DALLAS - May 13, 1999--Patriot American Hospitality, Inc.
(NYSE: PAH), whose shares are paired and trade with those of its operating
company, Wyndham International, Inc., today reported earnings before interest,
taxes, depreciation and amortization (EBITDA) of $184 million in the quarter
ended March 31, 1999, compared with $117.2 million for the comparable 1998
period. Funds from operations (FFO) reached $82.5 million, or $0.46 per
share for the first quarter, compared with $75.5 million, or $0.58 per
share for the 1998 first quarter. Revenues were $671 million in the 1999
quarter, up from $349.8 million the prior year.
Net income for the quarter includes $18.7 million of nonrecurring charges,
related principally to severance, Y2K and transaction related costs.
James D. Carreker, Chief Executive Officer of Patriot American, said,
"Our focus on building brand equity, integrating our recent best of class
acquisitions, and maximizing the value of our real estate portfolio is
clearly paying off, as demonstrated by our operating performance. Moreover,
the $1 billion equity investment, which we expect to finalize next month,
is providing flexibility to approach planned asset sales more strategically
and opportunistically and to negotiate more attractive terms. With today's
announcement on Richard Mahoney's appointment as CFO, our new management
team is in place. We are confident that we have all the tools - people
and resources - to successfully execute a focused growth strategy that
will build a first-tier lodging company."
First quarter 1999 operating performance at the Company's owned portfolio
continued to show improvement, with revenue per available room (RevPAR)
for comparable properties increasing 3.5%. Gross operating profit (GOP)
margin of owned assets increased to 38.4% from 38.1% of revenues. Performance
of the owned portfolio was led by the 86 proprietary branded hotels, which
achieved a 5.8% RevPAR increase in the quarter.
For the Wyndham brand, RevPAR for comparable properties increased 5.2%,
led by Hotels and Resorts, the upper upscale product, which achieved a
7.1% increase, versus the industry average of 3.1%. For Wyndham Garden
Hotels and Summerfield Suites, RevPAR was flat in the quarter, reflecting
supply pressures in the suburban markets.
European properties posted a 9.4% RevPAR gain for the quarter, with
same store increases at Arcadian and Malmaison of 9.3% and 9.6% respectively.
The Company is proceeding with its previously announced plan to focus
on its core luxury and upscale lodging businesses in North America and
to redeploy capital from sales of non-strategic assets. As part of this
plan, the Company completed several divestitures year-to-date for a total
purchase price of approximately $72 million, including three Holiday Inns,
four Hampton Inns, and the Bay Meadows Racetrack.
The Company said it will not proceed with the previously announced sale
of seven non-Wyndham hotels to affiliates of PaineWebber Real Estate Securities,
Inc.
Also during the first quarter of 1999, the Company secured four new
management contracts, including the former Marriott I Drive in Orlando,
FL; a new Wyndham Resort in Telluride, CO; Teatro - A Wyndham Grand Heritage
in Denver, CO; and a new Wyndham Garden in Memphis, TN.
Wyndham
International, Inc. - Operating Statistics
|
Three Months Ended March 31
|
|
|
|
1999
|
1998
|
%Change
|
Wyndham - Total Brand |
|
|
|
Average Daily Rate |
$130.98 |
$122.98 |
6.5% |
Occupancy |
69.2% |
70.1% |
-0.9%ppt |
RevPAR |
$90.70 |
$86.23 |
5.2% |
GOP Margin |
38.7% |
31.8% |
+0.6ppt |
Wyndham Hotels Resorts(a) |
|
|
|
Average Daily Rate |
$150.11 |
$140.80 |
6.6% |
Occupancy |
72.5% |
72.1% |
+0.4ppt |
RevPAR |
$108.77 |
$101.57 |
7.1% |
Wyndham Garden Hotels |
|
|
|
Average Daily Rate |
$96.59 |
$92.45 |
4.5% |
Occupancy |
64.1% |
66.9% |
-2.8ppt |
RevPAR |
$61.96 |
$61.85 |
0.2% |
Grand Bay |
|
|
|
Average Daily Rate |
$352.70 |
$354.22 |
-0.4% |
Occupancy |
73.4% |
75.7% |
-2.3ppt |
RevPAR |
$258.95 |
$268.09 |
-3.4% |
Summerfield Suites |
|
|
|
Average Daily Rate |
$122.53 |
$120.59 |
1.6% |
Occupancy |
77.7% |
78.8% |
-1.1ppt |
RevPAR |
$95.19 |
$95.06 |
0.1% |
Grand Heritage/Arcadian Hotels |
|
|
|
Average Daily Rate |
$116.39 |
$109.52 |
6.3% |
Occupancy |
56.4% |
54.8% |
+1.6ppt |
RevPAR |
$65.62 |
$60.01 |
9.3% |
|
|
|
|
Owned Hotel Performance
|
|
|
|
All Owned Hotels (b) |
|
|
|
Average Daily Rate |
$124.31 |
$119.15 |
4.3% |
Occupancy |
69.6% |
70.1% |
-0.5ppt |
RevPAR |
$86.47 |
$83.52 |
3.5% |
GOP Margin |
38.4 |
38.1% |
+0.3ppt |
|
|
|
|
Note: Brand statistics are based on comparable hotels operated by the
Company for both quarters.
(a) Includes Wyndham Hotels, Wyndham Resorts and Wyndham Grand Heritage
which Smith Travel (STR) classifies as the Upper Upscale chain segment.
STR classifies Wyndham Garden as an Upscale chain. (b) Total owned statistics
for all hotels owned as of 3/31/99 excluding seven hotels that have been
sold, one hotel that is closed, and one hotel with at least 25% of rooms
and public areas out of service.
About Patriot American Hospitality, Inc. and Wyndham International,
Inc.
Patriot American Hospitality, Inc. ranks among the nation's largest
hotel companies. Its paired operating company, Wyndham International, Inc.,
comprised of the Grand Bay Hotels Resorts Division, the Wyndham Hotel Group
and PAH Management Services, leases, manages and franchises primarily upscale
and luxury hotel and resort properties represented by its proprietary brands
and provides management services for third-party owned hotels and resorts.
Upon completion of the spin-off of Interstate's third-party management
business, the portfolio will include 311 hotels and resorts with more than
74,000 rooms. |