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Press Release: WestCoast Hospitality Corporation
September 26, 2002
SPOKANE, WA -- WestCoast Hospitality Corporation (NYSE: WEH) yesterday announced that it is updating guidance for
the third quarter ending September 30, 2002. Based on financial information and trends through the quarter, the
Company now expects third quarter Earnings Per Share to be in the range of $0.25 to $0.33, compared to $0.23 in
the third quarter of 2001. The Company will update guidance for the remainder of the year in its quarterly earnings,
scheduled for release in the last week of October.
Revenue is expected to range from $54.5 million to $56.0 million for the third quarter of 2002, compared to $33.8
million in the prior year period. EBITDA is expected to range from $11.8 million to $12.5 million, compared to
$10.1 million in the third quarter of 2001, and cash flow is expected to range from $6.8 million to $7.5 million,
compared to $5.8 million.
While current data suggests improving trends, including a RevPAR gain of more than 3% at all Company owned hotels
for the first 23 days of September, the Company remains cautious as the country faces a soft economy, potential
conflict in Iraq, and continued security alerts issued by the government. Despite the near term economic uncertainty,
the Company is encouraged by the recent RevPAR performance and overall strong performance over prior year. Specifically,
the Company is encouraged by its continued strong cash flow, which is expected to increase 15.7% to 28.6% during
the third quarter.
WestCoast Hospitality Corporation owns, manages and franchises full and limited service hotels in 16 western states.
WestCoast Hotels and Red Lion Hotels and Inns focus on serving business, convention and leisure travelers in first,
second and third tier markets. WestCoast provides entertainment services through TicketsWest, including event ticketing
for venues in the United States and Canada, and aggregates content for travel and entertainment that is sold in
real-time at its www.ticketswest.com website. TicketsWest also includes WestCoast Entertainment, a Broadway and
special event presenting company. G&B Real Estate Services is the real estate division of WestCoast Hospitality
Corporation and owns and manages commercial and residential properties. Registered trademarks of WestCoast Hospitality
Corporation and its affiliates protect the use of "WestCoast," "Red Lion," "TicketsWest"
and associated logo designs.
This release and supplemental information contains forward looking statements which are made pursuant to the Safe
Harbor provisions of the Private Securities Litigation Reform Act of 1995, including those concerning the future
products and activities of the Company. Investors are cautioned that all forward looking statements involve risks
and uncertainties, including without limitation, risks relating to the operation of hotels, the availability of
capital to finance growth, disruptions in service due to construction, the historical cyclicality of the lodging
industry, the integration of acquisitions, the early development stage of the Company's TicketsWest product and
its dependence on increased ticket sales, the unpredictability and potential fluctuations in future revenues and
operating results, as well as the other matters discussed under the headings "business" and "risk
factors" in the Company's annual report on Form 10K for the 2001 fiscal year and other matters disclosed in
the documents filed by the Company with the Securities and Exchange Commission. The Company's actual results could
differ materially from these statements.
CONTACT: Stephen Barbieri, VP, Chief Communications Officer of WestCoast Hospitality Corporation, +1-509-323-7211,
or InvestorRelations@WestCoastHotels.com.
Source: WestCoast Hospitality Corporation