; a Marriott Renaissance
Suites hotel in Charlotte, N.C.; a Marriott Renaissance Oklahoma City Hotel
Downtown Oklahoma City; and an Embassy Suites in North Charleston, S.C.
The balance of hotel openings are staggered from August 1999 through the
first quarter of 2000.
The Company currently owns and manages 49 hotels, including five managed
hotels, with 11,853 rooms in 21 states. The new hotels under development
will add 1,192 suites and rooms, which represent an increase of 10.1 percent
to the Company's portfolio.
John
Q. Hammons Hotels, Inc.
Hotel Operating Data
|
Three Months Ended |
|
|
April 2, 1999
|
April 3, 1998
|
Mature Hotels |
|
|
Occupancy |
61.9% |
61.9% |
Average Room Rate |
$92.72 |
$86.06 |
REVPAR |
$57.37 |
$53.25 |
New Hotels ** |
|
|
Occupancy |
52.8% |
58.6% |
Average Room Rate |
$119.41 |
$115.80 |
REVPAR |
$63.10 |
$67.81 |
Total Owned Hotels |
|
|
Occupancy |
61.0% |
61.4% |
Average Room Rate |
$95.02 |
$90.20 |
REVPAR |
$57.94 |
$55.37 |
** New hotels include: Tampa Embassy
Suites, World Golf Village Resort Hotel, Topeka Capitol Plaza and Portland
Airport Embassy Suites.
Note: Certain matters discussed in this press release are forward-looking
statements within the meaning off the Private Securities Litigation Reform
Act of 1995. Although John Q. Hammons Hotels 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 uncertainties are more fully described in the company's filings with
the Securities and Exchange Commission. |