Company Press Release
May 11, 2000
SPRINGFIELD, MO -- John Q. Hammons Hotels, Inc. (AMEX:JQH) yesterday reported total earnings before interest expense,
taxes, depreciation and amortization (EBITDA) of $28.2 million for the first quarter ended March 31, 2000, an increase
of 15.6% from the 1999 first quarter EBITDA of $24.4 million. Total revenue for the quarter increased to $99.5
million, up 19.0% from $83.6 million in the 1999 first quarter.
The Company's average room rate for the 2000 first quarter was $98.35, up 3.5% compared to the 1999 first quarter
average room rate of $95.02. In comparison, an average room rate for the hotel industry was $85.16 in the 2000
first quarter, up 3.6% from the 1999 first quarter. The Company's occupancy for the 2000 first quarter was 62.0%,
up 1.0 percentage point from the 1999 first quarter. Occupancy for the hotel industry was 59.1%, down 0.1 percentage
point from the 1999 first quarter. The Company's Revenue Per Available Room (RevPAR) was $60.96 in the 2000 first
quarter, up 5.2% from $57.94 in the 1999 first quarter. RevPAR for the hotel industry was $50.33, up 3.4% from
the 1999 first quarter.
John Q. Hammons, chairman and chief executive officer, stated, ``The combination of our New Hotels, outstanding
locations and exceptional meeting space are driving our strong operating results in the first quarter of 2000.''
During the 2000 first quarter, the Company opened the Renaissance Oklahoma City Hotel in downtown Oklahoma City,
Oklahoma (January 28) and the Embassy Suites North Charleston Hotel in Charleston, South Carolina (February 18).
Although the Company is not developing new hotels, Mr. Hammons is personally developing several new projects which
will be managed by the Company including a Renaissance Hotel in Richardson, Texas; an Embassy Suites Hotel in Franklin,
Tennessee; and an Embassy Suites Hotel in Lincoln, Nebraska (opened May 1, 2000). Another managed hotel, the Marriott
Courtyard in Springfield, Missouri, opened April 10, 2000.
Basic and diluted earnings per share in the 2000 first quarter were a $(0.14) loss, compared to a $(0.15) loss
in the 1999 first quarter.
The Board of Directors of the company has authorized management to repurchase up to $3.0 million of outstanding
company stock in fiscal year 2000. Consistent with this authorization, the Company has purchased 120,500 shares
of Treasury Stock during the 2000 first quarter at an approximate average price of $3.94.
The Company currently owns and manages 52 hotels, including five managed hotels, with 12,592 rooms in 21 states.
The new hotels under development (which will be managed by the Company) will add 838 suites and rooms representing
an increase of 6.6% to the Company's portfolio.
NOTE: Certain matters discussed within this press release are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Although John Q. Hammons Hotels, Inc. believes the expectations
reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that
its expectations will be attained. These uncertainties are more fully described in the Company's filings with the
Securities and Exchange Commission.
JOHN Q. HAMMONS HOTELS, INC
(Amounts in thousands except earnings (loss) per share and
operating data)
Three Months Ended
March 31, April 2,
2000 1999
---- ----
Total Revenue $99,452 $83,595
EBITDA $28,239 $24,389(1)
EBITDA Margin (Percentage of Total Revenue) 28.4% 29.1%
Net Loss $ (758) $ (938)
Loss Per Share-Basic and Diluted:
Loss before extraordinary item &
cumulative effect of change in
accounting principle $ (0.14) $ (0.06)
Extraordinary Item - $ (0.01)
Cumulative effect of change
in accounting principle - (0.08)
-------- --------
Net Loss Per Share Allocable to Company $ (0.14) $ (0.15)
Weighted Average Shares Outstanding 5,525,760 6,288,747
Hotels Operating Data
Mature Hotels:
Occupancy 63.0% 61.9%
Average Room Rate $ 96.21 $ 92.72
RevPar (Room Revenue per available room) $ 60.59 $ 57.37
New Hotels (2)
Occupancy 54.4% 52.8%
Average Room Rate $117.19 $ 119.41
RevPar (Room Revenue per available room) $ 63.75 $ 63.10
Total Owned Hotels:
Occupancy 62.0% 61.0%
Average Room Rate $ 98.35 $ 95.02
RevPar (Room Revenue per available room) $ 60.96 $ 57.94
March 31, April 2,
2000 1999
---- ----
Selected Balance Sheet Data
Current Assets $ 65,227 $ 55,435
Total Assets $932,699 $876,459
Current Liabilities Excluding Debt $ 44,741 $ 40,756
Total Debt Including Current Portion $848,721 $786,311
1) The 1999 first quarter includes a $750 favorable impact to
insurance reserves
2) New Hotels include: Mesquite Hampton Inn & Suites, Coral Springs
Radisson, Charlotte Renaissance Renaissance Suites, DFW Airport
Embassy Suites, Oklahoma City Renaissance, North Charleston
Embassy Suites
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Contact:
John Q. Hammons Hotels, Inc.
Ken Weber, Chief Financial Officer
417/864-4300