Janus Hotels and Resorts Announces Second Quarter Results

Press Release: Janus Hotels and Resorts, Inc.
August 14, 2002
BOCA RATON, FL -- Janus Hotels and Resorts, Inc. (Nasdaq:JAGI) reported a net loss of $1,115,229 for the six months ended June 30, 2002, compared to a net loss of $1,014,332 for the six months ended June 30, 2001. Room and related service revenues during the first six months of 2002 decreased 12.6% to $13,189,445 from $15,089,805 in 2001. However, for hotel properties owned and operated by the company since January 1, 2001 and still owned and operated as of June 30, 2002, room and related service revenues decreased only 5.5% from $13,949,862 in 2001. Diluted earnings per share amounted to a loss of $.17 per share compared to a loss of $.14 per share for the six months ended June 30, 2001.

Net income for the second quarter was $597,422 compared to a net loss of $346,293 for the second quarter of 2001. During the second quarter of 2001, the company realized a net loss primarily attributable to the recognition of a loss on the sale of a hotel property and due to minority interest expense. During the second quarter of 2002, there was no minority expense. Room and related service revenues decreased 9.2% to $7,558,999 in the second quarter of 2002 from $8,320,527 for the same period in 2001. For the three months ended June 30, 2002, the company reported diluted earnings per share of $.07 compared to a loss per share of $.05 for the same period in 2001.

Lower income continues in 2002 due to lower year-to-date results at several hotel properties coupled with increases in costs, specifically insurance costs. The Company is continuing efforts to manage occupancy rates at its hotels by selectively lowering room rates in order to maintain occupancy rates at or near 2001 levels.

Janus Hotels and Resorts is engaged in the business of management and ownership of hospitality properties. The company currently owns thirteen hotels and manages thirty-eight hotels totaling approximately 9,000 rooms under its management.

Forward Looking Statements

When used in Janus' press releases and in oral statements made with the approval of an authorized executive officer of Janus, the words or phrases "expects", "plans", "outlook", will likely result" or similar expressions (including confirmations by an authorized executive officer of Janus of any such expressions made by a third party with respect to Janus) are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Janus wishes to caution readers not to place undue reliance on any such forward-looking statements, each of which speak only as of the date made. Janus has no obligation to publicly release the results of any revisions which may be made to any forward-looking statements to reflect anticipated or unanticipated events or circumstances occurring after the date of such statements.

----------------------------------------------------------------

Contact: 

     Janus Hotels and Resorts, Inc., Boca Raton
     Eric L. Glazer, 561/997-2325
     E-mail: eglazer@janushotels.com