Press Release: John Q. Hammons Hotels, Inc.
August 9, 2001
SPRINGFIELD, MO -- John Q. Hammons Hotels, Inc. (AMEX:JQH) yesterday reported basic earnings per share in the 2001
second quarter of $0.13, compared to basic earnings per share of $0.16 in the 2000 second quarter.
In the first half of 2001, basic earnings per share for the Company were $0.18, compared to $0.02 for the same
period in 2000. Total earnings before interest expense, taxes, depreciation, and amortization (EBITDA) were $34.6
million for the second quarter, down 2.5% compared to the 2000 second quarter EBITDA of $35.5 million, reflecting
the impact of a weakening economy.
In spite of the weaker economy, the Company continued to surpass the performance of the hotel industry. For example,
the Company's average room rate for the 2001 second quarter was $101.39, up 3.0% compared to the 2000 second quarter
average room rate of $98.40. In comparison, the average room rate for the hotel industry was $86.21 in the 2001
second quarter, up 1.8% from $84.67 in the 2000 second quarter. The Company's occupancy for the 2001 second quarter
was 67.3%, down 1.0 percentage point from the 2000 second quarter occupancy rate of 68.3%. Occupancy for the hotel
industry was 64.7% for the 2001 second quarter, down 3.0 percentage points from the 2000 second quarter. The Company's
Revenue Per Available Room (RevPAR) was $68.22 for the 2001 second quarter, up 1.5% from $67.20 in the 2000 second
quarter. RevPAR for the hotel industry was $55.81 in the 2001 second quarter, down 2.6% from $57.28 in the 2000
second quarter. RevPAR for the Company was 22.2% above the hotel industry average during the 2001 second quarter.
John Q. Hammons, Chairman and Chief Executive Officer, stated: ``The Company's strong performance in the midst
of a weakening economy this quarter was encouraging. We will continue to pursue improved hotel operating results
as we move forward.''
Although the Company continues its moratorium on developing new hotels, Mr. Hammons has personally developed three
projects that opened during 2000 and the first half of 2001: an Embassy Suites Hotel in Lincoln, Nebraska (opened
May 2000); a Marriott Courtyard in Springfield, Missouri (opened April 2000); and a Renaissance Hotel in Richardson,
Texas (opened May 2001). In addition, Mr. Hammons has two hotels under development which will open in the second
half of 2001: an Embassy Suites Hotel in Nashville, Tennessee (Franklin, opening August 2001); and a Residence
Inn in Springfield, Missouri (opening September 2001). The Company will manage all of these properties.
The Company currently owns and manages 54 hotels, including seven managed hotels, with 13,325 rooms in 21 states.
The new hotels under development by Mr. Hammons personally will add 386 suites and rooms, an increase of 2.9% to
the Company's portfolio. For more information about John Q. Hammons Hotels, please visit our website 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 per share and operating data)
Three Months Ended Six Months Ended
June 29, June 30, June 29, June 30,
2001 2000 2001 2000
------- ------- ------- -------
Total Revenue $ 116,950 $ 114,498 $ 232,259 $ 218,622
EBITDA $ 34,568 $ 35,505 $ 67,601 $ 63,744
EBITDA Margin
(Percentage of
Total Revenue) 29.6% 31.0% 29.1% 29.2%
Net Income $ 650 $ 846 $ 917 $ 88
Earnings Per Share --
Basic and Diluted:
---------------------
Basic Earnings per share $ 0.13 $ 0.16 $ 0.18 $ 0.02
Weighted Average
Shares Outstanding 5,070,073 5,459,790 5,067,318 5,492,775
Diluted Earnings Per
Share Allocable to
the Company $ 0.12 $ 0.16 $ 0.17 $ 0.02
Diluted Weighted Average
Shares Outstanding 5,284,969 5,459,790 5,282,214 5,492,775
Hotels Operating Data
---------------------
Mature Hotels:
Occupancy 67.0% 69.1% 65.3% 66.0%
Average Room Rate $ 100.67 $ 96.74 $ 101.93 $ 96.51
RevPar (Room Revenue per
available room) $ 67.43 $ 66.89 $ 66.52 $ 63.74
New Hotels(a):
Occupancy 73.1% 62.8% 70.3% 58.9%
Average Room Rate $ 114.29 $ 110.24 $ 113.03 $ 113.19
RevPar (Room Revenue per
available room) $ 83.59 $ 69.20 $ 79.42 $ 66.69
Total Owned Hotels:
Occupancy 67.3% 68.3% 65.5% 65.2%
Average Room Rate $ 101.39 $ 98.40 $ 102.50 $ 98.39
RevPar (Room Revenue per
available room) $ 68.22 $ 67.20 $ 67.15 $ 64.11
June 29, Dec. 29,
2001 2000
-------- --------
Selected Balance Sheet Data
---------------------------
Current Assets $ 82,312 $ 67,208
Total Assets $ 920,233 $ 920,884
Current Liabilities
Excluding Debt $ 52,012 $ 48,387
Total Debt Including
Current Portion $ 827,528 $ 836,707
Total Cash and Equivalents
and Marketable Securities $ 62,657 $ 49,171
(a) New Hotels include: Oklahoma City Renaissance and North
Charleston Embassy Suites
-------------------------------------------------------------
Contact:
John Q. Hammons Hotels, Inc., Springfield
Paul Muellner, 417/864-4300
www.jqhhotels.com