Press Release: John Q. Hammons Hotels, Inc.
November 6, 2000
SPRINGFIELD, MO -- John Q. Hammons Hotels, Inc. (AMEX:JQH) yesterday reported total earnings before interest expense,
taxes, depreciation and amortization (EBITDA) of $30.5 million for the third quarter ended September 29, 2000,
compared to the 1999 third quarter EBITDA of $24.7 million.
Total revenue for the 2000 third quarter increased to $104.3 million, up 17.0 percent from $89.2 million in the
1999 third quarter. EBITDA for the nine months ended September 29, 2000, was $94.3 million, up 24.0 percent compared
to $76.0 million for the 1999 nine-month period. Total revenue for the 2000 nine months increased to $313.4 million,
up 19.0 percent from $263.3 million in the 1999 nine-month period.
The Company's average room rate for the 2000 third quarter was $98.30, up 3.9 percent compared to the 1999 third-quarter
average room rate of $94.64. In comparison, average room rate for the hotel industry was $85.40 in the 2000 third
quarter, up 5.4 percent from the 1999 third quarter. The Company's occupancy for the 2000 third quarter was 67.7
percent, up 1.3 percentage points from the 1999 third quarter of 66.4 percent. Occupancy for the hotel industry
was 69.7 percent for the 2000 third quarter, up 0.3 percentage points from the 1999 third quarter. The Company's
Revenue Per Available Room (RevPAR) was $66.52 for the 2000 third quarter, up 5.8 percent from $62.86 in the 1999
third quarter. RevPAR for the hotel industry was $59.53 in the 2000 third quarter, up 5.7 percent from the 1999
third quarter. RevPAR for John Q. Hammons Hotels, Inc. was up $6.99 or 11.7 percent above the hotel industry average
during the third quarter.
John Q. Hammons, Chairman and Chief Executive Officer, stated, "The Company's strong third-quarter performance
reflects the success of our superior locations and the continuing improvement of our new hotels. Our properties
represent the finest products in their respective markets."
Basic and diluted loss per share in the 2000 third quarter was ($0.10), compared to a ($0.17) loss in the 1999
third 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 65,200 shares
of Treasury Stock during the 2000 third quarter at an approximate average price of $6.49. Since the inception of
its stock repurchase program in 1999, the Company has thus far acquired a total of 1,119,400 shares at an average
price of $4.32.
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
Nashville (Franklin), Tenn.; a Residence Inn in Springfield, Mo.; an Embassy Suites Hotel in Lincoln, Neb. (opened
May 1, 2000); and the Marriott Courtyard in Springfield, Mo. (opened April 10, 2000).
The Company currently owns and manages 53 hotels, including six managed hotels, with 12,989 rooms in 21 states.
The new hotels under development (which will be managed by the Company) will add 719 suites and rooms, representing
an increase of 5.5 percent to the Company's portfolio. For more information about John Q. Hammons Hotels, please
visit our web site at www.jqhhotels.com
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 Nine Months Ended
Sept. 29, Oct. 1, Sept. 29, Oct. 1,
2000 1999 2000 1999
Total Revenue $ 104,348 $ 89,206 $ 313,351 $ 263,254
EBITDA $ 30,536 $ 24,727 $ 94,280 $ 76,029
EBITDA Margin
(Percentage of
Total Revenue) 29.3% 27.7% 30.1% 28.9%
Net Loss $ (511) $ (1,047) $ (423) $ (1,004)
Loss Per Share --
Basic and Diluted
Loss before
extraordinary item
and cumulative effect
of change in accounting
principle $ (0.10) $ (0.17) $ (0.08) $ (0.08)
Cumulative effect of
change in accounting
principle -- -- -- $ (0.08)
Net Loss Allocable to
the Company $ (0.10) $ (0.17) $ (0.08) $ (0.16)
Weighted Average
Shares Outstanding 5,271,002 6,029,958 5,418,851 6,145,325
Hotel Operating Data
Mature Hotels:
Occupancy 68.5% 69.2% 66.9% 66.1%
Average Room Rate $ 97.16 $ 94.32 $ 96.73 $ 93.79
RevPAR (Room Revenue
Per Available Room) $ 66.59 $ 65.27 $ 64.69 $ 62.00
New Hotels: (a)
Occupancy 62.0% 50.9% 60.0% 50.3%
Average Room Rate $ 106.47 $ 97.11 $ 110.76 $ 105.36
RevPAR (Room Revenue
Per Available Room) $ 66.06 $ 49.43 $ 66.47 $ 53.03
Total Owned Hotels:
Occupancy 67.7% 66.4% 66.0% 64.1%
Average Room Rate $ 98.30 $ 94.64 $ 98.36 $ 94.93
RevPAR (Room Revenue
Per Available Room) $ 66.52 $ 62.86 $ 64.92 $ 60.88
Sept. 29, Dec. 31,
2000 1999
Selected Balance
Sheet Data
Current Assets $ 64,329 $ 71,867
Total Assets $ 921,570 $ 934,312
Current Liabilities
Excluding Debt $ 45,031 $ 56,960
Total Debt Including
Current Portion $ 838,389 $ 828,843
(a) New Hotels Include: Mesquite Hampton Inn & Suites, Coral
Springs Radisson, DFW Airport Embassy Suites, Charlotte Renaissance
Suites, Oklahoma City Renaissance, North Charleston Embassy Suites.