Wyndham reported that earnings before interest, taxes, depreciation and amortization
(EBITDA), as adjusted, increased 7.7% to $191.4 million from $177.8 million on a pro forma basis for first quarter of 1999. Revenue in the first quarter increased 5.9% to $653.6 million, from $617.0 million on a pro forma basis in 1999. The pro forma results reflect the spin-off of Interstate Hotels and other completed asset dispositions.
Wyndham reported that net income in the first quarter increased to $11.6 million, from $6.2 million on a pro forma basis a year ago. On a fully diluted per share basis, the company narrowed its loss to $0.08 for the first quarter, from a loss of $0.11 on a pro forma basis a year ago.

�These results demonstrate the power of the platform we�re creating as we integrate our operations, systems and support into a single operating company,� Fred J. Kleisner, president and chief executive officer, said. �We�ve improved our cost structure and increased revenues in our core branded owned and leased portfolio. As a result, we continue to achieve EBITDA growth well ahead of our revenue growth pace.�

Solid Operating Performance

On a brand basis, the company said its first quarter was paced by the solid performance of its core Wyndham Hotels & Resorts brand despite slow travel demand during the first two weeks of January due to Y2K-related travel fears. Excluding the two-week period, the portfolio posted a 3.1% RevPAR increase. On the same basis, Wyndham Luxury Resorts and Summerfield Suites by Wyndham posted RevPAR gains of 1.5% and 3.9%, respectively.

�The plan we implemented last year to improve revenue and margins, reduce corporate overhead, and simplify our business focus helped drive EBITDA and revenue growth in the quarter. These efforts will contribute to stronger sequential RevPAR gains in future quarters,� Kleisner said.

Among comparable owned and leased hotels, EBITDA for the total portfolio increased 2.3% and actual RevPAR grew 1.4% to $87.52. Core proprietary branded hotels registered a 4.5% EBITDA gain on a 0.8% RevPAR increase, reflecting a gross operating profit margin improvement of 60 basis points to 43.1%. Non-proprietary branded hotels posted a 2.4% RevPAR gain, but EBITDA remained flat. Within this portfolio, properties managed by Wyndham registered a 15.8% EBITDA gain on a 3.1% RevPAR increase, while properties managed by third parties had a 6.6% EBITDA decline on a 2.3% RevPAR increase.

During the first quarter, Wyndham reduced its ongoing corporate expenses to $19.0 million compared with $27.1 million on a pro forma basis in the first quarter 1999.

Asset Sales

In the first quarter, Wyndham completed the sale of its mid-priced Sierra Suites hotel brand and other non-core assets totaling approximately $100 million in asset sales. The company said it was on track to exceed $300 million in asset sales this year. Proceeds will be used primarily to reduce debt and enhance the core proprietary branded products.

Interest Rate Management

In March 2000, the company completed its hedging strategy in order to protect against the current trend of rising interest rates. The company hedged a total notional amount of $1.5 billion. Wyndham�s debt is now approximately 77% effectively fixed, with the hedging instruments having a weighted average rate of 5.7% compared to one-month LIBOR, which is currently 6.46%.
 
 

(a) Reflects comparable owned, managed and leased hotels.
(b) Reflects Wyndham Hotels & Resorts, Wyndham Luxury Resorts, Summerfield Suites by Wyndham and Wyndham Garden Hotels that were branded as of January 1, 1999.
(c) Non-proprietary brand hotels owned by the Company as of January 1, 1999.

Wyndham International, Inc. offers upscale and luxury hotel and resort accommodations in the United States, Canada, the Caribbean, Mexico and Europe. Headquartered in Dallas, Wyndham International owns, leases, manages and franchises 270 hotels totaling approximately 68,000 rooms. For more information, visit www.wyndhamintl.com.

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.