Press Release: Jameson Inns, Inc.
November 3, 2000
ATLANTA, GA -- Jameson Inns, Inc., a hotel real estate investment trust (REIT), and owner of Jameson Inns and Signature
Inns, yesterday announced that its funds from operations, the most commonly used measurement of performance for
an equity REIT, was $5,062,000 or $.46 per share, for the quarter ended September 30, 2000, versus funds from operations
of $5,841,000 or $.54 per share for the same quarter in 1999. Funds from operations have been calculated as net
income attributable to common stockholders before depreciation expense, loss on sale of property and extraordinary
items.
For the quarter, the Company reported net income attributable to common stockholders of $1,412,000 or $.13 per
share basic and $.12 per share diluted, versus net income attributable to common stockholders of $2,289,000 or
$.21 per share basic and diluted for the same quarter in 1999.
Jameson Inns derives its revenues from lease rentals paid by Jameson Hospitality, LLC, the company that operates
all of the Jameson and Signature Inns. The lease revenue is primarily based on gross room revenues generated by
the Inns. Lease revenues for the quarter increased 7.4% to $12,219,000, a $840,000 increase over lease revenues
from the quarter ended September 30, 1999 due primarily to the opening of additional Jameson Inns. On September
30, 2000, there were 95 operating Jameson Inns and 26 operating Signature Inns; on September 30, 1999, there were
87 operating Jameson Inns and 26 operating Signature Inns.
Third Quarter Overview
Combined Same Inns Revenue per available room (REVPAR) for both brands of the Company was $38.01 for the third
quarter of 2000, down $.15, or .4% from the third quarter of 1999, resulting from a 3.2% increase in average daily
rate offset by a decline in occupancy to 63.5% from 65.8%.
Same Inns REVPAR at the Jameson Inns was $34.35 for the third quarter of 2000 compared to $34.59 for the third
quarter of 1999, resulting from a 3.8% increase in average daily rates offset by a decline in occupancy to 62.7%
from 65.2%. Pro forma REVPAR at the Signature Inns was flat at $42.78, due to a 3.2% increase in average daily
rates offset by a decline in occupancy to 64.5% from 66.6%.
``Funds from operations were below our expectations due to rising interest costs on our portfolio plus longer than
anticipated ramp-ups in occupancy from our newly developed Inns,'' stated Craig Kitchin, President and Chief Financial
Officer. ``Because our new, interior corridor prototype Jameson Inn is larger than our traditional exterior corridor
Inn, it is taking longer to reach stabilized occupancy rates.''
New Developments
During the third quarter we opened three new Jameson Inns in Jackson, TN, Pooler, GA, and Lakeland, FL. As of September
30, 2000 there were 14 new Jameson Inns under development that are expected to open within the next 12 months.
During the third quarter, the Company declared a quarterly dividend of $.245 per common share. The dividend is
payable on November 20, 2000, to shareholders of record on September 30, 2000.
The Company will hold a third quarter earnings conference call at 2:00 p.m. eastern standard time today, November
2, 2000. You may hear a rebroadcast of the call until 12 midnight on Sunday, November 5th by dialing 1-800-428-6051
and using the pass code 139522.
Jameson Inns, Inc. is a real estate investment trust that develops and owns the Jameson Inn and Signature Inn brands.
The Jameson Inns are colonial- style, limited service hotel properties located in the Southeast. The Signature
Inns are larger, limited service hotel properties located primarily in the Midwest. For more information, visit
www.jamesoninns.com .
Statements in this press release which are not strictly historical are ``forward-looking'' and are subject to the
many risks and uncertainties which affect the Company's business. These uncertainties, which include competition
within the lodging industry, the balance between supply and demand for hotel rooms, the Company's ability to execute
new hotel construction or acquisition programs, the effect of economic conditions, the impact of rising interest
rates, and the availability of capital to finance planned growth, are detailed from time to time in the Company's
filings with the Securities and Exchange Commission. The Company does not undertake any obligation to publicly
update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Three Months Ended Nine Months Ended
September 30 September 30
2000 1999 2000 1999
Lease Revenue $12,219,244 $11,379,166 $33,010,688 $25,576,268
Property and
Other Taxes $1,001,170 $700,166 $2,661,977 $1,666,817
Insurance Expense $220,593 $205,760 $639,515 $489,163
Depreciation $3,645,525 $3,324,688 $10,526,494 $7,230,560
General and
Administrative
Expenses $318,559 $303,819 $993,209 $744,689
Loss on Disposal of
Real Estate $4,465 $218,839 $37,317 $480,244
Interest Expense, Net
of Capitalized
Amounts $3,962,281 $2,696,324 $10,527,657 $5,621,351
Income Before
Extraordinary Item $3,078,757 $3,983,628 $7,647,210 $9,422,950
Extraordinary Loss
from Early
Extinguishment
of Debt $--- $--- $69,229 $---
Net Income $3,078,757 $3,983,628 $7,577,981 $9,422,950
Cumulative Preferred
Stock Dividends $1,667,183 $1,694,596 $5,028,961 $3,692,653
Net Income
Attributable to
Common
Shareholders $1,411,574 $2,289,032 $2,549,020 $5,730,297
Net Income
Attributable to
Common Shareholders
Per Share:
Basic $0.13 $0.21 $0.23 $0.55
Diluted $0.12 $0.21 $0.22 $0.54
Funds From
Operations $5,061,564 $5,841,498 $13,182,060 $13,455,801
Funds From
Operations
Per Share-Basic $0.46 $0.54 $1.19 $1.29
Three Months Ended Nine Months Ended
September 30 September 30
Jameson Inns 2000 1999 2000 1999
All Inns:
Occupancy Rate 59.8% 64.5% 59.1% 62.3%
Average Daily Rate $55.43 $53.13 $54.69 $52.74
Revenue Per Available
Room (REVPAR) $33.14 $34.26 $32.33 $32.84
Same Inns:
Occupancy Rate 62.7% 65.2% 61.1% 63.3%
Average Daily Rate $54.77 $53.10 $54.08 $52.69
Revenue Per Available
Room (REVPAR) $34.35 $34.59 $33.06 $33.35
Signature Inns
Pro forma (1)
Occupancy Rate 64.5% 66.6% 59.3% 60.4%
Average Daily Rate $66.31 $64.26 $64.69 $63.27
Revenue Per Available
Room (REVPAR) $42.78 $42.78 $38.39 $38.25
Both Brands
Pro forma (1) Combined
Same Inns:
Occupancy Rate 63.5% 65.8% 60.3% 62.0%
Average Daily Rate $59.86 $58.02 $58.77 $57.34
Revenue Per Available
Room (REVPAR) $38.01 $38.16 $35.45 $35.55
Actual Combined
All Inns:
Occupancy Rate 61.7% 65.4% 59.2% 63.4%
Average Daily Rate $59.92 $57.99 $58.75 $55.84
Revenue Per room
Available (REVPAR) $36.94 $37.92 $34.79 $35.42
(1) Assumes the 26 Signature Inns were owned as of January 1 of the
respective period.
SOURCE: Jameson Inns, Inc.